Question of the Day

In the U.S., how much higher is the average consumer spending of the poorest 10% of households than their reported, before-tax, cash income?

Correct Answer

Tell Me More

In the U.S., the poorest 10% of households have average annual reported, before-tax, cash income of $6,063, while their average consumer spending is $23,705. This means their spending is 3.9 times or 291% higher than their income. This difference is mainly due to unreported income. Per the Journal of Human Resources, "substantial evidence" indicates that consumption data is more accurately "measured than income for those with few resources" and provides policymakers with better information to decide "on appropriate benefit amounts for programs such as Food Stamps."

DocumentationConsumption and Income

Reload Question
Reload Question
Share via Facebook
Share via Twitter
Share via Email
Embed into your website
About the Fact App
Articles by Topic