- 20 -


B. The Role of Subsistence Standards and Levels of Living



 A previous article [Wharton, 1963b] sought to clarify the ambiguous use of

the term "subsistence" by distinguishing between "subsistence production" and

"subsistence levels of living." Though both "subsistence production" and "sub-

sistence living" frequently coincide, they are not necessarily synonymous. A

model was presented to explain how minimum standards of subsistc e li"vi are

determined at any point in time and how they are changed through time. The

model was intended as an aid in describing and analysing the influence of mini-

mum standards of subsistence living at the micro-economic and individual farm

family level. The model may be briefly summarized.

 S In any given socio-economic unit, there exists some social consensus as to

the standard minimum bundle of goods required per person per specified period of

time. The bundle is above the level needed for physical survival, i.e., no

marked deterioration causing death prior to the normal life span in that particu-

lar social economic unit. The absolute size and composition of such a bundle is

bounded on its lower side by the physiologic limiting requirements for human

survival, but the values above the lower limit are controlled by economic-socio-

cultural factors. There are subjective notions of minimum subsistence standards

of living and the content of a minimum standard varies between social aggregates

depending upon historical and current economic-cultural factors. The higher the

previous economic levels of well-being historically, the higher will be the cur-

rent subsistence living standards. Such a variable can be viewed as operating

in some lagged fashion, i.e., the current minimum standard is some function of

previous economic levels weighted in some fashion. Thus, a short-run drop in