|
75. The following appeared in a letter to the editor of a popular science and technology magazine. It is a popular myth that consumers are really benefiting from advances in agricultural technology. Granted―consumers are, on the average, spending a decreasing proportion of their income on food. But consider that the demand for food does not rise in proportion with real income. As real income rises, therefore, consumers can be expected to spend a decreasing proportion of their income on food. Yet agricultural technology is credited with having made our lives better. Discuss how well reasoned... etc. The conclusion of this letter is that consumers are not truly benefiting from advances in agricultural technology. The author concedes that, on the average, consumers are spending a decreasing proportion of their income on food. But the author contends that this would happen without advances in agricultural technology. The author reasons that demand for food does not rise in proportion with real income, so as real income rises, consumers will spend a decreasing portion of their income on food. This argument turns on a number of dubious assumptions. First of all, while asserting that real incomes are rising, the author provides no evidence to support this assertion; moreover, it might be false. Even if salaries and wages go up, this fact may not indicate that real income has increased proportionally. Real income takes into account any effect inflation might have on the relative value of the dollar. It is possible that, when salaries and wages are adjusted for inflation, what appear to be increases in real income are actually decreases. | 
