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Introduction1. Social en economic Philosohy
Definitions of economics
“Economics is the science which studies human behaviour as a relationship between ends
and scarce means that have alternative uses.” (LIONEL ROBBINS)
“All economic questions arise because of scarcity of resources. One cannot satisfy all the
needs. Economics is the social science that studies the choices that we make as we cope
with scarcity and the institutions that have evolved to influence and reconcile our choices.”
“Economics is a social science concerned with the production, distribution, and consumption
of goods and services. It studies how individuals, businesses, governments, and nations
make choices about how to allocate resources. Economics focuses on the actions of human
beings, based on assumptions that humans act with rational behavior, seeking the most
optimal level of benefit or utility. The building blocks of economics are the studies of labor
and trade. Since there are many possible applications of human labor and many different
ways to acquire resources, it is the task of economics to determine which methods yield the
best results.”
- We as humans have a lot of needs and desires. But we don’t have the time too
immediately fulfill them, we lack the resources. And this is the basis of all economic
questions because of the scarcity of resources. There is a tension, we are dealing with
a conundrum and the economics wants to overcome that tension.
Economics is in one way a science that’s study’s how we make dicisions based on
how we are influenced. But we are rational beings. We know want we want, and we
can make a hierarchy of what we want more than something other. Since there are
many different ways too acquire the resources, it is the task of the economics with
method has the best result.
, 1.1. Scarity
scarcity = Is an economic concept where there is a discrepancy between endless need and
limited resources. ( Scarcity arises because we have a lot of needs but only a limited amount
of production to meet those needs). Scarcity exist when production needs need to be
sacrificed to produce the product.)
Solution
we need to find a balance between needs and resources
1. try to satisfy our needs and desires
- Labour
- Trade (money)
-> chicken and cow story
- Investments (borrow money from the financial bank)
-> lend money too satisfy
- Protection of property (insurance companies, protection agencies,...)
- trust ?
2. Reconsidering /downsizing our needs and desires
we have 2 types of needs
1. natural needs (eating, drinking, roof, healthcare) we all have these needs ( to
survive )
2. artificial needs (buying a new pair of shoes, cellphone )
> feel the need we need to buy new shoes, need to go on vacation
(advertisement) -> get sad when we can’t buy it -> grip of the other.
> social, collective, psychological basis
,The Other
Has 2 definitions
1. in the grip of the society ( dominant )
= We feel the constant need to consume, it is part of our lifestyle and often we
don’t think about it. For example we feel the need too buy things, go on vacation,
…
This has to with secularization. We have lost our religion or in any case don’t
believe in God like they used to and that is why we don’t believe in the afterlife.
In the past it was a sin to have a lot of belongings and too experience pleasure.
That’s because if you experienced to many pleasure, you would go to hell. We
experience the opposite. We are afraid we don’t have enough pleasure, you only
live once mentality. We feel the urge too consume, have pleasure and are afraid
of missing out. We don’t believe anymore, don’t believe in the afterlife. Heaven is
a place on earth now, not heaven.
2. memetic desire ( smaller group )
= We are desiring creatures but we don’t know what we desire. That’s why we look
at other people and mimic their desires.
- example 1 : by KUWTJ: neighbor new car, mine is really old, never thought buying a
new car, I never really thought about is buy maybe I should buy a new one too).It
stimulates our desires
- example 2 : mowing the lawn
Because we share the same desires you can build a bond together but sometimes it
also comes with rivalry. There is always going to be someone better, or has more
than you.
Solution for this is that we need a scapegoat.
-> The intensions of a scapegoat is that you overcome the underlying intentions
impact of celebrities
We can look up to celebrities. We admire them and want to be like them but often
that is impossible because we don’t have the time and money for that.
-> we love and hate them
, we can’t compare to them and set ourselves under pressure
bv. marathon
never thought it was important, we see celebrities do it so we do it too, then we can
get a competition with somebody else or with yourself ( less time each time )
role model Ronaldo, Kardashian -> we sat ourselves under pressure
Scarcity is an objective and subjective /social problem
1. negative choice: u don’t want youe child too have a phone at that age because they
can live without it, but you feel the social pressure
2. status symbol: if my child is the only one without they will think we are poor
Oscar WIlde
-> we want to be authentic but at the end we just do what other people are doing
1.2. Poverty
Poverty and/or huge inequality is problematic because the poor lack:
- Basic resources -> They may not have enough to live a good life (a matter of lack of
material resources).
- Possibility to participate in society as an equal -> Oppression, discrimination,
dominance, exploitation, exclusion.
- Self-esteem -> Lack certain goods that are common in a society lead to shame, fear,
stigma, depression, humiliation, loss of self- esteem.
don’t look down on poor people with expensive goods
-> for them it feels like they still are a part of the society
-> otherwise they are really outsiders (message, I am still one of u)
people have no write to feel superior
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