Quote of the Day

“The differences in spending on clothing, jewelry, and cars, for example, can explain half of the differences in wealth between the races (conditional on permanent income) and a significant share of the differences in education and health spending.”

From Marginal Revolution. The purpose of this post is reasonable discussion, not “See I told you so.” I don’t know why blacks and Hispanics spend a larger proportion of their expenditures on clothes and cars than whites.