Published on Fake Ben - The Secret Diary of Ben Bernanke (http://www.fakeben.com)
Why Overconsumption Requires More Overconsumption
By FakeBen
Created 04/11/2008 - 04:59

Why Overconsumption Requires More Overconsumption

This graph shows how overconsumption ends up requiring more overconsumption. There are three lines. The first is the normal rate of consumption in an economy (assuming no inflation and no growth). If a government encourages overconsumption, then excessive debt is added. Over time, the burden of these debt payments require more overconsumption in order to keep the normal rate of consumption from declining.


Source URL: http://www.fakeben.com/node/199