Productive Consumption: Capital Goods and Productive Capacities

ECONOMICS HONOURS
SEMINAR PAPER

PRODUCTIVE CONSUMPTION: CAPITAL GOODS AND PRODUCTIVE CAPACITIES

TEJASWINI KATE
SYBA (A)
ROLL NO.56

CONTENTS

Preface 3
SECTION I: Productive Consumption an Overview 4 1. What is productive consumption? 2. An example from the Keynesian purview 3. How is it different from non-productive consumption?

SECTION II: Relevance of Productive Consumption 8 1. Intrinsic relation to labour economics & GDP accounting 2. Capital goods 3. Creation of productive capacities 4. Productive Chains

SECTION III: 12
Conclusion
Appendix: Synopsis

SECTION IV: 14
Bibliography

PREFACE Production and consumption are two inseparable aspects of the production and reproduction of human life, but in modern society these concepts have become separated. Production and consumption are identical in another way: production consumes labour-power and other products of labour, and is therefore equally consumption; production of labour-power entails consumption of food, education and so on and so forth, and is therefore equally consumption. Thus production of the means of production is impossible without production of the means life and vice versa, and the system of distribution and exchange must ensure the proper balance between the two. Thus the system of distribution and

Bibliography: Gersovitz (1988) distinguishes three forms of productive consumption: (A) Nutrition,