Tuesday, December 14, 2010

Happy Days Surely Must Be Here Again

Yet more proof that Keynesianism is a load of ballocks.

U.S. Consumers Are Back: Retail Sales Return to Pre-Recession Levels; Frugality Fatigue Is Over

The vaunted GDP figures are anemic, job-creation is almost non-existent, non-residential investment is low, residential investment is lower -- yet consumer spending is back where it was before the recession. Doesn't that mean that there's no more reason for government stimulus to make up for the lack of aggregate demand?

After all, aggregate demand has returned. The problem, of course, is that consumer spending does not drive the economy or create growth. Business spending does.

No comments:

Post a Comment