Re: standard of living

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

GBRansom@xxxxxxx wrote:

> I just want to know what makes you think a pure logic
> allows us to
> say that we are 'just as well off' across real time when
> we are
> talking about real people ... I reject the idea that the
> logic of means
> ends relations (of which utility theory is merely a
> formalization)
> can allow us to say either of these across real time for
> real folks.

Greg, You may "reject" it, but you are still stuck with the
price
of steak example. Note that I have never suggested that pure

logic can be used in isolation to deduce interesting things
about real people. I have argued that utility theory can be
used as an aid to understanding: it helps us not make silly
mistakes. It does not do this in isolation, as pure logic.
It must be loaded up with content. (This is true for your
preferred applications too, btw, and the content added by,
e.g., Hayek is often questionable.) It must be used with
care.
But it can be useful. For example, it helps us understand
why a reasonable person should not simply ask whether
they can afford their previous bundle when assessing the
personal impact of a change in prices.
(Surely you do not deny that real people make such
judgments?)

Perhaps I am not understanding your concern.
It might help if you illustrate it with the price of steak
example I offered.

Nothing Rosenberg, Hausman, or Sen has said has ever
led me to doubt the claims I'm making. (I'm less familiar
with Wong, Lachman, and Shackle.) Perhaps you could
point to some specific passages that you find relevant.
I'd be particularly interested in passages from Sen.

--Alan