It’s Consumer Spending, Stupid
By JAMES LIVINGSTON
Published: October 25, 2011
AS an economic historian who has been studying American capitalism for 35 years, I’m going to let you in on the best-kept secret of the last century: private investment — that is, using business profits to increase productivity and output — doesn’t actually drive economic growth. Consumer debt and government spending do. Private investment isn’t even necessary to promote growth.
Read the full story here: The New York Times
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