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Then you need to quantify your statement. -> _For the ultra-rich_, trains and other public transportation are inferior options. This is completely different f
by andrewzah 5y ago
Then you need to quantify your statement.
-> _For the ultra-rich_, trains and other public transportation are inferior options.
This is completely different from saying that public transportation is an inferior good overall. It's not that simple.
- rufus_foreman 5y agoIf your income goes up and you spend less on something, that's an inferior good. That's pretty much the definition of an inferior good.
- syops 5y agoYes, in economics this is called an inferior good. This does not make public transportation a bad investment or mean that society wouldn’t be better off overall with it. We are local optimization machines and sometimes our desires are not overall beneficial to us. It is an inferior good as that phrase is used in economics but it is the right choice. Economics primarily deals with desire and ‘utility’ functions. It does not provide insight into what is best for society as a whole. Particularly since in our system negative externalities are not built into price.
- rufus_foreman 5y ago>> We are local optimization machines and sometimes our desires are not overall beneficial to us. Who decides what is beneficial for me in your opinion, me, you or the government?
- syops 5y agoSometimes government, sometimes the individual. It’s a balancing act. My neighbor might think it’s in his best interest to dump toxic waste on his property because he needs/wants money. In this case, thankfully, government is there to look out for the benefit of society as a whole.