Wealth effects on consumption across the wealth distribution: empirical evidence
August 13, 2015 5:00am by
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So (if I am reading this right) when you increase the net income of poor people, they are more likely spend it than any other group. This doesn’t seem like much of a shock to anyone (except maybe the entire Austrian school of economics).
This is yet another study that proves that the bottom 50% of wage earners are the real job creators in any consumption economy.
Yet one political party in the U.S. has sworn they will fight to the death to keep the minimum wage low, to keep cutting benefits for the poor, and to preserve tax breaks for the people least likely to consume them.
Low Budget Dave, Thanks for the summarizing the conclusion into plain English that readers and politicians can hopefully understand.