Why Do People Do What They Do?
Motivation, Maslow, and the Changing Global Economy
by Bart Binning, Ed.D. (and Chat GPT)
One of the oldest questions in human history is also one of the most overlooked in modern economics: Why do people do what they do?
Since the Enlightenment, thinkers have tried to answer that question in different ways. In 1776, Adam Smith theorized that the invisible hand of self-interest could produce broad societal benefit. By 1844, David Ricardo and John Stuart Mill were building on that idea with the principle of comparative advantage, which explained how nations could gain from trade by specializing in what they do best.
A century later, in a radically different discipline, psychologist Abraham Maslow approached the question from a more personal angle. In 1943, he introduced his Hierarchy of Needs, suggesting that human behavior is structured around a progression of needs, from basic survival to self-actualization.
Since the founding of this country, these theories—economic and psychological—form the bedrock of how we understand human motivation. And yet, despite this intellectual legacy, the modern global economy appears to be unraveling. The question is: why?
The Pyramid of Human Needs
Maslow’s hierarchy remains one of the most widely cited theories of motivation. He argued that humans pursue their needs in an ascending order: starting with physiological survival (food, water, shelter), followed by safety (stability, security), love and belonging (social connection), esteem (respect and achievement), and finally, self-actualization—the realization of one’s full potential.
Maslow’s insight was that higher needs cannot be effectively addressed until lower ones are met. That truth applies not only to individuals, but to entire societies. A population grappling with job insecurity or inflation won’t prioritize global cooperation or innovation. Instead, it will turn inward, seeking protection and predictability.
This framework offers a lens for understanding not just psychology, but economics—and the tectonic shifts occurring in the global order today.
Trade and the Foundations of Wealth
At its essence, trade is the voluntary exchange of value. Whether between individuals, companies, or nations, it’s based on mutual benefit—an opportunity to acquire something one cannot produce alone.
But not all economic activity creates wealth. There are only three fundamental ways to generate it:
- Grow it – agriculture and renewable resources,
- Mine it – extracting raw materials from the earth,
- Transform it – manufacturing raw materials into finished goods.
Other activities—finance, healthcare, transportation, education, even government—consume that wealth. Some of this consumption is essential; some of it is discretionary. A healthy economy balances both.
Over the last century, the West—particularly the United States—has increasingly outsourced wealth creation in favor of low-cost production overseas. Leveraging the theory of comparative advantage, we optimized for price and efficiency by sending manufacturing to regions with cheaper labor and raw material access. The result was a globally interconnected supply chain, efficient but fragile.
During this time, Pax Americana—the relative peace maintained by U.S. economic and military power—helped stabilize this system. But that era is waning. The burden of maintaining global order has become too heavy for a single nation to carry. And the foundations of the world economy are beginning to shake. A perfect example is Russia’s invasion of Ukraine which has been prolonged largely because of US and European indecision.
The Rise of Economic Nationalism
At the same time, a cultural shift is taking hold in the U.S. The American ethos is tilting away from shared global purpose and toward economic nationalism. The language of self-sufficiency, national pride, and protectionism is rising again—alongside skepticism of globalization.
President Donald Trump’s second term policies epitomize this transformation. With a second term on the horizon, Trump is advancing a radical shift from global comparative advantage to what might be called national competitive advantage. His tool of choice? Tariffs.
Trump’s stated goal is a 10% blanket tariff on all imported goods, intended to make foreign products less competitive and revive domestic manufacturing. This is not just a trade policy—it is a paradigm shift, a deliberate disruption of the global economic order in favor of rebuilding industrial capacity at home.
But such a transition comes at a steep cost.
Costs, Labor, and the Path to Reshoring
Domestic production is more expensive. Labor costs are higher, regulation is tighter, and supply chains must be rebuilt. It takes time—two to five years, in many cases—to design, permit, and build new factories. In regions like Oklahoma and Texas, where employment is already near capacity, labor shortages are emerging.
At the same time, stricter immigration enforcement is causing a decline in undocumented workers—many of whom have historically filled manufacturing, agriculture, and construction jobs. As this labor pool shrinks, businesses must turn to automation, productivity improvements, and massive retraining efforts to meet demand.
In short: reshoring production will not be painless. It will mean higher prices, transitional inefficiencies, and the need for serious investment in workforce development.
But it could also mean a more resilient economy—one less vulnerable to supply chain disruptions, geopolitical shocks, or economic blackmail from foreign powers.
The Human Factor
If Adam Smith’s invisible hand is still at work, its behavior is being influenced by something new: fear, frustration, and a desire for security. These are not irrational forces—they are deeply human. As Maslow would suggest, when basic needs feel threatened, higher-order ideals are put on hold.
We are witnessing more than an economic adjustment. We are experiencing a fundamental realignment of national priorities. One that is moving from global cooperation toward domestic self-preservation. Whether that shift is sustainable—or desirable—remains to be seen.
But as we evaluate where the global economy goes from here, we would do well to remember that the question at its heart is not technical. It is personal.
Why do people do what they do?
Until we answer that, we may continue to mistake symptoms for causes—and short-term reactions for long-term solutions.