This question comes from someone who suggested brushing my teeth benefits the economy because it reduces demand for dentists, lowering the price. However, when I think more generally of making my own shoes/clothing my decrease in "clothing-services" leads to an increase in demand for the raw materials, in this case fabric. (I am ignoring the time it takes to learn how to make clothing.) Or suppose everyone simultaneously decided restaurants were unhealthy and started cooking at home; the restaurant industry would collapse, but would agriculture stay the same?
Is the economy the same, worse, or better when a consumer switches from buying a good to buying the raw materials for that good to manufacture it themselves?