Needs v. Wants

1. Needs v. Wants A Simple Life Text-to-World Connections

2. Academic Vocabulary- Economics •Money: is anything that is generally accepted as payment for goods and repayment of debts. The main functions of money are defined as: a medium of exchange, a unit of account, and as a store of value. •Corruption: when government officials seek person gain (bribes) from their position and power. •Mortgage: is a security (a form of guarantee) for a loan that the lender makes to the borrower. •Income: is the sum of all the wages, salaries, profits, interest payments, rents and other forms of earnings received during a given period of time.

3. Academic Vocabulary - Economics •Barter: in which goods or services are directly exchanged for other goods and/or services without a common unit of exchange (without the use of money). •Currency: refers to the coins and banknotes of a particular country. •Slavery: is a form of forced labor in which people are considered to be the property of others. •Frugal: being frugal means that a person is following some or all of these strategies: reducing waste, curbing costly habits, refusing instant gratification, practicing self-restraint, avoiding consumer traps, ignoring expensive social norms, embracing cost-free options, or using barter. •Consumer capitalist: The phrase is controversial. It suggests manipulation of consumer demand so that it has a coercive effect (not free market) and has a negative effect on society in general.

4. Price vs. Cost Price is commonly confused with the notion of cost: “I paid a high cost for buying my new plasma television”. These are different concepts. Price is what a buyer pays to acquire goods or services from a seller. In this article Suelo is really talking about opportunity cost—not price. He has chosen a moneyless life without a job. His opportunity cost is what he has given up: employment and money income.

5. •Wants vs. needs: economics teaches that it is not possible to tell the difference between wants and needs. One person’s wants may be another person’s needs. In economics the correct term is “wants.”

6. Discussion: The article describes a man who has been living in a cave in Moab, Utah for almost 10 years without using money. The reporter interviewed Mr. Suelo and some of his friends. The purpose of living without money includes: simplicity, spiritual practice, and freedom. Suelo has many strategies for satisfying his needs: going through trash, visiting restaurant and grocery store dumpsters, and finding discarded items around town. If he is given money he immediately gives the money away. He thinks money complicates his life and does not want to have anything to do with it. His friends recognize that money is not the source of happiness and they say Suelo is the happiest person they know.

7. Reflection Questions • Make a list of 10 of your personal WANTS and NEEDS. • What are the costs and benefits of Mr. Suelo’s lifestyle? • Why is money so important to our consumer society? • Would you ever choose a lifestyle like Mr. Suelo’s why or why not?