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> new products Research & innovation create new product categories. No amount of consumer spending invents new products. I disagree with you that consumer spe
by clarkmoody 9y ago
> new products
Research & innovation create new product categories. No amount of consumer spending invents new products.
I disagree with you that consumer spending boosts the economy. Look at the actions of central banks easing monetary conditions to try and boost spending. All they do is succeed in inflating bubbles that later produce busts.
Economic growth is a subject not completely understood by economists. Is is savings or investment? How does regulatory burden come into play? What about property rights and government corruption?
- ZenoArrow 9y ago> "Research & innovation create new product categories. No amount of consumer spending invents new products." Potential consumer spending does create the space for new products. Take VR as an example. The recent resurgence in VR has been made possible by the disposable income of gamers, especially PC gamers. Look at the high amounts of money being spent by gamers. If that disposable income did not exist, the resurgence of VR would look very different, and products like the Vive and the Rift are unlikely to have emerged. As for whether consumer spending drives scientific research, depends on what you class as consumer spending. For example, do you class student loans as consumer spending? Do you class government taxes as consumer spending? I'd suggest that funding from a diverse group of people is more reliable than hoping a handful of rich people do the right thing.