Hayek. In response to the Gilbraith Dependence Effect, he wrote the “The non-sequitur of the dependence effect”. He disagrees with the statement that “production creates the wants it seeks to satisfy” (Gilbraith). According Hayek, there is no difference between urgent needs and non-urgent wants. People cannot be only limited to their basic needs like food, sex, shelter because if that is the case, they would not achieve any development and would still inhabit caves and would sleep under the open sky. If we take the Gilbraith position and conclude that the desires/wants are not important then “the whole cultural achievement of man is not important.”- like literature, art, music, dance. (The Non Sequitur of the "Dependence Effect"). Another argument that Hayek makes is that not advertisements but the culture and environment affect the way consumers make decisions. According him ads are designed only to inform the buyers and to promote them the product but nothing
Hayek. In response to the Gilbraith Dependence Effect, he wrote the “The non-sequitur of the dependence effect”. He disagrees with the statement that “production creates the wants it seeks to satisfy” (Gilbraith). According Hayek, there is no difference between urgent needs and non-urgent wants. People cannot be only limited to their basic needs like food, sex, shelter because if that is the case, they would not achieve any development and would still inhabit caves and would sleep under the open sky. If we take the Gilbraith position and conclude that the desires/wants are not important then “the whole cultural achievement of man is not important.”- like literature, art, music, dance. (The Non Sequitur of the "Dependence Effect"). Another argument that Hayek makes is that not advertisements but the culture and environment affect the way consumers make decisions. According him ads are designed only to inform the buyers and to promote them the product but nothing