In a recent piece for the Wall Street Journal, columnist Justin Lahart wondered “If Americans don't buy so many cars and trucks, will they buy other things instead?” Supposedly the answer to his question “could matter a lot to the economy.”
Lahart's economic analysis is informed by the teachings of John Maynard Keynes. Keynes believed that consumption was the driver of economic growth, and his teachings broadly inform the analysis of economists, along with most who write about economics. But is it correct? Simple logic indicates that it isn't. Consumption really doesn't matter.
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