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> the pool of [all consumers' discretionary income] is likely a small fraction of the pool of [all commercial companies' marketing budgets]. "Discretionary inc
by tlb 7y ago
> the pool of [all consumers' discretionary income] is likely a small fraction of the pool of [all commercial companies' marketing budgets].
"Discretionary income" is a short-term idea, defined as [income - cost to maintain current lifestyle]. Over longer periods, lifestyles expand to fit current income and the idea is meaningless.
For instance, when cars were new, people could only buy them if they had a large chunk of discretionary income to spend on them. But now, most middle-class people own a car that costs more than their discretionary income. So discretionary income isn't a cap on what people can spend in the long term.
- weberc2 7y agoDiscretionary income is measured in dollars/time, cars are valued in dollars. That’s relevant because cars are affordable to middle class Americans because of _financing_ (also because of mass production). Your car payment deducts from your discretionary spending while web advertising does not—without web advertising you would need to subscribe to the websites and services you consume and that would come from your discretionary dollars. Whatever your views on the matter, getting rid of advertising isn’t going to come for free.