Re: standard of living

["Alan G. Isaac" <aisaac@xxxxxxxxxxxx>]

James R. Olson, jr. wrote:

> At 03:33 PM 10/6/97 -0400, Alan G. Isaac wrote:
> >However discussions on this
> >list make it clear that even people interested in economics
> >often just don't get it. (If I cannot afford my old bundle, they
> >say, I *must* be worse off!)
>

James responds:

> Consider the three options here.
>
> 1) I cannot afford my old bundle, therefore I am better off.
>
> 2) I cannot afford my old bundle, therefore my sitution is the same.
>
> 3) I cannot afford my old bundle, therefore I am worse off.
>
> Am I correct in considering these to be the entire range of pertinent
> statements on the matter at hand?
>
> It strikes me that statement 3 is the only one that would be made by
> the
> most people.

Sadly, you may be right.
Nevertheless, there is no *must* about it.
Reread the price of steak example.

--Alan G. Isaac