This post was edited by abramicus at 2015-9-27 06:06|
Watch this educational video produced in the USA, which you should really believe, since USA is your self-declared source of authority in everything you do, to show you are more up-to-date than the commen sense businessman and worker on Main Street. Except, this video demonstrates the fallacy of your borrowed "wisdom" of "Consumption-Driven Growth". So, post your refutation, if you can.
This video is titled "Deck the Halls with Macro Follies" -- https://www.youtube.com/watch?v=7uKnd6IEiO0.
The following article further explains the circular reasoning behind the FALLACY OF CONSUMPTION-DRIVEN-GROWTH, http://www.forbes.com/sites/belt ... onomy-think-again/.
"Before I Can Consume, I Must Produce for Others
By definition, GDP is a summary of final sales for new goods and services and not of all economic activity. Raw materials, intermediate goods and labor costs, which comprise the bulk of business spending are not treated in GDP, but are rather rolled up in the final sale price of the “consumer” spending. Only capital equipment, net inventory changes and purchase of newly constructed homes constitute “investment” according to GDP. This framing of the data makes the “consumption drives the economy” a foregone conclusion. But this is circular reasoning.
Where do these “consumers” get their money to spend? Before we can consume, we need to produce and earn a paycheck. And paychecks have to flow to productive — that is value-creating — behavior, or value is simply being transferred and destroyed. Our various demands as consumers are enabled by our supply as workers/producers for others. That’s the classical “Law ofMarkets”, often referred to as Say’s Law, in a nutshell.
For employees, those paychecks are income, but for the employers, wages represent most business’ single largest expense. Yet GDP does not treat employee wages or materials as “investment spending” — even though any business owner regards salaries as the most important and largest investment that they make. Instead, employee wages appear in GDP data as consumption when income is spent on final goods like food, clothing, gadgets, and vacations. Moreover, since GDP is an accounting summary, it adds consumption and investment spending together. But this summarizing masks the fact that these two activities are actually in opposition in the short run. In order to invest more today, we have to save more and consume less. As a result, GDP in-and-of-itself reveals nothing about what grows an economy; at best, it demonstrates how large the economy is and whether it’s growing or shrinking.
Digging below the surface of GDP reveals a structure of value-adding production far more complex than the simplistic analysis given by most media reports. According to government data, more than 70% of Americans earn their incomes from employment in domestic business. Yet the retail sector of our economy, for example, only contributed 6% of GDP. Bureau of Labor Statistics (BLS) data on employment show that only about 11% of employed Americans work in “sales and related occupations”. That leaves a great deal of economic activity and employment to the “business to business” sector, which composes most of the real economy.
Most of the value-adding activities occurred between a vast structure of businesses and workers starting with raw materials and blueprints and coming together over months (sometimes years when R&D is included) before a final sale can be made. At each stage, the activity is funded not by current “consumer spending” but through a combination of new investment and savings such as each company’s reinvested earnings. The farther from a final good a business’s output is, the more it relies on credit markets and the more it is subject to distortions on the savings and investment side. And since employment is spread across this time structure with relatively few working in final retail stage, savings and investment changes have dramatic impacts on employment."
DENG XIAOPING'S PRODUCTION-DRIVEN ECONOMICS REMAINS THE TRUE PATH OF ECONOMIC REFORM. HE HAS 4 TRILLION DOLLARS TO SHOW FOR IT.
CONSUMPTION-DRIVEN ECONOMICS IS ANTI-REFORMIST, ANTI-CHINA, PRO-JAPANESE (ABE JUST ANNOUNCED HE DOES INTEND TO REPLACE CHINA AS THE GROWTH ENGINE OF THE WORLD WITH TARGET OF 20% ANNUAL GDP GROWTH) AND THE SUREST PATH TO NATIONAL SUICIDE.
WHAT HAS "CONSUMPTION-ECONOMICS" ACHIEVED? THE LOSS OF ONE TRILLION DOLLARS OF FOREIGN RESERVES, AND INCREASING. THE CLOSURE OF THOUSANDS OF FACTORIES. THE LAYING OFF OF HUNDREDS OF THOUSANDS OF WORKERS.
HOW DOES ABE PLAN TO FINANCE IT? BY TAKING OVER CHINA'S SELF-SURRENDERED EXPORT MARKET, AND ITS DYING MANUFACTURING SECTOR, THANKS TO OUR GREAT "REFORMERS" - OR, TRAITORS.