Top-Rated Free Essay
Preview

An Alternative Theory of Economics

Good Essays
416 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
An Alternative Theory of Economics
Do we need an alternative theory of economics?
Economics is usually defined as the problem of how best to distribute limited resources, limited because wants are characterised as unlimited, but common sense tells us that rather than limited resources, there is an abundance of resources. The difference is one of perspective and this is core to any alternative understanding of economics. If wants are the focus, then of course resources are limited by definition, but if minimum needs or essentials are used as the foundation, then resources are seen to be abundant. The difference is between a description and an explanation. A focus on wants or desires describes a market situation, while a focus on essentials or needs allows an explanation of choices to begin.
It is necessary to shift the basis of economic theory away from assumptions of scarcity and onto that of the reality of high production if a rational explanation is to be found as to why certain activities are profitable and others, despite their desirability on social or moral grounds, are not.
This begins with the understanding that an abundance of resources means that not all need to work productively and that some use more resources than others. Who shall be the lucky ones and how to keep the unlucky quiet is fundamental to the running of most economies. Abundance is therefore an economic problem because the choices opened up by having more resources than is strictly needed to live presents a danger to those processes of production and the command that some have over resources that created the abundance in the first place.
Why does so much waste exists along side so much poverty in the world? The orthodox assumption of scarcity has survived even the staggering levels of surplus of modern economies because this assumption suits the needs of those who command resources and who prefer to ensure that the economy does not become democratised; that unpleasant tasks are done by someone else, that some win and many lose.
An Economic theory based not on scarcity but on abundance is a theory that seeks not to describe distribution but to explain choices. The development of such a theory would undercut the dominance of those satisfied with the current methods of production and control over resources. It would do so by revealing the choices made to limit the production of essentials and to divert resources to the production of luxury and fashion goods. A distribution of resources currently labeled scarcity'.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Study Review Micro Ch. 1

    • 633 Words
    • 3 Pages

    Economics is a social Science concerned with the allocation of scarce Resources to meet the unlimited wants Of the members of a given society.…

    • 633 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The concept of scarcity and choice states that because there are scarce resources, this will…

    • 408 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    -According to the reading economics is defined as the study of how individuals and society choose to use limited resources in an effort to satisfy unlimited wants. Economics affects our business life, personal finances, and even money in general.…

    • 5800 Words
    • 24 Pages
    Good Essays
  • Good Essays

    Eco372 Week 1 Individual

    • 943 Words
    • 4 Pages

    Scarcity is a basic problem of economics it has apparent limitless individual wants and needs when the world in fact has limited resources. We as a society have scarce creative resources to fulfill everyone’s wants and needs.…

    • 943 Words
    • 4 Pages
    Good Essays
  • Good Essays

    According to MC-Connell (2008) “Economics, which is the social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity.” Scarce economic resources mean limited goods and services. Scarcity restricts options and demands choices. Because we “can’t have it all,” we must decide what we will have and what we must forgo. Consumers are purposeful in deciding what goods and services to buy. Business firms are purposeful in deciding what products to produce and how to produce them. Government entities are purposeful in deciding what public services to provide and how to finance them.…

    • 637 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Scarcity refers to a situation in which human desires for goods, services, and resources exceed the available supply. This means that everything is limited and there will never be enough to fulfill all of our wants. In particular, resources such as land, labor, and raw materials are necessary but finite. As a result, every society must make choices about how to allocate its resources. In most cases, there is simply not enough money to do everything, so we must prioritize and use our resources in the most efficient way possible to achieve a balance.…

    • 1990 Words
    • 8 Pages
    Better Essays
  • Satisfactory Essays

    What determines whether or not a resource is scarce? Why is the concept of scarcity important to the definition of economics?…

    • 505 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Economic Theory

    • 1225 Words
    • 5 Pages

    This paper was prepared for ECN 150, Introduction to Microeconomics, Module 2 Homework Assignment taught by Nikki Follis.…

    • 1225 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Economics Scarcity

    • 1058 Words
    • 5 Pages

    In this essay I will discuss whether scarcity is the central problem in all societies irrespective of economic system. I will also look at each different economic system, and also whether other economic problems than scarcity need to be considered. Scarcity is the excess of human wants over what can actually be produced to fulfil these wants (Sloman and Wride 2009). This means that there are infinite demands with only finite resources.…

    • 1058 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Economics is the study of how individuals and societies choose to use the scarce resources that nature and previous generations have provided.…

    • 2177 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    ECS1501 Summary Notes 2014

    • 6718 Words
    • 45 Pages

    have been taken but wasn’t, eg watch a movie instead of studying for an exam…

    • 6718 Words
    • 45 Pages
    Powerful Essays
  • Powerful Essays

    The Basic Economic Problem

    • 1699 Words
    • 9 Pages

    External Cost – a cost that someone else creates, but you have to pay for it.…

    • 1699 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    foreign bank role

    • 3805 Words
    • 16 Pages

    Report topic: The role of foreign banks in the economic developments of developing countries like Bangladesh…

    • 3805 Words
    • 16 Pages
    Powerful Essays
  • Good Essays

    Wwee

    • 586 Words
    • 3 Pages

    Economics is concerned with the optimal distribution of scarce resources within society. For example, economics is concerned with how individual decisions like how firms produce goods and which goods people buy. An important element in economics is concerned with the extent to which governments can intervene in the economy to improve economic welfare. Economics is also concerned with wider issues such as economic growth and unemployment – issues that affect the whole of society.…

    • 586 Words
    • 3 Pages
    Good Essays

Related Topics