Economics is a branch of knowledge that studies consumption, production, and exchange of excess production by humans and for humans.
Every human from birth becomes a consumer. Our bodies need basic requirement for sustenance such as food, water, shelter, clothing, medical attention, and education.
All these requirements are a necessity but only one yields production – that is Education. It is the knowledge transferred in Education that powers production and transfer of the excess to others.
Education begins with the study of human behavioral patterns and interaction mechanism with its environment. This knowledge guides the quality and quantity and choice of production.
Adam was curious when he first saw Eve. Eve was curious when she first saw Adam. A comparison of their unique body features was the birth of education by careful observation.
The continuous observation of another being progressed from bodily features to mannerisms, and then to reoccurring patterns, and then to response and reaction, and eventually to exploration of body.
Humans learn and learnt first by observation of their environment but more importantly by observation of another human being as an independent being without interfering - the tree of Life.
By observing Eve, the first man understood his natural inclinations and made provision for the object of his education. By observing Adam, the first woman understood her natural inclinations as well.
In the beginning, transfer of excess production was based on barter - the exchange of direct value for value. Two people spent energy to collect food and water and then exchanged part of it between them.
As more education ensued, an awareness of choices and preferences was discovered. Along with this awareness came the need for the gathering or production of a variety of the same necessity.
The production of variety birthed vanity, because varying degrees of education based on experiences caused varying degrees of awareness that informed the choices. This was perceived as wisdom.
This increased a demand for specific variety and birthed the need for a storage to keep the excess produced and to be exchanged in barter for other necessities. But storage soon equaled wastage.
Choices and preferences brought a whole new level of education in the study of human behavioral patterns. So some persons tended to engage more in mental analysis than in the physical work.
There was a need to remember preferences and choices and make proper assessment before engaging in more production in other to conserve energy spent, and without stopping the production cycle.
However persons who engaged in the mental work still needed to exchange direct value for value if they must satisfy their basic needs – that is, a trade of education in exchange for consumption.
The transfer of education about the human choices and preferences, which was based on their behavioral patterns, brought about conflict of choices and preferences and a desire for wants.
Wants was basically what one person needed but another person fancied: the desire to make choices simply by observing others make similar choices which may or may not be based on necessity.
The continuous increase in demand based on observation of other people’s choices birthed scarcity in supply of same product. And the wavering increase in preferences birthed competition in production.
The growing variance in choice of wants and needs and the timing of making these choices placed increased value on scarce and less degrading resources for the trading by barter.
Humans soon realized they could lengthen the degradation of food resources by drying and storing. This was the birth of processing – the improving of raw food to make it last longer.
Along with processing came transporting to trade at distant places – exportation. And with trade in distant places came purchases of new resources from distant places – importation.
The more humans, the more demand for basic necessities and the more variety in preferences and choices and timing in making of the choices. This birthed use of scare non-perishables to trade barter.
Man’s innate desire to discover and explore birthed new inventions, faster processes, better infrastructure, new resources, better communication patterns, more suitable settlements etc.
Settlements around resources for ease of production became a necessity. The creation of settlements formed communal behavioral patterns due to concentrated shared education on the human behavior.
Communal behavioral patterns soon created the need for rules and regulations and penalties. Trade between communities soon birthed the need for exchanging good and services with unique resources.
The perceived value around a unique resource or service determined its level of acceptance within a community. And the great variation from community to community birthed the need for specification.
The perceived demand around a product determined the level of energy required to produce the product to meet the demand. This in turn determined the specific exchange value for that product.
The production and processing dichotomy birthed the need for skilled labour. There was now a choice to spend more energy and resources in producing the primary product for the next step of processing.
The discovery that out of a primary product, processing could produce variety of products to meet the variety of wants and needs caused concentration on the processing with high need for skilled labour.
The importing and exporting of primary products and processed varieties gave rise to local and inter-settlement commercial trade, with each settlement developing from the proceeds through taxation.
Entrepreneurship - the ability to identify what was in demand, where it was in demand, how quickly that demand could be met with the lowest resources, and how much profit could be made in the process.
Business Administration – the ability to manage the processes required in generating supply to fulfill demand using lesser resources to provide a certain quality of the product in exchange for higher value.
Education – the process of developing mental and physical abilities in other to fit into the consumption and production cycle for the purpose of providing ones basic necessities and then generating wealth.
Taxation – the percentages collected by the government from all local and inter-settlement trade to develop settlements and increase the standard of living and the volume of trade generated by settlers.
Government – the ability to set and execute laws guiding behavioral patterns, commerce and industry, and the management of the resources derived from taxation as well as inter-settlement relations.
