Artificial scarcity

Artificial scarcity is an economic term describing the scarcity of items even though the technology and production capacity exists to create an abundance. The term is used by the Technocratic movement to point out one flaw of inefficiency in the price system.

An example of artificial scarcity is often used when describing copyrighted, or closed-source, computer software. Any software application can be easily duplicated billions of times over for a relatively cheap production price (an initial investment in a computer, an internet connection, and any power consumption costs). Things like serial numbers, license agreements, and intellectual property rights ensure that production is artificially lowered in order to gain a monetary benefit. Technocrats argue that if the price system were removed, there would be no incentive for normal people to artificially create scarcity in order to gain money.

The technocratic movement would apply this example of a computer to the larger context of society. They would state that our technologically advanced state is capable of producing an abundance of virtually everything. They state, for example, that the productive capacity exists to feed everyone in the world, but because there is not enough money to buy the products, we underproduce. The only reason why the technology hasn't been used to create this abundance, they say, is because of human ignorance, which they hope to correct by educating the populace before the demise of the current price system.

External Links

• Technocratic Glossary
• Article explaining technocratic beliefs of current economy