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Follow Up: Ever Wonder Where All Of Your Money Goes?

August 5th, 2009 · 4 Comments
Decision Making · Follow Ups · Just For Fun · Uncategorizable

(You can see the original post here.)

For those of you that liked the infographic on consumer spending, here is one in a similar vein, and in video form. (I couldn’t figure out how to embed the video in this post, sorry.) Some key lines:

  • Apparel and services: 3.2% – wow, I am well over the figure on shoes alone…
  • “I guess we like to be entertained more than we like to learn…” – given this, you would think that more people would try to combine the two.
  • Have the people that made this been reading my site??? They specifically point out the alcohol to reading expenditure ratio…

Enjoy!

Tags: Decision Making · Follow Ups · Just For Fun · Uncategorizable

4 responses so far ↓

  • 1 Tony // Aug 5, 2009 at 10:09 pm

    On the reading to alcohol ratio, couldn’t that be explained by the relative costs of each? I don’t think it’s necessarily an indictment of our culture. That is, just because I spend more on drinking does not mean that we drink more than we read.

    It costs a lot more to drink myself into a stupor than it does to read myself into a stupor. And, if I want to get myself some “free” reading after I get drunk on “Nudge,” I can always just cruise the blog-o-sphere for that extra kick.

    I feel like I am always reading, but I rarely pay for it. I don’t feel like I’m always drinking (but I have my fair share). Yet, my drinking expenses likely exceed my reading expenses because reading is just so darn cheap.

  • 2 Chase // Aug 5, 2009 at 11:02 pm

    The prices of each might be an indictment though. Econ 101 comes to mind. In no way am I saying that reading and drinking are substitutes but if they were priced roughly the same do you think people would spend their money to drink themselves into a stupor or read themselves into a stupor?

  • 3 econgirl // Aug 5, 2009 at 11:34 pm

    Personally, I view drinking and reading as complements. 🙂

  • 4 Tony // Aug 6, 2009 at 12:02 am

    @Chase

    Maybe I wasn’t being clear. There are two reasons that we might see more spending on drinking than on reading.

    1. Demand is higher for drinking. [This is the indictment interpretation]

    2. Supply is higher for reading (i.e., it costs less on the margin to obtain readable material)

    (Caveat: whether expenditures are lower at a lower price depends on the elasticity of demand.)

    For the higher expenditures to be an indictment of our culture, we have to be able to conclude that demand for drinking > demand for reading.

    Although this fact might be true, the data don’t give enough information to conclude that we demand drinking more than reading. Supply differences can explain the whole discrepancy in spending.

    It might be true that demand for drinking > demand for reading (i.e., I might say “drink” to your question), but the data in the video don’t tell us whether we should believe that.

    @econgirl

    Me too 😀

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