It is Simon s creative viewpoint to regard human beings information processing ability as scarce resources of decision makers, and it s also the logical starting point of applied thoughts of his bounded rationality model——theory of the scarcity of psychological resources.

The reason is that the scarcity assumption in the theoretic foundations of Western Mainstream Economics fails to distinguish the two conceptions of desire and competence,which makes the whole theoretic system a castle in the air,unable to reveal and make up for the intrinsic defects of international trade system.

This paper introduces the connotation and principle of the recycling economy,and analyzes on the concepts of the traditional economy such as the consumption,shortage and market from the angle of the recycling economy,and advances the inevitability of developing the recycling economy in China.