How increased expenditure on mobiles “eats” into other areas of household spending

As the title says, as we spend more of our (diminishing!) disposable incomes on our mobile devices and other related sundries, there's less left over for other wants and needs. This WSJ article looks at how Americans are sacrificing a host of other stuff in favour of better, faster phones and their accompanying bills:

"Meanwhile, spending on food away from home fell by $48, apparel spending declined by $141, and entertainment spending dropped by $126."

Lots of economics can be gleaned from the article, including the obvious example of opportunity cost because if households are deciding to spend money on one thing, then it's not being spent on the other. The graphic below shows which household items are the biggest losers to mobile technology spending.

This trade off has far reaching consequences and it's interesting to note how this trend in spending pattern affects those industries involved in the production of those goods and services that are losing out:

"Government data show people have spent more on phone bills over the past four years, even as they have dialed back on dining out, clothes and entertainment—cutbacks that have been keenly felt in the restaurant, apparel and film industries."

Personally, I still own a phone that has buttons you actually have to press and don't like to think too much of our own household income being squeezed by the amounts mentioned in the article!