Must-Read: Nick Bunker: Consumption Inequality

…the kind of inequality discussed is almost always that of income or wealth. But when it comes to economic wellbeing, wealth and income aren’t the only shows in town. Consumption is also important, especially considering consumption is the primary reason to earn income and acquire wealth. Unfortunately, trends in consumption inequality aren’t as well understood as trends in wealth and income. But what we do know is quite interesting…. [Derek] Thompson sees consumption and income inequality moving together. But… consumption inequality hasn’t increased nearly as much as income inequality…. It looks like the rich are saving at a higher rate compared to the rest across the income spectrum than in the past. Yet there appear to be flaws in the CEX data…