Inferior Good: Diminishing Marginal Stupidity in Action

Monday, September 18, 2006

Nominal versus material inequality

Check out Will Wilkinson’s excellent post on inequality. He points out that, while nominal inequality is increasing, material inequality is decreasing. That is, the difference between the material living conditions of the poor and the rich is shrinking.

2 Comments:

  • It took me a good few minutes to get my head around this post.

    It's true that what was once considered luxury is now available for all - widescreen tvs, holidays, etc.

    By Anonymous Scott at Real Epicurean, at 9:07 PM  

  • Yes Scott, many goods formerly considered luxury item are now widely available. And as Will Wilkinson states, "goods at the bottom of the price range more and more closely approximate goods at the top of the price range." His example is that $16 jeans from Wal-Mart aren't all that different from $80 from a designer label.

    By Blogger Whit Stevens, at 1:43 PM  

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