Writes blogger Max Ehrenfreund writes about a recent Bureau of Labor Statistics report that shows how the poor, middle class and rich spend their money.
“The rich spend more in almost every category, because they can. As a percentage of their total incomes, which are larger, the rich generally spend less. The result is that the rich have relatively more to spare after covering essentials such as housing, despite their more extravagant budgets in these categories.”
Writes Mr. Ehrenfreund.
This finding helps make the case for the need for increasing funding for the federal Housing Choice Voucher program.
The program allows low income households to only pay 30% of its income on rent, leaving money for other necessities such as food, transportation and childcare. And if low income households have affordable rent, they can pay for other expenses without putting themselves at risk of homelessness.