The focus on consumption share of GDP is the wrong indicator. It can actually lead to reduced GDP while increasing consumption’s share, undermining living standards and reducing systemic productive capacity. Recall that in the 1950s consumption was over 65% of GDP, and people were considerably worse off then than now.
The focus on consumption share of GDP is the wrong indicator. It can actually lead to reduced GDP while increasing consumption’s share, undermining living standards and reducing systemic productive capacity. Recall that in the 1950s consumption was over 65% of GDP, and people were considerably worse off then than now.