Consumer Spending And The Economy Reading Whitney After the great depression, there was a vast input of new consumer devices that helped make the average person’s life more productive. think of everything from telephones to dishwashers to washers and dryers. think refrigerators, tv’s, vcr’s and more. even computers, cell phones and the like have helped drive consumer spending. Spending remains robust despite the doom and gloom narrative. bulls and bears alike acknowledge that consumer spending is the heartbeat of the us economy, as it makes up over two thirds of gdp.
Consumer Spending Economics Tutor2u Aside from gen z and millennial consumers, top earners are also helping keep the us economy afloat, whitney noted. after tax earnings for those making over $100,000 have stayed largely unchanged. Instead, whitney recently told business insider that she's upbeat about the us economy for three less than obvious reasons. 1. lower income consumers are squeezed, but spending will stay strong. Consumer spending is the single most important driving force of the u.s. economy. keynesian economic theory says that the government should stimulate spending to end a recession. on the other hand, supply side economists believe the government should cut business taxes to create jobs. June consumer spending grew 5% year over year, as an uninspired consumer focused more on essentials and less on extras. read.
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