The Relations between Expansion and the Progress of Economic Welfare

Abstract

Relations between expansion and progress of economic welfare take their origin in the fact that human nature needs for its well-being a psychic magnitude, products and services, physical magnitudes which result from human activity, a physico-psychic magnitude. The properties of products and services provoke by their consumption a status of satisfaction of the human being, which may be more or less intense. Human productive activity causes by its practice also a status of satisfaction of the human being. Human productive activity therefore influences by itself and by its results the status of satisfaction of the human being, which may be positive or negative. However, the status of satisfaction on the other hand influences human productive activity. The levels of satisfaction and human productive activity, therefore, are interrelated. Given this interrelatedness, it is quite natural to ask: A. How does an increase in human productive activity (an increase in the stream of products and services) produced by a constant population, i.e. expansion, influence the level of satisfaction, that is, economic welfare? B. How does progress of economic welfare influence human productive activity?