I did not study economics and have never heard of Actual Individual Consumption per Capita. From what I understand, and correct me if I’m wrong (but please be nice I’m literally just a girl trying to learn) AIC looks at consumer goods and services purchased directly by households and services provided by non-profit organizations or the g…
I did not study economics and have never heard of Actual Individual Consumption per Capita. From what I understand, and correct me if I’m wrong (but please be nice I’m literally just a girl trying to learn) AIC looks at consumer goods and services purchased directly by households and services provided by non-profit organizations or the government for individual consumption and it measures it “by the total value of household final consumption expenditure, NPISH final consumption expenditure and government expenditure on individual consumption goods and services” (OECD) and I would assume divides it by population (since its per capita)? Then disposable income is the amount of income a person has after taxes are taken out. Then to find the disposable income per capita for a country you take all of that and divide it by that countries population?
The problem with AIC and disposable income is that it does not take into account any wealth disparities. In America, the Federal Reserve data show that the least-wealthy 50 percent of U.S. households hold very little of the nation’s wealth (less than 4 percent), while the households with wealth in the top 10 percent hold over two-thirds. This would mean looking at the country overall we all look to be in pretty good shape but then why are so many Americans living paycheck to paycheck. I agree the AIC does take more into account but it fails to account for the massive wealth disparity in America.
I did not study economics and have never heard of Actual Individual Consumption per Capita. From what I understand, and correct me if I’m wrong (but please be nice I’m literally just a girl trying to learn) AIC looks at consumer goods and services purchased directly by households and services provided by non-profit organizations or the government for individual consumption and it measures it “by the total value of household final consumption expenditure, NPISH final consumption expenditure and government expenditure on individual consumption goods and services” (OECD) and I would assume divides it by population (since its per capita)? Then disposable income is the amount of income a person has after taxes are taken out. Then to find the disposable income per capita for a country you take all of that and divide it by that countries population?
Am I understanding that correctly?
The problem with AIC and disposable income is that it does not take into account any wealth disparities. In America, the Federal Reserve data show that the least-wealthy 50 percent of U.S. households hold very little of the nation’s wealth (less than 4 percent), while the households with wealth in the top 10 percent hold over two-thirds. This would mean looking at the country overall we all look to be in pretty good shape but then why are so many Americans living paycheck to paycheck. I agree the AIC does take more into account but it fails to account for the massive wealth disparity in America.
I https://www.cbpp.org/research/poverty-and-inequality/a-guide-to-statistics-on-historical-trends-in-income-inequality#:~:text=Federal%20Reserve%20data%20show%20that,percent%20hold%20over%20two%2Dthirds.