Producers and Consumers

Did you know that there are two important roles that people play in our economy? One of those roles is that of producers. A producer is someone who creates something of economic value: goods and services. The other role is as a consumer. A consumer is a person or organization that uses a good or a service. If there are no consumers, the producers are doing their work for nothing, and if there are no producers, there's nothing for people to consume. We need both consumers and producers for our economy to run. People are also be both producers and consumers in their everyday lives.

How can people be both producers and consumers? Well, let's look at an example right here in our own town: The South Bend Chocolate Company. The people who work at the South Bend Chocolate Company produce the chocolates, hot drinks, and other yummy things that we like to eat. While they are working at the Company producing those things, they are paid for their work. Then, they take that pay home, where they use it to buy groceries, clothes, and the other things they need. Because they are buying things, that makes them consumers.

YOU are also a consumer! When you use your allowance or maybe money that you have earned somehow to buy ice cream, or candy, or a toy that you want, you are consuming something that has been produced. At the same time, if during the summer you like to set up a lemonade stand, and make lemonade to sell, then you are being a producer too.

Here is a fun game where you can put into practice some of the things you've learned on this blog by running your own lemonade stand.

http://www.primarygames.com/socstudies/lemonade/start.htm