The Post Crisis Consumer

Eddie Braverman's picture
Rank: The Pro | 21,198

This is an interesting TED video describing the new trends in consumerism and why we shouldn't expect a return to the conspicuous consumption of the past two decades. Of course, it is my hope as a student of Austrian economics that the American people recognize long term that saving and investment is more important than consumption (not only because it is, but I'd also love to see the Keynesian "deficits don't matter" pablum done away with forever). This is a pretty fascinating take on the power of the post-crisis consumer.

Comments (6)

Mar 4, 2010
Edmundo Braverman:

it is my hope as a student of Austrian economics that the American people recognize long term that saving and investment is more important than consumption

You're positive the Austrians say that? I figured Austrians would have the opinion that neither savings/investment, nor consumption is more important. Rather, different people have different preferences, and therefore individuals should be skewed in one way or the other.

  • Commuter
  •  Mar 7, 2010
econ:

You're positive the Austrians say that? I figured Austrians would have the opinion that neither savings/investment, nor consumption is more important. Rather, different people have different preferences, and therefore individuals should be skewed in one way or the other.

As a foward for a growing economy, they would. I wouldn't use "should" but "can", but for the most part their free minded decisions, if not skewed by massive artificial credit and monetary inflation and other contols etc... promotes savings. This is a very macro interpretation from me of the majority idea, of course.

Of course a large underlayment for some pre or post judgement is that it yields upmost liberalism( classical).

Mar 5, 2010

Lovely video, thanks a ton. Shared it with people at my firm and they were very appreciative too

Mar 5, 2010

Edmundo, the TED talks are one of my favorite Web discoveries of the last year. Thanks for sharing this.

Mar 7, 2010

I believe growth driven solely by consumption and leverage is crazy, but I would not entirely discard macroeconomic policy yet...

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