Consumer Spending Doesn’t Drive the Economy

From: The Freemen

Consumer Spending Doesn’t Drive the Economy, Investment does.
http://www.thefreemanonline.org/headline/consumer-spending/#

“Consumer spending makes up more than 70 percent of the economy, and it usually drives growth during economic recoveries.”

–“Consumers Give Boost to Economy,” New York Times, May 1

Every quarter, when the government releases its latest GDP figures, we hear the familiar refrain:
“What the consumer does is vital for economic growth.”

“If the consumer starts saving and stops spending, we’re in big trouble.”

“Consumer spending accounts for 70 percent of the economy.”