Don’t blame the consumer

By doris | Published: August 13, 2010

Full Story at money.cnn.com

FORTUNE — Consumers drive more than two-thirds of the nation’s economy, and with growth hard to spot these days, it’s easy to place the blame on stingy spenders. But that’s a mistake.

Personal spending, in fact, has kept pace with the economy, accounting for a steady 70% of GDP before the recession, during the depths of the crisis, and into today’s slow recovery. In fact, consumption relative to GDP rose slightly to 71% during the last two quarters of 2009 amid huge government spending programs — such as the promotion of home and car sales — to stimulate the economy. It has flattened out since.

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