Spending is not everything. As with debt, how that money is spent matters greatly. Is everyone buying up existing assets in the hopes that some greater fool will pay more for those same assets at a later point in time? That’s not productive spending (or borrowing, if leverage is used).
Also, what percentage of that money is going to the people who create the goods and provide the services in an economy, and what portion is being skimmed off the top by those who control distribution channels, finance markets, and those who profit from the transaction without doing any of the work? If most of the money is going directly to the person providing the goods/services, that is healthy; but if most of the money is be siphoned off and shunted to those who already own a disproportionate portion of the world’s wealth/resources, then we are bound to find ourselves, once again, at the breaking point socially and economically.
This leads to unsustainable wealth/income gaps and debt burdens, which tend to go together, because income growth will fall further and further behind asset price growth as the rich accumulate more and more wealth and and then chase the same asset markets around the globe, pushing prices well above sustainable levels, and well beyond the reach of lowly workers whose incomes can’t possibly keep up with price increases.
I would argue that speculation is one of the most destructive forces in an economy. Speculation that is fed by massive amounts of debt is the surest way to destroy an economy and society. Not enough is said or done regarding speculation. That’s because those who hold the greatest wealth and power tend to be the winners in the speculative game. But that game is zero-sum, so everybody else will have to lose in order for them to win.
