Topic: The Interplay of Consumption and Production (Read 150 times)

To balance consumption and production there should be proper evaluation of the needs of the people and their income. For manufacturers to avoid waste they should carry out market surveys to ensure that they have the market to sell their products. When a product is in high demand, producers should identity and use the opportunity to manufacture more to satisfy these targeted customers. And production should be reduced when demand declines. Generally, consumers should always be the driver of demand and supply chain.

I also share your thoughts Smartvirus. Something that never exist before has to satisfy a need or improve on a service or product for it to be demanded by customers. Firms can spend so much to advertise a newly introduced product and consumers might not see the need for it. It is not all manufactured products that survive and stay long on the market. Some of them fail to make any impact and they are withdrawn from the market. In summary, manufacturers can introduce new products but it is only demand that can drive supply.

That indeed an instance but technically, will can as well say it was demand driven. Though this might be a complete or partially new product introduced into the market, it often comes as a lack or need to improve on the existing commodity or much needed service.

Let's say,
We all know how there are recipes to all forms of food. Probably a people have been used to a particular flavour but due to the lack of varieties, they find themselves sticking to that particular flavour. Now the trick is, the need or demmd for a change is there but, not as a product, simply the need for a change, a different flavour and upon introduction, you find patronage.

Will this scenario still align with what you've described above? Of course I give you credit for that but somehow, it still could be Demand >> Production as, if the demand wasn't there, you just might not find patronage.

sometimes its consumption that drives demand which drives production.. however sometimes its production that drives demand that drives consumption

let me explain.
in the first instance of consumption->demand-> production. this is the process of something already in existance that has a existing consumption and then due to population growth more of that item is needed to be produced
EG banana's grew naturally in the days of our ancestors. then as we evolved and populated we began to manually and intentionally farm banana's thus consumption created growth of production

now lets take something that never existed before. where no one had any pre conceived notion they needed it in their life.. manufacturing started first. then advertising then consumption. where by without the production, people would have been none the wiser they even needed it.

some items in life are useless to our biological need to live, but are consumed due to advertising and production making us think we need it.
EG childs barbie dolls. if barbie dolls were never invented. kids would not have known any better and would have just done something else with their day
EG Mcdonalds burgers/coke/pepsi. if they were not invented we would have just ate/drank something else

did you know that companies spend millions on research to perfect their prototypes into something that makes people want an item never seen before

It seems like a rather vague statement you've put out there, do you actually have a question on the topic or simply posting a couple paragraphs to spur conversation? On the micro level, companies rise and fail every single minute all around the world. Driven by customer demands and whether an entrepreneur feels like they have found a new market to conquer. Most new businesses will fail within the first 3 years, but there is also a wider life cycle at play - old rotary style telephones stopped being manufactured at a certain point, the companies that made millions of them in the past had to adapt or they would fail. On the macro level, sometimes you see massive industries going out of business like coal, but then renewables might require a workforce which springs up in their place.

Before we can achieve consumption production would have taken place, we all depends on production either way for us to have something to consume and there must be a balance between the two before we can achieve maximum satisfaction as an individual or society, the economy is dependent on what we produce while our sustainability depends on what we consume, the two work together and are continuous process while depending on each other in an economy.

I kinda understand what are you trying to say here (vaguely), but I think all your statement is just common sense. And then looking at your Poll it's getting weirder, the question ask how consumption and production can be balanced, but then you only provide yes/no answer. It make me confuse whether you are asking 'Can Consumption and Production be balanced?' or 'How make consumption and production become balance', while you don't ask any question on your main post.

I don't think consumption and production can be balanced, except if there is a monopoly on a the product, and it will still be hard. The competition in the market make each producer innovate with the product, some producer will get overloaded demand, and the other will be lack of demand, thus making the production overload.

But you missed out the profit part which is the ultimate fuel for everything so I am saying that when its driven by profit we can't expect it to be justified fairly. And also the consumptions is highly manipulated by influencing the people by where to spend instead of where they actually have to spend and its already told million times but people never seems to learn anything so the companies are just taking advantage of them while maximizing their profits.

Achieving a balance between economic growth, justice, and sustainability requires careful consideration of regulatory frameworks, ethical standards, and responsible business practices which I think its never going to be possible.

Just my opinion though!

I can't agree more with you on this point actually i used $700 as an example just to clarify my purpose of the post so other person could easily understand it. But i think you prefer to explain things by using the web of words. Like, my mother language is not English and you used some good metaphors which are actually some good words to add in my vocabulary. Well, coming back to the point i do understand that, Economy can not be balanced like a see saw. because a little ups and downs are there and will be there all the time.

If everyone play there role without breaking any rules, like what the production sector do, they hide a lot of stock of products to decrease the supply which results in high rates. And what consumers do, they when heard a news that something is going to be expensive they started to buy that product in bulk like in the Corona Days. While we all came to know how true such things were. I don't know what are your opinions about Covid-19 but IMHO it was fake and in those days, people bought in bulk and in results the rates are high as F.

Which causes a lot of poor people a hard time to face. Overall, the point being made is, we if started to play all acts by fair like we have to do, then the economy will become more stable then now. Which is good for every sectors of life (Poor and rich).

Note* I loved the way you explain things in such shorts ways so from now on i will track your posts because that's how i will learn some good words. I hope you won't mind.

A lot of big words in the OP, but the main point is that the demand is what drives the supply and the type of supply too. This type of demand is again coming from media and influences from the people in this world.

But I still dont understand why people cant take one thing for sure - you are only going to spend if you want to spend, nobody is forcing you to spend your money. Gradually though many new things coming up will become necessities, so buy them once you are in need for them.

In my country, internet was not a necessary thing for years and therefore its cost was huge, only in the recent decade it has become necessity and thus the rise of low cost but high bandwidth connections, plus for doing education related work you would need it anyway. So as the demand increased the price also dropped. Keep that in mind.

When the interest rates are lowered, borrowing does indeed get the wiggle-waggle easier. Hence, more money is in circulation, but $200 increase to $700 doesn't quite balance the spending teeter-totter

In the twist and turn of economics, consumption isn't merely about over production but also involves a perplexity of factors, like elastic rubber bands. The interest rates, being high or low, are linked, but not stringently, with the merry-go-round of debts. Therefore, societal bearing is something, but not everything

If everything plays a role fairly, then things won't be controlled solely by consumers or producers but it's like a seesaw without a clear balancing point. A little more, a little less; sometimes, it's all in the game of numbers and confusion

OP, I was left with the conclusion of your idea, you didn't get anywhere, you are saying things that are just as you mention them, so, what?

Anyway, production and consumption, it is like that and it will be impossible to transform it to another essence, therefore improve it and/or think that the consumption channels can be different, yes, there are always changes, in fact the Internet meant that.

On the production side, it is the same, the processes evolve, but the final way to produce and sell will not change.

Consumers are everything, I watched a video on TikTok yesternight where the host was explaining what happens when the feds decreases or increases the Interest rate and how it impacts inflation. He said when the interest rates are lowers then more people start to borrow money thus instead of $500 now they have $700 means $200 is more in circulation to buy products or in your words to consume products. This means the consumption increases over production and the prices of everything will start to rise.

And, more debt is imposed on the ones who borrow money when the interest rate is too high. In both cases, society has to bear. But everything has there own role to play and if everyone play it by fair rules then the market will not be controlled by consumers or production sectors only.

In the intricate web of economic dynamics, the relationship between consumption and production is a fundamental axis upon which our societies pivot. This connection is not merely transactional; it holds the potential to foster a synergy that can yield two significant outcomes: justice and profit. The delicate balance between these elements underscores the essence of sustainable economic growth and societal advancement.

Consumption, the engine that drives demand, sets the wheels of production into motion. The choices made by consumers have a direct impact on the types and quantities of goods and services that are manufactured. This link forms the backbone of supply and demand economics, determining what products are allocated resources and how resources are allocated to them. In this paradigm, consumers wield remarkable influence over market trends, innovations, and even social and environmental considerations.