Causation

How Rising Top Incomes Drove Preference Changes in the US and Sweden

This causal explanation posits that the significant increase in the income share of the wealthiest individuals in the US and Sweden directly led to a shift in societal preferences. The lavish consumption patterns of the rich established a higher benchmark for living standards for everyone else. In response, the general population engaged in 'keeping up with the Joneses,' a phenomenon where they changed their preferences to place a greater value on consumption, compelling them to work longer hours to afford it.

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Updated 2025-10-04

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The Economy 2.0 Microeconomics @ CORE Econ

Ch.3 Doing the best you can: Scarcity, wellbeing, and working hours - The Economy 2.0 Microeconomics @ CORE Econ