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Strategies & Market Trends : Booms, Busts, and Recoveries
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To: KyrosL who wrote (8250)9/5/2001 10:38:11 PM
From: Ilaine  Read Replies (3) of 74559
 
>>If they cut their spending by about 4% on the average, the US goes into severe recession.<<

Interesting. How does that happen? Seems like you're saying a decline in consumption is the trigger. How do you know it's not a decline in production? J6P both produces AND consumes. Which comes first?

The old fashioned way of looking at it is that if you don't produce, you don't eat. Even in socialism-land, doesn't it really work that way? Someone has to produce, otherwise no one eats.
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