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I’m sorry, this is more than “a caveat,” it’s actually the whole story.
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does somebody want to tell them that just because you're financially strained, doesn't mean they stop needing necessities? the fact that i can barely afford groceries doesn't mean i'm going to stop buying them. because i want to stay alive.
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yes exactly as keynes said
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If there's one concept I wish I could snap my fingers and have everyone understand instantly, it's the marginal diminishing return of money. MPC is second. So much tax policy could be done correctly if the general public grasped these concepts and applied them in their positions.