According to the New York Times, the “health” of the British economy is based on consumer spending as “manufacturing, once the cornerstone, struggles”. How can an economy be driven by consumption rather than production? If this were possible, why wouldn’t everyone do it? Why not just consume full-time and forget about production at all?
The article goes on to describe how a bit of a housing bubble has developed in the UK, fed by low interest rates. Does all of this sound familiar? [link]
