The base of economic behavior: perfect EGO or animal EGO

 

 

The circular flow model is the basic model for elementary economy. Economy is the function with two main determinants. These are demand and supply.

The first impulse of economy is demand.  At the same time the demand is only determinant for supply.

 And what is the first impulse for demand?

The philosophy of demand comes from the first social need of the subject. In current theories that studies and manages economies says that, this is EGO!

 Animal EGO is realizing of unlimited personal need (biological needs, social needs, economic need, moral needs etc.).  So, in this terms the EGO is an animal concept. If the economic theory accepts the animal EGO as the basic impulse for the economic mechanism, this will destruct all system always.

 The economic system and the regulatory institutes, like government should not manage this destructive processes, the economy should manage the EGO to achieve the perfect EGO.

Aghanemat Aghayev