Reported 8 months ago
In 2024, the article discusses Engel's Law discovered by 19th-century German statistician Engel, showing as income rises, the proportion of spending on food decreases while spending on culture, entertainment, and education increases. The law considers the 'Engel coefficient,' with less than 20% indicating wealthy families, around 30% as middle-class, and above 50% as poor. The Engel coefficient can reflect household wealth and a country's economic development stage. However, recent global turmoil, speculation in commodity markets, and inflation have caused a sharp rise in food prices, reversing the long-standing trend of Engel coefficients decreasing in countries like the US, Europe, and Taiwan. Factors like rising food prices and weakened consumption momentum due to wealth concentration could lead to Engel coefficients increasing, serving as a warning signal for economies.
Source: YAHOO