The Rational Optimist: How Prosperity Evolves

by Matt Ridley

In the year 2005, if you were the average consumer you would have spent your after-tax income in roughly the following way: 20 per cent on a roof over your head 18 per cent on cars, planes, fuel and all other forms of transport 16 per cent on household stuff: chairs, refrigerators, telephones, electricity, water 14 per cent on food, drink, restaurants etc 6 per cent on health care 5 per cent on movies, music and all entertainment 4 per cent on clothing of all kinds 2 per cent on education 1 per cent on soap, lipstick, haircuts, and such like 11 per cent on life insurance and pensions (i.e., saved to secure future spending) and, alas from my point of view, only 0.3 per cent on reading An English farm labourer in the 1790s spent his wages roughly as follows: 75 per cent on food 10 per cent on clothing and bedding 6 per cent on housing 5 per cent on heating 4 per cent on light and soap A rural peasant woman in modern Malawi spends her time roughly as follows: 35 per cent farming food 33 per cent cooking, doing laundry and cleaning 17 per cent fetching water 5 per cent collecting firewood 9 per cent other kinds of work, including paid employment