Quote of the Day: Consumption is the product of an expanding economy, not its cause

"The purpose of economic activity is consumption, both now and in the future. Nobody works for no reward. Month to month, and even year to year, consumers who decide to run down their savings can, of course, trigger greater demand and greater GDP growth.

"But that isn’t sustainable. Over long periods of time, consumption isn’t the real driver of growth: it is the product of an expanding economy, not its cause.”
~ Allister Heath, from his Telegraph article ‘Yes, Supply Does Create its Own Demand*'

* Technically not correct ...

[Hat tip Julian D.]
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