Consumption Inequality: More Important Than Income Inequality?

[FrankFacts]

My latest is a bit economics-y, and it's about consumption vs. income inequality: http://frankfacts.org/consumption-in...me-inequality/

What do you think? Which is more important -- consumption inequality (the inequality in what we spend) or income inequality (inequality in what we earn)?

[corn18]

Why do you call it inequality? The inference is that low income earners do not have the opportunity to increase their income. Is that true?

[disneysteve]

I don't really understand the question. When you say, "Which is more important?", more important for what?

Yes, people earning less will spend a higher percentage of income on necessities because a gallon of gas or a dozen eggs is the same price whether you earn 30K or 300K. It is far easier for the person earning 300K to save 15% of income for retirement than for the person earning 30K. But what's the question here?

[sj11041990]

Interesting read, thanks guys