Higher Energy Costs (and carbon taxes) Screw The Poor

A timely article by Willis.

“The wealthiest of our households spend about 6% of their income on energy, while the poorest spend just over 40% of their income on energy.

And of course, this means if energy costs go up by say 25%, the rich will get a bite out of their income of 1.5%. But the poor will get an additional bill for no less than 10% of their income …

Sadly, in reality it is worse than that. At the poor end of the spectrum, there is very little slack in the budget. There is a concept in economics called “disposable income”, money that you have at the end of the month that isn’t already spoken for to pay some bill or other.

People living on the economic bottom floor not only don’t have disposable income, they never heard of disposable income. Every dollar is spoken for, and often over-promised.”

 

percentage-income-spent-on-energy

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