Consumption should not be confused with depletion. The latter concept applies not only to consumers' goods, but also to capital goods and even to some kinds of land. For example, the cutting rock, a land factor that Crusoe uses in its original, unaltered form to fashion poles from bamboo sticks, may lose its cutting edge over time, thus depreciating in value to Crusoe. The concept of consumption, in contrast, applies only to goods or services sought for direct satisfaction, rather than for their application toward production of a later good. There may be some discretion as to just how far we should carry our analysis of production and where we should draw the line between production and consumption (). Nevertheless, the productive process must culminate in goods that are treated as ends in themselves, and not as mere means toward a further end. Otherwise, the whole process could not qualify as purposeful action (). When these final goods are used by the consumer, they are not merely depleted, but consumed.     

---

Previous