Current Events — HabitableZone

Current Events » in reply to Re: You are right that it's a bogus issue

You are both wrong but Tom is more wrong

Fact: Consumer spending accounts for 2/3 of all economic activity in the GDP.

Tom: Your attempts to blur the distinction between producer and consumer have no foundation whatsoever in ANY view of economics other than your own. If I am wrong please show me where. Someone buying a refigerator is a consumer by definition whether he is a CEO of Intel or a welfare recipient. Other than saying consumer spending is 100% of the economy alcaray is correct in most of his analysis. Necessity is the mother of invention and his examples were good illustrations of that age old wisdom.

While you belly ache and moan about democrats your republican heros know better. They are fully aware of the importance of consumer spending to the economy and that's why they are pushing the big spending stimulus package that will put much more money in the hands of consumers faster than any tax cut ever will.

If you put more money in people's hands and they go out and spend it. Businesses then must crank up production and hire more workers to meet greater demand. Newly employed workers then have more money to spend as well and the demand effect on the economy increases more. The American consumer has been the engine of economic growth for the world economy for half a century. Deny it all you want but you are dead wrong if you do.

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