It is a curse to have to much money, or too many resources, the mind fails to learn to filter out temptations properly, and we make bad decisions.
Thu, 1 Sep 2011 06:16:24
Africa is behind economically because of the "resource curse," they have too much, therefore they sit around doing nothing more.
The Western World, mainly the USA, Europe, Australia and Japan have become slaves to temptations, critical reasoning, there is a generation of naive people without savvy. When there is no need to make good decisions because of too much credit, too much money, when it is too easy, we make the easy decision and not the wise decision.
Tough times make for tough people, it would appear we need tough times to return or the USA will be dumbed down to a level where it cannot compete.
The USA, my home country has become a slave to temptations, it is the globalization of idiocy.
As I travel the planet, it becomes painfully aware, the Americans are analizing by using what they like, while the rest of the world is making decisions on what is affordable and has best utility value.
This is a social problem, it is the behavior of groups, because when everyone around you is doing the same, it is the norm.
Resource Curse Defined: The resource curse (Paradox of Plenty) refers to the paradox that countries and regions with an abundance of natural resources, specifically point-source non-renewable resources like minerals and fuels, tend to have less economic growth and worse development outcomes than countries with fewer natural resources. This is hypothesized to happen for many different reasons, including a decline in the competitiveness of other economic sectors (caused by appreciation of the real exchange rate as resource revenues enter an economy), volatility of revenues from the natural resource sector due to exposure to global commodity market swings, government mismanagement of resources, or weak, ineffectual, unstable or corrupt institutions (possibly due to the easily diverted actual or anticipated revenue stream from extractive activities).
Utility Defined: In economics, utility is a measure of relative satisfaction. In other words, it is a term referring to the total satisfaction received by a consumer from consuming a good or service. Given this measure, one may speak meaningfully of increasing or decreasing utility, and thereby explain economic behavior in terms of attempts to increase one's utility. Utility is often modeled to be affected by consumption of various goods and services, possession of wealth and spending of leisure time.