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Discover LudwigThe word 'underconsumption' is correct and is commonly used in written English
It refers to a situation where the demand or consumption of goods and services is lower than what is needed for economic growth. Example: The ongoing economic crisis is largely due to underconsumption, as people are hesitant to spend money and thus, businesses are suffering and unable to grow.
Dictionary
underconsumption
noun
Insufficient consumption (for financial stability)
Exact(12)
When the second world war was coming to an end, Alvin Hansen forwarded the stagnation thesis, and underconsumption theories were floating around.
During the war he crunched numbers for his country, calculating the optimum number of pellets in anti-aircraft shells.These twin virtues are apparent in the middle third of this life, which lightly glosses over Friedman's most celebrated insights, such as his refutation of the bleak notion that capitalism is doomed to underconsumption, and his reassessment of the Great Depression.
Such high prices attract imports from overseas, and encourage overproduction and underconsumption at home.
There is only the problem of underconsumption.Why should there be systematic underconsumption?
This imbalance between output and sales has led to theories that the business cycle is caused by overproduction or underconsumption.
His pioneering theories on the nature of economic crises and the risks of limitless competition, overproduction, and underconsumption influenced such later economists as Karl Marx and John Maynard Keynes.
The real source of China's underconsumption is the way it manages its economy.
"I think there is pretty compelling evidence that habitual underconsumption of folate does lead to an increase in colon cancer, and perhaps a few other types of cancer as well," Dr. Mason said.
First, Joe offers a version of the "underconsumption" hypothesis, basically that the rich spend too little of their income.
I just don't see how to make the underconsumption story work.
Similar(1)
In some sense the Keynesian theory of underconsumption that is, inadequate consumer demand as a cause of recessions was presaged by mercantilist contributions.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com