What If Scarcity, Supply, and Demand Do NOT Run Our Economy?
The Lie We've Been Sold And The Reality Behind Our Economy
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What If Scarcity, Supply, and Demand Do NOT Run Our Economy?
The Lie We've Been Sold And The Reality Behind Our Economy
If you've ever taken an Economics Class, or looked up Basic Principles Online...
There are a few Terms You'll Know.
Scarcity, Supply, and Demand.
Anyone who has a "Basic" Economic Understanding can tell you that these Principles are Fundamental to how our Economy Runs.
When things are Scarce, the Price Increases.
When Supply Outpaces Demand, Prices Decrease.
When Demand Outpaces Supply, Prices Increase.
When Supply and Demand are Equal, Prices Stabilize.
When something is a Higher Quality, then Prices Increase.
Whoever Provides the Best Product or Service will become the Most Profitable as their Demand will become Higher.
It is Known that this is Simply How It Works...
But...
Is it True?
There is a Quote from Mark Twain that Strikes as Relevant...
"It ain't what you don't know that gets you in trouble, it's what you know for sure that just ain't so"
What if Our Economy Does Not Run on Scarcity?
What if Supply and Demand are Not the Primary Factors that Determine Pricing?
What if it was All...
A Lie?
What if these Forces of Scarcity, Supply, and Demand actually Do Not Dominate Our Economy?
Then...
What Truly Dominates Our Economy?
Well, let's look at some of these Concepts.
Scarcity.
Can Scarcity Drive Prices Up?
Well, it "Can" Drive Prices Up.
We have Recently Seen this with Egg Prices due to the Avian Influenza Outbreak that has Occurred.
So, it seems like this is "True"...
But does it Hold with the Rest of the Economy?
Well, we have seen "False Scarcity" or "Manufactured Scarcity" as a Tool that is Frequently Used to Push Prices Higher.
For Instance, if you look at Shoes or Clothes...
Is there Any True Scarcity of these?
No.
There are More Shoes and Clothes than Anyone Will Ever Wear.
Many Useable Clothes and Shoes simply end up in Landfills, which is actually becoming a Gigantic Problem for our World.
There is No Scarcity of these, yet we Frequently See them at Extremely High Prices.
Not Due to "True" Scarcity, but "Manufactured Scarcity".
What About the Principles of Supply and Demand?
If Supply is Greater than Demand, then Prices should go Down.
If Demand is Higher than Supply, then Prices should go Up.
Something of Higher Quality should be of a Higher Price.
But is this True?
If we look at the Meat Market today, it Reveals a Different Story.
Supply for Meat Products that come from "Animal Factories", known for Extremely Low Quality Meat Products, is Fairly Stable.
Arguably, the Supply is Greater than the Demand.
At the Very Least we should expect Prices to be Stable.
If Not, then they should be Decreasing.
But this Is Not the Case.
Protein Products from these "Animal Factories" have Increased, Despite both Low Quality and Supply Meeting or Exceeding Demand.
But what about Regeneratively Raised Meat Products?
These come from Animals that are Raised in Significantly Better Living Conditions, Costs are Higher to Maintain, and Quality is Significantly Better.
Demand for these have Increased, but Supply frequently Struggles to Keep Pace.
All of these Factors would Indicate that the Prices for these Should be Significantly Higher.
But the Reality is that You can actually Buy and Purchase Regeneratively Raised Meat Products for "Less" than those from Animal Factories.
This makes No Sense according to the "Laws" of Economics that supposedly Run our System.
But we can go further yet!
Does the Best Product or Service Always Win?
Not at All!
In Fact, it Rarely Happens!
When we look at Category King or Queen Economics, we see Something the Appears to "Break" the Economic Rules.
Whoever becomes "Known" to Own a Category...
"Regardless" of Quality in Comparison to Competitors...
Owns 76% of the Market On Average.
Better Products and Services Do Not Change This.
Cheaper or More Expensive Products and Services Do Not Change This.
Only "Two" Factors Ever Change This Figure...
Either a Category King/Queen "Leaves" the Category, allowing Another to Take Over...
Or a "New" Category makes the Old Category Irrelevant.
If Neither of these Occur, then then Category King/Queen Company Maintains their Market Dominance.
This is True in Many Different Industries.
Supply and Demand Do Not Change This.
Scarcity Does Not Change This.
Quality of Products and Services Do Not Change This.
So then the Question Becomes...
What is Determining Our Economic Systems?
I was Reading the Book "The Serviceberry: Abundance and Reciprocity in the Natural World" by Robbin Wall Kimmerer.
In the Book, she discusses the "Economics" of the Natural World.
Mostly from the Perspective of "The Serviceberry" which is held in High Esteem in her Culture.
She says in the Book that the Natural World runs on a Different Set of Principles.
Not Based on Scarcity and Supply and Demand.
At least, Not Primarily.
There are "Some" Circumstances that Do Work like this, as we see with the Prices of Eggs due to Avian Influenza.
But that is the Minority.
Rather, what Kimmerer Highlights is that in Most Ecosystems, what occurs is that One Plant or Animal (or a Small Few) will "Carve a Space" within an Ecosystem.
All other Plants and Animals either Perish if they attempt to Fill the Same Space, or must Fill a Different Role.
Sometimes the Role is Similar, but Not the Same, as Lions, Hyenas, Cheetahs and Crocodiles are all Major Predators, but each fill Different Roles.
Interesting...
Does this Sound Similar to Category Kings/Queens?
It Should, because it is Exactly the Same.
The Category King/Queen Fills the "Primary" Role within an Category/Ecosystem.
Other "Competitors" then Must Fill "Slightly Different" Roles to Remain Relevant...
Or they Perish.
Coca-Cola and Pepsi cater to Slightly Different Audiences.
Coca-Cola is the Category King/Queen, and has Remained there.
None of Pepsi's Efforts have taken "Significant" Market Share Away.
Apple and Samsung cater to Slightly Different Audiences.
Apple is the Category King/Queen, and has Remained there...
Despite Samsung having Better Products and being Years Ahead in Innovation.
When you Look at Nature...
What is the Only thing that Changes What Dominates an Ecosystem?
When something Enters the Ecosystem that Fundamentally Changes the Ecosystem for Everyone, such as an Invasive Species.
Does this sound like a New Category/Ecosystem being Created which Changes Everything?
As the Category/Ecosystem Changes, the Roles May Change...
But as those Roles become Defined, things Stabilize.
We have seen this Occur with the Rise and Dominance of the Tech Industry, where "Nerds" Fundamentally Changed the Roles they Filled within Modern Society.
Nature Does Not Work by "Survival of the Fittest", contrary to Popular Belief...
Refer to Twain's Quote at the Beginning...
Rather, Nature Supports Whoever "Best Fills" their Roles within an Ecosystem that Caters Well to the Entire Ecosystem.
If You Find or Create Your Role within the Greater Ecosystem, You Will Thrive.
If You Fail to Find or Create a Role?
You will Struggle.
But, there is something that is Interesting that Appears to be Different between Our Economy and Nature's Economy...
But it is Not Scarcity, Supply, or Demand.
What it is?
Value.
Or more Accurately "Perceived" Value.
Which is Where the Lie begins to be Seen.
In Nature, Value is Based on what is of True Value - Food, Water, Natural Resources within the Role You Fill.
But in our Economy?
It is about "Perceived" Value.
"Manufactured" Value.
Diamonds are mostly Synthetic and are Not Rare in the Slightest.
Yet we "Pay" a lot of Money because we "Perceive" them to be More Valuable.
Even though they are Quite Cheap in Reality.
We have been "Trained" to see them as Valuable.
Food, Sadly, often is Not of Nutritious Value to Us, which is what Nature Focuses On.
Most Food Manufacturers Design Food, Literally, to be More Addictive and "Perceived" to be More "Valuable" to our Body's Systems.
We have been "Trained" to Perceive Certain Foods as Valuable.
Even our "Medicine" is Victim to This.
Research is often "Manufactured" to get Specific Results, so we "Believe" that the "Solutions" are Valuable.
All while, Simultaneously, Solving Nothing.
Even up to our Doctors have been "Trained" to Perceive certain things as Valuable.
What we are Seeing is that Nature's Economy Appears to Play Out...
But with a Fatal Difference in that We are "Trained" (Or Perhaps Brainwashed) to "Perceive" Things as Valuable, when in Reality they are Not.
Through Marketing, Addiction Tactics (Both Physical and Emotional), Manufactured Market Forces, and More.
We are Constantly "Lied" to About What is Valuable.
Worse, we have been Told and Taught this for So Long...
We Seem to have Forgotten what Life Should be Like.
We No Longer Seem to Know What "Should" be of Value to Our Lives.
Which we Sadly See with the Quickly Diminishing Quality of our Lives.
Yet...
There is Hope.
If we Want Better Lives...
All We Need to Do is Seek What is of "True" Value to Us as Humans.
If we Simply Become Human...
We can Remove what is "Manufactured" to be of Value...
And Rediscover what is of "True" Value to Us as Humans.
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Now, let’s get back to being Human.
What is it that we “Need”.
Well, we can Turn to Our Psychophysiology to Understand This.
We have, for a long time, been Getting Sicker as a Society.
There are a Lot of Lies that are told to us.
What makes it Challenging is that the Lies are Usually Told to Us by People Who are Genuinely Well-Intentioned.
They have Simply Learned it that Way, and Continue to Teach It “As If” it was True.
These are Not People who are “Out To Get Us” for the Most Part.
Just People who have Grown in Systems that were Never True.
So, what do we Need as Humans?
Let’s Dive In…
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