Posted on 04/16/2015 9:57:34 AM PDT by fredericbastiat1
If you listen to the news on the economy or financial markets, you have probably heard statements like “consumption drives the American economy,” or “consumption is 70% of the economy.”
But in a new book out that follows in the footsteps of Henry Hazlitt’s classic “Economics in One Lesson” — though in a much more fun package — titled “Popular Economics: What the Rolling Stones, Downton Abbey, and LeBron James Can Teach You about Economics,” Forbes and RealClearMarkets Editor, and senior economic advisor to Toreador Research and Trading John Tamny challenges this and much other “conventional wisdom” on taxes, regulations, trade and money.
In an in-depth interview with Mr. Tamny, I asked him in particular about the notion that consumption drives economic growth, to which he responded:
(Excerpt) Read more at theblaze.com ...
It’s almost like you’re reading from the talking points of the US Chamber of Crony-Fascists.
It is arguable that cheap energy and low government regulation were at the heart of the Ameican economic engine in the latter half of the 20th Century.
I suppose it depends on how you define true. Was this https://www.youtube.com/watch?v=hGlyFc79BUE created, all ten hours of it, to satisfy a “true” need? I would be hard put to say yes to that.
You say ‘exploit’ like it’s a bad thing.
8^)
“Consumption can create a need that didn’t exist before. The PDA and basic cell phone created a need for the smart phone. Also, the need for a music player created the ipod which in turn created the Iphone. The iphone may not exist if it weren’t for the Ipod and the huge business that it created.”
You greatly underestimate Steve Jobs. “The consumer doesn’t KNOW what he wants until I offer it to him.”
Will the same prove true of the iWatch? Stay tuned . . .
“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.”
Milton Freidman pointed out that the burden of government is not measured by its taxes but by its SPENDING.
Jack Kemp added the caveat that taxes are (my words) a form of regulatory burden on the economy. Cutting tax rates therefore tends to increase the economy. If done to excess it ALSO causes inflation. But that does not entirely negate the economic benefit. It is always GOVERNMENT SPENDING which causes inflation in the first instance.
Liberal economics professors teach this.
Additionally, as anyone working in manufacturing knows there is a little tool called the “marketing survey”:
“Mr. Customer would you be interested in buying product x if it did y & z? And if so, what would you be willing to pay for product x?”
I don’t know. Do you walk to work or bring your lunch?
Gee look, more insults, lies about my position, and no facts or logic. So now that we both know you’re wrong have a nice day.
Ok, I’ll bite. What is it that drives the economy - according to conservative professors?
Unfortunately, that is changing.
Being more of a consumer of this stuff, I am not an expert. But I am picky. The iwatch seems clunky and limited like the google glasses. And it is expensive. The user interface is still not quite there for most of the devices including smart phones. The UI will be even more of an issue with the smaller gadgets like the iwatch. I presume that it is still tethered to an Iphone and probably communicates via Bluetooth which is good. Putting that much power into an ultra-small device will make it very expensive. Miniaturization is expensive.
Just my opinion, but the iwatch seems like a fringe gadget that only the rich techy people will own and it will fade away like the google glasses.
That is my “expert” opinion.
I just had a conversation about the iWatch with my 9 yr-old this morning. I told him it’s more a fashion statement than a tool. And a pricey one at that ($10k for one model?!).
Of course if it was gifted to me I wouldn’t complain 8^)
I'm reminded of a comedian who suggested that his comedy was basically a form of catharsis. He needed to perform - else he would probably commit suicide...
Several laptops, 20 smartphones, a full year in college, a decent used car.
Plus, it will be the first of the first and all of the bugs will not have all been ironed out.
Maybe it is for when your Tesla Model S has caught fire and you didn't have time to grab your phone and you need to call the fire department.
Production. The focus on consumption is nonsense. Nothing can be consumed until someone produces it whether it’s digging roots, hunting or building a rocket.
Consumption based societies collapse quickly as people simply starve or freeze to death. You’ll find this article and the comments interesting:
http://www.freerepublic.com/focus/bloggers/2120669/posts
Ingenuity produced the iPhone.Someone built a better mousetrap and it was a hit.
Productivity being up is a good thing for the economy.
“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.”
I bet she loves it when Vince of Sham wow fame comes on. ;^}
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