Trickle-Down Theory

  

Categories: Econ, Financial Theory

See: Reaganomics.

Related or Semi-related Video

Econ: What is Maslow's Hierarchy of Want...3 Views

00:00

and finance Allah shmoop What is Maslow's hierarchy of wants

00:06

and needs Perhaps no other psychological theory has affected the

00:12

public mind as muchas Maslow's hierarchy of wants and needs

00:16

Seriously though Abraham Maslow came up with this theory in

00:19

the nineteen forties away to organize ideas about how humans

00:23

are motivated in the field of developmental psychology with what

00:26

makes them tick What makes them want Maazel's hierarchy of

00:29

wants and needs been used in psychology sociology and management

00:33

providing kind of a framework for this old people taking

00:36

things Usually Maslow's hierarchy of needs is shown in a

00:41

pyramid shaped image with the basic needs of the bottom

00:44

and higher level Motivating factors up here at the top

00:47

of the pyramid shape isn't like ours Food pyramid reflecting

00:51

the amounts of things we need you know to survive

00:53

Instead think of Maslow's hierarchy of needs as a pyramid

00:57

that's meant to be climbed Maslow's original theory was that

01:01

a person must be satisfied with the factors at one

01:04

level within themselves before they could be motivated by factors

01:08

at the next level Well Mohr modern interpretations show the

01:11

five levels as overlapping their blurred implying that lower levels

01:15

might be prioritized again down the road even if someone

01:18

is you know higher up on the pyramid in general

01:21

we're going to talk about Bob's journey here through Maslow's

01:23

theories Bob could be you your mom your friend or

01:25

that stranger you just passed on the street Yeah deep

01:28

inside everyone is Bob the base of the pyramid We've

01:31

got physiological needs which includes things like food water rest

01:35

shelter and the ability to you know live in the

01:38

environment in general Well here The idea is that it's

01:41

hard to motivate Bob with something like prestige when he's

01:45

too busy trying to meet basic physiological needs so that

01:48

he can you know just stay alive Bob's got bigger

01:51

things to worry about right now If he's homeless food

01:54

lists and you know pantless alright well once Bob's got

01:57

the basics of staying alive down he can move up

01:59

to the safety motivation level up here which says that

02:03

Bob can then be motivated by things that give him

02:05

security like think physical safety financial security health You know

02:10

those things make sense that once Bob's got his food

02:13

water in things that he needs to live seek out

02:16

security so that he can keep those things under lock

02:18

and key and you know keep on keeping on basic

02:21

mortality avoidance At this point Bob's Fed rested and not

02:25

stressing out so much because survival instincts took a chill

02:28

pill thanks to his safety measures Good job you know

02:31

a place to live maybe wearing a bike helmet Occasionally

02:34

you go bob pants Don't forget the pain's bob Finally

02:38

Hopkins start looking outward into the world The third level

02:41

of hierarchy here It's love and belonging right The human

02:45

needs for closeness with one another In other words nothing

02:49

will motivate Bob more at this point than making friends

02:52

taking the singles bar by storm pay Well Bob made

02:55

friends at work and managed to snag a girlfriend Honestly

02:59

Nice Bob Bob's now capable of being motivated by things

03:02

that level for his self esteem Bob will be motivated

03:07

by things that give him confidence in a sense of

03:09

accomplishment Well for Bob maybe a nice car makes him

03:13

feel confident Or maybe Bob doesn't care for a nice

03:16

car but he's really into his career working his way

03:19

up the quote prestigious unquote corporate ladder Whatever Bob's values

03:23

are well he can be motivated by things that can

03:25

fulfill them making him feel Fly fly Bob Fly right

03:30

Well now that Bob's taking care of his basic needs

03:32

in his physiological needs well he has time to fight

03:35

focus on himself again But in a you know higher

03:38

way Well at the top of the Pyramid the big

03:41

boss of the video game that is Bob's Life Well

03:44

we've got self actualization right there Self actualization is when

03:48

Bob feels his utmost potential If Bob's motivated at this

03:52

level while that means Bob wants to be the best

03:55

Bob he can be well for Bob This might have

03:57

to do with fulfilling creative passions using his talent finding

04:03

a you know life partner and raising Tiny Bob Yeah

04:06

that'LL do it After publishing his theory Mass Low later

04:09

criticized his own initial description of self actualization And while

04:13

he changed it to be more like becoming enlightened or

04:16

something like that would mean that Bob things about meaning

04:19

of life things about spirituality morality the universe and seize

04:23

prejudice for what it is a fear based ego boosting

04:27

mean girl thing Bob becomes a true wiseguy Astle's hierarchy

04:31

of wants and needs does have its fair share of

04:33

critics It's not accepted by everyone Some believe that people

04:38

can be motivated by needs and wants higher up on

04:39

the pyramid even if they haven't satisfied all the ones

04:42

on the bottom first Others have pointed out mass low

04:45

on ly studied healthy specimens not the population at large

04:49

So there could be some bias there some bargain The

04:52

Massa lt's hierarchy only works for people in individualistic societies

04:55

and not so much for people in collectivist societies Help

04:58

priorities and values are different Plus these needs might also

05:02

be a different depending on Bob's age Right The final

05:05

kicker maybe Massa lt's pyramid isn't really human Needs can

05:09

be applied to most animals in general Massell insisted that

05:12

this motivation theory needed to be people center cannot animal

05:16

centric He was a man of his time Today we

05:18

know more than ever before about how the other species

05:21

live and communicate The more we learn the more mass

05:23

ALS hierarchy of wants and needs seems to apply to

05:26

them just as much as it does for us especially

05:28

for the first four five levels So could mass low

05:32

have come up with a better theory Well yeah Maybe

05:35

he could have if he'd been more motivated The sweet 00:05:40.087 --> [endTime] sweet irony Oh no

Find other enlightening terms in Shmoop Finance Genius Bar(f)