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Consumption

In economics, consumption is the use of resources to satisfy current needs and wants. This is in contrast to spending resources for future income, known as investing.
Among recipients of the expanded Child Tax Credit, 50.9% of spending went towards food, with another 35.9% going towards essential bills. Among new mothers who received an unconditional $333 per month, there was no decrease in employment, no increase in alcohol or tobacco use, more time spent in early-learning activities, and an increase in consumption of child-specific goods. Marginal propensity to consume is 10 times larger for low income households than wealthy households. Unconditional cash transfers stimulate consumption, which can offset employment reduction. Cash-transfer recipients invested 26 cents of every peso transferred in productive assets, raising long-term consumption by 1.6 cents. “ Almost without exception, studies find either no significant impact or a significant negative impact of transfers on temptation goods.”
Cash Transfers and Temptation Goods Investing Cash Transfers to Raise Long-Term Living Standards Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund Estimating the Marginal Propensity to Consume Using the Distributions of Income, Consumption, and Wealth Unconditional Cash and Family Investments in Infants: Evidence from a Large-Scale Cash Transfer Experiment in the U.S. Research Roundup of the Expanded Child Tax Credit: The First 6 Months
Anna Popova David K. Evans Marta Rubio-Codina Sebastian W. Martinez Paul J. Gertler Damon Jones Ioana Marinescu Jeffrey P. Thompson
Basic Income Social Wealth Fund
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