how US economy continues to be strong despite their people's consuming nature?

Answer 1

Having seen some of the answers, I feel that they have not been able to grasp the core issue in the question.By it self, American economy is in the negative with Zero saving rate(people living on future incomes through credits),huge burden of trade deficit (exports and imports) and many other reasons.What sustains and makes it stronger is that appx.70 % of country's earnings come from abroad(outside of America).This also provides it's economy an hedge,as rarely things can go wrong world over at the same time.You are right in asking about internal consumption. Had it not been under written by external earnings,America would be in serious trouble.American economy continues to baffle new students of economics as it defies most norms of a strong economy and yet keeps thriving.

Answer 2

Not really, I think the point that he is making is because we are consuming more than we are producing, how is our economy strong? The point being that if we don't save and add to our capital stock it will eventually depreciate.

The answer is that we are borrowing it. I am not sure this is a good position to be in. For example, we are selling off our firms, assets and other capital. If the trend continues, it will put pressure on our interest rates and it also means that more and more will be spent on payments on the loans that otherwise our children could enjoy.

Answer 3

How else can an economy be strong, unless there is demand for goods and services produced in the country? Otherwise the country will have to depend solely or largely on export; a precarious situation. Remember, money is no good in your safe or in the bank unless there is demand for money, when there are borrowers be they farmers, manufacturers, or service providers.

Answer 4

who says US economy is strong. all major currencies are gaining vis a vis us dollar. stock markets are going down.things like sub prime drama happens only in us. us is a country full of consumers who buy, but on borrowed money. they live on loans and credit cards.jobs are being lost. and u say us economy is strong., how ?

Answer 5

US economy has ample natural and man made resources at their command and US negotiate with other countries in favourable terms and grab all grab able resources from any part of the World.

Answer 6

You just answered your own question. Capitalism based on consumerism. Companies make money buy selling people what they want to buy. People buy things, and therefore keep the companies in business and cash flow. Simple.

Answer 7

Extremely high productivity, for one.