In the comments on Robert Reich’s latest:
1 hour ago
Oh seriously, doesn’t anyone ever bother to check these assertions?
“Seventy per cent of the US economy depends on consumer spending. But wealthy people, who now own more of the economy than at any time since the 1920s, spend only a small percentage of their incomes. Lower-income people, who were in trouble even before the pandemic, spend whatever they have – which has become very little.
In a very practical sense, then, the US economy depends on the spending of most Americans who don’t have much to spend. That spells trouble ahead.”
Here’s consumer spending (personal consumption expenditure, which is the correct term for what Reich is talking about) as a percentage of GDP:
Back in those glory days of strong union power, equitable and shared growth and all that guff consumer spending was only 60% of GDP. Now it’s nearer 70%. So, it appears that the increasing wealth concentration being complained about actually increases consumer spending as a percentage of GDP.
Look, it’s fine to have different visions of how the world should be and all that but might we just start with an agreement that our analyses have to conform to reality?
Err, one of my comments being a Guardian Pick? Who has been spiking their water cooler?