The world economy is based on the production, distribution and consumption of goods or services.  While the activity is circular, does it have a beginning?

Does demand (consumption) drive production or does production create demand?  The answer is most likely both, there is a balance where demand can influence production and production can influence demand. 

Incenting Production

While opportunity, desire and demand will influence producers the most powerful driver is the profit motive.  This is not exclusive and there is a robust non-profit sector for some products and services; however profit does underly the majority of economic activity.

This is a basic principle of capitalism.  Simplistically in a communist systems production of goods and services is for the common good, not personal enrichment.  

My own observation is self interest is a stronger driver than philanthropic interests.  Care of others is typically second to care of self (not as an absolute with exceptions but most common.)

It is this principle that makes an economy founded on profit motive stronger than one founded on altruism.  As I have noted in previous posts, it’s all about me is not an uncommon perspective.

Motivational Awareness

When engaged in economic activity, whether you are a producer or consumer of a good or service understanding the underlying drivers to your behavior can help you achieve the best results.  

A few of the questions you can consider:

• Are you acting in your best interest, that of others or a combination?
• Is the presence of demand (or absence) the driver of your action?
• Is it your intent to create demand in order to satisfy your profit motive?