Cycle of Life
One interesting law from economics is Say’s Law.
It says that supply creates its own demand.
This can be overcomplicated, or it can be really simple.
One cool metaphor I heard was one relating the formation of stars and solar systems, and the formation of large cities.
For stars and planets, you start off with a bunch of dust floating around space.
We’re talking massive amounts of dust.
As the gravity slowly pulls all this dust together, it turns into suns and planets.
If the conditions are right, one of the planets have life.
This is essentially what’s been going on since the big bang 13 billion years ago.
The big bang exploded and sent everything flying in all different directions.
Slowly, over time, gravity pulls this “stuff” together in clumps.
Some of these clumps become stars and planets.
Similarly, imagine a bunch of random nomads wandering around out in the wilderness.
Economic Gravity
One small group finds a pretty good spot.
A nice source of water.
A pretty large set of mountains to protect against invaders.
Enough flat space to grow a bunch of food.
Pretty soon, more and more people show up.
Why?
Because just like today, life in the city is more enjoyable than life in the boondocks.
This is why Ford left the farm and went to the city.
He’d already taken apart all the watches and put them back together.
He needed to get in on the action.
People gravitate toward the city because there are more things to do.
More jobs available.
More needs of more people.
This is what Say’s Law means.
Each individual is both supply and demand.
Both consumption and production.
Bigger And Better
The bigger a city is, the more needs the people will have in that city.
The more people who show up to take part in the process of fulfilling those needs, the more needs they’ll be.
Every person who shows up in a city is both producer and consumer.
They get a job that matches their unique set of skills.
They make money in that job.
Then they take that money, and go to another place.
To satisfy their own unique needs.
Another place filled with a bunch of people working to satisfy other people’s unique set of needs.
Everybody has skills.
Everybody has needs.
Maybe you are fantastic at baking bread, but you’d rather eat something else.
Make And Spend Money
So you work in the bread shop making the best bread ever.
You get paid, and take your money over to the corn dog shop and have some delicious corn dogs.
Gravity creates planets.
Human skills and needs create big cities.
The more supply, the more demand.
The more production, the more consumption.
This game has been going on since the dawn of time
Get in there and get some:
Confusion Generator
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