Independent thinking for complex markets and current events
People confuse disposable income with discretionary income. Disposable income is your take-home pay (after taxes). It has nothing to do with cost of living. Money left after paying living costs is called discretionary income. h/t Unusual_Bag3110
Household debt service ratio vs. disposable personal income growth byu/MonetaryCommentary inEconomyCharts Rising household debt service and fading disposable income growth are quietly throttling the U.S. expansion from the inside out. As households allocate more of their income toward debt obligations, they leave less room for discretionary spending. This is about a macro feedback loop where …