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Material Welfare: Definition, Examples

In economic theory, the concept of "material good" is poorly developed. It is believed that it is unique. In addition, there is an approximate list of benefits, so scientists think little about this. At the same time, the phenomenon has a number of features that are worth dwelling on.

material welfare

Concept of good

Even the ancient Greek philosophers began to think about what is good for man. It has always been perceived as something positive for the individual, bringing him pleasure and comfort. But for a long time there was no consensus on the fact that this could be. For Socrates, he had the ability to think, the mind of man. An individual can reason and form correct opinions - this is his main goal, value, purpose.

Plato believed that good is a cross between reason and pleasure. In his opinion, the concept cannot be reduced to either one or the other. The good is something mixed, elusive. Aristotle concludes that there is no single good for all. He closely links the concept with morality, arguing that only matching pleasure with ethical guidelines can be a boon. Therefore, the state played the main role in creating benefits for man. From here came two traditions to consider them a model of virtue or a source of pleasure.

Indian philosophy has identified four main benefits for man: pleasure, virtue, profit and liberation from suffering. Moreover, its component is the presence of certain benefits from a thing or event. Later, material wealth began to be correlated and even identified with the concept of God. And only the emergence of economic theories translates reflections on the good into the practical field. In their broadest sense, they mean something that satisfies the requirements and meets the interests of man.

economic benefits

Benefits Properties

In order for a material good to become such, it must meet certain conditions and have the following properties:

  • the good must be objective, that is, fixed in some kind of material carrier;
  • it is universal, since it is significant for many or for all people;
  • the good must have social significance;
  • it is abstract and intelligible, as it reflects in the consciousness of man and society a certain concrete form, as a result of production and social relations.

Moreover, the benefits have the main property - this is utility. That is, they should bring real benefits to people. That is precisely their value.

The good and needs of man

In order for the benefit to be recognized as such, several conditions must be met:

  • it must meet human needs;
  • the good should have objective properties and characteristics that allow it to be useful, that is, be able to improve the life of society;
  • a person must understand that a good can satisfy its specific requirements and needs;
  • a good person can manage at his discretion, that is, choose the time and method of satisfying needs.

To understand the essence of benefits, you need to remember what needs are. They are understood as internal stimuli that are realized in the activity. Need begins with awareness of need, which is associated with a feeling of lack of something. It creates discomfort of varying degrees of intensity, an unpleasant feeling of lack of something. It makes you take any action, look for a way to satisfy the need.

A person is simultaneously attacked by several needs and he ranks them, choosing topical ones for satisfaction first.Biological or organic needs are traditionally distinguished: in food, sleep, reproduction. There are social needs: the need to belong to any group, the desire for respect, interaction with other people, the achievement of a certain status. As for spiritual needs, these requirements correspond to the highest order. These include cognitive need, the need for self-affirmation and self-realization, the search for the meaning of existence.

human needs

A person is constantly busy satisfying his needs. This process leads to the desired state of pleasure, gives in the final stage positive feelings, which any individual aspires to. The process of the emergence and satisfaction of needs is called motivation, since it forces a person to carry out activities. He always has a choice of how best to achieve the desired result and he independently selects the best ways to relieve a deficiency. To meet the needs of the individual uses various objects and they can be called good, since they lead a person to a pleasant feeling of satisfaction and are part of a large economic and social activity.

Economic Theory of Benefits

The science of economics could not ignore such a question of good. Since the material needs of a person are satisfied with the help of objects produced on the basis of resources, a theory of economic benefits arises. By them are meant objects and their properties that can meet the requirements and desires of a person. The peculiarity of the process of satisfying material needs is such that the needs of people always exceed production capabilities. Therefore, the benefits are always less than the needs for them. In this way, economic resources always have a special property - a rarity. There are always fewer than necessary on the market. This creates an increased demand for economic goods and allows you to set a price on them.

Resources are always needed for their production, and they, in turn, are limited. In addition, material wealth has another property - utility. They are always associated with benefits. There is the concept of marginal utility, that is, the possibility of a good to most fully satisfy a need. Moreover, as consumption decreases, the marginal demand decreases. So, a hungry person satisfies the need for food with the first 100 grams of food, but he continues to eat, while the benefits are reduced. The positive characteristics of different benefits may be similar. A person chooses the necessary of them, focusing not only on this indicator, but also on other factors: price, psychological and aesthetic satisfaction, etc.

material goods services

Classification of benefits

A diverse consumption of material goods leads to the fact that in economic theory there are several ways to divide them into species. First of all, they are classified by degree of limitedness. There are goods for the production of which resources are expended and they are finite. They are called economic or material. There are also benefits that are available in unlimited quantities, such as sunlight or air. They are called non-economic or free.

Depending on the method of consumption, the benefits are divided into consumer and production. The former are designed to meet the needs of the end user. The latter are necessary for the production of consumer goods (for example, machine tools, technology, land). Tangible and intangible, private and public goods are also highlighted.

distribution of wealth

Tangible and intangible goods

Different human needs require specific means of satisfying them. In this regard, there are tangible and intangible benefits. The first includes objects comprehended by the senses. The material good is everything that you can touch, smell, consider.Usually they can accumulate, be used for a long time. Allocate material benefits of single, current and long-term use.

The second category is intangible goods. They are usually associated with services. Intangible goods are created in the non-productive sphere and affect the condition and abilities of a person. These include health care services, education, trade, services, etc.

material good is

Public and private

Depending on the mode of consumption, material wealth can be described as private or public. The first species is consumed by one person who paid for it and owns it. These are means of individual demand: cars, clothes, food. The public good is indivisible, it belongs to a large group of people who collectively pay for it. This type includes environmental protection, cleanliness and order on roads and in public places, the protection of law and order and the country's defense.

Production and distribution of wealth

Creating wealth is a complex, costly process. Its organization requires the efforts and resources of many people. In fact, the entire sphere of the economy is engaged in the production of material goods of various kinds. Depending on the prevailing needs, the sphere can be independently regulated, producing the necessary goods. The process of distributing wealth is not so simple. The market is a tool, however, there is also social sphere. It is in it that the state takes on distribution functions in order to reduce social tension.

material consumption

Service as a blessing

Despite the fact that by the means of satisfying needs it is customary to understand material goods, services are also a means of eliminating needs. Economic theory today actively uses this concept. According to her, material services are a kind of economic good. Their peculiarity is that the service is intangible, it is impossible to accumulate or evaluate it before it is received. However, it also has utility and rarity, like other economic benefits.


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