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Monday, March 26, 2007

Ways for Satisfying Needs and Wants

One of my teachers, Prof. Pitta, of University of Baltimore once mentioned There are 4 main ways people can achieve their needs, let take a look as well as at their (Acquirer / Releaser) score.

When someone takes something like force. Like someone breaking into your car to steal your GPS. In this case, that someone achieve a small gain, he probably sells that $600 GPS for $50 or for a couple of sniffs of white powder. The victim, you, loses, the cost of repairing the car glass, replacing the GPS and the sense of security. Score: (+ / ----)

When one goes out to acquire a product or service through exerting effort, using natural and free resources. This is like going fishing, spending a whole day under the sizzling sun, and getting a catch of a dozen trouts. You win, no one loses (at least directly). Score (++ / neutral)

When someone receives a product or service as a gift. In this case no productivity is performed and hence not mutual exchange of value. Such is the case with giving a begger change. The begger gains a limited value, but the donor doesn't gain, besides the fact of maybe feeling good about helping someone in need, nor does the society. Please do not confuse begging with charity. Charity is used for productivity and development. Score (+ / +).

This is where value lies. Exchange is when you go a get a car in
exchange of 20 g rand, or an iPod for $200, or a voice recorder for $2 5. In these cases, you will use the car to go to work (get income, take kids to school, etc..) so you develop value out of the car, or use the iPod to listen to Quran to be a good person (gaining value for yourself long term as well as short term and society), and recor d lectures or interviews on your voice recorder. In all these c ases you gained value from the products you acquired, the seller gained value by receiving cash and making profit on his/her sale and invested the extra towards further production and development. True value occurs in exchanges. Score ( +++++ / +++++)

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