Material goods / Material properties

Material goods are all the objects that we produce or use for production. It is important that the purchase of material goods used for production is subject to significantly more favorable taxation in many cases.

Material goods, also known as material goods, are tangible things and objects that can be utilized in an economic sense. Material goods also include things that are created as a result of economic activity. Their value can usually be expressed in money. It is worth separating material goods from non-material (intangible) goods. The latter represent spiritual values. Such values, for example, as the knowledge of a specialist, health care or the services of taxi drivers and hairdressers. 

Material goods therefore include materialized values. These can be mass produced goods such as wheat or corn. They include finished products, such as a car, a machine, a can of food or a mobile phone.

An important division in economics is that material goods can be consumption goods and means of production. Consumer goods are intended for final consumption and use: for example, television, chocolate or a pair of jeans. On the other hand, we produce new goods with means of production. For example, a work machine, a production line or a packaging equipment. 

All this is also important because buying consumer goods means spending money. This is called final consumption. On the other hand, the purchase of means of production is an investment: if used well, it pays off, since we produce salable things with it. This is especially important when the costs of the business need to be summarized for ourselves or the tax authorities. The flashy vase bought for the office is a consumer good, but a new machine production tool. Both belong to the scope of material goods, but the latter can be accounted for as an investment.