"With rising incomes, the share of expenditures for food products declines. The resulting shift in expenditures affects demand patterns and employment structures"
- Ernst Engel
About this Quote
Ernst Engel's quote suggests that as incomes increase, people tend to invest less of their cash on foodstuff. This shift in spending practices has a direct effect on the need for foodstuff and the employment structures related to them. For example, as individuals invest less on food, the need for foodstuff reduces, resulting in less jobs in the food market. Likewise, as individuals invest more on other goods and services, the demand for those products increases, resulting in more tasks in those markets. In conclusion, Engel's quote recommends that modifications in spending patterns due to increasing earnings can have a considerable influence on the demand for particular products and the employment structures connected with them.
This quote is written / told by Ernst Engel between March 26, 1821 and December 8, 1896. He/she was a famous Economist from Germany.
The author also have 1 other quotes.
"Not necessity, not desire - no, the love of power is the demon of men. Let them have everything - health, food, a place to live, entertainment - they are and remain unhappy and low-spirited: for the demon waits and waits and will be satisfied"