Redefining Welfare: Embracing Creative Choice for Economic Well-being
The article explores how economists are rethinking the idea of welfare due to people making inconsistent decisions. One approach, called preference purification, tries to figure out people's true preferences from their choices. However, the article argues that this approach is too static and should instead see preferences as constantly changing. According to the article, welfare comes from individuals constantly shaping their own preferences, not from meeting some fixed standard. This means that creativity and learning are crucial for understanding welfare in economics.