There are three departments of economics. They are,
Useful objects and services constitute the aspect of economics called production. Anything that is not used is what I call misproduction. It is a negative and takes away from the total production of the economy. The reason for this is that resources are not unlimited. When someone makes something that is not used resources are used up without offering a corresponding flow of usefulness. It is as if a certain percentage of the society's resources were frozen, unavailable for use. This raises the price of resources, raises the price of food and other useful things, and hence lowers the real wage of workers. Our modern economy is characterized by an excess of misproduction. We produce a wide variety of useless products, poorly made and thoughtlessly put aside with the piles and piles of material junk that characterizes the typical family home. The pile of misproduction in the average Western home surely towers way higher than Mount Everest.
Distribution is about who gets to enjoy the fruits of production. In our modern world a very few at the very top of the income pyramid get almost all the fruits. Over time this is a very dehumanizing phenomenon. People lose their wholeness and value themselves less and less as they see the 'market' value them less and less relative to the fabulously wealthy.
Consumption is what people do with the money they earn. Most ordinary people everywhere in the world get very little and what little that they do get they are liable to misspend. I define misspending as the act of spending hard earned money on things that are not useful. So the average family in the West eats poorly, gets little of the wonders and beauty of nature, spends little time together singing, talking, laughing, and hugging. Instead the average Western family spends its money on junk food, electronic gifts, and loads of badly made clothes, gadgets, and sundries.
In all three departments of economics, production, distribution, and consumption, the modern economy has done miserably. It is time to wake up to this and do something.
Posted by Abhay Burjor Ghiara at 4/02/2015