Here’s some economic cheer just in time for Christmas from EconStories:
Each year, our attention turns to the holidays… and to holiday consumer spending! We’re told repeatedly that, because consumer spending is 70 percent of measured GDP, such spending is vital to economic growth and job creation. This must mean that savings, the opposite of consumption, is bad for growth. But is it? Can we really consume our way to prosperity, or do savings and investment actually drive economic growth?