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Strategies & Market Trends : Australian Shares and ADRs -- Ignore unavailable to you. Want to Upgrade?

To: teevee who wrote (48)	5/25/1998 9:06:00 AM
From: Moominoid	Read Replies (1) \| Respond to of 96

Hi, I have not studied economics, however I have a question: Do economic models factor in the will to survive as expressed through each generations eternal hope for a better life (higher standard of living)? The standard mainstream models (neoclassical economics) assumes that individuals are all trying to maximze their utility or wellbeing both currently and over time. Some long-run growth models look at multiple generations and how each generation plans to provide for the next. The results aren't always promising. I don't know that people have always been looking for an improving standard of living. People seem more concerned in general in making sure they maintain what they have (loss aversion). The drive for progress is more strongly expressed in the Industrial Revolution which we are still undergoing but is only 200-250 years old. Before that progress resulted because people rejected poor ideas and took on the good new ones but there seemed less of a drive to generate those ideas. Also, Asian "tigers" will likely use good old American know how to restore confidence and get their economies moving again. I predict they will follow American advice and increase the money supply as required. Take a listen to what Mahathir has been saying. The Japanese comments on the IMFs arrogance in Indonesia etc. etc. Not everyone is jumping to copy the United States. Outside the US lots of people have a very distorted view of America and see it as an evil empire trying to the dominate the World. They're partly right but a bit too paranoid. By the way I checked today with some colleagues about their views on East Asia and I seemed the optimist. This included people who have lived for long periods in various of the countries. David