A consumer economy describes an economy driven by consumer spending as a high percent of its gross domestic product (GDP), as opposed to other major components of GDP (gross private domestic investment, government spending, and imports netted against exports).[1]
In the U.S., it is usually said by economists, including in Henry Hazlitt's "Economics in One Lesson"[2] that 70% of spending is consumer-based,[3][4] but this number is disputed by economists like Businessweek columnist Michael Mandel.[5]
- ^ Education 2020 Homeschool Console, section Vocabulary of Unit on "Economic Boom of the 1920s", quote: "CONSUMER ECONOMY: Definition: An economy that depends on a large amount of spending by consumers. - school login required, accessed December 1, 2009
- ^ "The Importance of Consumer Spending | Chron.com". Smallbusiness.chron.com. 2010-07-19. Retrieved 2016-01-05.
- ^ "US GDP is 70 Percent Personal Consumption: Inside the Numbers". Mic.com. 2012-09-21. Retrieved 2016-01-05.
- ^ "What Is a Consumer Economy? (with pictures)". Wisegeek.com. 2015-12-15. Retrieved 2016-01-05.
- ^ Mandel, Michael. "Consumer Spending is *Not* 70% of GDP". BusinessWeek.com. Archived from the original on August 18, 2009. Retrieved 2016-01-05.