Essential Goods

Essential goods are economic goods that fulfill fundamental human needs, such as food, clothing, and safety. They are referred to as "essential" because they are the first items people prioritize to address the basic level of Maslow's hierarchy of needs. Spending on essential goods tends to account for a significant portion of income when earnings are low, but as income rises, the relative share of spending on these goods typically decreases.

Essential Goods and Social Context. It is commonly believed that essential goods are unaffected by the historical or social environment in which people live, as these goods cater primarily to basic physiological and survival needs (e.g., eating, drinking, and staying warm). However, the line between basic needs and secondary needs is not determined solely by human physiology. It is also shaped by what a society considers "normal" and how these needs are met. Over time, economic and social progress has dramatically reshaped living standards. For example, what was not considered an essential good in one era (e.g., indoor plumbing) may become indispensable in the next. In Western nations (such as Europe and the United States), indoor plumbing was a luxury in 19th-century homes but had become a basic necessity in European homes by the latter half of the 20th century. Meanwhile, in many other parts of the world, indoor plumbing remains a luxury or even a non-essential good. Ultimately, the definition of essential goods is deeply influenced by societal norms and expectations.