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Definition of "Consumption"

Submitted by thommay1@gmail.com on 20 March 2009 - 4:07pm

I want to make sure that my interpretation of “consumption” is correct. Here is my understanding:

Consumption — refers to all expenditures by the household except the following:
- special expenditures: college tuition or any other special expenses
- housing expenditures: mortgage, property taxes, maintenance, home insurance
- taxes: federal, state, and Social Security
- insurance premiums: life, Medicare Part B (not regular medical insurance, which is included in “consumption”)
- funeral expenses and bequests
- savings: reserve fund, retirement contributions (401k, IRA, etc.)

Did I miss anything?

Thanks, Thom May

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Submitted by Dick Munroe on 20 March 2009 - 5:57pm.
1

Doesn't look like it, but this has been discussed ad nauseum in the forum so just search for consumption and you should be able to find the generally agreed upon answer.

Best,

Dick Munroe

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