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The first report on gross domestic product for the fourth quarter showed a surge in consumption spending, rising at an annual rate of 4.4 percent.
This rise in consumption spending again raises income, and of this additional income 60 percent is also spent on consumption and so on.
Until this cycle, the smallest year-over-year rise in consumption spending was a 1.8percentt increase in the 12 months through April 1961, a period that also ended shortly after a recession concluded.
That can't continue, and a huge decline in consumption spending is inevitable.
Multiply this amount by a lifetime of labor force participation, and you get an idea of just how much money the economy could lose in consumption spending and investments, and that governments would not collect in tax revenue if potential DREAM Act beneficiaries can't go to college.
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The researchers compared the effects of the two policies on public health using a mathematical model alongside General Lifestyle Survey data from the ONS to estimate changes in alcohol consumption, spending, and related harm among adults in England.
We also lost close to $500 billion in annual consumption spending due to the loss of the $8 trillion in housing-bubble-generated equity that was driving this consumption.
Perhaps the most telling difference between the course of the two economies comes in government consumption spending — basically spending that is not for investment, as in building roads or bombers.
The charts below show how much of each $1,000 in personal consumption spending goes for various things.
This compares with an 11percentt increase in overall consumption spending during the same period.
If we take the $3,000 a year figure, and multiply it by 11 million underwater homeowners, this gets us $33 billion in additional consumption spending each year.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com