Comments on: Relative Deprivation and Growth http://whippersnapper.wordpress.com/2007/08/05/relative-deprivation-and-growth/ Wed, 23 Dec 2009 04:11:39 +0000 http://wordpress.com/ hourly 1 By: Gabriel http://whippersnapper.wordpress.com/2007/08/05/relative-deprivation-and-growth/#comment-855 Gabriel Tue, 07 Aug 2007 15:16:06 +0000 http://whippersnapper.wordpress.com/2007/08/05/relative-deprivation-and-growth/#comment-855 I agree that there are absolute welfare gains to internet access speed, I was just saying that there are also positional aspects. I think we basically agree on this. Also, I am very happy with the text-heavy design of your site. (I hate video because you can neither skim it like text nor take it with you on walks like audio). I agree that there are absolute welfare gains to internet access speed, I was just saying that there are also positional aspects. I think we basically agree on this.

Also, I am very happy with the text-heavy design of your site. (I hate video because you can neither skim it like text nor take it with you on walks like audio).

]]> By: John Cain http://whippersnapper.wordpress.com/2007/08/05/relative-deprivation-and-growth/#comment-809 John Cain Mon, 06 Aug 2007 06:21:25 +0000 http://whippersnapper.wordpress.com/2007/08/05/relative-deprivation-and-growth/#comment-809 <i>On another note, was your implying that 56K modem would be OK for viewing this blog supposed to imply that I should start putting up more videos and graphics?</i> Well, you have had <a href="http://whippersnapper.wordpress.com/2007/05/23/xxxbarely-legal-pornxxx/#comment-320" rel="nofollow">requests</a> for more hard core pornography. Kill two birds with one stone. On another note, was your implying that 56K modem would be OK for viewing this blog supposed to imply that I should start putting up more videos and graphics?

Well, you have had requests for more hard core pornography. Kill two birds with one stone.

]]> By: Matt Zeitlin http://whippersnapper.wordpress.com/2007/08/05/relative-deprivation-and-growth/#comment-808 Matt Zeitlin Mon, 06 Aug 2007 06:17:59 +0000 http://whippersnapper.wordpress.com/2007/08/05/relative-deprivation-and-growth/#comment-808 I tried to incorporate this into my explanation, but probably explained myself poorly. My point is that having a 56K modem is <i>real, absolute</i> deprivation, there are capabilities and choices that the world has that you can't access. This a real, not a relative decrease in welfare. As compared to Gross/Frank's other examples - a lexus vs toyota, 2500 sq ft house in a neighborhood of 1500 sq ft vs 4000 sq ft surrounded by 6000 sq ft houses. In the case that Frank uses, where people take the 2500 hundred sq ft house because it gives them a leg up status wise, there is arguably a net welfare/capability/utility (I'm not an economist, so I'll just throw out all these terms and hope one of them is right) loss while there is a relative gain. With the internet, on the other hand, when you keep your 56K modem there is relative loss and utility loss. So internet connection speed may be in some sense a positional good, but not in the way Frank and Gross describe it, because achieving faster internet connection does in fact increase capability/welfare/utility in a way that a lexus or a 2500 ft house surrounded by 1500 ft doesn't. There is absolute gain, not just relative gain. On another note, was your implying that 56K modem would be OK for viewing this blog supposed to imply that I should start putting up more videos and graphics? I tried to incorporate this into my explanation, but probably explained myself poorly. My point is that having a 56K modem is real, absolute deprivation, there are capabilities and choices that the world has that you can’t access. This a real, not a relative decrease in welfare. As compared to Gross/Frank’s other examples – a lexus vs toyota, 2500 sq ft house in a neighborhood of 1500 sq ft vs 4000 sq ft surrounded by 6000 sq ft houses. In the case that Frank uses, where people take the 2500 hundred sq ft house because it gives them a leg up status wise, there is arguably a net welfare/capability/utility (I’m not an economist, so I’ll just throw out all these terms and hope one of them is right) loss while there is a relative gain. With the internet, on the other hand, when you keep your 56K modem there is relative loss and utility loss. So internet connection speed may be in some sense a positional good, but not in the way Frank and Gross describe it, because achieving faster internet connection does in fact increase capability/welfare/utility in a way that a lexus or a 2500 ft house surrounded by 1500 ft doesn’t. There is absolute gain, not just relative gain.

On another note, was your implying that 56K modem would be OK for viewing this blog supposed to imply that I should start putting up more videos and graphics?

]]> By: Gabriel http://whippersnapper.wordpress.com/2007/08/05/relative-deprivation-and-growth/#comment-806 Gabriel Mon, 06 Aug 2007 06:06:24 +0000 http://whippersnapper.wordpress.com/2007/08/05/relative-deprivation-and-growth/#comment-806 The modem thing isn't as bad an example as you think because of network externalities. When modems were crappy, websites were designed for low bandwidth and basically all looked like this blog. Now most sites are loaded up with superfluous graphics and such so using a 56K modem is a different experience in 2007 than it was in 1998. (Old browsers used to have an optional "load graphics" button). Likewise, in 1998 your 56K modem could easily download the plain text (or maybe jpg) office humor your friends sent you, now it can't comfortably play the youtube links they send, therefore you're left out of the conversation. The modem thing isn’t as bad an example as you think because of network externalities. When modems were crappy, websites were designed for low bandwidth and basically all looked like this blog. Now most sites are loaded up with superfluous graphics and such so using a 56K modem is a different experience in 2007 than it was in 1998. (Old browsers used to have an optional “load graphics” button). Likewise, in 1998 your 56K modem could easily download the plain text (or maybe jpg) office humor your friends sent you, now it can’t comfortably play the youtube links they send, therefore you’re left out of the conversation.

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