Biden, Warren propose new plans to combat climate change

Former Vice President Joe Biden on Tuesday unveiled a $1.7-trillion, 10-year plan to combat climate change, the latest entry in a spate of proposals from Democratic White House hopefuls to address a global environmental issue ...

Human capital benefits of military boost economy by billions

A recent study from North Carolina State University finds that U.S. government spending on military personnel has a positive impact on the nation's human capital—essentially improving the American workforce. Using a new ...

IPOs help communities prosper, new research shows

Companies that go public on the stock market provide an economic boost to the local communities where they're based, according to new research from Rice University's Jones Graduate School of Business.

America can afford a Green New Deal – here's how

U.S. Rep. Alexandria Ocasio-Cortez and Sen. Ed Markey are calling for a "Green New Deal" that would involve massive government spending to shift the U.S. economy away from its reliance on carbon.

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Consumption (economics)

Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally consumption is defined by opposition to production. But the precise definition can vary because different schools of economists define production quite differently. According to some economists, only the final purchase of goods and services constitutes consumption, and every other commercial activity is some form of production. Other economists define consumption much more broadly, as the aggregate of all economic activity that does not entail the design, production and marketing of goods and services (e.g. "the selection, adoption, use, disposal and recycling of goods and services").

Likewise, consumption can be measured by a variety of different metrics such as energy in energy economics . The total consumer spending in an economy is generally calculated using the consumption function, a metric devised by John Maynard Keynes, which simply takes the aggregate disposable income and multiplies it by a "marginal propensity to consume". This metric essentially defines consumption as the part of disposable income that does not go into savings. But disposable income in turn can be defined in a number of ways - e.g. to include borrowed funds or expenditures from savings.

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