Economic Wellness
Less expectations in excessive provision of goods
Less complexity in economic life
= More happiness
Can we truly eradicate income inequality, poverty, improve living conditions for human beings? Yes, we can, with Less is More. The core concept of the Less is More philosophy is the less one desires, the more one is happy. Applied in economics, this means that people of the LIM Republic find happiness away from the basic premise of Adam Smithian economics that humans’ primary motivation is maximizing their profit. The will to maximize profit comes from desires, urges, and sometimes greed. However, this presumed human nature is not existent. The background of “former North-Korea” already is an area where capitalism and consumerism are not prevalent. Rather, the people of North Korea are used to spending goods only to the necessary amount. Luxury items are not their standards of measuring happiness as it is the case in many western societies.
On scarcity of resources
Apart from explaining what LIM is not, it is better to understand LIM through explaining what LIM is. Less is More is about less consumption and the satisfaction that one derives from it, thus scarcity of resources is lessened with less demand for goods. On top of this, the economy’s production of essential goods, such as food, clothing and shelter, is subsidized by the government and together with efficient mass production, thereby enabling cheaper commodity prices. As part of the culture of LIM, the people are discouraged and dismiss any culture of consumption and only focus on the things they really need. The producers do not monopolize on resources, they sell the products in large quantity. The products, therefore, are abundant and low-priced. It is these sources, therefore, that happiness in economic aspects comes from. In two ways, since people essentially do not put emphasis on consumption, and since the prices are low, the residence in LIM presents a detachment from economic restraints.
On Veblen Goods
In economics, a Veblen Good presents an anomaly to the traditional theory of demand (Veblen, 1899). For example, when the price of a product increases, normally the demand would decrease. However, in particular products such as high-end luxury items, sedan, fashion items, or jewelry, the consumers of these products consider it more valuable when the price is high, thus the demand increases as the price increases. This extreme example of capitalism shall be eradicated in Less is More, as the community will shift the cognition and culture regarding consumption. Luxury goods are not seen as desirable anymore in Less is More since showing of one’s status via expensive goods is frowned upon.
The core values of LIM includes the rejection of luxury items nevertheless it will more focus on people’s fundamental wellness. This notion is somewhat analogous to Thomas More’s Utopia, in which the ambassadors of the Utopia display a declination to gold, since they are not considered important in their culture. A good will remain a good so long as people consider them to be goods. Otherwise, they do not have economic value.
In extension, LIM Republic clearly distinguishes itself from modern day consumerism, the social atmosphere that the more you spend, the more you are not only in your economic status but also in one’s social status.
Veblen, T. B. 1899. The Theory of the Leisure Class. An Economic Study of Institutions. London: Macmillan Publishers
