A child can spend his pocket money as he or she likes. Sometimes parents guide a child as how to spend it wisely. Poor parents may not give pocket money to their children regularly. But they do give as often as they can afford.
Posted on February 17, by Scott Alexander I got many good responses to my Considerations On Cost Disease post, both in the comments and elsewhere.
A lot of people thought the explanation was obvious; unfortunately, they all disagreed on what the obvious explanation was. Below are some of the responses I found most interesting. So, what is really happening?
I think Scott nearly gets there.
Things cost 10 times as much, 10 times more than they used to and 10 times more than in other countries.
So where is it going? The number of people it takes to produce these goods is skyrocketing. Labor productivity — number of people per quality adjusted output — declined by a factor of 10 in these areas.
It pretty much has to be that: How can that happen? Our machines are better than ever, as Scott points out. Well, we and especially we economists pay too much attention to snazzy gadgets. Productivity depends on organizations not just on gadgets.
Southwest figured out how to turn an airplane around in 20 minutes, and it still takes United an hour. Contrariwise, I think we know where the extra people are. Most large public school systems spend more than half their budget on administrators.
Construction sites have always had a lot of people standing around for every one actually working the machine.
But now for every person operating the machine there is an army of planners, regulators, lawyers, administrative staff, consultants and so on. I welcome pointers to good graphs and numbers on this sort of thing. So, my bottom line: Well, how does bloat come about?
Regulations and law are, as Scott mentions, part of the problem. These are all areas either run by the government or with large government involvement.
But the real key is, I think lack of competition. These are above all areas with not much competition. The main effect of our regulatory and legal system is not so much to directly raise costs, as it is to lessen competition that is often its purpose.
The lack of competition leads to the cost disease. Everywhere we see businesses protected from competition, especially highly regulated businesses, we see the cost disease spreading. And it spreads largely by forcing companies to hire loads of useless people. Yes, technical regress can happen.
Productivity depends as much on the functioning of large organizations, and the overall legal and regulatory system in which they operate, as it does on gadgets.
Like our ancestors peer at the buildings, aqueducts, dams, roads, and bridges put up by our ancestors, whether Roman or American, and wonder just how they did it. Before the hedonic treadmill kicks in, and he decides to waste all the money on higher rent and nicer cars, he changes his diet.
And steak is a superior good.
But how many times a week will people eat steak? Americans as a whole got really rich in the s and s, and needed someplace to start spending their newfound wealth. What do people spend extra money on? The Atlantic had a piece on this several years ago, with the following chart:As the BBC runs into controversy over a memo about targeting children's pocket money, we ask six youngsters how they spend their cash.
Andre Dubus III is the author of Gone So Long, Dirty Love, The Garden of Last Days, House of Sand and Fog (a #1 New York Times bestseller, Oprah’s Book Club pick, and finalist for the National Book Award), and Townie, winner of an American Academy of Arts and Letters Award in Literature.
Mar 09, · How I Spend My Pocket Money English Essay on "How I Spend My Pocket Money" Whatever money I have not spent by the end of the month goes to my library fund. If the book I want to buy costs mere than the amount I have in hand, I wait for a month or so more, until I have saved the necessary amount.
Being A Maid Servant; Being . Free Essay on My Pocket Money for Kids – Pocket money is what parents give to their sons and daughters to spend. A child can spend his pocket money as he or she likes. Sometimes parents guide a child as how to spend it wisely. Poor parents may not give pocket money to their children [ ].
Exposing the highly dysfunctional cult leader Osho Rajneesh, based on reports and assessments by Christopher Calder, James Gordon, and others. In a remote corner of El Salvador, investigators uncovered the remains of a horrible crime — a crime that Washington had long denied.
The villagers of El Mozote had the misfortune to find themselves in the path of the Salvadoran Army's anti-Communist crusade.