Why We Need the Rich

Close-up of a disc brake on a car

Image via Wikipedia

Its also clear that, as economist Michael Cox puts it, the rich tend to be the first adopters who pay the high prices for the first products and that enough of them doing so takes us down the learning curve so that a huge swath of the population can easily afford the new cell phone, etc.

via Consumer Surplus from the Internet, David Henderson | EconLog | Library of Economics and Liberty.

I’ve tried to express this sentiment before, but Henderson says it better. I first noticed this a long time ago with disc brakes – only the ultra-expensive cars had them at first. Many of the things that improve the quality of our lives would be missing without the frivolous rich who can waste money on what, at first, seem like extravagances.

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