TAX CONSUMPTION INSTEAD OF INCOME:

And these numbers reflect big changes in Americans' lifestyle. The average U.S. home was 1,700 square feet in 1980, by 2015 it was 2,000 square feet, even though the number of people in the average household shrank. In 1980, 15% of households didn't have a TV, now only about 3% don't. In 2015, 40% of American households had three or more TVs, including 30% of households earning less than $40,000 a year! In 1980, only 13% of households had 2 or more refrigerators, in 2015 30% did -- including many low-earning households. Clothing purchases have increased five-fold since 1980 and the average garment will only be worn seven times before it's disposed of.

Our spending habits slowed some during the pandemic but, despite all the shortages, they've come roaring back.

There are many reasons we've become a nation of shopaholics. We've become a richer country which means we spend more. Many goods have become cheaper and more accessible. That's partly because of technology that makes production more efficient. For shoppers, the Internet makes it easier to find more goods for the best prices without even leaving your home. The other big factor is we get more stuff from abroad, imports of goods and services as a share of GDP has nearly doubled since the 1980s.  Lots of trade has been with countries like China and Mexico who have lower labor costs. Even American-made goods use parts that come from abroad. We experienced the vulnerabilities of a global supply chain in the last few years, but when it does work (most of the time) it means the U.S. can fully exploit the comparative advantages of trade and provide goods more efficiently, faster and for less money.

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