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Posts tagged with spending

people at three different socioeconomic levels in Mumbai

(Source: video.ft.com)




The Equation of Life
s/rent/mortgage/ or
s/rent/landowner's share of tenant's crops/
et cetera, et cetera, mutatis mutandi, et ceteraaaa, et ceteraaa

The Equation of Life

  • s/rent/mortgage/ or
  • s/rent/landowner's share of tenant's crops/
  • et cetera, et cetera, mutatis mutandi, et ceteraaaa, et ceteraaa

hi-res




In the 1930s, almost 10 percent of [American] Christmas spending was financed with money squirreled away into Christmas clubs—bank accounts … helping consumers save for the holiday. Participants promised to contribute weekly, frequently as little as $0.25 at a time. …

Since 1970, by contrast, the explosive growth in consumer credit has had the opposite effect, helping consumers fall prey to their lack of self-control when it comes to borrowing. In recent years, one-third of [American] holiday spending is still not paid off two months after Christmas.
Joel Waldfogel

(Source: Slate)




Work less. Spend less. Live more.

—chalked on a sidewalk at my college, years ago

I was reading economics at the time, so it made a lot of sense to cast the preference in terms of isoutility curves. As long as the level curves of 𝓤 over (consumption, leisure) space are sufficiently close to parallel the consumption axis, the above suggestion is rational, even optimal.

In terms of partial derivatives, 𝓤 / ∂leisure > ∂𝓤 / consumption at many points in (consumption, leisure) space. More to the point, the directional gradient along the budget constraint points leisureward even at the expense of consumption, for a meaningfully large fraction of the segment.