Kige Ramsey’s Great Value Theory
Economist John Maynard Keynes’ General Theory of Employment, Interest and Money conjectured that the average propensity to consume would fall as income rises. Thus, people with higher incomes would not spend at the same rate as their income rises, which results in a greater rate of savings for the wealthy. Kige Ramsey’s Great Value Theory disputes this notion. Ramsey believes that you should always consume Wal-Mart’s Great Value products to increase your rate of savings even at a lower level of income, which provides a higher rate of savings for a lower paid individual. His lecture discusses this in greater depth.