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Old Aug 15th 2017, 08:25 PM
Tom Palven Tom Palven is offline
Cranky Curmudgeon
 
Join Date: Nov 2010
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Default Re: US Consumer-Driven Economy

Quote:
Originally Posted by Michael View Post
Neither term is clearly defined.
Here's my point about a "consumer-driven" vs a "production-driven" economy:

Say that there's a tribe of hunter-gatherers in remote Amazonia that acquires technology allowing them to obtain their food in half the time. They would then have more leisure, or use the extra time to produce more to trade for consumer goods, or both.

But first they would have to have a "production oriented" economy wouldn't they? Having a "consumer-driven" economy where they consume more than they produce is still working for the US, but how long can this kind of economy last before someone gets wise?

You may say that this is just a chicken or egg word game or that it's just stating the obvious, but to me "consumer-driven" is Treasury Dept. public relations BS obfuscating the fact that a one-sided balance of trade can't go on forever.

And on an individual level isn't it best to first attempt to be a producer- of pottery, music, teaching, plumbing repairs, or something else that people will pay for? Even if you borrow in order to grow a business or acquire knowledge and skills, you effectively are producer-motivated first unless it's your intention to go on welfare or marry way up.

Imho.
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