Does Consumption Lag Behind Incomes?

The fact that consumption outlay of individuals as well as of groups of individuals depends on their income is well known. Although this statement will hardly be doubted, it may be tested statistically from family budget statistics, as has been done by various investigators. These statistics can show only that consumption outlay by different people, having different incomes at the same moment, depends on income. Consumption outlay by the same family in different years, showing varying income, will not necessarily depend on income in the same way that is shown-by family budget statistics.