The folks over at CollegeHumor have done in short video what economists stumble over each other to explain: How advances in technology kill inequality over time. (via Cafe Hayek)
Here’s how economist Scott Sumner of Bentley University recently put it:
…I recall reading that Bill Gates drives a Lexus LS, whereas the most popular car in America is the Camry. Both are made by Toyota, and while the LS is undoubtedly a better car, the actual experience of driving the two is not that different. I’m sure that a few hundred years ago the difference in transport between the richest man in the world (Louis the XIV?) and the average Frenchman was considerably larger.
Or you could just watch the video…
Business Insider Emails & Alerts
Site highlights each day to your inbox.