In economics, the marginal propensity to consume is a number between 0 and 1 which states the percentage of your money that you choose to spend rather then save. Let’s say your MPC is .5, that would mean you save 50 cents of every dollar you earn after taxes. In theory an MPC of .5 would make you “bad” for the economy but financially sound in your own economic interests. Anything below .5 would probably turn you into a millionaire within a decade.
I’d like to take a moment to explore some items which if you consider purchasing in a store should be a red flag that you are the type of consumer with a very high MPC. Perhaps you will begin considering how these sorts of purchases will affect your MPC in the future.
The Snuggie
The Sunbeam Rocket Grill
A Mousepad
Finally, a Scrapbooking Kit
2 responses so far ↓
1 adamson // Feb 15, 2009 at 11:22 am
My grandmother has that mousepad. She is incredibly easy to sell things to, lol…
2 Magyc // Apr 10, 2009 at 12:48 pm
If you spend hours with that scrapbooking kit, it leaves a lot less time available to fritter money away elsewhere.
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