Afterward, the US swore it would change its ways, cut down on junky consumption and rebuild economic muscle—for instance, in its export sector—that had long gone flabby. A China chastened by its reliance on the unhealthy US was supposed to tilt its economy away from exporting the cheap merchandise Americans found so irresistible and towards domestic consumers.
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When it comes to growth, the US’s consumer-driven economy now stands out as the world’s best bet.
That’s right, American consumers are being asked to carry the global economy forward—again.
That seems worrisome. Just five years ago, America’s real-estate-centered spending binge—and banking system—collapsed under the weight of the debts that fueled it. The financial crisis and deep recession that followed was the equivalent of an economic heart attack.
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