Consumption, defined as the last phase of the economic cycle, is the ultimate goal of production. Personal consumption for a person is the satisfaction of his needs. Human needs are limited only by his essence and ideas. Satisfaction of needs can occur through obtaining or acquiring. So the pleasure of listening to music, walking, reading, etc., most often, does not require expenses from a person, but satisfies a significant part of his definite or indefinite needs through receiving. The second volumetric category of receipt, as satisfaction of needs, is the receipt of civilizational benefits and social security.

Acquisition, in contrast to receiving, is accompanied by financial expenditures or exchanges of some capital that a person has for the goods he needs. Here, purchase is taken into consideration, as the purchase of goods or services for money. Each person has personal non-financial capital - something that he can sell or exchange (for example, his labor, intellect, talents), if there is a demand for his capital (part of the capital) or a person can provoke such a demand. The presence of a demand for capital, which is owned or at the disposal of a person, turns it (capital or part of it) into a commodity that must have a value. Receiving a value consistent with demand forms a person's financial budget, which he spends on the purchase of goods or services, which, in turn, are defined as benefits, pseudo-benefits and harm.

The cycle of satisfying human needs:

1. Define your needs
2. Balance the satisfaction of your needs, through receiving or purchasing
3. Determine the presence and composition of personal capital and sources of its acquisition
4. Determine or "create" the market value of your non-financial capital and its parts
5. Make a rational choice in favor of one or more parts of your capital based on market conditions and personal preferences.
6. Realize your personal non-financial capital or part of it for money
7. Find out what is offered to him for exchange for his financial resources
8. Determine what of the proposed, for him benefits, pseudo-benefits and harm
9. Exchange your money for goods or services that will satisfy his needs in the best possible way

To understand what the authors of the NEC2020 Concept mean by benefits, pseudo-benefits and harm, for example, let's take a stove, which is defined as a consumer of "commodities" for combustion in order to create heat. The stove consumes air and combustible materials, that is, it can be heated with wood, coal, oil products, gas - these are consumed goods. Benefits because, they satisfy the urgent need (heating the oven) and the safety of the product by the consumer (oven). For a stove, pseudo-benefits will be materials that do not satisfy its needs, for example, they burn poorly, do not have heat transfer, clog the chimney, do not fit in the firebox, etc. Harm to the furnace will be "fuel", which not only will not satisfy its needs, such as water or stones, but can also cause irreparable harm to its "health" or even "life", such as the use of TNT as fuel, which has the explosive nature of the combustion and of course will destroy the furnace.

Drawing an analogy with a stove, the need for a person to acquire and receive only what he needs is useful and is a good thing becomes clear.

Actually everything.



Article in ORIGINAL language HERE