It’s Consumer Spending, Stupid

menloparkmom
Thu, 27 Oct 2011 12:03:43 +0000

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…



http://www.nytimes.com/2011/10/26/opinion/its-consumer-spending-stupid.html?src=me&ref=general

I happen to agree with the gist of this editorial.