underconsumption
Sign in to saveUnderconsumption is a theory in economics that recessions and stagnation arise from an inadequate consumer demand, relative to the amount produced. In other words, there is a problem of overproduction and overinvestment during a demand crisis. The theory formed the basis for the development of Keynesian economics and the theory of aggregate demand after the 1930s.
~13 min read
Article
12 sectionsContents
- Theory
- Keynesian
- Marxian
- History
- 16th century through 18th century – mercantilism
- 19th century
- 20th century – pre-Keynes
- Legacy
- Criticism
- See also
- References
- Bibliography
Underconsumption is a theory in economics that recessions and stagnation arise from an inadequate consumer demand, relative to the amount produced. In other words, there is a problem of overproduction and overinvestment during a demand crisis. The theory formed the basis for the development of Keynesian economics and the theory of aggregate demand after the 1930s.
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business cycle
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financial crisis
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The General Theory of Employment, Interest and Money
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depression
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overproduction
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Karl Marx
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Franklin D. Roosevelt
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economics
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Adam Smith
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John Maynard Keynes
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poverty
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International Standard Book Number
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Industrial Revolution
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Herbert Hoover
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inflation
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Great Depression
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unemployment
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Wayback Machine
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digital object identifier
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David Ricardo
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