Cyclic flow of money

Is there someone whom you were or are envious or jealous of? I was. I always was, of the people who were smarter than me, better-looking, and had more friends. This concept is in other words, is always wanting more, more than you have. It can be called greed, jealousy or ambition. But I think it's basic human nature. And yes, we aren't born with these traits, we acquire them. Have you ever heard of the saying that we weren't born hating someone? It's something we learn from our surroundings, something we pick up from our family and friends. I realised it's a cycle, the person you think is perfect thinks someone else is perfect, and that someone thinks it's someone else. And no, the concept of perfect isn't limited to looks or riches. It's much beyond that; it could be happiness, or any insecurity that haunts you. 

The more I write and observe my surroundings, the more I realise human psychology and economics are roots of the same tree. Heavily dependent on each other, if one didn't exist, there would be no need for the other either. I've also realised that people tend to blindly follow these people they perceive to be "perfect", my favourite trope is investments, I love it, I love how they invest wherever these perfect people do, and when their investments tank, they have the audacity to blame the people they followed. Its not like they were forced to invest, they just wanted to prove they can do what others can. But no, let's play the blame game.

Over the past 5-6 years, I've realised that there are no bad people, only bad traits. A bad person is not created at birth, nor is a good one. It's situations that turn us into bad people. If we're thinking in this context, everyone is a bad person, all of us are a bad person to someone; this is also a cycle. A cycle of hate. You might hate me, I might hate someone else, and that someone might hate someone else. It's a cycle, and eradication is impossible. And so is change, change overnight. There is a higher chance someone might go to IIT than change overnight.

Economically, these cycles of hate, envy or jealousy have good and bad effects on the economy. There is this concept in macroeconomics that I find very very similar to these cycles, mechanically not on an emotional or psychological level. The cyclic flow of money. So basically, this concept is much like the cycle of hate and jealousy I mentioned above. Here, money moves from place A to person B and then back to place A. For example, firm A produces cotton, firm B buys the cotton from firm A to make sweaters, and a retailer buys the sweaters from firm B to sell them in the market. Now this sweater is bought by a person who works for firm A. This is the cyclic flow of money: the person offers services to firm A, and gets paid by firm A for their services in the form of wages. 

So, this cycle is much like the one in the animal kingdom. eg Deer eat grass, Jackals eat deer, Tigers eat Jackals, when Tigers die they decay into the soil, and serve as nutrients for grass to grow.