[WayneS]

Well, the drugs used to treat tuberculosis ARE expensive...

[E. Pluribus Unum]

"Consumption" creates nothing.

Did "consumption" create the iPhone?

[Red Badger]

It used to be EXPORTS...................

[Boogieman]

It’s pretty basic that production drives an economy. Without production, there is nothing to consume to begin with, and nothing to trade to others to get things to consume either.

[Rodamala]

Everything I needed to learn about economics, I learned from this man:

[VaRepublican]

ping

[MarchonDC09122009]

Appreciate Mr. Tamney’s views on the economy, and making the obvious point that what we produce, rather than consume is the true measure of economic health.
I’m concerned that his nuanced statement that: “deficits don’t matter”, will be misinterpeted by willing ears all too eager to print money, and continue insane fiscal and monetary policy.

[Diana in Wisconsin]

[DannyTN]

Without consumption the economy is 0. Without supply the economy is 0. Together you have an economy.

We’re hurting consumption by offshoring manufacturing. People without jobs don’t consume much.

The imports are temporarily cheaper and provide more supply. But that will stop when we run out of money and no one is willing to buy the government’s debt.

Raise the import tariffs, which will put Americans back to work and bring back American manufacturing.

[huldah1776]

I know nothing about economics, but basically I think it is a perceived or actual need being filled. Need water? Need food? Told you need an iPhone?

[Popman]

Bm

[Zeneta]

"Necessity is the Mother of Invention"

[rbg81]

Most corporations have gone Liberal. To drive short term profits (which is all Wall Street cares about), they want people to spend^3 and go into debt up to their eyeballs. People who are good citizens and actually SAVE are the enemy. That is one reason why savings have been dis-incentivized. They also don't care where the $$ comes from that gets spent. It is all the same to them whether it comes from a real job or a some Government handout. I think once upon a time, they used to care, but no longer. Anything to get more consumers consuming is good. Even if they have to be imported by the millions and put on the dole, financed with deficit spending.

[M Kehoe]

Henry Hazlitt should know that "DEMAND' drives the U.S. economy. You can have "consumption" after DEMAND is realized.

Sheesh, the economic intelligence of this country is woefully inadequate.

5.56mm

[arthurus]

Everybody who reads FR should have already read Hazlitt's short book by now. It makes you quite immune to any liberal economic and social jjustice arguments bcause it trains you to think economically, to automatically ask and answer the question-"and then what?" every time someone makes a compassionate sounding proposal or demand.

[right way right]

Chicken and the egg...production then consumption.

My wife thinks I'm crazy because I study advertising in television and sit there and analyze it to her.
It drives her up the wall.

One observation is that commercials are produced to make you consume.

This whole argument that one is more important than the other seems like a pointless waste of energy ...get out there and produce so you can consume.

[RWB Patriot]

Yeah, go find an empty plain and see how much one’s need to consume produces.

[Praxeologue]

Savings and capital formation drive the economy. They create production and consumption.

Government destroys wealth and causes distortions and malinvestment when it attempts to create or stimulate aggregate demand, even in hard times.

h/t Henry Hazlitt, Ludwig von Mises

[x]

Sure. But if the production is done abroad and the money to pay for it is borrowed it complicates things. Just repeating a few old truisms won’t clear things up or convince anybody.

[1010RD]

Liberal economics professors teach this.