PeakTrader.com

[administrator]

PeakTrader:

http://angrybearblog.com/2014/01/is-the-permanent-income-glass-half-full-ii.html#comments

Could it be that as disposable personal income tends to rise over time, consumption expenditures rises more slowly, because the marginal propensity to consume falls and the marginal propensity to save rises?

So, although the ratio of the average of U.S. real disposable personal income over the next four years to current year real disposable personal income rises, the ratio of U.S. consumption expenditures to U.S. disposable personal income declines (slightly and negatively correlated).

I heard, the top 20% income earners account for (only) 40% of consumption.

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