The Right Fuel To Restart Recovery

The rush to stimulate consumption in order to jump-start the economy has propelled the President up and down department-store escalators exhorting Christmas shoppers to pry open their wallets. The rash of tax-cut proposals from Capitol Hill has a similar purpose. But consumer spending has fallen because there is less and less economic growth, causing family incomes to dry up. That won't change until there is a greater willingness to invest in the U.S. economy. There can be no sustained increase in consumption unless higher investment spurs real income to grow faster. Asking the consumer to take on a higher debt burden is no solution.

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