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  1. Divya, SurveyTabs Research
    Divya, SurveyTabs Research at |

    Yes. The article is well written and advocates the spending on innovation which can lure the consumer to spend more on innovative goods and services. But, we take a assumption that the consumer spending power would be still high which might not be true in certain cases. It might decline significantly due to the loss of investments or his percieved prolonged risk of recession. In addition,

    During the period of downturn it is observed that the consumer spends remain reasonable for the essential commodities but the consumer becomes increasingly risk averse to the spending on any luxury or semi-luxury items. Hence the spending of innovation would be more directed on “Essentials” Component of Consumer spending.

    It is now being realised that we would again be in a downturn . This time it would be driven by China Economy slowdown. This means that world might stay in low rate environment to boost spending. lt would interesting to see how US Fed reacts to it.

    SurveyTabs Research
    http://www.surveytabs.com

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