Thursday, March 30, 2006


Don Boudreaux, who blogs at "Cafe Hayek," has an interesting column in the Pittsburg paper today contrasting what you could buy at Sears in 1975 with what you could buy today, working the same hours. Not only can you get more for your hours, but the difference is quality is large. He says:

"Consumption is the ultimate purpose of economic activity. And one of the most reliable measures of an economy's success is how much ordinary people can consume out of their incomes.

If an ordinary person's "consumption-ability" increases over time, he is better off than before and the economy is doing well. In contrast, if this person's consumption-ability decreases, he is worse off and the economy is doing poorly.

This is true regardless of what happens to per capita gross domestic product, the consumer price index or any other measure of economic activity reported regularly in newspapers and on television."


Post a Comment

Links to this post:

Create a Link

<< Home

Powered by Blogger