Consumption-Led Growth Is A Myth

Even experts from the World Bank seem to be getting it, this from Ivailo Izvorski, (East Asia & Pacific On The Rise) [bold highlights mine]

“Consumption-led” growth is a myth. Output growth results from the accumulation of factors of production – capital, labor, land and others – and from technological progress. Consumption is not a factor that drives growth, it is the residual. And at early stages of development, rapid consumption growth – as we have observed in East Asia – is possible only with rapid investment growth. Cut down on investment to boost consumption and given the low level of capital in the region, output growth will plummet, and with it consumption growth.

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More signs that the mainstream appears to be moving away from Keynesian economics.