Politicians and journalists who fixate on consumer spending are putting the cart before the horse. Consumer spending generally is a consequence of growth, not the cause of growth. This Center for Freedom and Prosperity video helps explain how to achieve more prosperity by looking at the differences between gross domestic product and gross domestic income.

In the latest “Economics 101” video released today by the Center for Freedom and Prosperity Foundation (CF&P), Hiwa Alaghebandian of the American Enterprise Institute punctures a common economic myth used by politicians to justify bigger government. The video, entitled “Keynesian Economics Is Wrong: Economic Growth Causes Consumer Spending, Not the Other Way Around,” dispels the popular Keynesian notion that artificially boosting consumer spending can improve economic performance.