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But how come low wages do not impact negatively the domestic consumption, which is an important part of the GDP?
by lgeorget 8y ago
But how come low wages do not impact negatively the domestic consumption, which is an important part of the GDP?
- snuxoll 8y agoHave you not seen the explosion of consumer debt over the past decades? Buying power is now tied to how much a bank is willing to lend you, not how much you have in your savings accounts. Synchrony, who Amazon partners with to offer their store card, will give basically anybody with a pulse a $500 credit line and ramp them up to thousands fairly quickly as long as they don't default. I don't even want to get into the real debt traps targeted at the least fortunate among us like payday/title loans, buy-here-pay-here car dealerships, etc.
- esrauch 8y agoWith increased income disparity, the top can make up for the bottom on domestic consumption metrics.