9/21/11

• Income
• 1790- 91% spent on necessities
• 1900- 72% on necessities
• Today- 35% on necessities
• We're richer today because we can spend double on whatever income we garner on nice stuff 
•  Major Income Inclinations
• Primarily Risk
• Income Elasticity of Demand
• prime example would be spent amount on luxuries
• "Freed-Up" Wealth gets us..
• Bureaucrats
• Bombs
• Bailouts
• Government's Scope in the Market has grown significantly over the past century
• Commodities
• they themselves don't matter
• the services that the commodity provides matters