Economics Dictionary of ArgumentsHome
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| Consumption: In economics, consumption refers to the act of using goods and services to satisfy current needs and wants. It is a key component of economic activity and is measured as part of gross domestic product (GDP). Consumption is driven by factors such as income, wealth, preferences, and expectations. Consumption is a key component of the economy, influencing production, demand for goods, and overall economic growth. See also economic growth, Economy, Preferences._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Friedrich A. von Hayek on Consumption (Economics) - Dictionary of Arguments
Boudreaux II 53 Consumption/Hayek/Boudreaux: The fact that each person's livelihood is tied disproportionately to what he or she produces rather than to what he or she consumes creates a practical problem, however. Each person, as a producer, works only at one or two occupations; each person earns an income only from one or two sources. Yet each person, as a consumer, buys thousands of different items. Boudreaux II 54 Prices/wages/consumption: A change in the price of any one or a few consumer goods has much less impact on the well-being of an individual than does a change in the price of what that individual is paid for what he produces or for the labour services he sells. Wages/income: I’m much more likely to complain bitterly about - and to resist - a fall in my income than I am to complain about and resist a rise in the prices of the things I buy as a consumer. Politicians in democratic countries naturally respond to these concerns. People’s intense focus on their interests as producers ((s) i.e., as wage-earners), and their relative inattention to their interests as consumers, sumers, leads them to press for government policies that promote and protect their interests as producers. If government policies that protect people's interests as producers are limited to keeping them and their factories, tools, inventories, and other properties safe from violence, theft, fraud, and breach of contract, then there is no danger. Indeed, such protection of producers - along with assurances against their being taxed and regulated excessively - is essential for economic prosperity. Boudreaux II 55 Problem: Trouble arises, however, when government seeks to protect producers (including workers) from market forces - when government aims to shield producers from having to compete for consumer patronage. Such protection promotes not free-market capitalism, but crony capitalism. >Capitalism, >Free market, >Markets, >Production, >Inflation, >Income, >Wages._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Hayek I Friedrich A. Hayek The Road to Serfdom: Text and Documents--The Definitive Edition (The Collected Works of F. A. Hayek, Volume 2) Chicago 2007 Boudreaux I Donald J. Boudreaux Randall G. Holcombe The Essential James Buchanan Vancouver: The Fraser Institute 2021 Boudreaux II Donald J. Boudreaux The Essential Hayek Vancouver: Fraser Institute 2014 |
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