What does it mean to speculate that growth is faster than we think?
By Scott Sumner
Tyler Cowen has a new post that discusses the implications of under-measuring economic growth: Many people suggest that we are under-measuring the benefits of innovation, and thus real rates of economic growth are much higher than we think. That in turn means the gdp deflator is off and real rates of interest are considerably higher than we think. Someday we will all realize the truth and asset prices will adjust. Let’s say that view is correct (not my view, by...
"We wanted workers, but we got people instead." This line from Max Frisch didn't just give George Borjas the title of his most recent book. At last Friday's immigration conference in St. Cloud, Borjas declared it his all-time favorite immigration epiphany. The point, he explained, is...
replying to @Howard's and other's thoughts "what does it cost to live a 1950s lifestyle today?"
For many people probably literally impossible. Because of employers who only accept applications via the web. Important groups that insist you have a smartphone. Lots of places you cannot buy parking with cash anymore, have to have credit card or an app on your phone. By the way your 1950's car is illegal to make or sell new now, and some "luxuries" like power windows arise partly out of safety issues (no more window cranks to bounce off in a collision...) The poor B&W TV you lived with was financed by ads, and could not possibly support any revenue that way now, so its basically full color or nothing.
Depending on where your dwelling is, the local authorities may be requiring it to have sprinkler systems for fire protection. Many places require the septic system to be hooked up to a public sanitary sewer - you don't get a choice.
In short, the *option* to do it a cheaper older way will often evaporate, at least for participants in mainstream society. Because the old ways are hopelessly unproductive (for somebody) or hopelessly expensive (to produce) than the new ways.