On Mon, Oct 5, 2009 at 3:49 PM, Doug Henwood <[email protected]> wrote:
> Just posted to the LBO website - how the boom in U.S. consumption is mostly
> about medical inflation:
>
> http://www.leftbusinessobserver.com/Consumption.html


"American consumers aren’t the profligates of legend.."

Isn't this overstating the case a bit? Certainly, you (and others)
have made a convincing case that the profligacy of the American
consumer is *dwarfed* by the wastefulness of the health-care system.

But that doesn't disprove the thesis of American overconsumption. In
fact your own data shows this. The "ex-medical" consumption graph is
flat as a fraction of GDP since 1960, but that GDP has since increased
by something like a factor of 4, inflation adjusted. This, at a time
when wages were stagnant. The fact is someone was buying all those
big-screen TVs and SUVs until recently. And it wasn't just the
super-rich.

We have had this discussion on PEN-L before. And I haven't seen anyone
refute it convincingly. The average American does, in fact,
over-consume. Perhaps less so than rapacious corporations, but still..
-raghu.




-- 
"I bought some batteries, but they weren't included." - Steven Wright
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