…. is that consumer spending drives Wall Street. Our last recessions have occurred during an increase in consumer spending.

A healthy economy is the result of business spending and productivity. Consumption is only 30% of the economy. Is is capital and production spending that drives the job creation that pays the people and supports their ability to spend.

Productivity and savings drive economic growth. This was discovered in the 19th century by French economist Jean-Baptiste and is reffered to as “Say’s Law”.

tips from the latest edition of Forecasts and Strategies by Mark Skousen, a great investment newsletter. Also check out his new book- Investing in One Lesson.