Summary Of It's Consumer Spending Stupid By James Livingston

In the essay, “It’s Consumer Spending Stupid” by James Livingston, he discusses his key points as to why consumers should plan on spending more. Livingston is an economic historian for 35 years who believes that private investors doesn’t directly impact economic growth (Livingston 507). Therefore, his solution to most of the problems in the United States economy is to increase the consumer culture. Livingston debunks the common thought of the general public that lowering cooperate taxes and private business investments will lead in economic growth. However, he points out history proves otherwise from the decline of business investment and the gross domestic per capita growth between 1900 and 2000 (Livingston 507). Additionally, in 2000 majority

Bush saw a decline in the economy after cutting cooperate tax rates. When reading this section of the essay, I was confused as to why it took two presidents term to figure out that cutting cooperate dollars in fact leads to a decline in the economy. Livingston mentions that cooperate profits is the root of an economic crash such as the Great Crash. I agree with this statement because these large businesses earnings did end up causing an inflation during the Great Crash as well as the Financial Crisis of 2008. Thus, people were spending less and less from the huge unemployment rate of nearly 10 percent in 2010. Therefore, fearing that cooperate profits will decline isn’t the main concern here, its whether or not Americans are spending. If new and pricier products continue to come out every year, then the economy will continue to advance or become stable. Consumer saving in Livingstons eyes is nearly equivalent to self-destruction. “We feel that if only we could contain our unruly desires. We’d be committing ourselves to a better future” Livingston says (Livingston 508). I am guilty of impulsively thinking this way because I was raised to spend money on what you really need. However, I do feel like if more Americans have this train of thought, than money wouldn’t flow to our local markets, boutiques, and small businesses. Thus, there will be huge consequences such as unemployment, budget cuts, and an increase in product prices that

The continuous releases of new cars, Apple products, and tech gadgets of bigger and better than previous products will only differ in price. The more we spend the more we are helping out economy recover from the previous Financial Crisis. Livingston writes that consumer spending spending is helpful for short term relief in the economy and also long term, balanced growth (Livingston 508). I believe that if another economic meltdown were to occur, then the best way to patch up the cracks is to not be afraid to spend. This may result in a fraction of the time in the effects of a crisis to impact our lives. The money we spend in general influences cooperate companies to continue to hire employees, development, and ship in new