[OPE-L] A class dimension of aggregate demand

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
- 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.


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