The economic principle of He Shen sprinkling sand in the rice soup for disaster relief
I. Introduction
In ancient China, disasters were frequent, and the government often needed to take a series of measures to provide relief to the victims and ensure their basic livelihood. In this process, how to ensure that limited resources can actually flow into the hands of those who need them most has become an important issue. Although He Shen's act of sprinkling sand into the rice soup during his inspection of the porridge factory may seem simple and somewhat cruel, it actually contains profound economic principles. This article will focus on this behavior, explore the economic logic behind it, and analyze its implications for disaster relief efforts in modern society.
2. The economic principle of scattering sand with Shen
1. Resource scarcity and efficient allocation
Resources are always limited, while needs are often unlimited. In times of famine, food becomes the most scarce resource. The purpose of the government-run porridge factory is to distribute limited food resources to those who need it most. However, due to the complexity of human nature, there will always be people who don't really need it to mix in and try to get extra resources. The act of sprinkling sand with Shen is actually to screen out those who really need resources by raising the cost of obtaining resources (i.e., accepting rice soup containing sand). Although this approach may seem inhumane, it is an effective means to achieve effective allocation of resources under the constraints of resource scarcity.
2. The law of diminishing marginal utility
The law of diminishing marginal utility in economics suggests that the utility (i.e., satisfaction) of each additional unit of good or service decreases as the quantity consumed increases. For the truly hungry victims, what they need most is food to keep them alive. Therefore, even if the rice soup is mixed with sand, they will choose to accept it because of the scarcity of the food. And for those who don't really need it, they have a lower marginal utility in getting food and are therefore more inclined to give up rice soup with sand. In this way, Heshen has succeeded in the efficient allocation of resources to ensure that those who need it most have access to food.
3. 信号甄别理论（Screening Theory）
By mixing sand into the rice soup, Heshen is actually imposing a cost-imposing mechanism to distinguish between those who are truly in need (i.e., those who are desperately hungry and in real need of help) and those who are not in need (who may just be non-victims who want extra benefits). In economics, signal screening refers to the true type of one party (in this case, the relief provider) who designs a mechanism to identify the other party (in this case, the disaster victims and the non-disaster people). In this case, only people who really need food will be willing to accept rice soup with sand, thus "signaling" that they are the real victims.
4. Incentive mechanism and screening mechanism
The act of sprinkling sand with Shen can also be seen as a combination of incentive mechanism and screening mechanism. He incentivizes people who don't really need food to give up by raising the cost of obtaining food (i.e., accepting rice soup with sand). At the same time, this behavior also acts as a kind of screening effect, separating those who really need food from those who don't. This combination of incentives and screening allows resources to flow more precisely to those who need them most.
5. Diminishing marginal utility
For people who are extremely hungry, the marginal utility of the first bowl of porridge is so high that they ignore the impurities (sand) in the porridge, while for those who are not really hungry, the negative utility of the sand in the porridge may outweigh the marginal utility they get from the porridge, so they choose not to eat it. This reflects the law of diminishing marginal utility in economics, that is, as consumption increases, the satisfaction (utility) of each additional unit of goods or services gradually decreases.
6. Resource allocation efficiency
From the perspective of resource allocation, Heshen's approach seeks to improve the efficiency of the allocation of disaster relief resources and ensure that scarce food reaches those who need it most. In times of disaster, resources are extremely limited, and effective resource allocation is essential to maximize the effectiveness of relief. In this way, screening can theoretically reduce the waste of resources and make the relief more effective in focusing on the people who really need it.
7. Incentive Compatible
This behavioral design also attempts to achieve incentive compatibility, that is, to ensure that individuals automatically achieve collective or social goals while pursuing their own interests. Here, individuals are willing to accept porridge containing sand in order to fill their stomachs (self-interest), and this act indirectly contributes to the social goal of efficient distribution of resources to those who need it most.
8. Opportunity Cost:
For non-disaster victims, the opportunity cost of eating porridge containing sand (i.e., the value of the best substitute to give up) is relatively high because they have other options, while for those who are truly hungry, the opportunity cost is almost zero because they have few other ways to access food.
3. Enlightenment for disaster relief work in modern society
1. Accurately identify and allocate resources
He Shen's act of sprinkling sand reminds us of the need to accurately identify those who really need help and allocate limited resources to them precisely in disaster relief efforts. This requires us to establish a sound disaster assessment mechanism and a mechanism for identifying aid recipients to ensure that every resource can be used wisely.
2. Introduce incentive mechanism and screening mechanism
In disaster relief work, we can learn from the practice of spreading sand and introduce appropriate incentives and screening mechanisms. For example, by setting up conditions for assistance and strengthening supervision, we can motivate those who really need help to actively participate in the rescue work, and screen out those who do not need help. This will not only improve the efficiency of the relief work, but also avoid the waste of resources.
3. Strengthen social supervision and public participation
Disaster relief is a systematic project that requires the participation of the government, social organizations and the public. Therefore, in disaster relief work, we need to strengthen social supervision and public participation to ensure fairness, impartiality and transparency in disaster relief work. At the same time, it is also necessary to encourage all sectors of society to actively participate in disaster relief work and jointly provide help and support to the people affected by the disaster.
IV. Conclusions
Although there is a discussion of economic principles embedded in this story, it is worth noting that this practice has been widely criticized on a moral and humanitarian level because it ignores basic human dignity and, in practice, can cause harm to all those receiving assistance, including the most vulnerable. Modern economics and public policy emphasize the need to balance efficiency and equity, respect for the dignity of every human being, and a more humane approach to management in the delivery of aid.
Although He Shen's act of sprinkling sand in the rice soup for disaster relief may seem simple and somewhat cruel, it actually contains profound economic principles. By increasing the cost of acquiring resources and introducing a combination of incentives and screening mechanisms, he has succeeded in achieving effective allocation and precise allocation of resources. This behavior not only provides us with valuable economic enlightenment, but also provides an important reference for disaster relief work in modern society. In the future, we should focus on accurately identifying and allocating resources, introducing incentive and screening mechanisms, and strengthening social supervision and public participation to ensure fairness, justice and efficiency in disaster relief work.