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To: USFRIENDINVICTORIA
""Rational" in the economics context simply means that you aren't acting against your self-interests. These self interests can be much broader than simple greed. They include acts of altruism toward one's family, community and country."

Actually, 'rational' encompasses a bit more than that, IMHO. It assumes that faced between putting food on the table and buying a luxury car, one opts to put food on the table ( a simple example, but it should illustrate ). Its not quite the same as the self-interest you describe.

67 posted on 01/30/2006 7:02:42 PM PST by Tench_Coxe
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To: Tench_Coxe

"Actually, 'rational' encompasses a bit more than that, IMHO. It assumes that faced between putting food on the table and buying a luxury car, one opts to put food on the table ( a simple example, but it should illustrate ). Its not quite the same as the self-interest you describe."

O.K. -- but what if you had to chose between buying groceries today and getting a car that was an absolute requirement for a job, which would put food on the table every day thereafter? A rational decision would take the longer term into account as well as the immediate needs.

A lot of college students have to make a similar decision. They eat macaroni and cheese, take the bus, and live in a dorm for years -- so that they can eventually qualify for a better job. Is that more or less rational than dropping out early to take a job?


69 posted on 01/30/2006 8:19:15 PM PST by USFRIENDINVICTORIA (")
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