Where Do We Live?

It's amazing that we have billion of humankind living in this planet, contributing to to economic success and distributing the wealth of each nation to the limit of its capabilities, hence this phenomena is why we as a humankind are scattered along this globe.

Where do we live? A simple but yet subjective question thrown out on this essay.

Travelling a lot! That quote is best to be linked to my hectic life, I'm blessed to have the opportunity to travel the globe and learn the nature of human behaviors, economic approaches, unique sociology systems and demographic cultures. This observation helps me to understand more towards the most essential necessity of human life which is a house.

Humankind dated back from early BC are tend to find a place to settle, and the most popular settlement is near the river banks and seasides, some archaeological research found that several amazonian tribe reside near the river,although there are also tribes who choose to lives inside the caves. All of these early settlements have 2 factors in common, such as the supply of water, and moisture of soil. Earlier homo sapiens live in a very organized community. Producing foods, tools to hunt and others handy application in order to survive in this world.

All right.. I'm not doing this elaboration to promotes history lesson instead to emphasize the economic relation that we shares from our ancestor.

Human life are motivated by incentives, I learn that a in a hard way due to my crazy background. Thanks to Professor Paul Krugman teaching, his books and lectures has guides me and other aspiring economists. Human life are motivated by incentives. Let alone the sentence to be interpreted by you! What we did whether it is based on economic favors or personal favors are solely based on incentives. This theory are common sense, look at one example, there are two types of condom available on the supermarket, one is the cheaper than the another one but the expensive type of condom offers 15% discount for the whole pack comprising 12 pieces of condom per pack, after making the calculation, the differentiation of the expensive type of condom only exceed a fraction of 2% more than the cheaper condom. and we realize we hit a good deal by assuming the expensive condom are better in quality rather than the cheaper type. unless the penises are made of steel.. that might be a different issue.

Take a look at the condom theory again. Our brain are moved by incentive, by assuming it cheap or good deal, we secured the deal. And this phenomena is the beauty part of our human life system, because of our capability to think and compare, and it makes humankind productive. The same theory goes to why we choose a settlement location. Let alone the Paleolithic period where on that period, choices are limited.

We can see that's there community even in the remotest area in the world. Some live in the jungle, at the seaside, on the countryside, in the middle of nowhere village. A question lies here, why do they choose to live there? Is it because they have to? They wanted to? They needed to? or They forced to?

The world is in the era of network and information, we call it globalization but I like to call it Lady Diana Effect (read on Lee Iacocca's Where All The Leaders Gone) There's no such things as we called "I have no idea that that's possible", if these people want to move and start a new living in the city, they actually can. But why didn't they? The lamest answer from a family that I met in Ethiopia when I asked them on why they didn't make a move to Addis Ababa? They say they preserves the nature by living in the jungle. Preserve the jungle? The nation with its nominal GDP of USD 32.32 Billion have the worst water system to its population, the water sample contain e-coli, yes!! e-coli will scare people like me and you. But they insisting to stay there. Why?
Incentives

Yes, throughout the whole process of mankind, we calculate the pros and cons, the yin and yang for every factors of our decision and the fine guideline that we attribute is incentive. Incentives is convenience, incentives is bonus.

A short trip that I've made in 2007 to Oslo, Norway has triggered me a question. Why do people live there? The vodka are expensive, the tobacco tax are scary, the whether are constant winter which will freeze you to death. The estimated population for Norway are 4,906,400 with density of 31/sq mi. Almost it is hard for me to understand what kind of life they have there. But, eventually, they do have life, they do have a structured socioeconomic, and they enjoyed their salmon well. What I've learn from them is that the life in Norway are just similar to the life at other places around the world. Human tend to adapt every situation that they faces. E.g If the price of imported goods increased, we'll tend to purchase local manufactured products. This theory implied to all of us.

Why do we choose to live at where we are now?

We can make a survey to common people and ask them whether they have any dream country to live and settle. Most of them are some places in mind. Reason for this is because we like to have security in our life, we want a quality in our daily standard, we insist the best for our life. But this is just a dream for most of them. Most of these people are stuck! Reasons such as liability, responsibility and commitment has blocked their intention to move unless they are truly determine to move and have an incentive for moving.

The way we live, the socioeconomic is always the same.

Economy is just a study of human behavior in making their decision, and we are totally agree to say that wherever you live, even in North Pole, you are all are bounded by incentive that the location provides for you.