Keynes was surely correct that only a small part of total spending is decided by the desire for superiority. He was greatly mistaken, however, in seeing this desire as the only source of insatiable demands.
Decisions to spend are also driven by ideas of quality which can influence the demand for almost all goods, including even basic goods like food. When a couple goes out for an anniversary dinner, for example, the thought of feeling superior to others probably never comes to them. Their goal is to share a special meal that stands out from other meals.
There are no obvious limits to the escalation of demands for quality. For example, Porsche, a famous car producer, has a model which was considered perhaps the best sports car on the market. Priced at over $120,000, it handles perfectly well and has great speed acceleration. But in 2004, the producer introduced some changes which made the model slightly better in handling and acceleration. People who really care about cars find these small improvements exciting. To get them, however, they must pay almost four times the price.
By placing the desire to be superior to others at the heart of his description of insatiable demands, Keynes actually reduced such demands. However, the desire for higher quality has no natural limits.
72. According to the passage, John Keynes believed that________.
A. desire is the root of both absolute and relative needs
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