Adjusted for inflation, the income earned from wool sales by a certain family of Australian sheep farmers grew substantially during the period from 1840 to 1860.
Background
1840-1860 - the price for wool on the world market was higher than the price paid in domestic markets - this family sold more wool on the world market - this family made a lot more money from wool sales
Surprising Claim
During this period, the family didn't see much, if any, increase in prosperity.
Evaluate
Hmm, tricky one. A lot of background details to carefully absorb.
Given That The family made much more money from wool sales How Can We Explain The family didn't see much of any increase in prosperity?
We don't try to predict specific answers on Paradox, since the correct answer often takes a very surprising angle. However, we can think through some general types of ways that a family could make much more money on wool but not see an increase in prosperity:
- maybe money isn't worth as much as it used to be? Inflation could mean that even though you make more money, your spending power (and thus prosperity) hasn't gone up. Wait a sec, the first sentence says "Adjusted for inflation", so we can't actually explain it that way.
- maybe they faced financial difficulties of some sort? We could make more money from our business but have to spend more money on parking tickets / medical bills / funerals for family members, etc.
Goal
Look for an answer that gives us a way to explain their lack of prosperity.