From: Jurriaan Bendien (adsl675281@TISCALI.NL)
Date: Mon Dec 05 2005 - 16:07:48 EST
One other comment about this: the notion of "aggregate demand" is actually more complex than it seems at first sight, if its composition is viewed through the prism of economic reproduction, since we then have to distinguish between: - expenditure on means of production (intermediate goods and fixed capital goods). - expenditure on financial assets and non-productive assets (including real estate and land). - expenditure on means of consumption - durables and non-durables. - expenditure on means of destruction - military and eco-destructive goods. - expenditure on luxury consumption. - liquid or hoarded potential purchasing power If you crunch the numbers you will see that workers' consumption is only the *minor* part of this total aggregate demand. Even so, this is only *monetarily effective* demand; it does not refer to needs unmet through lack of buying power. Jurriaan
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