Saturday, April 30, 2011

Human needs and trade

It is impossible for a individual to produce all what he needs. He has to rely on services of other individuals. Humans also do not have limits on their needs. Their needs can keep growing. The need to trade requires a infrastructure, where a person can produce what he wants and trade with others of his surplus. The infrastructure has to be a fair system. A fair system can only be enforced by a strong ruler but a strong ruler can always become a tyrant in long run. A fair system would be one which allows my say in affairs of the day. We will have more on the infrastructure later.

What is clear is human needs drives trade, which in turn demands a infrastructure. All changes in society for good or bad would have happened in places which had natural advantages over others and trade was high.

So should we looking for roots of prosperity in places which had natural advantages over other ?

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