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The Rise of Consumption Equality
By JLP | January 6, 2012
Interesting piece from the WSJ: The Rise of Consumption Equality
One thing he doesn’t mention is the fact that people are going into debt in order to finance this consumption. At the very least, they are not allocating income towards savings. So, although what he says is true, those with higher incomes can consume AND save at the same time.
Topics: Economics | 1 Comment »
January 16th, 2012 at 7:32 pm
Very funny, and in some ways telling article. But, what I really loved were some of the +400 comments.
This one from Sarah McLeod was one of he best the best: “I understand that there are families in the United States who are struggling to maintain the necessities, however, I have first-hand experience with those classified as poor in our nation and I believe there are a few things you are not considering. I teach high school students and 80% of them are classified as low SES as determined by the school lunch program. They qualify for free or reduced price lunches which means that their total family income falls far short of middle-class levels. Every single one of my students has a cell phone. When our administrators go on home visits they are almost without exception, greeted by the blaring sounds of Spongebob Squarepants coming from a big screen tv. Most of my students have an X-box, Playstation, or some other form of game system at home. I am in no way questioning the right of individuals to prioritize their spending, but to say that there is not enough money to provide for the necessities is often not accurate. What I have observed is that frequently money is spent on items other than necessities because those things like food,shelter, and health care are already provided. This leaves room for the “want” spending instead of the “need” spending. I fully believe that this is one reason statistics show incomes falling in recent years but spending has continued to rise. I have complete sympathy for those struggling financially but to imply that this struggle is something unavoidable or that it can be fixed in a simple way is shortsighted. Our economy is changing and the workforce required for this type of economy is changing as well. I absolutely love the kids I teach and have full compassion for the situation they are facing in life but that doesn’t mean that I allow them to use that as an excuse. I endeavor daily to equip them with the skills they will need to overcome poverty, not merely to endure it.”
I couldn’t have said it better than she did.