July 2, 2017

THEY AIN'T MAKIN' POVERTY LIKE THEY USED TO:

Low-income families spend 40% of their money on luxuries (Leslie Albrecht, June 30, 2017, 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 at July 2, 2017 7:52 PM

  

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