Magna Carta wants to add one crucial ‘law’ to the economic laws that currently exist.
Magna Carta’s first economic ‘law’: "Greed, the excessive need for having, is an addiction." This economic law needs to be dynamically integrated as shown below.
Taking into account that:
- Gossen's first economic ‘law’, the law of diminishing marginal utility, does not work in case of addictions.
- the fact that our money is fiduciary money, meaning that the value of our banknotes and coins completely depend upon continued confidence in the issuer, central bank/government
- the common knowledge that one can not trust addicts,
make it hard to have confidence in the value of our money if we are not protected against greed from at least the issuer of our money and the people serving in our money system.
This law not only has an impact on our understanding of economics, but also reminds us of the real meaning of the words ‘wants and needs’ as used in economics, marketing and humanistic psychology (Maslow’s pyramid).
An addiction transforms a ‘want’ into a ‘mutant need’. Unfortunately this mutant need is perceived as real depending on the environment we live in. E.g.. The wish to own a car evolves overtime from a ‘want’ via a ‘mutant need’ into a need as a result of the real need for social belonging (Maslow’s 3e level) the moment most people own cars.