Is additional consumption always good for economy?
回答 (5)
2008-01-11 1:33 pm
✔ 最佳答案
because it increases our income.
2008-01-11 2:16 pm
It is not always good. A large part of the current problems in the US is our low savings rates because we consume too much and invest too little.
2008-01-11 5:28 pm
This article does a great job of explaininy why it is not usually good: http://taxvox.taxpolicycenter.org/blog/_archives/2007/12/31/3439878.html
"...during ordinary times, inadequate consumption is not a problem we have to worry about. Instead, too little saving is the real threat."
"...during ordinary times, inadequate consumption is not a problem we have to worry about. Instead, too little saving is the real threat."
2008-01-11 2:46 pm
Consumption must increase for economic growth. There is no reason to make things if there is no one to buy them.
If we aren't making goods and services, we don't have jobs.
But I will take exception to the "always" part. There does need to be savings, so consumption should increase as income does, certainly not faster, and perhaps slower so that savings increase as well.
If we aren't making goods and services, we don't have jobs.
But I will take exception to the "always" part. There does need to be savings, so consumption should increase as income does, certainly not faster, and perhaps slower so that savings increase as well.
2008-01-11 3:17 pm
Output = Consumption + Investment + Government Spending + Net Export.
Additional consumption increase output, boastering the economy.
Additional consumption increase output, boastering the economy.
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