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 ?
Governments of advanced countries have several options for escaping from the under-consumption trap (Baran and Sweezy, 1966).
The way Elsenhans theorises marginality, under-development, under-consumption and globalisation are also distinctive.
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).
He re-examines the link between imperial expansion in India and Egypt with Positivist writings on India and Hobson's views on under-consumption and over-saving, and looks at the Positivists' vision of a Britain within an Empire.
This trend is expected to be accompanied by a parallel under-consumption crisis, and negatively affect consumption habits in fishery products.
And insofar as state authorities assist big business in keeping wages low--at home and abroad--to increase profitability, so is there increased threat of crises of under-consumption.
The authors explain how the three improve their lives by creating "capital" (fishing nets and other technology) through risk-taking investment, under-consumption, and savings.
Thus the transition in the EH economy is characterized by initial over-consumption relative to the IH economy, followed by subsequent under-consumption, as shown in Figure 5 when [phi] = 2.
The abuse of the promise of globalization arose out of two mutually reinforcing, flawed models of growth: first, debt-financed overconsumption in America and a few other major developed economies; and second, dramatic over-savings and under-consumption in the major production-oriented export economies of Asia, especially China.
Both over-consumption and under-consumption of food can have an effect on the future likelihood of gaining weight, they said.
But professor Xu Xiaonian of the China Europe International Business School in Shanghai said the strategy supports structural imbalances -- over-investment, surplus production capacity, and under-consumption -- while neglecting long-term objectives.
In the past quarter century we have solved the problem of stagnating wages and thus under-consumption with increased availability of credit.