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- This holiday season, like others in recent memory, we cheered on images of Americans shopping as a sign the economy was back to full potential. It’s striking that no one asked if Americans can afford to spend so much. Chris Giles of the Financial Times argued that because developed economies rely on consumption, more is better. He wished Brits would keep up their holiday spending levels year-round. In America, too, consumption makes up 70% of GDP, so it seems more consumption will mean more growth. According to Paul Krugman we’ve reached a point where “prudence is folly.”