Read Consumer Spending Drives the Economy? - Foundation for Economic Education. "COVID-19 is battering the U.S. economy, causing many businesses to cut back and close down. Policymakers are considering a huge $1 trillion stimulus package with an array of subsidies designed to boost consumption. Pundits often say things like "70 percent of the economy is consumption" and "America has a consumer-driven economy." That leads them to think that reviving growth rests on inducing people to spend" Boost Supply, Not Demand, During the Pandemic | Cato at Liberty Blog Can we say that consumer spending drives economic growth? Why?