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It Figures 02/02

The significance of consumer spending, the expense of outfitting an office, online scams and more

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This story appears in the February 2002 issue of Entrepreneur. Subscribe »
  SPEND CYCLE

WITH THE GOVERNMENT URGING CONSUMERS to "spend, spend, spend" to stimulate the economy, we were curious as to when consumer spending became so crucial to the nation's health. As the chart below shows, consumer spending as a percentage of GDP has remained pretty much unchanged for the past 50 years.



*3rd Quarter Numbers, GDP (Gross Domestic Product), PCE (Personal Consumption Expenditures)

SOURCE: Bureau of Economic Analysis

 
PEAK & SILICON VALLEYS
  THE OVERINFLATING MARKET of Silicon Valley has been grounded. However, though the price of outfitting an office has dropped since the heyday of dotcoms, salaries have increased-and probably won't decrease unless there's a sustained recession, says Bill Coleman of Salary.com. Expect to see bonuses and other forms of compensation fall instead.



SOURCE: Aeron, eBay, BT Commercial Real Estate, Salary.com
 

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