ABSTRACT

This chapter discusses the growth of social consumption in the cities and suburbs, which requires analysis of the political-economic relations within the modern metropolitan area. Social consumption outlays can be classified into two subgroups: goods and services consumed collectively by the working class and social insurance against economic insecurity. Modern capitalist societies are compelled to allocate an increasing share of the social product to social consumption spending, particularly for workers in the monopoly sector. The proximate determinants of the volume and composition of social consumption are the tax base and tax rate structure and the interrelations between private commodities and public goods. The development of mass transit systems designed specifically for the commuting population and the subsidization of middle-income housing in the core cities are forms of social consumption. The market is constantly expanding the need for social consumption to complement private spending and grows with the demand for private consumption.