Difference between revisions of "Internal consumption in US"

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Internal Consumption in US
Internal Consumption in US


==Description:==
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As we understand the internal consumption in US is a very important factor for the American economy growth, and so in the rest of the world. Some experts say that the internal consumption in the US is the most important economy drive force and they also that the internal consumption in US drives 40% of the whole American economy.
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==Enablers:==
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1. Confidence: The people in US spend very high ammounts of money and important part of that comming from borrowings. But to keep the high level of debt within the people in US and to keep expending they need to feel confidence that the economy will run very well in the future.
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2. Stock market performance: Almost all the people from the US have direct or indirect investment in the stock market (indirect through mutual funds, pension funds, etc). The people plan their spending depending on their investments performance, so the better the performance in the stock exchenge the higher the consumption.
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1. Interest rate level: Because the consumption depends in important part from the level of debt of course important part of this comes from the level of the price of the money, which is the interest rate level.


2. Unemployment: The people in US (and in every part of the world) need to be employed to keep consuming. If the unemployment is high the consumption is low and viceversa.
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==Paradigms:==
The US economy drives the world economy; the US economy is driven by the internal consumption, so the internal consumption in US drives the world economy
 
==Experts:==
Sources for additional information about this driving force. (if you have found people, put the links to them)
==Timing:==
Dates for key milestones in the development of the driving force.  
==Web Resources:==
Confidence Index in US [http://www.conference-board.org/economics/consumerconfidence.cfm]
 
Unemployment History rates in US [http://www.economagic.com/em-cgi/data.exe/feddal/ru]

Latest revision as of 04:02, 2 June 2010

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