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 ?
"Overproduction and Underconsumption: A Remedy." International Labour Review 14: 37-54.
In particular for the FiP and its relatively stronger distortionary effect on prices, higher RTP shares mitigate respective welfare losses due to allocative inefficiencies arising from over- and underconsumption given a fixed retail price.
Indeed, if there is overproduction, there is underconsumption therefore over-saving.
Baseline food intake as reported by two 24-hour food recalls consisted of a diet high in saturated fat and low in fiber, with a moderate intake of carbohydrates and underconsumption of fruits, vegetables, and dairy products.
It suffers from underconsumption and excessive corporate saving.
In our research, overconsumption is the opposite of anticonsumption but is not an antonym of underconsumption, which focuses on aspects of poverty (Sheth et al.
Of these "shortfall" nutrients, calcium, vitamin D, fiber, and potassium, as well as iron in adolescent and premenopausal females, are classified as nutrients of public health concern because their underconsumption is linked to adverse health outcomes.
In addition to underconsumption, that is, too little for the poor, it is well-known that there is also overconsumption, that is, too much for the rich.
A substantial number of people are considered to be malnourished, either through overconsumption of foods that should be consumed in moderation (foods deficient in vitamins, nutrients, and fibre [3]) or through underconsumption of nutritious food [4].
German working class organizations have accepted a corporatist deal with business in order to hold onto jobs in Germany, but this has resulted in a sluggish expansion of the internal German market, with productivity growth outpacing production growth, hence, the typical underconsumption configuration.26 The fear of inflation is a powerful factor in this orientation.
It postulated a tendency for the rate of profit to fall (because of the technological displacement of labour, that is by a rising 'organic' composition of capital); perhaps chronic but certainly periodic overproduction and underconsumption; disproportionality (structural and inter-sectoral misalignment which market forces alone could not readily remedy); and contradictory pressures on the state and politics (that is, rectification of imbalances seems to erode the 'logic' of the accumulation process and key tenets of the market economy).
It was from his theory of cooperation that Hobson developed his theory of underconsumption which has been his chief contribution to economic theory and was to have a major influence on Keynes.