How do we spend our money? Well, the first cut goes to survival: essential goods and services that are absolutely necessary to our survival. Food, housing, medical care are all part of the basic necessities of life. Some, of course, are more necessary than others (we might postpone going to a dentist…but not for long), but there’s a core of stuff that we need to live. The next tier up from survival is comfort. This is a very large tier—what’s comfort to some is a necessity to others and visa versa. People use their income to increase their general comfort level. This might mean a large house, more comfortable beds, larger selection of clothing. But generally, when we talk of comfort, we don’t include jet setting to Paris for a nice date out on the town. Comfort is about everyday life needs, but more comfortable. The top tier of our income is the disposable income and it is spent on luxury—the money we have left over from dealing with our needs and comforts; the money we can chose to spend in an extravagant and even wasteful manner. When economists make predictions about the average size of the available disposable income,…