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.
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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.
The statutory language looks to unions to raise wages to counter an ongoing deflationary cycle where declining wages result in under-consumption and increased unemployment.
Thus, we raise the issue of rethinking global economy as a prerequisite for the achievement of progress, for the development of humankind as a whole, which imposes the elimination of society's division into rich and poor, of the serious disparities in consumption, in terms of both overconsumption --highly unethical, and under-consumption, equally immoral, as Pope John Paul II said.
* Understand risk factors such as inflammatory processes that demand nutrient absorption as well the under-consumption or intake of nutritionally deplete meals.
drinking low-fat and fat-free milk and milk products every day will help provide adequate calcium, potassium, vitamin A and magnesium-vital minerals that are identified as "nutrients of concern" for adults because of widespread under-consumption.
It is based on a Marxist conception of under-consumption (or stagnationist hypothesis) that causes a crisis.
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.
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. Increase in the extension of credit to workers can temporarily address this problem, but only at the expense of increased likelihood of ever greater default and inflation of good and asset prices.
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.