That though begs the question, is there a limit to possibility? And does that mean achievement is constrained? It is this question that fundamentally changes the approach used here from that offered by conventional economics at this time. Conventional thinking is that the individual should think their consumption unconstrained, even though the reality is otherwise. In the economics proposed here is the individual is recognised to be constrained they then recognise a different goal – which is to work to achieve within the constraint. And, of course, the answer is that the individual is constrained, and there is a limit to possibility that they must accept.
Now I understand what he\’s saying and in half of it he is correct. We do face constraints upon our actions and our consumption.
This is because resources necessary for the satisfaction of our desires are limited.
Where he\’s wrong is in thinking that conventional economics thinks any differently.
Given these two assumptions it follows that there is a fixed material amount of resource we may each enjoy at a point in time. That defines a practical limit to achievement.
Sure, resources are scarce.
Here is part of the GCSE economic syllabus. The part dealing with \”Basic Economic Problems and Decisions\”.
The central importance of scarcity
Emphasis should be placed on the universal problem of scarcity and
how this necessitates choice.
The concept of opportunity cost
Candidates should have a basic understanding of rational choice based
on the comparison of benefits and costs.
Markets and resource allocation
Candidates should have an understanding of how markets allocate
scarce resources and appreciate that resources are also allocated
through non-market mechanisms. Candidates should begin to assess
the outcome of resource allocation in terms of efficiency, sustainability
Well done Mr. Murphy. You have just managed, from first principles, to recreate the central insight of economics. Resources are scarce.
The only bit that puzzles me is why you think there\’s anything new in what you\’ve found?