Who Says Americans Spend Irresponsibly?February 17, 2013 1:54 pm
The consumer expenditure survey from the BLS has some great information and even though it might take some effort to collate the data over the years, the spending patterns across the years provide valuable insight.
Here is one, for example: between the years 1989 and 2011, the expenditure on Education and Healthcare, as a percentage of income, went up from 6.4 percent to 8.8 percent. We chose these two expenditure groups because these are generally areas where the consumer is more or less powerless. When faced with such a jump, where did the Americans cut their expenditure on? Apparel products and services, and miscellaneous. In addition to that, they did NOT increase entertainment spending as a percentage of income, and they kept personal care expenditure fairly constant as well.
(We could also include personal insurance, in which case the contrast would have looked even better)
That is a very responsible and logical response from the American people, when faced with rising costs in areas where they are essentially powerless.
Who Says Americans Spend Irresponsibly?