Monday, May 5, 2008
Needs versus Wants
The latest survey of business expectations predicts economic conditions will deteriorate and many people are going to rely on needs more than wants. One important idea in economics is that of needs and wants. Needs would be defined as goods or services that are required. This would include the needs for food, clothing, shelter, health care. Wants are goods or services that are not necessary but that we desire or wish for.
When the money GETS TIGHT, we must get a feel for what "needs" are and "wants" are. The "economic slowdown" is getting more slower. This will affect many jobs in the future that if people are not buying, the jobs will not be there. Consumer spending and retail sales are the backbone of the nation's economy.