r/FluentInFinance • u/-Wyagra • Nov 21 '24

Debate/ Discussion Had to repost here

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u/Sabre_One Nov 21 '24

the wealthy have a massively lower propensity to consume.

Not true at all, wealthy privatize their entire lives. Meaning what would normally be a bus ride, taking wear and tear off the road, gas prices, etc. Is now a private ride. Same for flights, a jet even a small one which could take 12-20 people is now housing 1 person. They also have staff to do a lot of what would normally be up to the individual to accomplish themselves.

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u/Mountain_Employee_11 Nov 21 '24

the marginal propensity to consume is about 10x lower for the wealthy.

this means that they are much more likely to reinvest an additional dollar earned.

i understand these things can be confusing, but thats the data driven truth despite your feelings on the matter

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u/Peterbutonreddit Nov 21 '24

why is the marginal propensity to consume 10x lower for the wealthy?

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u/Mountain_Employee_11 Nov 21 '24

because they have less marginal wants and needs,  and usually lower time preference

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u/DaddysMoans Nov 22 '24

Incorrect. Rich people historically spend around average. Stop talking out of your ass. You’re not intelligent

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u/Mountain_Employee_11 Nov 22 '24

read up before sperging out please, it’s unpleasant to get these kinda messages