Scarcity and Scared Have Much in Common

What do “scared” and “scarcity” have in common?  They look like they come from the same root word (so does “scar”).

When something is “scarce” people react “scared.”  They panic.  They run on the market.  They buy it up.  Look at how the lack of a product, like gasoline, orange juice or gold drives prices up and demand as well. Scarcity increases value.

Supply and demand.

But conversely, observe how the fear (the “scare”) of an item being scarce drives the item into scarcity.  This past month the media focus on the price of fuel has driven purple to panic and the prices have escalated.

Economics are driven more by our fears and emotional reactions than the facts most of the time.  Why do you think we use emotional words like “Depression,” “Panic,” etc. to describe economic changes?

Do you agree?

Jim Mathis is an international professional speaker and author of the Best-selling Reinvention Made Easy: Change Your Strategy, Change Your Results. To receive his free monthly e-newsletter with articles like this send a SUBSCRIBE message to: subscribe@jimmathis.com.

Advertisements

0 Responses to “Scarcity and Scared Have Much in Common”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




Newsletter Sign Up

Share this blog.

Bookmark and Share

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 2,041 other followers

Calendar

March 2012
S M T W T F S
« Feb   Apr »
 123
45678910
11121314151617
18192021222324
25262728293031

Pages

Twitter Feeds

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 2,041 other followers


%d bloggers like this: