Americans are buying stuff they do not really need

It is strange that Americans, today, are buying stuff they do not really need and that, in turn, helps the U.S. economy to grow. An analysis of the consumer spending data leads one to conclude that people are buying up stuff that they do not really need.
This has been reported in nzherald.co.nz dated 3 November 2015.

It is an accepted that one person's luxury may be another person's necessity. However, some categories of spending tracked by the Bureau of Economic Analysis - such as jewellery and restaurants - consist primarily of stuff that pretty much anyone, if pressed, could do without. And, such goods and services comprise nearly a fifth of personal consumption, or an annualized $2.3 trillion in the three months through September.
An increase in the importance of non-essential spending can be interpreted in a number of ways. One reason could be a sign of greater overall prosperity. This means, when people have taken care of most of their basic needs, then they would move over to discretionary items.
During the last two recessions, spending in non-essential categories had dropped much faster than in essential ones. Another explanation could be that it reflects the increasing concentration of wealth in the hands of the rich. They can devote a larger share of their expenditures to luxury goods and services.
The income of this group has become more volatile in recent decades. That could be driving faster growth in non-essential goods during recoveries. In that case, it could translate into a bumpier ride for less affluent folks.
(Image courtesy wikimediacommons.org)


Some more interesting links -

Give It Up – embrace a DOG’s life (satire)

Fight fire with fire - have ‘Award Return Festivals’

Operation unearthing Black Money (satire)


Fossils and eggshells of baby dinosaurs found in Gobi Desert

Parama Island flyover adds to traffic jams in Kolkata – made one-way

Future of street foods in Delhi bleak - Delhi bans cooking on roads


Arnold Schwarzenegger could play in Rajinikanth-starrer 'Enthiran 2'

Emma Roberts and her horror-comedy series "Scream Queens"

India is one of 81 countries vying for Best Foreign Film in the 88th Academy Awards


Despite US airstrikes, ISIS still makes £300-million a year from oil

Syrian gang caught trying to smuggle 20-tonnes of cannabis worth £150million into Europe

US airdrops 50-tons of ammunition for M-16s and AK-47 to Syrian fighters