Global economy reviews - April 2001
It seems that it is the work the economists should do. They explain the economical phenomenon like GNP, unemployment, interest rate and other. As long as they give their advices to their government, the latter implements something beneficial to their citizens. In 2001, notwithstanding their efforts, the economy is tumbling and I can forecast that if their policies still not turn around, the economy is even worse and it is accelerating.
Why I have this view of point? Let me talk something about the history first.
In a long time ago, our ancestors in China that each family has a place of living, has a farm for agriculture. The families own the area that enough for their domestic and commercial uses. They are simple in mind. They don't explore the world so far that beyond their basic needs. It is so called primitive and not recommended by our experts in science.
What's wrong? This living style upheld more than two thousand years. If everything is kept constant. Can you imagine if it can stand for more than two million years? Do our needs satisfy?
As the psychologist Mr. Abraham Mallow (1908-1970) published Mallow's hierarchy of needs, the human being has five hierarchy of needs, and the basic level is physiological needs, then safely needs and so on. In physiological needs, it includes food, water, sleep and sex. In safely needs, it includes the needs for security, protection, and the avoidance of pain.
It seems that everything that serve beyond these needs are in substance, not essential but making us happier or more utility in economics term. For example, watching a film, we receive virtual experience from the directors created. It gives us satisfaction. If there is no film in reality, will be feel bored? May be but actually won't because we have no idea of film originally until created by experts again.
From the observation of the global economy evolution, I formulated a theory. It is called Basic Needs Deprivation Theory.
This theory stated,
"Everyone should possess at least an property under his ownership and control for the satisfaction of basic physiological needs and both eventually scale down as more needs are being served."
Here is an explanation and empirical evidence of the theory:
In early 19 century, it could barely say the world is traditional style. Under this economy, people hold their properties like land or other fixed assets for the generation of good to serve their basic needs. Under the growth of technology and science, there is more commodities created and the people began to manufacture more different kind of products, their needs growth simultaneously to reflect this consumption. The needs is changing from pure physiological to much more. As long as there are no contrary to the satisfaction of their basic physiological needs, there is the growth of the economy and the growth of population as well which is able to absorb the expanded commodities. This is the explanation of the growth of economy. It is the case until the last decade.
As more people alive, they creates something else to avoid the competition to existing product that someone else making. And they share the properties that are available in the society. And it rolls over and the breakeven point that, something created are not going to serve people's needs entirely; they are only created for the reason to avoid the loss of property the maker used to have. It also give rise to protectionism for career.
The real cause of the deprivation of properties is once more product creates to the satisfaction of non-basic physiological needs that trigger more population to share the properties that in substance is essential for satisfaction of basic physiological needs, and in turn their deprivation.
Alan K. Y. Kong
Founder