According to John Beggs, chief economist at AIB Global Treasury, the growth of retail spending in the past few years has been well exceeded by the growth in people's earnings.
He says this disproves the widely held view that spending has been funded by borrowing.
Read the story here.
1 comment:
Of course, this wouldn't be true if the higher earners are saving more money (in some kind of heteroskedastic consumption pattern) and the lower earners are borrowing more than before to finance higher than previous levels of consumption.
Post a Comment