Question

Please answer with complete sentences.

Question: A writer for the Wall Street Journal wrote a whimsical (impulsive) "Letter to Stingy American Consumers":

Dear American Consumer:

This is the Wall Street Journal ------ The sun shined in April and you didn't spend much money ---- You've been saving more too----. This saving is not like you ---. Do you know the American economy is counting on you?

Economist Steven Landsburg praised Ebenezer Scrooge for choosing to save rather than spend his money, arguing that saving --- not consumption --- fuels economic growth.

The Wall Street Journal letter pretends to chide the American consumer for saving rather than spending income, arguing that spending --- not saving --- fuels economic growth.

Which argument is correct? Explain your answer fully

Answer 1

Both the arguments are correct in their own way because if the consumer save money than more loans will be given to Business which inturn boost the economy and create more jobs. Thus reducing the unemployment in the country. It is clear when employment increase which means people have more in hand which lead to increase in consumption. This leads to economic growth.

In turn if the people spend more money than there will be more consumption which will increase the companies to earn to more money and increase their investment in business which increase the employment. Thus making the economy to grow more.

In either way it is a win win situation but these are pros but there are cons also which is there in everything. So here the chances of pros are more. Thus making both arguments correct in their own way.