Personal Finance: Americans Need to Live More Like Europeans – Bloomberg

It is Discover your self to be The conventional information that the U.S. financial system is constructed on People’ endmuch less urge for food To buy tons And a lot of of stuff. Household consumption makes up about 67% of GDP. When the financial system falters, we’re informed spending is our patriotic obligation. However all of a sudden, People can’t spend Simply like they used to. Retailer cabinets are emptying, and It might take months To find a automotive, fridge or couch. If this continues, we might Want to study to do with out — and, horrors, stay extra Simply like the Europeans. That actually Will not be A nasty factor, as a Outcome of the U.S. financial system Could be extra healthful if it have been much less reliant on consumption.

In any case, People Have not On A daily basis acted like this. We have entered an age of overabundance. We eat Much Greater than we used to and Greater than completely different nations.  Consumption per capita grew about 65% from 1990 to 2015, in contrast with about 35% progress in Europe. Household consumption makes up solely about 50% of GDP in Germany.

Source: https://www.bloomberg.com/opinion/articles/2021-11-12/personal-finance-americans-need-to-live-more-like-europeans

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