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Limitations of the law of diminishing marginal utility

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					Limitations of the law of diminishing marginal utility
Market mechanisms have a well-known law of diminishing marginal utility, is that the
demand for consumers in terms of, a commodity to provide the more effective the
lower the value that is lower. If a person can eat 10 dumplings, steamed stuffed buns
marginal utility of the first 10, second 9, third 8 and so on. We also used more than
pig meat are cheap to describe this picture. The law is the law of constant market, its
demand market is not volatile, the economy showed a steady development trend.
Therefore, this rule is the ideal law of the market. In fact, competition, monopoly,
asymmetric information caused by trade secret and other factors, market volatility is
normal. Therefore, we have more than pig meat cheap, the not looked down upon a
time the value of pigs. For a time or scene, pig intrinsic value will continue to emerge.
This shows that, despite the abundance of material wealth are strong productivity can
not be any time for any group to provide effective physical protection. Strong
productivity only for a specific time for specific populations with services, market
mechanism may be all the citizens of a country provides abundant material life, such
as the United States, European Union, Japan and other developed countries and
regions, in their lives, many goods The marginal utility is already in a very low
position. Economic crisis is different, rising prices, shortage of materials occurs again,
has proved to reproduce the value of some commodities.
Proved on humans, there are some things of diminishing marginal utility is deceived
by the market mechanism. Survive on the food and clothing and other basic
maintenance items, its effectiveness is constant one, do you want a permanent reserve
to prepare for human contingencies. Therefore, humanity is to reserve materials,
reserve value than that. Stable development of human society is very important, but,
equitable development of human society is more important. Only the interests of our
national interests as if standing on the same small group of narrow, because the
country has not closed the economic organization is in the economic and cultural
integration. Gains all be, harmed, former bandit-style plunder has been no substitute
for each other today, a win-win economic demands. Interdependence and common
development of human society will be the main melody.
Starting from the human and economic development foundation to a more
conservative value of gold and silver instead of the reserve can not be achieved, nor
can be used instead of other currencies can only use that kind of value in itself. Value
of reserves can not be confined to one country, to promote human reserve or world
reserves. Rapid development of science, but on the foundation of human economic
development, science has stalled. Such as food storage, and scientific developments in
other areas, pales in comparison. Food does not take a few years in the grain depots in
aging, we should throw away, this is a scientific shame, it is human tragedy.
Energy is the industry's food, its also the list of reserves, but oil, coal is
limited, reserve their best was not taken deep. Rich source of alternative energy to the
science out of a problem among the universe are in dynamic, sports Jiuyou energy,
new ways of energy use have not been found, the inherent energy use has been limited
human thinking, should the fail to resolve energy issues, economic development of
mankind must have been devastating. Therefore, the industrial food reserve is not
critical, it reserves for material reserves as technology, that technology development.
What is the value of reserves? Perhaps the law of diminishing marginal utility can be
involved in science and technology content of what is more obvious, such as pottery,
and today almost no one used again and porcelain ratio, and plastic than, and the ratio
of new material, its effectiveness is almost zero. Like many things, and pottery, utility
has long been a market decline to zero. Pottery excavated in the soil, such as the
absence of archaeological value, people will quickly throw him. I am certainly not
advocating human reserves are pottery, when the man when disaster strikes, first what
is needed and what is the reserve value.
Reserves are not considered how good of human society through the affluent, but how
to spend the risk of human hardship.

				
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posted:9/1/2010
language:English
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