Class summary 9/21

* The percent of cost of basic living things from income had decreased from 72% to 36% from 1900 to 2010, this suggests that we have a higher living standard. 

* The reduction reflects:
   a. we have less risk of emergent events
   b. we can spend more money on things other than basic things
   c. we pay more tax. This leads to the development of government and we get benefits at last. 

* Poor and rich people have a huge diversity.

1. Income seriously UNDERSTATES the extent and magnitude of economic growth

2. Commodities themselves do not matter, it is the services provided by the consumption of them

3. Real economic growth is underestimated by up to 1.4% per year

Our Living Standard Measures Miss ：available of goods, capability of goods, quality of goods, convenience of goods, safety of goods.