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"The wealthy tend to spend less of their increase in income than do poorer people" I rather think that the causality is the other way... if you don't spend mon
by ahartmetz 8y ago
"The wealthy tend to spend less of their increase in income than do poorer people"
I rather think that the causality is the other way... if you don't spend money just because you have it, you're going to be wealthier.
- moorhosj 8y agoHaving more money gives the option to spend it or save it. When you make $40,000, you don’t really have the option to save much compared to people making $100,000.
- rurp 8y agoI think it's mostly as simple as money having marginal utility. The first $30k a person make per year goes to absolute essential (ie. food, housing). The next $30k goes to really nice the have things like better transportation, medicine, etc. As a person makes more money, each additional dollar has less of an impact on their life.
- ahartmetz 8y agoThat is also true. But I don't like the original article treating "being wealthy" as the, uhm, chicken?, in this chicken-egg problem.