In modern capitalism consumer spending is one key driver of economic activity & growth.... When commuters save, the rate of effective demand falls as does economic activity.
In Europe (excluding the blip during Covid), the savings rate is now over 15% in comparison with a pre-Covid norm of around 12%.
Whereas in the USA (although measured a little differently) the savings rate of around 5% is below(!) the 6% norm before Covid.
So effective demand is moving in opposite directions!
#economics
Emeritus Prof Christopher May /
npub1hr…f2ktj
2024-10-06 21:18:39
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npub1hr0x0gm9ksmvuvqwkyzfjuczv9pln83axuftxfhnq2maday69ypqtf2ktjPublished at
2024-10-06 21:18:39Event JSON
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