The paper examines the economic theory of consumer behavior from the M
odem Psychoanalytic point of view with a metaphor of (transport) plann
ing as a backdrop. It is claimed that the utility maximization princip
le of economic theory, no matter how broadly interpreted, does not env
elop the motivation of human behavior and that the economic explanatio
n of the aims of human behavior, which disregards the ''dark side'' of
man, will result in narrowly conceived plans and policies. The applic
ation of economic theory, and other social sciences, to public policy
has led to disjointedness of data collection, method of analysis, and
planning and implementation. This, combined with a tautological behavi
oral theory, has made the current planning and public policy procedure
s self-verifying, and issues an invitation for a new theoretical appro
ach which is comprehensive, does not ignore complexity and the large '
'error term'', and appreciates the unity of data collection, method of
investigation, and process of implementation.It is argued that unsati
sfactory performance of the transport system, large errors inherent in
data and models, the inability of extant transportation planning and
policy to address key issues successfully, the environmental problem,
and the value of the individual all call for new kinds of skills from
the planners and policy makers. Freud's dualistic formulation of insti
nctual drives - the life and death instincts - is used as the new fram
ework of explanation. This theory is seen to offer a convincing, more
realistic and deeper understanding of the forces motivating human beha
vior, and one which is more in accordance with observable facts. If ap
plied, the theory will lead to significantly different planning proces
ses and to a profoundly different approach to public policy.