Concept

Scarcity

Overview

In economics, scarcity refers to the basic fact of life that there exists only a finite amount of human and nonhuman resources which the best technical knowledge is capable of using to produce only limited maximum amounts of each economic good. If the conditions of scarcity did not exist and an "infinite amount of every good could be produced or human wants fully satisfied ... there would be no economic goods, i.e. goods that are relatively scarce..." Scarcity is the limited availability of a commodity, which may be in demand in the market or by the commons. Scarcity also includes an individual's lack of resources to buy commodities. The opposite of scarcity is abundance. Scarcity plays a key role in economic theory, and it is essential for a "proper definition of economics itself".

"The best example is perhaps Walras' definition of social wealth, i.e., economic goods. 'By social wealth', says Walras, 'I mean all things, material or immaterial (it does not matter which in this context), that are scarce, that is to say, on the one hand, useful to us and, on the other hand, only available to us in limited quantity'."

British economist Lionel Robbins is famous for his definition of economics which uses scarcity: "Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." Economic theory views absolute and relative scarcity as distinct concepts and is "quick in emphasizing that it is relative scarcity that defines economics." Current economic theory is derived in large part from the concept of relative scarcity which "states that goods are scarce because there are not enough resources to produce all the goods that people want to consume".

Overview adapted from Wikipedia (CC BY-SA 4.0; see the article history for authors).

In the original texts

Passages from public-domain books where Scarcity is discussed.

When the scarcity is real, the best thing that can be done for the people is, to divide the inconvenience of it as equally as possible, through all the different months and weeks and days of the year. The interest of the corn merchant makes him study to do this as exactly as he can; and as no other person can have either the same interest, or the same knowledge, or the same abilities, to do it so exactly as he, this…
Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations
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Instead of making profit upon such occasions, therefore, he is often in danger of being utterly ruined, and of having his magazines plundered and destroyed by their violence. It is in years of scarcity, however, when prices are high, that the corn merchant expects to make his principal profit. He is generally in contract with some farmers to furnish him, for a certain number of years, with a certain quantity of…
Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of Nations
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But the case in which scarcity value chiefly operates in adding to cost of production is the case of natural agents. These, when unappropriated, and to be had for the taking, do not enter into the cost of production, save to the extent of the labor which may be necessary to fit them for use.
John Stuart Mill, Principles of Political Economy
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To the Mother Society, again, it is clear that the scarcity is factitious; is the work of Girondins, and such like; a set of men sold partly to Pitt; sold wholly to their own ambitions, and hard-hearted pedantries; who will not fix the grain-prices, but prate pedantically of free-trade; wishing to starve Paris into violence, and embroil it with the Departments: _hence_ this sale of sugar.
Thomas Carlyle, The French Revolution
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Of this nature is the fallacy in what is called, by Adam Smith and others, the Mercantile Theory in Political Economy. That theory sets out from the common maxim, that whatever brings in money enriches; or that every one is rich in proportion to the quantity of money he obtains.
John Stuart Mill, A System of Logic, Ratiocinative and Inductive
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Related ideas

Place in the tradition

Part of Shamanism.

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