Consumer Preferences, Gross Values and Depreciation as Value Transfer

Interpreting depreciation as transfer of value from capital to produced items connects a large part of consumer preferences with the producing structure and sets a two-way relationship between the individual and the economy. Capital imbues commodities with modernity and signification qualities which are needed for social empowerment and self-advancement, helping consumers gain acceptance, earn incomes and improve their place in the social hierarchy. By pursuing modernity consumers adjust their preferences to this structure and thus stretch their purchasing power, setting in motion and in this sense claiming more gross value with each unit of expended income. Structurally informed preferences cluster around the proportions of greatest amplification, contributing a significant component to the overall distribution. Paired with the producers’ penchant for profits such behavior imputes income to industries in proportions which expedite growth by requiring greater use of capital inputs.