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Re: The economic model » jane d

Posted by sid on February 12, 2002, at 19:43:59

In reply to The economic model » sid, posted by jane d on February 12, 2002, at 17:02:18

Well Jane, you do remember your economics! Indeed, there's a huge debate between psychologists, who think that people are not rational, and economists, who assume they are.

I must have suffered a great deal, because I am in great debt, I am poor, and I spent a lot of money on therapy, acupuncture, books and meds over the past 7 years. I am better now, so I should expect my income to go up. Also, my health expenses should go down, leaving a lot more overall for paying my debt, making some investment (Microsoft perhaps?) and consumption. I can dream, can't I ?

> Sid,
> Doesn't this model assume that the consumer is a rational decision maker? According to this the depressive with delusions of impoverishment suffers less than the manic on a spending spree but only if that spending spree is devoted to psychiatrists, pretty colored computer generated brain scan representations and packages of expensive drugs from overseas. Anyone spending all their money on funding the start up of the next microsoft can be assumed to be feeling no pain.
>
> Hey! Maybe it works after all. But now we have to work out the effects of fluctuating international exchange rates. Any thoughts?
>
> Jane, who took Econ 101 a very long time ago.


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