Do the numbers make sense?
From USA Today, via Twitter
These figures don’t make a lot of sense.
Firstly, that’s a really high proportion of median income. You can easily find median household income in the US as just over $60,000. If a typical household had two members who each spent $18,000 on “nonessentials”, that’s more than half their total income, which is hard to believe. [We’re just doing obvious credibility checks here, but from more detailed data (table H-15) the median per-person household income is $34,000]
It’s still possible that the figures are true, but really are means and have nothing to do with the “typical American”. But consider the numbers for subscription boxes and rideshares. If these are means for adults in the US, we can multiply by 250 million to get the corresponding totals of just under and just over $290 billion per year. A quick Google search finds that Uber’s gross income from bookings was about $14 billion last year (which I think includes Uber Eats as well as rideshare). Uber is the largest rideshare company, and there’s no way it’s only 5% of the total market.
It’s harder to find data for e-commerce subscription boxes, but McKinsey says total revenue for the companies in that category that are on a list of the top 500 internet retailers was $2.6 billion in 2016, and whatever people say about long-tail e-commerce, I don’t believe those top companies have less than 1% of the market.
If you click through to look for the data source, there’s nothing there that gives any information. Nothing about the questions asked; nothing about how the people were selected; nothing about how representative the sample ended up being.
Chris Knox (of the NZ Herald) pointed me to a twitter thread where Kate Rabinowitz (of the Washington Post) compared the numbers to the Bureau of Labor Statistics’ Consumer Expenditure (CE) Survey. Clearly some reporters understand the issue. But it shouldn’t be possible for a life insurance company to report a dubious survey as a way to get advertising in a major newspaper. Make them buy an ad instead.











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