What is a consumer economy?

The consumer economy concerns the economic system that primarily leads to consumers' expenditure. In the US, it is often said and also often questioned that consumers are responsible for 70 percent of all expenditures, and therefore this SPENER class must be constantly stimulated to make money for businesses. There are other classs spent, which represent a lower amount of expenditure and usually are ignored by attempts to revitalize the economy. In this economy, some financial experts claim that consumption is required, while others claim that production is necessary to make the consumer economy satisfied. Instead of enterprises, government, pharmaceutical or other spending, consumers are dominated by the world of expenditure. In order to work this type of economy, consumers must be stimulated to buy products and must be produced products. To stimulate purchases, the government will usually be offered to have more tax consumer taxes have more money to spend, providing more capital to businesses to create more jobs.

The usual percentage of consumer expenditure is 70 percent in the US, but this number is often questionable. This is because instead of net consumer expenditure, most lump statistics in government expenditure intended for consumers such as health care. This seems that the consumer economy will inflate. Some financial experts claim that the percentage is close to 40 percent or 50 percent, which would still dictate the US as a consumer economy, but to a lesser extent.

The main principle of consumer economy is to consume the consumer. Products must be purchased and used for the functioning of the economy. This economy is so strongly dependent on a cycle of consumption that it can easily break if the consumer refuses to spend money and decides to invest instead. To this end, consumers give extra money that you can spend on products that manage the economy. Most othersIcel, such as businesses and manufacturers who buy supplies, often ignore these stimulation attempts because they represent a lower percentage of overall spectators.

others believe that consumer economy is not about consumption, but about production. If the right product is produced, the consumer will buy it and a number of different products must be created to meet consumers' requirements. If production stops, there will be nothing to consume, which is what many financial experts will lead to the introduction that production is the driving force of the consumer economy.