Wednesday, June 09, 2010

May be the poor doesn´t agree

"Broda and his colleagues find that the prices of what the poor buy have risen less than the prices of what the rich buy. That’s because when prices of related goods change, the poor are more likely to switch to cheaper goods, all the while maintaining their overall level of satisfaction with their purchases. If it becomes cheaper to maintain a constant level of satisfaction, then one’s wages have effectively grown.
The poor are either more willing or more able to economize to maintain a constant lifestyle than the rich are, and so inflation eats into their quality of life to a lesser extent than it does among the rich."

Comment: Great post; worth reading and highly recommended.
In my opinion inequality cannot be eliminated, it has always existed and if you look at it in the functional way, it is necessary."

May be the poor doesn´t agree. But I am shocked seeing what certain people think.
Inequality is necessary. For what I fail to understand. I always thought that the American Constitution stated that "All Men Have the same rights to happiness"
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