Business spending on capital goods, new technology, entrepreneurship, and productivity is more significant than consumer spending in sustaining the economy and a higher standard of living. [FONT=myriad_proregular]
Consumer spending is the effect, not the cause, of a growing & healthy economy [Investment drives growth. Increased private investment – made in response to existing markets or emerging opportunities – creates new jobs, which increase income, which leads to greater demand for goods and services]
Also note that productivity improvements can yield higher wages, profits and levels of capital investment. Which feeds the cycle described above.
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