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V9 on 2.1.10 Causal Order of Goods - Network Diagram - Example

 

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Hunger
Shelter
Bathing
Washing
Boiled Potato
Water
Fire
Raw Potato
Boiling Container
Wood
Something to lit fire
Ax
Trees
Fence 
Stones
Soap
Towel
Water Stream
Water Container
Potato Farm
Notes:

The purpose of this diagram is well served if we understand:

How economy systematically links those things which appear unrelated? 
How a shock in supply of one provision affects multiple needs? 
How increased intensity of one need affects others?
How Goods become Non-Goods and vice versa? 

Examples:
In a primitive setting, say forest, suppose we have hunger, shelter, bathing, and washing needs. 

Suppose, we decide to wash everything for some reason. This directs all water collected in the morning on only washing, leaving nothing for bathing. We now must fetch water next morning. Suppose we need to fetch water from a stream, we do not feel safe at night, and spent all day washing.

Thus, gratifying one need can possibly affect another need when limitations exist. The conditions of scarcity establish a relation between what is unrelated. 

Suppose that water stream dries, for a few days. It sends shock waves down to our needs of hunger, bathing, and washing. We must now prioritize - which need to thwart momentarily, which to gratify fully, which to some extent etc etc.

Thus, both an change in intensity of a need, and a change in provisions of nature affect our needs. 

Suppose we need a fence to protect us from wild animals. Stones, a provision of nature, now acquire good character. But soon stones become Non-Good once we have built our fence, and say it is strong enough it will not need repairs. 

Suppose potatoes are abundant near-by, and need no storing. We consider this large amount of potatoes as good for our purpose only when we feel hungry. 

Upon gratification, we begin to ignore potatoes, and since no worry of future exists, we say, What good use of these now that I have satiated my hunger?

Thus, our intensity of needs, provisions of nature tie together by a logical necessity things which ordinarily are unrelated; Goods become Non-Goods, Non-goods become Goods, and unrelated needs affect each other if ever scarcity strikes. 

Casual Order of Goods - Network Representation.