Some consumer economies
- In 2017, the United States household final consumption expenditure (HFCE) is $13t, which is 68% of its GDP.
- In 2017, the United Kingdom has a HFCE of 1.7t, which is 66% of its economy.
- In 2017, Hong Kong has a HFCE of 228b which is 68% of its economy.
What is consumer economy?
A consumer economy is an economy driven by consumer spending unlike production exports like industrial economies.
While I fully understand how consumer economy works in microeconomics (basically everything is the same and perfectly normal) and noted that US is an exception to the norms of international economic norms (since it's the owner of USD), I would like to be enlightened on how a consumer economy is possibly sustainable in terms of balance of trade, …aside from waiting for miraculous FDI injection
- How can I continuously consume without running out of money&resources? (assuming this nation is not a Juche/Soviet)
- Does this not eventually cause a devaluation of your national currency if you keeps on importing more than you export?
- Is it OK for me to conclude that consumer spending is bad, we should save as much as possible like Singapore, China and Japan and focus on exports to make as much incoming money as possible?