Sunday, January 2, 2011

On The Horrible Problem of Income Inequality

Don Boudreaux:

Second, according to research reported in 2006 by Nobel economist Daniel McFadden, “both behavioral observation and brain studies indicate that organisms seem to be on a hedonic treadmill, quickly habituating to homeostasis, and experiencing pleasure from gains and pain from losses relative to the reference point that homeostasis defines.” That is, a person’s subjective well-being is reckoned relative to his or her own accustomed state rather than relative to the material standard of living enjoyed by other people.

But, but, is that fair!?

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