It’s Consumer Spending, Stupid –

It’s Consumer Spending, Stupid –

Op-Ed Contributor

It’s Consumer Spending, Stupid

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


1 Comment

Filed under economy, USA

One response to “It’s Consumer Spending, Stupid –

  1. Pingback: For 2012, Signs Point to Little Gain in Consumer Spending – « Dr Alf's Blog

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s