consumption is the act of acquire goods or services through purchase and can be understood as one of the stages of economic activity. In this sense, consumption would be the last stage, being preceded by production and distribution.
Consumption, therefore, is the phase in which goods and services reach the final consumer, who will purchase them to satisfy their needs - this is the end of this economic cycle.
In capitalist society, consumption is fundamental for money to circulate, generating income and employment. In other modes of economic production, such as feudalism, for example, consumption did not assume this central role.
Consumption is carried out by individuals, by families and even by the State and companies, who purchase goods and services to carry out their activities.
Factors that determine consumption
The types of goods and services that will be consumed by economic agents depend on several factors, such as income, O goods prices, you Consumption habits and the culture.
For this reason, consumption varies considerably between individuals from different regions of the globe and also between individuals and families from the same country or region, but belonging to social classes many different.
A family with lower purchasing power, for example, will opt for more affordable goods and will prioritize the supply of basic needs such as food, hygiene and health. Families from higher social classes tend to consume more expensive products and may be better able to purchase superfluous goods.
know more about social inequality, capitalism and feudalism.
Types of consumption
- Individual x Collective: consumption can be by just one individual or by a collective of people. Public health and education services, for example, are considered for collective consumption.
- Private x Public: companies, families and individuals represent private consumption, while purchases made by the public administration represent public consumption.
- Essential x Superfluous: essential consumer goods are those that meet the essential needs of life, such as food, education, clothing. Superfluous consumption meets secondary or tertiary needs, such as aesthetic or even luxury products.
- Final x Intermediate: final consumption is aimed at satisfying needs. Intermediate consumption is represented by the goods and services necessary for the production of other goods, such as the raw materials of an industry.
see what it means public administration and consumer goods.
Difference between consumption and consumerism
The terms consumption and consumerism are often considered synonymous, but they have different meanings.
While consumption is associated with the purchase of products in order to satisfy needs, consumerism is characterized by a overconsumption, consumption for consumption.
Until the Industrial Revolution, products were handcrafted and therefore scarcer and less accessible. With the advent of technology and scale production, industrialized products became cheaper and consumption began to grow.
From the second half of the 20th century, with the consolidation of the capitalist system in the world, consumption intensified. Today we live in a consumer society and this classification is directly related to consumerism.
Capitalist society encourages consumption at such high levels that today we see the depletion of natural resources and countless social and environmental damage.
Pollution, waste production, intoxication of rivers and seas and extinction of animals. All these consequences are related to the high consumption of human beings on planet Earth.
Know what was the Industrial Revolution.
Conscious consumption
Concern for the environment and the harmful consequences of consumerism has increased the population's awareness of consumption.
Consciously consuming means avoiding waste, considering the impacts that products acquired cause to nature or to human beings, reduce the generation of garbage and difficult materials. recycling
Also, it is important to know how and by whom products are manufactured. The conscientious consumer rejects products that have been produced with labor exploitation or animal abuse, for example.
See also the meaning of consumerism and sustainable consumption.