About buying things...even good deals...good for the economy?
I recently listened to an economist on public radio speak on the subject of consumer spending. The host made the comment that in a recession, counter-cyclical businesses like Walmart see the majority of consumer spending. He went on to point out that a overwhelming percentage of Walmart's vendors were based in china, inferring that such spending would benefit the Asian nation, but not our own. He then asked if we should be spending more on American-made goods and services, to keep the money in-house. The economist responded that consumers shouldn't be spending at all. My question is - why not? Note - I was an economics major in college and am versed in the theory he bases his statement on and will assure you it is only theory to date...but I'm curious what the general public believes. How can you help the economy?