I see headlines and articles discussing how consumer spending is driving, or of late, possibly slowing, the economy. But if not for people buying non-essential products and services, what else would drive the economy? Everyone needs food, shelter, and clothing. Many need cars, depending on their location. But I take it that spending on necessities is not enough, especially non-consumable or long lasting things like houses and cars.
In: Economics
Civilization thrives on trade. If you were alone, you would need food and shelter to survive. You likely aren’t a farmer, so you don’t have to grow food. You have to make something that is worthwhile, to get money, to buy the food, and pay for your shelter.
In other words, consumer spending…trade…is what keeps civilization going. Production creates the stuff, and people trade for what they need/want with money. All of this starts with food and shelter, and either making those yourself, or making money to buy them.
There is no economy without consumer spending. It would just be governments of countries exchanging natural resources for no reason.
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