What Spurs The Economy Investment Or Just Plain Luck?Karen Pennar
Children's stories tell comforting tales of thrift and virtue: The squirrel who saves his nuts eats well during the winter. Economists often explain economic success and failure in the same way: Countries that invest heavily in machinery and factories reap the benefits, while countries that consume their income are doomed to fall further and further behind. Indeed, it's common among economists and policymakers to blame America's economic woes today on an excess of consumption and a shortfall in investment in the 1980s.
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