Today, a friend asked me, "What is the underlying logic of economics?" (In-depth)
First, from a transactional perspective, "economics is essentially the study of human nature and the design of rules to improve efficiency."
The first principles of economics stem from the eternal contradiction between "human nature" (the inherent drive to pursue profit and avoid harm) and "scarcity" (the external constraints of limited resources).
To put it simply: resources are scarce, while human desires are unlimited.
This is the starting point of all economic activity and the fundamental reason for the existence of economics. If resources were inexhaustible, or if human desires were limitless, then choice, cost, efficiency, trade, growth—all the core concepts of economics—would lose their meaning, and the discipline itself would even cease to exist.
"Scarcity" isn't a complex theory, but a fundamental fact of the world we live in. Your time is scarce (24 hours a day), your energy is scarce, the world's oil, clean land, top doctors, and even your attention right now—all are scarce.
At the same time, the human desire list stretches endlessly: we want better health, more enjoyable experiences, broader knowledge, deeper social connections...
This eternal contradiction between "finite" and "infinite" is the first principle of economics.
Once we nail the cornerstone of "scarcity," the entire edifice of economics can be logically deduced.
First, scarcity inevitably leads to "choice." Because resources are limited, you can't have everything you want at once. You must make choices. Individuals choose whether to consume or save; businesses choose whether to expand production or invest in research and development; and nations choose whether to prioritize education or national defense. Scarcity is at work behind every decision. $BTC