How does a consumer-based economy generate wealth?
February 11, 2009 3:21 PM Subscribe
Economics newb asks: how does a consumer-based economy generate wealth?
posted by wastelands to Work & Money (17 answers total) 3 users marked this as a favorite
I hear things like, "70% of the U.S. economy is based on consumer spending." It seems like if this were the case, then money would just be "recycled." How is there a net gain or production of wealth for the country if most of it is a result of people spending money internally? I must be missing something simple...