Gems of Germans in Namibia

Abstract

"What do we really need, water or diamond?” This question occurs very frequently in education of the Economics. And when a professor asks it, a student will answer with confidence, “Water, of course!” If this student has got some good knowledge in Biology, the professor and probably even the entire group will get the explanation that 60-70% of human body is water, and there is no survive without water, so “the only correct answer can be water”. Some student with rebellious mindset will preach about the bad condition of our planet, namely, how exploited the Earth is, when it comes to resources. Probably there will also be a more realistic student who will pose to his audience the question, “It’s obvious that we need water so badly, but what would you give to your beloved one, a nice ring with well-shaped diamonds, or a bottle of water?” After this short and improvised debate, our professor would introduce the concept of Giffen goods, and his students would have to approve the fact that people like to make decisions beyond their real interests. Therefore, the homo economicus remains a vulnerable character in further economic analysis.