Every year, especially around Thanksgiving and Christmas, we hear the mainstream media tell us how important consumer spending is for our economy – after all consumer spending is 70% of our economy.
So by that logic, consumption is good and savings must be bad, right?
Well maybe if you’re a Keynesian economist.
But if you follow Adam Smith or Hayek, you believe that increased productivity leads to more wealth. Forced spending just leads to improper allocation of resources.
Here’s a fun explanation, in tune with the Christmas spirit:
We would like to welcome you to our new blog! The name and the branding is a play on a 70 year old poster produced by the British Government during World War II. It was intended to raise the morale of the public. Here is an image on Wikipedia. Only a few copies were believed to have survived. The copyright for the original artwork expired after 50 years and is now in the public domain.
We thought it was great catchphrase to describe our beliefs about investing and personal finance. We hope you like the articles we post here and visit often!
