Economic Evolution Continued Continued
What is the right kind of inequality to focus on?
- functional inequality
- height & health
- cross country vs. within country
- intelligence
- entrepreneurial risk-taking
We're so much better off today than we were in the past. Ridiculously wealthy people in history died from illnesses that could have been cured with minor doses of penicillin. Also, those living on a minimum wage salary in modern times have a better lifestyle than peasants in the old world.
Our wealth increases as new technologies are developed. For example, the invention of cars improved infrastructure in NYC in the early 1900s. Horse feces were overwhelming the streets. Once horses were eliminated, there was less pollution and more land was freed up for agricultural purposes, thus improving the economy. Technology continues to advance because a parked car in 1970 polluted more than a car running for 10, 000 miles today.
Broken Window Theory: destruction creates economic growth because we have to spend money in a particular region to boost the economy. Funds and resources are redirected. <--THIS IS FLAWED
Good work. Broken window fallacy: Wouldn't it be better if we had in full the thing that was destroyed, PLUS the additional goods that spending brings us?
ReplyDelete