0am:The Santee, SC forecast for Apr 11 is 63 degrees and Clear. There is 74 percentage chance of rain and 4 mph winds from the South-Southeast. 3am:The Santee, SC forecast for Apr 11 is 55 degrees and Clear. There is 79 percentage chance of rain and 4 mph winds from the South.
Consumer spending makes up more than 70 percent of the economy, and it usually drives growth during economic recoveries.â ââConsumers Give Boost to Economy,â New York Times, May 1. Every quarter, when the government releases its latest GDP figures, we hear the familiar refrain: âWhat the consumer does is vital for economic growth.â âIf the consumer starts saving and stops spending, weâre in big trouble.â âConsumer spending accounts for 70 percent of the economy.â The latter âfactâ crops up regularly in the news reports from the Associated Press, the Wall Street Journal, and the New York Times. The truth is that consumer spending is not the mainstay of the U. S. economy. Investment is. 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.
Consumer spending is another term for voluntary private consumption, or an exchange of money for goods and services. Contemporary measures of consumer spending include all private purchases of durable goods, nondurables and services. In a purely free market, the aggregate level of private consumer spending in an economy is necessarily equal to the total market value of economic output.