A. Requirements for goods of first order (consumption goods).
Human beings experience directly and immediately only needs for goods of first order-that is, for goods that can be used directly for the satisfaction of their needs (p. 56). If no requirements for these goods existed, none for goods of higher order could arise. Requirements for goods of higher order are thus
dependent upon requirements for goods of first order, and an investigation of the latter constitutes the necessary foundation for the investigation of human requirements in general. We shall first, accordingly, be occupied with human requirements for goods of first order, and then with an exposition of the principles according to which human requirements for goods of higher order are regulated.
The quantity of a good of first order necessary to satisfy a concrete human need4 (and hence also the quantity necessary to satisfy all the needs for a good of first order arising in a certain period of time) is determined directly by the need itself (by the needs themselves) and bears a direct quantitative relationship to it (them). If, therefore, men were always correctly and completely informed, as a result of previous experience, about the concrete needs they will have, and about the intensity with which these
needs will be experienced during the time period for which they plan, they could never be in doubt about the quantities of goods necessary for the satisfaction of their needs-that is, about the magnitude of their requirements for goods of first order.
But experience tells us that we are often more or less in doubt
whether certain needs will be felt in the future at all. We are aware, of course, that we will need food, drink, clothing, shelter, etc., during a given time period. But the same certainty does not exist with respect to many other goods, such as medical services, medicines, etc., since whether we shall experience a need for these goods or not often depends upon influences that we cannot foresee with certainty.
Even with needs that we know in advance will be experienced in the time period for which we plan, we may be uncertain about the quantities involved. We are well aware that these needs will make themselves felt, but we do not know before hand in exactly what degree-that is, we do not know the exact quantities of goods that will be necessary for their satisfaction. But these are the very quantities here in question.
In the case of needs about which there is uncertainty as to whether they will arise at all in the time periods for which men make their plans, experience teaches us that, in spite of their deficient foresight, men by no means fail to provide for their eventual satisfaction. Even healthy persons living in the country are, to the extent permitted by their means, in possession of a medicine chest, or at least of a few drugs for unforeseen emergencies. Careful householders have fire extinguishers to preserve their property in
case of fire, weapons to protect it if necessary, probably also fireand burglar-proof safes, and many similar goods. Indeed, even among the goods of the poorest people I believe that some goods will be found that are expected to be utilized only in unforeseen contingencies.
Taken From : PRINCIPLES OF ECONOMICS
