Consumer spending

Consumer spending is the total money spent on final goods and services by individuals and households.

Underlying tax manipulation as a stimulant or suppression of consumer spending is an equation for gross domestic product (GDP).

Increases in government spending create demand and economic expansion.

This creates a potential negative impact on private consumption, investment, and/or the balance of trade.

As was discussed earlier, temporary financial reprieve rarely succeeds because people do not often like rapidly shifting their spending habits.