Thursday, August 2, 2012

Production and consumption

Production and consumption are two sides of an on going event. In a market economy if what is produced is not consumed it creates no new profits and leads to a crisis of overproduction i.e. an economic depression. the process of production is consumption of the raw materials, tools, labor power of the labor force used up in production. worker wages goes to buy, food, shelter, clothes and etc. The workers consume in order to live another day and go to work to earn a living.

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