The Reality of Scarcity
Unpacking the Foundation of Modern Economics
Scarcity—the idea that we don’t have enough to meet everyone’s needs—is the cornerstone of modern economic theory. But is this universally true, or is it a reflection of how society has chosen to distribute resources?
In this chapter, we explore how the myth of scarcity shapes our lives, drives inequality, and impacts global systems. By rethinking scarcity and embracing abundance, we open pathways to an economy centered on equity, sustainability, and human well-being.
What Is Scarcity?
At its core, scarcity is the idea that resources are limited, and there isn’t enough to satisfy everyone’s needs. Economics 101 teaches us that scarcity drives competition, innovation, and value. But is scarcity a universal truth, or is it often manufactured by the systems we create?
For instance, despite the abundance of food produced globally, billions of people still face hunger. Similarly, there are enough homes to shelter everyone, yet homelessness persists. These contradictions reveal that scarcity is often more about inequitable distribution than a true lack of resources.
The Myth of Scarcity and Its Impact
Scarcity, in many cases, is a construct—a tool that benefits a select few while leaving the majority in perpetual want. It justifies hoarding, exploitation, and exclusion, reinforcing the idea that wealth accumulation is the ultimate goal.
Examples of Artificial Scarcity
Food Waste: According to estimates, nearly one-third of all food produced globally is wasted, even as millions go hungry.
Housing Inequities: Millions of homes sit vacant while homelessness remains a pressing issue in many countries.
Healthcare Access: Life-saving medications are often inaccessible to those who need them most, not due to supply issues, but because of profit-driven pricing models.
These examples challenge the notion that scarcity is inevitable and suggest it is a byproduct of systems designed to prioritize profit over well-being.
Lessons on Abundance from the Dominican Republic
When I think back to my early childhood in the Dominican Republic, I see a life of contrast. On one hand, we had a comfortable middle-class existence—my father’s auto mechanic shop provided us with a “pink mansion,” daily trips to the beach, and a sense of privilege.
Yet, every summer, my brothers and I were sent to the campo, the countryside, to live with extended family. Life in the campo was simple, unhurried, and communal. The days were filled with freedom: roaming the fields, sharing meals, and exploring without the burdens of scarcity.
We didn’t have much, but we had enough, and that “enough” felt abundant. It was here that I first understood abundance in a different way. It wasn’t about material wealth; it was about access, sharing, and sufficiency.
Upon moving to the United States, I encountered a new perspective on scarcity. Here, scarcity was framed as the fundamental rule of economics, the driver of competition, innovation, and personal ambition. Yet, something about this narrative felt off. My experiences in the campo taught me that abundance is possible when resources are shared and sufficiency is prioritized.
Rethinking Abundance: A New Economic Framework
An economy centered on abundance would focus on sharing resources fairly, promoting sustainability, and ensuring collective well-being. Instead of competition and accumulation, it would prioritize collaboration and access.
Steps Toward an Abundance Economy
Redefine Value: Shift from monetary wealth as the primary measure of success to metrics like well-being, health, and environmental sustainability.
Promote Fair Distribution: Address systemic inequities to ensure that everyone has access to basic needs like food, shelter, and healthcare.
Foster Collaboration: Encourage systems that reward cooperative efforts rather than competition.
This isn’t a utopian dream—it’s a practical call to action that aligns with ethical imperatives and long-term sustainability.
Imagine a World Without Scarcity
What would our world look like if we stopped accepting scarcity as inevitable and instead asked how to create abundance for all?
Scarcity has long been the foundation of our economic systems, but it doesn’t have to define our future. By questioning its validity and exploring alternatives, we can begin to shape a world where everyone has the opportunity to thrive—not just economically, but as human beings.
