"With rising incomes, the share of expenditures for food products declines. The resulting shift in expenditures affects demand patterns and employment structures"
About this Quote
The intent is empirical, almost anti-ideological. Engel isn’t praising thrift or scolding indulgence; he’s mapping a predictable pivot in human priorities once subsistence is secured. That pivot is the subtext: economic freedom is less about having more stuff than about having more choices. When food’s share drops, spending migrates to housing quality, education, transport, leisure, healthcare - all the categories that signal status and shape opportunity.
The second sentence is where the quiet dynamite sits. A shift in what households buy becomes a shift in what nations become. Demand patterns reallocate capital; employment structures reorganize around new wants. Fewer hands are needed in agriculture and basic food processing; more are pulled into services, retail, logistics, manufacturing, and eventually the professional classes. Engel is pointing at structural transformation long before “deindustrialization” and “service economies” became arguments on cable news.
Context matters: a 19th-century Europe moving through industrialization, urbanization, and early statistical social science. Engel’s line reads like a neutral observation, but it carries a policy warning: ignore consumption shifts, and you misread inequality, labor displacement, and the politics that follow.
Quote Details
| Topic | Money |
|---|---|
| Source | Ernst Engel, Die Productions- und Consumtionsverhältnisse des Königreichs Sachsen (1857) — original articulation of “Engel's law” that as incomes rise the share of expenditures on food declines. |
| Cite |
Citation Formats
APA Style (7th ed.)
Engel, Ernst. (2026, January 15). With rising incomes, the share of expenditures for food products declines. The resulting shift in expenditures affects demand patterns and employment structures. FixQuotes. https://fixquotes.com/quotes/with-rising-incomes-the-share-of-expenditures-for-162988/
Chicago Style
Engel, Ernst. "With rising incomes, the share of expenditures for food products declines. The resulting shift in expenditures affects demand patterns and employment structures." FixQuotes. January 15, 2026. https://fixquotes.com/quotes/with-rising-incomes-the-share-of-expenditures-for-162988/.
MLA Style (9th ed.)
"With rising incomes, the share of expenditures for food products declines. The resulting shift in expenditures affects demand patterns and employment structures." FixQuotes, 15 Jan. 2026, https://fixquotes.com/quotes/with-rising-incomes-the-share-of-expenditures-for-162988/. Accessed 12 Feb. 2026.


