Needs, Wants and Economics

The theory of economics covers a lot of ground. Smith, Keynes and Piketty are smart fellows after all. However, they’re quite vague on the difference between needs and wants. This is a tremendous shame. Clearly understanding the difference between what I think I need and what I actually need would dramatically simplify my life. Maybe it’s the same for you.

Wants include the whole plethora of small or big, respectable or shameful desires us humans learn to (somewhat) keep in check from an early age. The desire for nipples, sugar or nicotine, just to name a few.

Needs are something else entirely. Economists define a need as something that is needed to survive. They take this quite literally, meaning that you would die if your needs weren’t met. Consequently, this includes things like sufficient food, clean drinking water, protection from the elements or lifesaving medical treatment. Maybe there are other truly essential things you can think of?

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