Despite the theory purveyed by the media, consumer spending is not the strongest catalyst of economic expansion, according to economist Mark Skousen, author of The Structure of Production. "...Because consumer spending represents...two thirds basically of GDP you get the media constantly making, creating a myth. It’s one of the most common myths in economics…you get it from all the publications," Skousen explained at a CATO Institute forum titled "GO Beyond GDP: What Really Drives the Economy?" Contrary to the economic assumption that spending spurs growth, Skousen asserts that businesses, which account for a mere 16% of Gross Domestic Product (GDP),...
