We hold these truths to be self-evident,
that all men are created equal,
that they are endowed, by their Creator, with certain unalienable Rights,
that among these are Life, Liberty, and the pursuit of Happiness.
- United States Declaration of Independence, 4th July 1776

Today, I had an enlightening bout with mild depression. I asked the question, Why is it that despite the many blessings I am enjoying, I was still feeling low? I searched for answers and my introductory lessons in Economics in High School gave me three: 1) the meaning of Economics; 2) Abraham Maslow’s Theory of Hierarchy of Needs; and 3) The Law of Diminishing Marginal Utility.

Define Economics
According to the Encyclopedia of Business, Economics is a
body of knowledge or study that discusses how a society tries to solve the human problems of unlimited wants and scarce resources.
Back when I was a teenager, I was surprised to know that humans face the problem of unlimited wants. I didn’t know that we have unlimited wants. But according to social scientists, it’s true.

From Unlimited Wants to Shifting Needs
After accepting the fact that I have unlimited wants, here comes the kicker - human beings have shifting needs. According to Abraham Maslow, “there are at least five sets of goals which we may call basic needs. These are physiological, safety, love, esteem, and self-actualization.” Some models have a sixth need, transcendence.

heirarchyofneeds1.png

Commonsense tells us that as you go higher up the pyramid, you focus less on the needs that are on the bottom. We have all experienced this in our own lives. As soon as we satisfy the lower needs, our heart yearns for the next level. Why? The answer lies in one aspect of human nature as explained by the Law of Diminishing Marginal Utility.

According to this law, the more you consume a product, the less marginal utility (satisfaction) you get out of it. Simply put, the things that are giving you ultimate satisfaction and happines now, won’t give you as much later. In Tagalog, we call this sawa.

A Personal Reflection
Now I know why I was a little bit depressed today. I was faced with the realities of Economics in the forms of unlimited wants, shifting needs, and diminishing satisfaction. My mild depression was a warning. It was a signal that I have to find more creative ways to enjoy the simple things in life. It was a call to nurture my relationships with others. It was a reminder that I have to find more challenging goals. Goals that will satify my wants and needs. Goals that will lead me to my pursuit of happiness.


References:
A.H. Maslow, “A Theory of Human Motivation, ” Psychological Review, vol. 50, 1943, pp. 394-395. © 1943 by the American Psychological Association.

George Reisman, “Capitalism: A Treatise on Economics” ©1990 by Jameson Books.

 

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