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HERE LIES TEN MINUTES OF MY TIME. |
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splashing econ water in the readers face
Consumer surplus is the value a product creates for society. It is the difference between what a person actually pays and what they would be willing to pay. I decide if people can buy a privilege (to travel) for a certain fixed price. The price many people would be willing to pay for this privilege is huge. Like $500K huge. Not everybody, of course. There are people who sell packages to try to help people get these rights, and they can spend a huge amount of money on them. Every time I give out this right for the bargain price at which it is offered, a huge consumer surplus is created. Now, supply and demand when you are talking about privileges are funny things. Ability to pay isn�t the only thing determining who gets this particular privilege, unlike the privilege of owning a CD or a banana. But none the less, consumer surplus is how a capitalist society gets richer. Every day, I know that I am making our global society richer. Clearly I�m still struggling about how to talk about my job in this forum. Let me say that I am very happy with it. |
