Disposable income is income after taxes. Discretionary income, which is what I specified, is income that remains after the necessities of life have been paid for.
> Discretionary income, which is what I specified, is income that remains after the necessities of life have been paid for
You’re correct. See the personal savings rate [1]. If we observe the distribution, the lower quartile to third of households have no material savings [2].
You’re correct. See the personal savings rate [1]. If we observe the distribution, the lower quartile to third of households have no material savings [2].
[1] https://fred.stlouisfed.org/series/PSAVERT
[2] https://www.federalreserve.gov/publications/2025-economic-we...