Our Economy runs on dopamine. Should we change it?
What does it mean to be rich in our current economy? A lot of money. Well it is actually about the buying power of the money. If people are able to buy the basic needs after that they buy stuff that gives them pleasure or in a way is coupled with their reward system. To create those stuff other people have to work for that and this creates other jobs and companies and a whole part of economy which I would like to term as ‘utilities’ for this article. What impact does these utilities have on our economy? We know that these create jobs and are coupled with the reward system so they are a source of enjoyment in life. Right now the common consensus is that these are good for our economy and the general way of life but there is also an associated downside with these utilities. I would like to draw your attention towards the opportunity cost associated with these or what would’ve happened if we had a different focus.
The growth of an economy in fact does not depends on these utilities. If people had more focus on the important factors of our economy like food, shelter, industries, technology then there would’ve been a significant progress in these and we would’ve produced a large quantity of these products. Now what is poverty? it is actually the condition when people don’t have these basic things. So in fact by focusing more on these utilities we are actually increasing poverty. If there is more focus on the important parts of our economy it would increase the rate of growth of the economy. The people who are working on utilities could also be working on more important issues and the poor people of our economy if they got the basic needs could also help in the development process. The money that is printed in an economy is directly coupled with how much money could be kept in the cycle which is also coupled with the utilities. This relation to utilities helps in maintaining the money in flow but it doesn’t serves the purpose of development. So there is a big opportunity cost with this current system .Now the big question is should we change it?
Even though there is a big downside to this but it is the reason why an incentive for growth exists. If there is no focus on utilities then it would become meaningless to be rich or poor. But this asymmetric distribution of rewards and money is a big incentive. If you work hard you expect a better reward. This problem with incentive also existed in communism where a person could not own much and all the property was owned by the government. Its not that an incentive just doesn’t exists if we focus less on utilities. The higher rate of growth that could be created by the alternate system would materialize in the advancing technology. The quality of life would improve but the notion of rich/poor won’t exist. There is a big question as to how one would define a particular business as utility or important one but we could solve this problem in the future.