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"if you are living here then you are consuming here" - it strikes me that, the more you are poor the more you are bound to consume local. The richer you are the
by reirob 12y ago
"if you are living here then you are consuming here" - it strikes me that, the more you are poor the more you are bound to consume local. The richer you are the more choice you have where to consume (or where to invest, at some point of wealth this could also be considered as consumption). Therefore I tend to think that a consumption tax will penalize the poor.
- jeffdavis 12y agoCan you give an example of living in the US and consuming mostly somewhere else? Are you just talking about luxurious vacations to Europe?
- reirob 12y agoI can't give you the requested example as I am living in Europe ;-) But what I mean seems to be more of a general rule. The richer you are the better choices you have to spend money on products that appeal to you, because your consumption/investment horizon widens. Vacations to other countries are indeed part of it. But it might be as well goods produced on the other side of the planet that you can buy, because you might have heard about them through your acquaintances. Whereas poor will not have the idea to look for alternatives.