Thursday, April 23, 2009

Income Versus Expenditures - An Analysis

In my quest to answer the preceding question, I went to the BLS website and found some interesting data on consumer income versus expenditures. I copied the most important data (number of consumer units within an income range, income after taxes and total expenditures) into Excel. I came up with the following (click on image for enlargement):

I noticed that the negative post-expenditure number didn't stop until consumers hit the $40,000 income range. This meant that a total of 52,635,000 households, or 43.8%, were spending more than they were taking in.

Are we supposed to believe that ALL of the people who make less than $40,000 are irresponsible?

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