This post contains a brief summary of the fourth video in my Economics Basics series. How do people exchange goods and services? In an ideal world people can contribute as much as they are comfortably able to and take whatever they need. Unfortunately, things such as lack of trust and personal entitlement makes things a little more complicated when more people are involved. Relationships can be harder to forge when we have larger populations; people will have less opportunity to interact with each other. A sense of pride can aid in improving contributions to the group as people value their own social standing.
An area where society has struggled is ‘greed’. Greed has driven others to take more than their fair share. Direct trading between individuals is a possible solution. Without a reliable means of exchange (currency) this is very difficult. Another approach is to have a form of authority to keep the order and ensure the greedy do not take advantage of others (my sixth video in this series covers authority and its many downsides). In modern society we have a combination of authority controlling and market exchange between individuals. My fifth video in this series will cover money.
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