All Posts Tagged With: "consumer spending"
Naive Keynesianism: A Failure of Imagination
Each of us has a set of peeves—things that disproportionately irritate us. By their nature, most peeves are small. For example, I bristle at the failure to use hyphens correctly. As my late, great teacher Fritz Machlup pointed out, a foreign exchange student is typically not a foreign-exchange student. The first is a student studying [...]
21Apr2011 | Donald J. Boudreaux | 8 comments | ContinuedPresidential Hubris
If we were going to spend $700 billion, it seems it would be wiser having that $700 billion going to folks who would spend that money right away. In October Barack Obama said this in defense of his opposition to extending the 2001 and 2003 tax-rate reductions for people making more than $200,000 a year. [...]
22Dec2010 | Sheldon Richman | 4 comments | ContinuedConsumer Spending Drives the Economy?
Consumer spending makes up more than 70 percent of the economy, and it usually drives growth during economic recoveries.” —“Consumers Give Boost to Economy,” New York Times, May 1 Every quarter, when the government releases its latest GDP figures, we hear the familiar refrain: “What the consumer does is vital for economic growth.” “If the [...]
22Sep2010 | Mark Skousen | 26 comments | ContinuedConsumer Spending Doesn’t Drive the Economy
The truth is that consumer spending does not account for 70 percent of economic activity and is not the mainstay of the
U. S. economy.
Consumption Can Drive Economic Growth?
Perhaps one of the biggest misconceptions about America’s recent period of high growth is that consumption was the principal driver behind it. Embodied as the notion of a so-called wealth effect, the misconception is so deeply entrenched that its internal contradictions are overlooked and alternative views are simply ignored. As it is, this misguided thinking [...]
1Nov2001 | Christopher Lingle | 7 comments | ContinuedBeyond GDP: A Breakthrough in National Income Accounting
“It is apparent that a large part of a country’s total production serves for the production of capital goods and not for the production of consumer goods, and that the production of capital goods must itself become a specialized branch of manufacturing.” —Wilhelm Röpke1 Good news! The U.S. Department of Commerce, which compiles Gross Domestic [...]
1Apr2001 | Mark Skousen | 3 comments | ContinuedThe Rich Get Richer, and the Poor Get . . .
The allegation is appearing everywhere: Real average wages are stagnating and the distribution of wealth and income in the United States is becoming more unequal. In his latest book, Galbraith cites recent Federal Reserve statistics: By 1992, the top 5 percent were getting an estimated 18 percent, a share that in more recent years has become substantially larger, as that of those in the poorest brackets has been diminishing.
1Mar1997 | Mark Skousen | 0 comments | Continued-
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