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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (945964)	7/9/2016 1:10:43 PM
From: i-node	Read Replies (2) \| Respond to of 1575201

>> So it is all about consumption, which drives demand. You may feel it is not an important distinction. But it is essential to recognize that it is the ACT of producing, not the ACT of consumption, that drives economic growth. Production must occur before there can be consumption, and growth is based on GDP, not goods consumed. And producing goods for inventory -- goods that are never even sold -- can cause economic growth. Hence, it is production, not consumption, that is the most proximate cause of economic growth. Why does this matter? Because it is the act of producing that funds consumption. Not the other way around. Without production there will be zero consumption. This is why trying to "create" demand by distributing taxpayer dollars to people fails each and every time it is tried. This action is one that results from a most basic misunderstanding of economic basics. If you want to create growth you incentivize capital spending and R&D (innovation forms the seed for economic growth) which lead to increased production and sustainable economic growth. I don't know why you guys have such a hard time with these concepts.