Dissatisfaction and the Concept of Abstractions

Humans are naturally dissatisfied, and this dissatisfaction compels us to act using the means at our disposal to achieve our most valued ends. We strive to maximize our returns while minimizing our effort, constantly seeking to avoid pain and move toward pleasure. This tendency gives rise to what I call abstractions. In this context, an abstraction refers to the process of obtaining the same or greater value with less effort, where individuals or businesses trade control or customization for convenience, efficiency, or accessibility. The trade-off is asymmetrical—what is given up is outweighed by the benefits, resulting in a net positive outcome. I believe that the economy itself is an abstraction, where people obtain goods without having to produce them themselves.

Self-Sufficiency and Its Advantages

Historically, people produced what they needed to meet their basic needs, such as growing food and crafting tools. Self-sufficiency was once the norm. The primary benefit of self-sufficiency is complete control over what and how things are produced. Individuals could tailor their goods to their exact preferences, exercising full autonomy over the production process.

Limitations of Self-Sufficiency

However, self-sufficiency comes with significant limitations. Producing everything on one’s own is constrained by time, knowledge, and effort. Even when people knew how to make something, the process still required substantial labor. While producing the essentials for survival—such as cultivating crops, raising small animals, and constructing simple shelters—was feasible, more sophisticated desires emerged once these basic needs were met. These new desires demanded greater specialization, skill, and effort. Not everyone could dedicate the time to learn the necessary skills to build complex goods, and even if they did, the quality might be poor. Additionally, certain goods, like metal tools or vehicles, were nearly impossible for individuals to manufacture independently. As a result, people began to see the inefficiency of trying to produce everything themselves.

The Emergence of Abstractions and Trade

If humans didn’t have the natural inclination to maximize gains and minimize effort, they might have remained content with the limitations of self-sufficiency. However, driven by the need for efficiency and the desire for more sophisticated goods, people became willing to relinquish some control over the production process. This is where abstractions come into play: instead of doing everything themselves, individuals abstract away the complexity of production by relying on others who specialize in producing certain goods. They accepted this trade-off because the value they gained—saving time and accessing specialized goods—far outweighed what they gave up in control or customization.

Abstractions as the Foundation of the Economy and Market

This marked a significant turning point in human society—the emergence of trade. People were now willing to give up the autonomy of self-production in exchange for quicker access to goods, even if it meant accepting more standardized or generic products. Producing everything independently was simply impractical or impossible.

It was this very willingness to embrace abstractions that gave rise to both the economy and the market. The economy itself is an abstraction—a system that allows individuals to delegate the production of goods and services, relying on others to meet their needs more efficiently. The market became the platform where these exchanges and abstractions took place. Without the collective readiness to abstract away control in exchange for convenience, efficiency, and specialization, there would be no need for the intricate economic systems or marketplaces that shape human society today. Our willingness to seek these abstractions is the foundation upon which the modern economy and market are built.

Examples of Abstractions in Modern Life

Abstractions can be seen in various aspects of modern life. Take security companies, for example. Rather than handling home or business security themselves, people hire firms that specialize in protection. They give up control over managing security in exchange for convenience, expertise, and peace of mind. Similarly, investment funds provide another form of abstraction. Instead of managing their own investments, people entrust their money to professionals. By doing so, they relinquish control over individual investment decisions, trusting experts to manage their capital and reduce the complexity of navigating financial markets.

Even everyday products like smartphones offer a form of abstraction. A smartphone abstracts away the complexity of communication technology, allowing users to make calls, send messages, and browse the internet without needing to understand how the underlying systems work. Food delivery services eliminate the need for people to cook or shop for groceries, delivering ready-made meals with minimal effort. In essence, every product or service in the modern economy is based on some form of abstraction—each one simplifying life and making complex processes more accessible. Each abstraction delivers the same or greater value with less effort, ensuring that the trade-off benefits the user more than what they relinquish.

The Tendency Toward Greater Abstraction

One clear trend throughout history is the tendency toward greater abstraction. As new technologies emerge, they are often difficult to use and accessible only to a few. Over time, these technologies become easier and more widely adopted. Consider the evolution of computers: initially, they were large, complicated machines used only by experts. Decades later, they became personal computers accessible to the average consumer. Today, smartphones are powerful computers that fit in our pockets, requiring very little technical expertise to operate.

The same pattern can be observed with cars. Early vehicles were complex and required knowledge of mechanics and manual gear shifting. Over time, cars became easier to drive, with automatic transmissions removing the need to shift gears. The trend toward abstraction continues as we move toward self-driving cars, which will eventually eliminate the need for drivers altogether.

Thanks to this tendency toward abstraction, consumers experience easier, more convenient lives. Products and services that once required specialized knowledge are now accessible to almost everyone. At the same time, abstraction leads to greater worker productivity. As workers engage with tools and technologies that simplify tasks, they can accomplish more in less time, increasing efficiency. In turn, higher productivity leads to higher earnings for workers and contributes to overall economic growth. The economy grows because abstractions make both consumption and production more efficient, fueling innovation and expansion.

Employment as an Abstraction

With the rise of markets, the default economic role became that of the merchant. Merchants produced goods not just for their own use but to sell for money. However, being a merchant required a deep understanding of the market, including demand, competition, and pricing strategies. It was risky and demanded significant effort and management skills. Although merchants had the potential to become wealthy, they also faced the risk of failure and losing their invested capital. Moreover, success as a merchant took time, and returns on investment weren’t immediate.

Once again, people faced a choice. They could either take on the risks of becoming a merchant, with the potential rewards of wealth and autonomy, or trade those potential benefits for the security of working for someone else. By working for an employer, individuals could avoid the risks associated with entrepreneurship, such as investing capital and managing a business. Instead, they could focus on a specific role within the production process and earn a guaranteed salary, even though their labor often produced more value for the employer than they received in return. This trade-off is another form of abstraction—workers gave up control over the entire production process in exchange for the security of a stable wage and a lower risk of failure.

Employment thus became a solution for both employers and employees. Employers needed workers to increase productivity and grow their businesses, while employees benefited from the stability and convenience of a steady wage. By working for others, employees traded the potential for higher profits for the security of regular income, without having to bear the risks or complexities of running a business. This dynamic demonstrates how people consistently choose to engage in abstractions, giving up some freedom and control in exchange for greater convenience and safety.

Abstractions at the Core of the Modern Economy

In both trade and employment, individuals willingly sacrifice some autonomy for the sake of convenience and security. When trading, people give up the control they would have had by producing their own goods, in exchange for faster, more efficient access to what they need. Similarly, in employment, individuals trade the potential rewards of entrepreneurship for the safety and stability of a guaranteed wage. These abstractions—the willingness to relinquish control in exchange for convenience—lie at the core of the modern economy.

Ultimately, the entire economy emerged because people were willing to exchange their freedom for the convenience, efficiency, and safety provided by indirect trade, specialization, and employment. This principle of abstraction continues to define modern economic structures today and drives the growth of the economy by making life easier for consumers and workers more productive.