Not that I disagree with the idea but do you have evidence that the average person is actually increasing spending every time they get a raise?
What would I do with more income? Well, I'd probably save some of it, use some of it to pay down debt, and spend some of it. I don't have to be spending 100% of my current income for that to be true.
>The average person spends almost exactly as much as they make as income rises.