Superphysics
Absolute Demand and Effective Demand
2 minutes • 401 words
Chapter 1 mentioned the concepts of Absolute and Effective Demand.
- Effective Demand is the actual demand of the people who are willing to pay for products or services.
- Absolute Demand is a wishful demand that might not be satisfied any time soon.
Market prices are regulated by the proportion between the quantity to be sold and the demand of buyers willing to pay the natural price.
Such buyers are called effectual demanders. Their demand is called the effectual demand because it effectuates the bringing of the commodity to market.
Absolute demand, on the other hand, is demand that can never bring commodities to the market. For example, a very poor man may demand a luxury coach, but his demand cannot justify the manufacture of one.
Absolute demand is the main source of dynamism in the economy as a function of the invisible hand. This can roughly translate as wishful thinking.
In this complex view, the pleasures of wealth and greatness strike the imagination as something grand, beautiful, and noble. Their attainment seems worth all the toil and anxiety for them. It is good that nature imposes on us in this manner.
It is this deception which rouses mankind’s industry and keeps it in continual motion. By these labours, the earth has been obliged to double her natural fertility and maintain more people.
Our physical desires and wishes make us industrious and creative.
For example, going to the moon has been a fantasy since telescopes were invented in Europe in the 17th century. A physical means to go to the moon back then would have been an absolute demand of their society as a unit.
But it only became effective when rocketry was invented by the Nazis in the 1940s. This eventually led to the realization of the Apollo missions.
In Supereconomics, there is:
- perpetual effective demand for the minimum needs of life. This is based on the lower chakras.
- perpetual absolute demand for the improvemnt of life. This is based on the higher chakras.
As the society organism upgrades and evolves from lower to higher chakras, both the effective and absolute demand increases in quality and quantity.
Supereconomics guides that increase towards the Positive, as cooperation and creativity, while Modern Economics guides that into the Negative, as selfishness and materialism.
