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Economy
Low-income families spend 40% of their your money on luxuries
2017-06-29
[Market Watch] It turns out that all Americans, regardless of income, spend a large percentage of their income on luxuries.

People who make the most money spend the biggest chunk of their incomes on luxury goods, but even the poorest households spend a significant amount for luxuries, according to an analysis released this week by Deutsche Bank Research.

The wealthiest families (the top fifth of earners) spend around 65% of their incomes on luxury goods and 35% on necessities, according to the study, which looked at spending habits between 1984 and 2014. Middle-income households weren’t far behind: They spend 50% on luxuries and 50% on necessities.

Even the lowest income families (the bottom fifth of earners) spend 40% on luxuries and 60% on necessities, according to the study’s author, Torsten Slok, chief international economist for Deutsche Bank Securities.
Posted by:Besoeker

#5  Quite possible he got that cash in exchange for stamps at some ratio Glenmore.
Posted by: CrazyFool   2017-06-29 22:20  

#4  I remember when I was young and poor - but not on public assistance - I was checking out with my generic corn flakes and ground beef behind a man with ribeye and artichoke who paid with food stamps, though he did have to use his cash for the wine.
Posted by: Glenmore   2017-06-29 20:00  

#3  1. We have redefined "poverty" in this country. Poor people have cable TV, cars, microwave ovens, AC, laptops, etc. They aren't starving, but have weight problems.

2. Spending on "luxuries" is actually very common among the poor, and is often part of why they are poor. It is the rich who are accustomed to sacrifice and delayed gratification.
Posted by: Iblis   2017-06-29 17:28  

#2  So the fact that are culture has cheap basic survival necessities means that we are wasting money on luxuries...
Man in Black: Truly, you have a dizzying intellect.
Vizzini: Wait til I get going! Now, where was I?
Man in Black: Australia Luxuries.
Posted by: magie   2017-06-29 14:18  

#1  Pretty stupid definition of "Luxuries", which are essentially whatever you spend the greater proportion of your income on. Them defining as axiomatic the conclusion they wanted to obtain, and (lo and behold!) its true!!!

Posted by: ptah   2017-06-29 13:44  

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