The record suggests that, after periods of massive non-financial disruption such as wars and pandemics, GDP does bounce back. It offers three further lessons. First, while people are keen to go out and spend, uncertainty lingers. Second, crises encourage people and businesses to try new ways of doing things, upending the structure of the economy. Third, as “Les Miserables” shows, political upheaval often follows, with unpredictable economic consequences.
The categories are roughly ordered from increased spending to decreased spending. So you see by how much the cost of housing and healthcare has gone up over a couple of decades, especially for the lower income groups.
For the lowest income quintile, housing and healthcare make up more than half of spending on average.
In contrast, the higher income groups are spending more in retirement savings, education, and entertainment, and their cost of housing changed little.