[Related to the Apply the Concept on page 333] A writer
for the Wall Street Journal wrote a whimsical “Letter to
Stingy American Consumers”:
Dear American Consumer:
This is the Wall Street Journal. … The sun shined
in April and you didn’t spend much money. …
You’ve been saving more too. … This saving is
not like you. … Do you know the American
economy is counting on you?
Economist Steven Landsburg praised Ebenezer Scrooge
for choosing to save rather than spend his money, arguing
that saving—not consumption—fuels economic growth.
The Wall Street Journal letter pretends to chide the American consumer for saving rather than spending income,
arguing that spending—not saving—fuels economic
growth. Which argument is correct?
Source: Jon Hilsenrath, “Grand Central: A Letter to Stingy American
Consumers,” Wall Street Journal, June 2, 2015.