Assumptions
Three main assumptions of the Psychological Law are:
1.Normal Conditions: Firstly, the psychological law applies only under normal conditions and when there is no danger of war or cold war, depression, boom, political upheaval, revolution etc.
2.Psychological and Institutional Complex remains the same: It means that there is no change in the psychological and institutional complex, such as population, tastes and preferences, habits of the people, fashion, prices etc. except change in income.
3.Capitalist Economy based on Laissez- faire: The psychological law applies to free and prosperous economies and does not hold well in socialist and under-developed economies. This is because, in a free economy, the people can consume any kind of goods they want, according to their necessities and desires and also there is no interference of the government in the economic affairs.
Read more about this topic: Fundamental Psychological Law
Famous quotes containing the word assumptions:
“Why did he think adding meant increase?
To me it was dilution. Where do these
Innate assumptions come from?”
—Philip Larkin (1922–1986)
“Unlike Boswell, whose Journals record a long and unrewarded search for a self, Johnson possessed a formidable one. His life in London—he arrived twenty-five years earlier than Boswell—turned out to be a long defense of the values of Augustan humanism against the pressures of other possibilities. In contrast to Boswell, Johnson possesses an identity not because he has gone in search of one, but because of his allegiance to a set of assumptions that he regards as objectively true.”
—Jeffrey Hart (b. 1930)
“What a man believes may be ascertained, not from his creed, but from the assumptions on which he habitually acts.”
—George Bernard Shaw (1856–1950)