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Culture War Roundup for the week of November 25, 2024

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our primary concern should be consumption inequality, because consumption is ultimately what really matters

Even if the first premise is true (big caveat), we'll have to look at how an increase in consumption scales when isolated from wealth. Because we'll run into fun non-linearities pretty much immediately.

  • For a very slight increase in your "consumption of housing", you can get a massive increase of your living standard - because for close to the price of rent for a shitty apartment, you can afford the interest on a mortgage. Sometimes, this could even mean a decrease in consumption allowing you the quality of live jump of renter --> home owner.

  • For another increase ("only" double digit percentage) in "consumption of housing", you can decrease your commuting time by >100 hours per year.

  • Especially at the lower end, food quality also scales non-linearly.

And of course, when comparing two subjects with equal consumption, the presence of wealth makes a huge difference in the feeling of security in life.

billionaires would have to consume 3,300 times more per capita

In all three metrics (consumption, income, wealth), statements like that make little sense. In the end, only quality of life matters. But that's notoriously hard to measure.

Due to diminishing marginal utility, quality of life is even more equal than consumption. The difference in utility between a $100,000/month home and a $1,000/month home is not 100 times as great as the difference between a $1,000/month home and living on the street. A meal at a three-star restaurant may cost a hundred times as much as a cheap, nutritionally adequate meal, but the difference between them is less important than the difference between the cheap meal and starving.

Anyway, the monetary value of goods and services are important, because, unlike income, wealth, and subjective quality of life, consumption is rivalrous—it reduces the availability of goods and services for others to consume. The monetary value of the goods and services you consume is a measure of how large a share of total output you consume.