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"Consumption = manufacture - capital accumulation" deforms a pictureEconomic growth because does not consider time. It is possible to admit that growth
Manufactures are assumed by growth of the turnaround and constant capital, or growth
Productivity. But there is a relationship of cause and effect between the today's
Rates of increase in manufacture and last rates of accumulation of the capital. Quite
Probably that during some period, be it one year or the long period from
1750 till 1880, the volume of output, accumulation of the capital and consumption can
To increase identical rate, or distinction will be such that all the same
There will be possible a continuous growth of consumption. For this purpose it is required only,
That current growth of accumulation of the capital absorbed less, than a current gain
Manufactures. In the West this condition was realised thanks to growth Productivity.
Comparison of the Soviet and western systems of an economy testifies that is possible
Excessive accumulation of the capital. There are serious bases to consider that shortage
The consumer blessings has adversely affected intensity of the labour Efforts, so, and on a volume of output in the countries of the Soviet block. As consumption growth, finally, is the main stimulus of efforts,
Necessary for manufacture increase, should surprise nobody that the excessive
Accumulation of the capital and insufficient manufacture of the consumer blessings can
To undermine rates of economic growth. Urbanization and accompanying agrarian revolution
Industrial revolution of a XIX-th century was inseparably linked with accompanying it
Agrarian revolution. Agrarian revolution has reduced the share of the population occupied
Manufacture of a foodstuff, against 80 - 90 % in the Middle Ages to less than 5 %, and
It has made possible an urbanization of the western societies. Simultaneous replacement
Agricultural workers in cities provided factories with a labour. Agrarian revolution, like industrial, partly consisted in the enormous Growth of use of mechanical energy, but these changes have begun only
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