Underconsumption

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Underconsumption

The reduction of demand by consumers. That is, underconsumption is the desire of consumers to buy fewer goods. Some early Keynesian thinkers believed that underconsumption causes recessions or stagnation, but most now argue that aggregate demand consists of more than consumption. Classical and Austrian School economists reject the notion that underconsumption is harmful.
References in periodicals archive ?
For example, a concept such as corporate guided markets, as a response to the perpetual threat of under-consumption, contrasts markedly with the conventional wisdom offered by marketing academics (Kotler & Armstrong, 2013).
The crisis of the 1930s showed how increased availability of credit could give the appearance of overcoming the problems of under-consumption and surplus absorption, while hugely increasing the power of the bankers and financiers operating the credit system, and ultimately creating a massive meltdown of world capitalism.
In the middle of the Great Depression, John Maynard Keynes realized that under-consumption by workers can be balanced temporarily by extra government projects.
China has relied on under-consumption, high savings plus a large FDI contribution and export growth while India has relied on domestic consumption growth, low FDI and moderate export growth.
There has been a growing body of research over soaring obesity levels recently - including a leaked Department of Trade and Industry report in July which claimed that half of all primary school aged boys will be obese by 2050 - and government concerns around over-consumption of high fat, salt and sugar (HFSS) foods and the under-consumption of fresh foods, fruit and vegetables.
The central bank's sterilization effort is restricting money supply from rising to meet this money demand, thus perpetuating the imbalance of over-investment and under-consumption.
The obesity epidemic, for instance, is not just happening in the United Kingdom but in countries associated with under-consumption rather than over or malconsumption, places such as India, Brazil, China and the Middle East--markets that big companies want to enter.
This is an important factor when considering potential strategies for improving breakfast consumption so that both under-consumption and over-consumption of food at breakfast time are addressed.
were agreeing that overproduction was badly influencing markers, whereas the writer always considered the downward trend a result of under-consumption.
Hydrogen cannot, on its own, entirely solve each of these complex problems, which are affected not only by fuel supply but also by such factors as population, over- and under-consumption, sprawl, congestion, and vehicle dependence.
After all, there are many imminent dangers facing the world system at present, including rising poverty for many of the globe's citizens, under-consumption for many producers because there is no link between increasing exports and rising standards of living for all, an uncontrollable social deficit from the absence of human rights and environment al and labour standards, and, of course, always present, the siren calls of protectionism.
Keynes's inclusion of cash among assets acquired in the act of saving also explains his siding with Malthus against Ricardo in their debate over the possibility of a general glut, and extending the under-consumption theory of Malthus and his followers.