Book Source: Wolfgang Hoeschele. The Economics of Abundance: A Political Economy of Freedom, Equity, and Sustainability. pp. 19-20
"The discussion in Chapter 1 claims that needs and wants can be consciously generated in order to create profitable scarcities. However, it is important to go beyond such general claims and systematically examine the various methods of scarcity generation. Scarcity, we must remember, is the condition when available goods do not meet current demands. There are basically three ways in which scarcity can be generated. First, the total amount of a good or service can be reduced. For example, the expansion of market activities may reduce the amount of goods provided by nature (such as clean air) or by nonmarket mechanisms (for example, self-provisioning of food, free exchange of knowledge), or those that result from the absence of commercial activities (such as silence and open space). Second, barriers can be placed between people and a good. Of potentially many ways to obtain that good, only one or a few may be left available, leading to the creation of a bottleneck. People can be made to pay in various ways for taking goods through the bottleneck. An example of this mechanism is the elimination of diverse forms of movement to the point that “mobility” is reduced to the use of a privately owned car. Monopolies also fit into this category of scarcity generation—a particular good is available, but must be purchased from a single seller. Third, new wants or needs can be created, or existing ones modified, so that demand for a commodity exceeds supply—for example, by means of advertising, ideological indoctrination, or legal standards. All three basic mechanisms not only increase scarcity, but also curtail freedom by forcing increased expenditures on people and reducing available options of how to satisfy their needs.
Throughout history, we can conceive of social power as having been based in part on the construction of scarcity, but the methods of producing scarcity have continuously changed as a result of changing social circumstances, new technologies, and differing natural environments. Every historical period is characterized not only by varying combinations of methods to create scarcity, but also by specific ways of institutionalizing these methods—that is, its own scarcity-generating institutions. In this chapter, I begin the discussion with several such institutions which are normally considered neither economic nor modern, but which continue to persist and interact with modern economic institutions. Any attempt to avoid the scarcities invented in modern times should also avoid the scarcities created by these older institutions—romanticizing the past will not lead us forward. What these institutions have in common is that they explicitly prohibit people from engaging in certain types of behavior or expressing deviant thoughts, often based on the “station in life” into which they were born. In a word, they oppress."