Re: standard of living?

Andrew Wayne Austin wrote:
> 
> On Wed, 19 May 1999, Pat Gunning wrote:
> 
> >That exchange is positive-sum interaction, in an expectational sense, is
> >a truism. To the extent that capitalism consists of exchange in which
> >people expect to benefit, it also must be positive-sum interaction.
> 
> What does this mean?
> 
> Amdy

Sorry. It means that since exchange occurs only when at least two
individuals expect to gain, it is a positive-sum interaction, in an
expectational sense. As compared with the situation that the individuals
would expect to exist if they did not exchange, they both expect to be
better off. This kind of statement is intended to show that the speaker
recognizes that the individuals may judge their interaction differently
after the fact than they do before it occurs.

Regarding the definition of capitalism used here, it is the system of
exchange and of production for the purpose of exchange, in a legal
environment where theft and robbery are insignificant.

-- 
Pat Gunning, Sultan Qaboos University, Oman
Web pages on Subjectivism, Democracy, Taiwan, Ludwig von Mises,
Austrian Economics, and my University Classes
http://www2.cybercities.com/g/gunning/welcome.htm
http://www.fortunecity.com/meltingpot/barclay/212/welcome.htm