Won't the poor just shut up?
After all they have a refrigerator and TV.Incidentally doesn't their argument support moves to greater income equality, i.e. redistribution of wealth on a grand scale? If utility is (say) the square root of income, so an income of 10 is about 3.2, 100 10, and 1000 32, which seems to be what they are saying, then taking 400 off the 1000 earner only reduces his utility by 7, or less than a quarter. You could then give 40 people on 10 another 10, which would increase their utility by 1.5 each, or nearly 50%. Total utility would rise by an enormous 53.
Labels: economics
posted by Matthew @ 12/24/2007 01:57:00 PM
Comments: 0
