Distribution of Farm Productivity Gains

[Michael Perelman]

But Brad, the share of disposable income required for haircuts has also gone
down.  That does not show that barbering productivity has increased, but that
disposable income has increased and that the amount of food that we consume
(granted that we consume more luxury food) has not risen as fast as income.

Brad De Long wrote:


> Anyone who believes that a given quantity of food doesn't require a lower
> share of the disposable
> income of the average American consumer today than it required in 1930 is
> truly far off in outer space.
>

--

Michael Perelman
Economics Department
California State University
michael at ecst.csuchico.edu
Chico, CA 95929
530-898-5321
fax 530-898-5901