In his essay, Keynes said that people have two types of economic needs or wants: absolute needs
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Question:
- In his essay, Keynes said that people have two types of economic needs or wants: absolute needs that do not depend on the situation of other fellow humans, and relative needswhich he called 'the desire for superiority'. The phrase 'keeping up with the Joneses' captures a similar idea that our preferences could be affected by observing the consumption of others. Could relative needs help to explain why Keynes was so wrong about working hours?
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