The Scarcity Principle vs the Abundance Principle
The scarcity principle and the abundance principle operate side by side in our world and it's up to us to choose which principle to live by. In a society that prides itself on free enterprise and individual opportunity, it is unfortunate that so many lives are governed by the scarcity principle. Our culture adheres firmly to the belief that resources are limited and there is not enough to go around; so according to the scarcity principle, we live under constant competitive pressure, fighting for spots on sports teams, professional positions, social status and even the last ‘must have’ XBOX360 or PS3 available at our local electronics store.
It is this scarcity principle that drives the economy and perpetuates the fundamental cycle of supply and demand. Low supply coupled with a high demand creates a scarcity that escalates prices and makes certain items a commodity that some can afford while others cannot. In fact, many businesses will purchase huge quantities of particular products in order to create a false scarcity, and this seemingly limited supply will result in an increase of the perceived value as well as people’s insatiable desire to acquire the item. Marketing companies can successfully capitalize on this principle because they know that it surpasses the financial realm and actually controls almost every aspect of our lives. By appealing to the fear of an imminent shortage, they can create a reaction that benefits a few at the detriment of many.
Unfortunately, the scarcity principle is rooted in fear and greed that encourages selfishness and, at its most extreme, a complete disregard for the needs and wants of others. Basically, the idea dictates that if something is scarce, or may become so in the future, then we need to get it while it is available and hoard it or store it for our own use, even if saving for our rainy day forces our neighbor into a drought. The scarcity principle discourages us from sharing ideas, opportunities, and resources out of a fear that someone else’s success will translate into our loss. It is the principle that makes us afraid that someone else will have more, succeed more, or achieve more, consequently lowering our worth and value.
While the scarcity principle has been convincingly argued, obvious from the fact that so many people live according to its tenets, there are those that hold to the belief that what may sound good in theory does not actually work in practice. In fact, the scarcity principle is essentially counterproductive. Accumulating and hoarding creates even more scarcity, widening the gap between the ‘haves’ and the ‘have nots’, limiting attainability to a very small group, and eventually making the commodity undesirable or invaluable.
In contrast, the abundance principle is built on the idea that there is more than enough to go around and the world is always creating new opportunities and fresh challenges. This principle states that there is room for everyone to benefit equally and operates on the premise that “the more you give, the more you receive.” By being generous, we will actually discover generosity; by helping others we will receive help in our time of need; and by giving out of our abundance we will never experience lack.
While acting out of fear of scarcity causes us to turn inward and focus on ourselves, the abundance principle encourages us to take only what we need and to share the rest, benefiting not only ourselves but everyone around us. By living “all for one and one for all”, everyone prospers, everyone is happy, and everyone has a purpose. If there are limited positions on a baseball team, create a new team. If the local business isn’t hiring, start your own. There is room for everyone, opportunities are limitless, and creativity abounds.
Where the scarcity principle is based on fear and greed, the abundance principle is built on faith and equality. Where the scarcity principle demands hoarding, the abundance principle promotes sharing. Where the scarcity principle regards only commodities, the abundance principle values people. From the individual level to the family environment to society as a whole, living according to the abundance principle will result in financial freedom, personal health, and successful, happy relationships.
It is this scarcity principle that drives the economy and perpetuates the fundamental cycle of supply and demand. Low supply coupled with a high demand creates a scarcity that escalates prices and makes certain items a commodity that some can afford while others cannot. In fact, many businesses will purchase huge quantities of particular products in order to create a false scarcity, and this seemingly limited supply will result in an increase of the perceived value as well as people’s insatiable desire to acquire the item. Marketing companies can successfully capitalize on this principle because they know that it surpasses the financial realm and actually controls almost every aspect of our lives. By appealing to the fear of an imminent shortage, they can create a reaction that benefits a few at the detriment of many.
Unfortunately, the scarcity principle is rooted in fear and greed that encourages selfishness and, at its most extreme, a complete disregard for the needs and wants of others. Basically, the idea dictates that if something is scarce, or may become so in the future, then we need to get it while it is available and hoard it or store it for our own use, even if saving for our rainy day forces our neighbor into a drought. The scarcity principle discourages us from sharing ideas, opportunities, and resources out of a fear that someone else’s success will translate into our loss. It is the principle that makes us afraid that someone else will have more, succeed more, or achieve more, consequently lowering our worth and value.
While the scarcity principle has been convincingly argued, obvious from the fact that so many people live according to its tenets, there are those that hold to the belief that what may sound good in theory does not actually work in practice. In fact, the scarcity principle is essentially counterproductive. Accumulating and hoarding creates even more scarcity, widening the gap between the ‘haves’ and the ‘have nots’, limiting attainability to a very small group, and eventually making the commodity undesirable or invaluable.
In contrast, the abundance principle is built on the idea that there is more than enough to go around and the world is always creating new opportunities and fresh challenges. This principle states that there is room for everyone to benefit equally and operates on the premise that “the more you give, the more you receive.” By being generous, we will actually discover generosity; by helping others we will receive help in our time of need; and by giving out of our abundance we will never experience lack.
While acting out of fear of scarcity causes us to turn inward and focus on ourselves, the abundance principle encourages us to take only what we need and to share the rest, benefiting not only ourselves but everyone around us. By living “all for one and one for all”, everyone prospers, everyone is happy, and everyone has a purpose. If there are limited positions on a baseball team, create a new team. If the local business isn’t hiring, start your own. There is room for everyone, opportunities are limitless, and creativity abounds.
Where the scarcity principle is based on fear and greed, the abundance principle is built on faith and equality. Where the scarcity principle demands hoarding, the abundance principle promotes sharing. Where the scarcity principle regards only commodities, the abundance principle values people. From the individual level to the family environment to society as a whole, living according to the abundance principle will result in financial freedom, personal health, and successful, happy relationships.
