The Subjective Nature of Scarcity

‘Mum, I want an iPad too!’, ‘Really?! You’ve got tickets for Glastonbury? Aah…I envy you so much right now!’, ‘You’ve gotten a bonus of 150.000 dollars?! Jesus…well, believe me: in a couple of years from now, I’ve got that too.’

More opportunities and more possibilities create more wants and more needs. Hence it is very plausible that we – the ‘rich people in the West’ – have more unsatisfied desires than the ‘poor in Africa’, numerous of which are starving each day due to a lack of food. After all, we want an iPad, MacBook and iPhone; they only want some bread and water. Hence we are the ones having more unsatisfied needs, thus we are less satisfied than the poor in Africa. Poor old us: it isn’t easy being rich…

Scarcity is defined as the ‘insufficiency of amount or supply’ of a good/service. Note the word insufficiency in this definition, since it is this word that points to the root of the problem. Unlike things as ‘supply’ or ‘amount’ – that are quantifiable and hence (at least partially) measurable or objective – ‘sufficiency‘ is an intrinsically subjective judgement. And the problem with something being subjective, is that it is relative; its ‘value’ is determined by means of comparison to what is going on in one’s surroundings. And if you’re living in a rich environment, an environment in which iPads and MacBooks are within reach for everyone, then this environment is likely to make you want different (read: less basic) goods than you would have wanted if you’d been living in, let’s say, the poorest regions of Africa.

Capitalism is a train, and profit is perishable. Yesterday’s profit is not today’s profit. And it is today’s profit that counts. Standing still is falling behind; you have to keep moving in order to keep your balance. That is the system we’re living in and that is the system we’re constantly trying to prevent from collapsing. Not because we want to keep it on its feet, but because we have to: after all, we are part of the system too, and we have got to make sure that we keep on our feet.

Sure: you could be stubborn and decide not to take part in the ever-continuing rat-race called ‘the economy’. But what then? Where do you – and where can you – turn to? Nowhere, right? You need your money in order to stay alive: in order to satisfy your iPad-needs, your longings, desires and deepest fetish-like obsessions, you have to keep on producing and buying. We’re locked up in a prison: a prison we’re painfully dependent upon.

We could of course turn to communism, an economic system without money. By doing away with money, we might do away with the vicious circle of making each other more horny and horny for bigger and bigger goods. A horniness without an organism to mark the end point of our satisfaction-seeking journey. No money means no satiable goals – or at least no goals that are within financial reach. And no satiable goals would prevent us from having feelings of insufficiency. But communism…hmm…that doesn’t sound very attractive, does it? No: we’d rather keep on hoping for that Lamborghini.

But what do you think?

Longing for Dominance and Loving Dogs

Do you want people to obey you, or do you want them to be independent? Do you want people to nod and do as you say, or do you want people to be able to stand their ground? Do you want unconditional love, or do you value the whims of individuality? In other words: are you a dog-person, or are you a cat-person?

Each morning, afternoon and evening, millions of people are walking their dog: they are pulling the cord that connects them to their most loyal follower. They are yelling at the little creature like there is no tomorrow: ‘Max, don’t shit there!,’ ‘Sit! No, sit!’, ‘Listen to me!’. Why would you ever want a creature like that? To keep such a creature on a leash, while everything in nature screams that dogs aren’t meant to be kept on a leash. So why then do it?

You could also choose a cat, a night-walker, able to save his own ass in every situation. A creature whose nature it is to wander around through life, purposeless and autonomous. Not obeying anyone, just doing as he pleases. An entrepreneur following his instincts, grabbing each opportunity to satisfy his needs. Not interested in your validation, just in his own. Only caring about you in so far as you give him what he wants. The perfect citizen in this capitalistic constellation of ours.

Communism or capitalism. Dogs versus cats. Men is born to dominate: be it in communism or otherwise. We feel superior by watching others crave for our attention, hoping for us to come and rescue them. It makes us feel important. This is a universal need. That means that, if we can’t fulfill this need in our everyday working lives, we need to find different options for satisfying this need. We need to express our dominance in another way. We can do this by beating our wives, rebelling against society or by taking care of a creature that is fully dependent on us. A creature that, even if it wants to take shit, needs our approval to do so.

Do people with dogs have to compensate for something? For a feeling of powerlessness, disobedience, or any other sense of inferiority they experience in their daily lives? A need to execute their dominance, if not over human, then at least over an animal? ‘But he is so sweet,’ ‘He is always happy and wiggles his tail when I come home.’ That might be true, but do you want a creature longing for your validation? You don’t want a spouse that obeys you, no matter what you request, do you? Not if you can also have an independent soul, able to live a life on its own, even when you are not there to grant your permission.

Power structures are everywhere: even in our relation to our pets. Marx (and Darwin) would be jealous.

But what do you think?

The Difference between Economic- and Real Demand

Both of my grandfathers were farmers and so are two of my uncles. The other family members are all in some way related to the agricultural business. That’s how I – in one of our annual family gatherings – winded up in a discussion with my farmer-uncle about the current state of the agricultural business in Europe. He told me that the farmers – including himself – had to pay wholesalers – which are the parties farmers should be selling their crops to – for them to come and pick up their crops. So: instead of getting paid for cultivating their crops – which seems to be a pretty fair deal – farmers actually have to pay money for them to get rid of their unions, potatoes etc. That’s how low the prices of many crops are these days. And do you know why these prices are so low? Because there is no demand. I repeat: there is no demand. So while there are – as we speak – people are starving in Africa, our farmers have to pay money to get rid of their crops because there would be no demand. This is how far we have gotten in this 21th century of our human civilization.

But let’s take a closer look at the situation: why is there what seems to be a structural oversupply of certain crops? When asking this question to my uncle, he explained to me that the farmers kept on producing this much unions – for example – because they were hoping for some disaster to occur in a country abroad – like a flood in Russia or a drought in Spain – which would make the supply of unions drop, the prices rise and the revenues of Dutch farmers increase. It seems that the act of speculating has crossed the boundaries of the banking sector into the agricultural industry.

However, knowing the farmers’ motives for continuing the supply of unions is not in itself sufficient for coming to understand why there is this oversupply in “the West” and this starvation in Africa. After all, one cannot blame the farmers for trying to make a living, right? So maybe we should put the blame on the Africans. They are after all the ones that are too poor to help our farmers out, right? That’s true, but that is also very twisted. But where to put the blame then? Why is this economic game being played so far away from what we – the human species as a whole – seem to need?

Maybe there is something fundamentally wrong with the economic paradigm. With the economy as being the domain of the profit-maximizing individual. The domain in which the market takes care of itself. The domain of the exchange of goods and services in order for the overall utility of society to increase. Maybe the economic paradigm has lost touch with reality and with why it was invented in the first place: to help us human beings live together peacefully. And since no money equals no goods, and since people are not willing to provide their goods for free, the poor are screwed, right?

But maybe there is a way for the market and ethics to converge. That is: maybe we should stop looking at money as being a universal instrument of valuation and start looking at the goods and services people worldwide have to offer. I can imagine that Africa – because of its climate – has the right conditions for growing agricultural products that are totally different from those being cultivated in the much colder regions of Europe. So why not focus ourselves upon producing and exchanging these goods? No money involved. Just trading the stuff each of the counties is capable of producing with stuff they are unable to produce. We should look for ways in which we – the countries of the world – might be able to complement each other. We have to – as a world – see which countries are – whether it is because of natural resources being present or because of beneficial geographical positioning – most capable of fulfilling a particular task and let each country focus upon performing that task. This is the only manner in which we can fully benefit from the differences that inevitably exist between countries, without ending up in an imbalanced economic situation like we are today. We have all got something to offer each other. That is what we have to realize.

Let’s make this more concrete. Let’s focus upon an example that shows the manner in which different countries could be able to use their regional advantages in creating value. Most of us do agree with the idea that fossil fuels are likely to be exhausted within a couple of decades, right? So that means that we have to switch to other energy sources. Sources like solar energy. And where is an extremely high amount of solar radiation waiting to be caught? A place in which unused space is abundant? Indeed: the African desert.

Think about it. Hereby we could make optimal use of the geographical differences between the world’s countries. In the West we could keep on having “old-school” food-producing farmers, while in Africa there would be an entire new group of “sun-farmers”. This development could turn the idea of what it means to be a farmer upside down. Both types of farmers are producing energy for us human beings. And each of them would focus its efforts on doing what it does best and exchanging these results with other countries.

Sounds good, right? The choice is yours: should we stick to the money-focused, profit-maximizing and individualistic approach currently being applied, or shall we start trying to obtain the most value from the differences that exist on the world and use these differences to create a fair and honest trading scheme.

What do you think?

The Link between Capitalism and Wanting to Kill your Neighbor

Let’s face it: we don’t know why we are here on this earth of ours. Biologists might say that we are here to procreate; economists might say that we are here to maximize profits; Christians might say that we are here to please God. However, on the level of humanity as a whole, no-one truly knows why we are here. And you know what? We will probably never figure it out, so we might just as well stop trying, right? Why don’t we focus all of our efforts on answering a question that we are actually capable of answering, such as the question: what should we do with our lives while we are here? Or more specifically: do we want to screw everyone around us, or do we want to look for another, more social option?

Let me tell you a short story. This morning I went to the grocery store, for which I had to cross the street. I saw a few cars driving up to the pedestrian crossing, so I decided to wait a second. When the cars had passed, I decided to give it a go. While I was half-way on the crossing, I saw – in the corner of my eye – a car approaching: quickly approaching. And even though the driver had plenty of time to slow down, he didn’t do so. Moreover, he accelerated and almost hit me while passing me by. While the driver passed me, I looked him in the eyes for a split second, and all I could see was a glance of utter indifference; a glance you would have when you accidentally drop your 5-year old phone on the ground. I shook my head and asked myself: ‘Is this the world we live in?’ So now I ask you: is this the world we live in? How come that we are  indifferent towards the life of others? Are we just hateful people?

We might very well be, but let’s try to find a different reason; an economic reason, for example. Let’s ask ourselves: what is the economic system we’re living in? There it is: capitalism! Capitalism is an economic system that fosters values such as individual value maximization, efficiency and competition. Those who are the most focused at maximizing their profits are the ones that are (regarded to be) the most successful. The capitalistic system has a tendency to create hatred towards the wealthy egocentric people living on the other side of town. Children are being urged to stand up for their property rights (‘That’s my ice-cream’) and not to trust strangers. And this indoctrination doesn’t stop with the dawn of adolescence. As a student being niggardly is a virtue; being free-handed is just stupid.

Socialism, on the other hand, is an economic system that is characterized by collective ownership of property. The value that your neighbor contributes to society benefits you just as much as his benefits him: his gain is your gain. This implies that it would be reasonable to help each other out. After all: why would you decide to cross the street if that would result in three other contributors to your wealth having to wait? Wouldn’t that – indirectly, via the ‘wallet of the state’ – harm yourself? It probably would, right? This observation makes values like camaraderie and cooperation being valued and fostered in a socialistic society. Growing up in a socialistic society will urge children not to stand up too firmly for their individual property rights, but rather to focus on the property rights of the collective. And, as you can imagine, this would create an entirely different (economical) world.

This article is not a plea for socialism per se. Nonetheless, if everyone could just be a little more social, the world wouldn’t stop turning, right?

But what do you think?