About that Report Economic Growth
So GDP is growing at about 2 percent. (That's not the same as "the economy.") The rub is that it's driven by consumer and government spending. Real economic growth requires investment, and investment has not recovered. But private (real) investment requires savings--that is, deferred consumption. So increased consumption is not a path to economic growth. Increased sustainable consumer spending is an effect not a cause of economic growth.
comments powered by Disqus
- Judith Kelleher Schafer, 72, a historian of slavery and prostitution, dies
- Northwestern celebrates Garry Wills with a book in his honor
- Conservatives go after UCLA's historian James Gelvin
- Laura Hillenbrand writes her masterpieces despite suffering from Chronic Fatigue Syndrome
- New PBS DVD From Henry Louis Gates Jr. Explores African Influence on the Caribbean