There is a lot of talk of abundance lately. It has become quite the fashion. But this talk of abundance is bad economics.
The reality is that scarcity is the basic fact of economic life. Resources are limited. When we possess things that we do not use we trap resources, freeze them. Less resources are available to others. Thus scarcity rather than abundance is, and has always been, the hard reality of life.
If it were true that abundance was the basic fact of economic life then and only then would self-interest be a rational choice. In that imaginary world I may possess all I want without diminishing what is available to you or anyone else. However that is not the reality that we live in. We live in a world of scarcity. When I take more there is less available for you.
If we can accept that scarcity is the basic fact of economic life we must also accept that in the presence of scarcity sharing is the only rational choice. Unless we share we are doomed! There is not enough to use and abuse resources in any which way. We must share.
Sharing is good economics.
Posted by Abhay Burjor Ghiara at 5/06/2015