The New Economy - Punk'd
Somehow, I feel like we're all getting punk'd. Much like the recent ballyhoo about "creation of wealth" and "home ownership society", the "new economy" was much heralded in the 90's silly-con valley dot-con heyday.
There is however, some truth to the statement. From 2000-04, Government spending +13.9%; consumer spending +27.3% on durable goods, +25.4% on residential building.
All told, these components accounted for 123% of real GDP growth during the period. These are the underpinnings of the "new economy".
In all this confusion, I seem to have forgot, how many Trillions of dollars have been shot building up debt. You have to ask yourself this question.
What happens to the "new economy" when consumer and government spending slows? We might find out in the near term, do you feel lucky? Well, do ya punk'd?
There is however, some truth to the statement. From 2000-04, Government spending +13.9%; consumer spending +27.3% on durable goods, +25.4% on residential building.
All told, these components accounted for 123% of real GDP growth during the period. These are the underpinnings of the "new economy".
In all this confusion, I seem to have forgot, how many Trillions of dollars have been shot building up debt. You have to ask yourself this question.
What happens to the "new economy" when consumer and government spending slows? We might find out in the near term, do you feel lucky? Well, do ya punk'd?
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