Definition of underconsumption in US English:



  • The purchase of goods and services at a level lower than that of their supply.

    • ‘These constraints can best be explained and understood by examining what Wallerstein regards as one of the main contradictions confronting the capitalist system, the crisis of underconsumption.’
    • ‘Thus it appears that the crisis is one of underconsumption - the lack of demand.’
    • ‘And he developed an elaborate theory of crises of overproduction and underconsumption that became the mainstay of the economic theory of his followers.’
    • ‘The latter, they said, also creamed off part of ‘surplus value,’ and so created the conditions for underconsumption.’
    • ‘The model, which seeks to offset underconsumption in the private sector by increased public sector spending, was destined to failure precisely because it ignored land speculation.’
    • ‘Like the administration, Chase thought much about the twin evils of overproduction and underconsumption.’
    • ‘This is one way of resolving the seeming paradox in Malthus's work between warnings of over-population and a fear of underconsumption.’
    • ‘As capitalists cut wages to sustain profits in the face of ever more severe competition, they must reduce the capacity of workers to buy their products, leading to a crisis of underconsumption.’
    • ‘Brenner's distinctive contribution is to sketch out the specific dynamics and consequences of overproduction or underconsumption in the era of integrated, globalized production and markets.’
    • ‘With old underconsumption tendencies and financial instabilities now spread across previously insulated economies, that old Keynesian spender-of-last resort function has not gone away.’
    • ‘In terms of his own theory, he does not see the possibility of redistribution of income and wealth, via public appropriation of rents, as having a remedial effect on periodic oversaving and underconsumption.’
    • ‘Some analysts think these measures are already starting to alleviate underconsumption.’
    • ‘The economic collapse of the 1930s appeared to liberals to validate the earlier concerns about underconsumption, while business saw overproduction as the more serious problem.’
    • ‘Searching for an alternative program, Roosevelt embraced the ideas of advisers who believed that the fundamental problem of the Great Depression was underconsumption.’