This morning the retail spending statistics for December came out, and once again a large number of journalists got it wrong. By repeating the incorrect statement “consumer spending is 70% of the economy”, they are implicitly supporting the notion that business investment plus exports plus government only account for 30% of the economy altogether.
So rather than call out journalists by name this time, I’ve decided to be constructive. I’m going to give a free seminar in DC on “Interpreting the Economic Statistics in the New Global Economy.” I’ll cover:
*Why consumer spending is *not* 70% of the economy
*What really will drive growth
*The real difference between consumption and investment
*How to interpret the trade statistics
*What indicators are signs of real recovery.
If people are interested, drop me a note at firstname.lastname@example.org. It will probably be in early February. If there’s enough interest, I’ll give one in NYC as well.