2min chapter

Think Like An Economist cover image

S E30: Consumption and Saving - Spend Now or Save to Spend Later

Think Like An Economist

CHAPTER

Is That the Whole Picture?

One of the main reasons some one may be a hand to mouth consumer is they can't get access to credit. A bank is more likely to lend you money if you already earn good money, or you have a house or something that they can take away if you don't repay your loans. Without unemployment checks, people's consumption falls a lot. Most americans actually saved a lot of this money. Our figures show the typical persons spent around 350 dollars and put the rest away to spend in the future.

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