an opposite interpretation of conventional wisdom in economics

an opposite interpretation of conventional wisdom in economics

The interesting thing about economics or humanities is that it can be interpreted in contradiction depending on the situation

For example,
There is a common belief that the higher the income, the lower the propensity to consume

The essential consumption of 50 million won a year is, but if you don't get this income, you have no choice but to use up all the income you earn, and you can save only when your income exceeds this
That's why I mentioned this...
If you interpret it the other way around

If you look at the price as the exchange rate of goods and money
The more goods you buy, the less effective your marginal utility
The first ice cream is delicious, but the second and third ice cream tastes worse
On the other hand, the more money you spend, the higher the utility of the remaining money
The utility of 10 million won spent on 10 billion won and 10 million won spent on 10 million won is much greater in the latter case

In other words, let's say when you have two 1,000 won ice cream, the money I have is 2,000 won
The resistance of buying the second ice cream is superimposed compared to the first ice cream purchase
The first purchase is to consume 1,000 won while owning 2,000 won
The second purchase is to spend 1,000 won while owning 1,000 won
Therefore, I think that the higher the income, the higher the marginal propensity to consume
(The reason why home appliance manufacturers make a luxury line-up with entry-level products has to do with this
If you sell gold in a low-end lineup, the original cost is 10,000 won, but you can get 20,000 won more at the market price.)

There is a common belief that assets should be sold when interest rates are high

Because the return on assets is lower than the loan interest rate, the more assets you have, the more you lose

But if you look at it from a cycle point of view, it's going to be low interest rates one day
then
High interest rates are the bottom of asset prices, so this closed phase of the credit cycle may be when you have to borrow and buy assets
(However, if the high interest rate is longer than expected, it may go bankrupt without paying back interest
Be careful.)