Freakonomics – The cost of money
So, I got asked not long ago something everyone asks out loud at some point in his or her life.
“Why does everything have to cost money?” – This very dear person asked.
Evidently this question is always held in a rhetorical form as most of us think we know the answer or at least have a vague idea of what to respond when asked that. I in turn, so I wouldn’t sound brainless, jumped the Google wagon for help and the first search result I found gave me a most explicit answer that made me appreciate the question in a very unique way:
Our Economy can only produce a limited number of resources. If everything was free people would comsume resources very quickly, until our stock of resources was finished. There would also be no guarantee that you could get a product if you wanted to, one person may consume the lot. In order to ration resources we use prices.
People are greedy because of self-interest. Everyone cares about themselves first, this is an Economic principle. I am greedy because I want to survive, and increase my well-being. Nobody except a beggar relies on benevolence (kindness) to survive.
Indeed it is sad that there is so much inequality in the world today, as you say. But it could also be a fact that you have food and shelter today because of poor individuals. Without poor individuals maybe we would have to compete more for basic resources such a healthcare, food and shelter.
Interesting.