The Creation of Consumption Goods
One must produce more to consume more. A portion of your consumption goods must be saved up to consume while you develop a roundabout process. Saving is required. Otherwise, the production goods will never come into existence. Saving is required if anyone wants to improve their condition. The development of a new production good can lead to more consumer goods. Thus, more consumer goods can be saved, and the process continues.
The process of saving must continue. Capital will be consumed if it doesn’t. Operation of the current production goods may continue. They don’t wear out overnight. However, if there isn’t enough savings, the capital that is in existence will be consumed. There won’t be enough to make new production goods nor even service them. At that point, the standard of living can’t be maintained, it must decline.
Read More: https://mrdevinney.com/the-creation-of-consumption-goods/
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