where you find the details on why the GENI Initiative
is such a compelling argument against the common myth
phrases (scarcity, abundance):
scarcity myth, Example
on economic theory: assuming scarcity by Róbinson
theory is the name given to the more general and abstract
parts of economics, the principles. These principles
will be consistent with the ideological stance of
the theorist. Thus, in modern times, economic theory
deals with the principles explaining variations of
what we know as the capitalist system of production,
the most modern organization of production in social
stratified societies, in societies whose structures
are based neither on egalitarian relationships nor
on collaborative patterns of social organizations.
Economic theory has become a tool to "justify" the
capitalist system not to analyse it.
of price relations or of markets need a general explanation
of the organization of production and distribution
insofar as this is actually worked out and controlled
through what is defined as competitive buying and
selling -- which would largely be true even in a planned
or bureaucratic socialistic economy.
theories of PRODUCTION, DISTRIBUTION, CONSUMPTION,
BUSINESS FLUCTUATIONS, and other economic elements
have been introduced and continually reconsidered
from a variety of viewpoints. But all of them are
based upon the assumption that there are not enough
resources to meet the needs of the whole population.
There is always a situation of "overpopulation", that
is. From the latter, then, the notion of "rationing"
scarce resources, or, better, "allocate" scarce resources.
Thus, the capitalist market appears as an "efficient"
tool for allocating scarce resources, making possible
to produce for those who can afford the price of goods
theory, as a theory customized to justify the market
system, must make fundamental assumptions which create
a logical chain based on those assumptions. Because
of the above, such a logical chain will remain logical
only if the user of it agrees with the concept that
the market system is a natural law and not just a
stage in the human quest for fairer forms of social
organizations. The most basic assumption of the prevalent
customized economic theory is the so called principle
problem of scarcity forcing people to make choices
is the basis for the definition of ECONOMICS."
is the study of how society chooses to allocate its
scarce resources to the production of goods and services
in order to satisfy unlimited wants. You may be surprised
by this definition of economics. People often think
economics means studying supply and demand, the stock
market, money and banking. In fact, there are many
ways one could define economics, but economists accept
the definition given here because it includes the
link between SCARCITY and CHOICES." (I. B. Tucker,
III, "Survey of Economics", West Publishing Co., 1995)
is the subject that the economists from Smith to Marx
to the present generation have analyzed? Here are
a few definitions of economics:
asks WHAT goods are produced, HOW these goods are
produced, and FOR WHOM they are produced.
analyzes movements in the overall economy -trends
in prices, output, unemployment, and foreign trade.
Once such trends are understood, economics helps
develop the policies by which governments can improve
the performance of the economy.
is the study of commerce among nations. It helps
explain why nations export some goods and import
others, and analyzes the effects of putting economic
barriers at national frontiers.
is the science of choice. It studies how people
choose to use scarce or limited productive resources
(labour, equipment, technical knowledge), to produce
various commodities (such as wheat, overcoats, concerts,
and missiles), and to distribute these goods for
is the study of money, banking, capital, and wealth.
is a good one, yet you could extend it many times
over. But if we boil down all these definitions, we
find a common theme: ECONOMICS is the study of
how societies use SCARCE RESOURCES to produce valuable
commodities and distribute them among different people."
(P. A. Samuelson & W. D. Nordhaus, "Economics", McGraw-Hill,
economists agree on that SCARCITY is the condition
that human wants are forever greater than the available
supply of time, goods, and resources. This so-called
"economic science" assumes that whatever the size
of the population there is always overpopulation!
on economic theory: assuming scarcity by Róbinson
and Price, Supply and Demand, Simon and Ehrlich
Two Definitions of Scarcity
26 Sep 1998 08:17:00 -0400
and Price: Supply and Demand?
at a given point in time or temporal scarcity. Scarcity
is a function of the limits on satisfaction of all
wants at a given point in time giving rise to differentials
in costs among economic choices.
over time or intertemporal scarcity. Increasing scarcity
over time is a function of declining stocks of raw
materials available for extraction giving rise to
an increase in resource prices because of increasing
marginal costs of extraction as the resource is depleted.
definition of scarcity is an eternal problem the second
definition is simply a rough statement of the Hotelling
Theorem (1931) of the optimal path for scarcity rent
over time for an exhaustible resource.
the first definition as a given or self-evident. The
second definition seems to be disproven over the last
century as resource prices in real terms have declined
and not risen as the finite stocks of exhaustible
resources have been further depleted. Though more
of the finite stock of most exhaustible resources
have been discovered and brought into public or private
ownership still the resource owners sell their stocks
of these resources even in the face of declining real
prices. We must assume that resource owners have reduced
their marginal costs of extraction over time. The
only variable missing in the analysis is technological
change. This seems to explain, if true, lower marginal
costs and hence resource owners indifference to lower
real resource prices.
Here are links to another site about the abundance
vs. scarcity converstion: