In many countries, as people are earning more these days they are also spending money in buying more and more items. Do you think it is a positive or negative development?

It is often asserted that

people

who are earning lucrative compensation will spend more by buying a lot of items.

Although

there are certain drawbacks of

this

trend which are negligible in my opinion, the benefits of

this

culture are humungous

such

as improved living standards and economic growth of nations.

To begin

with, the primary reason to encourage the above-mentioned trend is an enhancement of living standards in society because of the pay hike.

This

means enhanced earnings not only help the public to showcase their status in society but

also

encourage them to help others during financial burdens. To illustrate, the latest gesture of Mr Elon Musk to sell some of his Tesla shares to contribute to an old age charity shows his power.

Hence

, it is evident that

people

would come forward to share their wealth with needy

people

in case of emergencies if they earn hefty amounts.

In addition

to

this

,

people

being extravagant help to increase the cash flow in the market.

This

eventually means that there is a spike in the number of financial transactions, which

consequently

leads to the economical growth of the world. According to the theory of the World Trade Organisation,

for example

, the rise of share prices is the result of buying and selling of respective goods in the market.

Therefore

, the nature of increased income and expenditures by

people

is the resemblance of not only improvement of individuals living standards but

also

represents the boost of the global economy. In conclusion, a rise in income leads to increased spending in many countries. In my opinion,

this

phenomenon is a positive development as it helps

people

to improve citizens lifestyle and they help others if required. Eventually, the increased income leads to a surge in spending which is a symbol of the financial growth of the globe.