Other Aspects of Wealth and Poverty
Before completing our examination of wealth and poverty, there are a few related topics to cover: general spending patterns, consumer debt, and inflation.
Where It Goes
As I mentioned earlier, there are three broad classes of personal consumption expenditure: durables, nondurables, and services. Table 10.7 shows the dollar amounts of spending and the growth rates in these categories for 1977 and 1993, and for 1995 and 2009.
Table 10.7 Personal Spending Patterns Are Changing (billions of 2005 dollars)
Source: Bureau of Economic Analysis
As the table shows, consumers spend most of their money on services. ...