Consumption

The consumption is the fact of consuming goods and service S, generally with an aim of satisfying its Besoin S or its desires. It is the fact of the Consommateur S and the Entreprise S.

The phases complementary to consumption are the Production and the Distribution.

Definitions in economy

- One speaks about two types of consumption:
  • the Intermediate consumption: it corresponds to the productive consumption which will contribute to the production of other goods (or services). =

  • final consumption corresponds to the Quantité of the goods and service S Utilisé S which contributes to the direct satisfaction of the Besoin S for the individual agents, the households, is collectively (consumption of the administration S called noncommercial consumption). According to the National accounting, it corresponds to " the use of goods and services for the direct satisfaction of the humains" needs; , except for the purchases of residences entered like intermediate consumption and capital expenditures.

Definitions in National accounting

According to the national accounting, the total final consumption studied on the level of a country joins together:

  • the final Consumption the household or the private Consumption: includes/understands three elements:

The whole of the expenditure having allowed acquisition of property and commercial services by the households to satisfy their individual needs. The whole of the expenditure for the goods and services depending from the production for clean final use, the services domestic, the services of housing produced by the occupying owners, agricultural subsistence farming. Payments partial with the public administrations (APU) and the non-profit-making institutions with the service of household (ISBLSM) caused by certain services acquired near the noncommercial producers.
  • final consumption individualisable of the APU or the Public consumption:

It corresponds to services in kind of goods and services yielded free or at nonsignificant prices to the households (teaching, health, social action, entertaining or cultural services).

  • the final consumption of the ISBLSM:

It corresponds to the noncommercial welfare transfers intended for the households.

Particular cases

When the households consume what they produce themselves, even partially, one speaks about subsistence farming . This case meets in particular in traditional agriculture. (See food Agriculture).

Place de la consumption in the economy

The consumption, exerted as an economic function by the Ménage S belongs to the general business cycle. The Budget of the households comprises as resources

  • Their Revenu S
  • the money which they can borrow
  • that they can withdraw from their inheritance (désépargne)

These resources are employed for

  • their consumption
  • Their taxes and taxes
  • Their refundings of loans
  • Their constitution of saving and their investments (real…). In theory the saving is used for a consumption differed in time.

It is thus seen that consumption depends on the incomes of the consumers but also of their behaviors with respect to the money. Those are often conditioned by their anticipations of future incomes and their general confidence in the future. See Consuming S

The evolution of consumption is a key component of the Economic conjuncture.

The Consumption function keynésienne

Some definitions

  • the income available gross Yd

It should first of all be admitted the fact that to consume, the economic agents, in particular the households, need an income.

Thus, the households perceive labor incomes (net salaries of the national insurance contributions, unearned incomes of the free lances) and property incomes (dividend, interests and rents). The sum constitutes the primary education income. For these incomes, it is necessary to add the incomes of transfer (social security benefits) and to deduce the direct taxes. One thus obtains the entire amount of the resources which remains at the disposal of the households in order to consume or save.

  • the consumption function

The behaviors of household consumption are initially given by the decision of division. Thus, their income available will be divided between consumption and the saving. The analysis keynésienne supposes that consumption has an importance first in the assignment of the income. Consequently, Keynes supposes that it is according to the income available, that is to say:

C=c (Yd)
  • the function of saving

In national accounting, the rough saving of the households represents the share of the income which " remain available to accumulate the physical credits and financiers". It constitutes the balance of the account of use of the income and has two components: Financial saving (liquid assets, placements) Saving not - financial (acquisition of residences, purchases of capital equipment by the individual contractors).

The saving is clear when one deduces damping from the capital of the contractors.

The consumer society

The term “consumer society” is the simplification of the term “industrial society of directed consumption” , defined by Henri Lefebvre as being the state of the Capitalisme according to the Second world war.

A consumer society , phrase which can be as well laudatory as pejorative, characterizes a company in which the Achat of goods of consumption is at the same time the principle and the finality of this company. In this one, the mean level of Returned high satisfied not only the Need S regarded as essential (Food, Housing, education, Health,…) but it also makes it possible to accumulate goods (by pleasure, social pressure or advertizing) and to use them or right to show them (for reasons Esthétique S or others), expenditure that some judge superfluous. Its symbol and its spearhead are the “consumable” Objet which and which wears should be renewed, even the disposable object. It would be probably possible to make more resistant objects, which would increase their cost and their lifespan, which would harm consumption then.

For the opponents at the consumer society, the ideology is summarized as follows: the remedy for all the Désir S is to appease them. And to appease its desires, it is necessary to gain sufficient money to be able to allow it. That supposes that, in this ideology, all is mercantilisable.

Holding of the consumer society consider that the wasting, superfluity, the transitory one and the redundancy are engines of companies centered on the development and the innovating initiative. The search of superfluity would be one of the characteristics which would distinguish the human being from the animal, limited in its waitings, needs, desires and aspirations.

However, the Surconsommation involves damage with the Environnement and the Santé by the nonmoderate Usage of the Natural resources.

The episcopal synod which followed the Vatican II declared that the philosophical cause of the consumer society was an excess of Immanentisme, i.e. a form of Sensualisme carried exclusively towards the material life. This form of materialism is related with the teaching of Spinoza.

the " consom' action"

The Consom' action (Neologism) or responsible consumption is a recent sociocultural phenomenon, mainly in " mediums; alternatifs". It expresses the idea according to which one can " to vote with its caddie" while choosing to which one gives his money, while choosing to consume either only in manner consumerist, but by taking account of the “Sustainable development”.

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