"Consumption is the purpose of economic activity and allows us to meet our material aspirations in the pursuit of happiness."The valid concern about household debt is therefore not that it is fuelling consumption, but that it might detract from future expenditure because, for prudent families, debt service gets in the way of other spending. The elderly and the dead, who realized their property assets, tend not to spend so much."Naturally, there are legitimate concerns about the sustainability of the recovery, but most are not related to consumption...Consumption growth is therefore necessary for the sustainable longer-term growth that people of a puritanical bent so desire. The alternative to the unexpected boost to consumption this year would have been much worse: continued stagnation, higher unemployment, lower incomes and worse public finances."So, as the year's end approaches, we should resist the puritan within all of us. Let us celebrate consumption this Christmas."
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Bill Bonner has co-authored a number of New York Times Bestsellers including Financial Reckoning Day, Empire of Debt and Mobs, Markets and Messiahs. In his own opinion, Bill's most recent title, A Modest Theory of Civilization: Win-Win or Lose, is his best work yet. Bill also founded The Agora, a worldwide community for private researchers and publishers, in 1979. Financial analysts within the group have exposed and predicted some of the world's biggest shifts since that time, starting with the fall of the Soviet Union back in the late 1980s, to the collapse of the Dot Com (2000) and then mortgage finance (2008) bubbles, and more recently the election of President Trump.
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