Why do people spend so
much of their disposable income on consumption and save so little
towards their own financial independence? This episode presents
four competing theories that try to answer this question:
- Theory 1: People are brainwashed into consumerism by
- Theory 2: Spending escalates as people try to keep up with
their peer groups.
- Theory 3: Central bank policies have undermined saving.
- Theory 4: Spending is the path of least resistance, so you
won't save unless you have sufficient motivation.
Which (if any) of these theories have merit? Is there a better
explanation? Let me know what you think!