Economics is about abundance, not scarcity

Two words seem to preoccupy economists, who consider themselves the high priests of social sciences: scarcity and money.

The first word has wreaked havoc on our socio-economic systems. We always think there is not enough of anything. This scarcity mentality has led to unhealthy competition and strange behaviour.

In offices, we think everyone is after our jobs if we are leaders. Instead of expanding opportunities for the next generation, we think of how to grab and monopolise the little there is, both in the public and private sectors.

Reclaim land

Yet, the truth is that opportunities are not that scarce.

Lots of young people are suffering in this country because they have grown up thinking everything is scarce, from jobs to wives and husbands. We remind them every day. Some even give up, leading to rampant drug abuse, irresponsibility and hopelessness.

Yet, even things like land are not scarce. We can transform useless land and make it bloom. Go to California, Israel or some other thriving irrigation scheme. We can reclaim land from the sea like the Dutch. Did we not deal with land scarcity in cities by building upwards where is there no limit?

Capital is not scarce either, it can be mobilised to become plenty. Seen how Saccos are slowly transforming this country and putting dominant banks on the defensive?

Entrepreneurship based on our creativity and ingenuity is limitless. There has never been and there might never be a limit to our creativity. Who thought one day we would have mobile phones and refuse to pick calls?

Interestingly, the only thing we do not seem to see through the lens of scarcity is labour; it is plentiful, which has led to unemployment. Yet, if we saw the other factors of production as plentiful, abundant, we would create lots of jobs for everyone without worrying too much about population growth. Are the world’s biggest economies not populous? Is economics not about people?

If we stop thinking about scarcity in our work places, in our homes and even dreams, everyone would be creative and come up with ideas that could be transformed into new enterprises and jobs.

But because of the scarcity mentality, new ideas are killed, and instead of getting new CEOs of new companies, we are all left fighting for few positions, reducing the chances of spawning new firms.

What is amazing is that despite the reality that creativity is limitless, we still fear new ideas even some that have been time tested. We prefer doing things the same old way, and then spend time complaining that things are not working.

We start in our homes, where children are forever being stopped from doing this or that. With time, we kill their creativity and then complain they are not doing well in school.

That extends all the way to higher education, where new ideas are frowned upon. Students learn to be safe by reproducing what they are taught, leading to a scarcity of new ideas.

That is why we measure the success of institutions of higher education in terms of the number of graduates and not the patents or new businesses spawned by these graduates. Even in churches and other gatherings, we prefer familiar ideas to new ones.

Held hostage

The scarcity mentality has held our society hostage. Even in politics, we are driven by the scarcity mentality and believe there are only a few prestigious positions, from Cabinet secretaries to other posts where you get an armed guard or a chase car. Yet, there are limitless and better positions.

There are lots of entrepreneurs who live better lives than the occupiers of the positions we fight for in the public sector. All you need is to start an enterprise and you will become a CEO — without any voter mobilisation! Is Bill Gates not better known than most presidents?

Where do we go from here?

From the glittering cities to sleepy hamlets, we must transform our thinking and start seeing abundance, not scarcity.

We must start with our children — they are easier to transform. Does our curriculum emphasise abundance instead of scarcity? What examples do we give in every subject? About abundance or scarcity?

This should extend to other institutions, including counties where the scarcity mentality was devolved. That is why counties are unwilling to share resources, which would make them more abundant.

We can have Vision 2030 and the Constitution, but if a majority of citizens see scarcity instead of abundance, it will take a long time to transform this society. The political and social tensions in our society are driven by the scarcity mentality.

Case studies

We could learn from other nations that dealt with the scarcity mentality and turned it into abundance.

Did you know that Israel is the size of Tsavo National Park? Singapore is smaller than Kiambu. These countries are perfect case studies. Their citizens live abundant lives after weaning themselves off the scarcity mentality.

USA was built by pilgrims who were tired of the scarcity mentality in Europe and other countries. Ever wondered why some below average Kenyans excel when they leave the country? Australia was started by convicts and prostitutes, undesirables who, with time, transformed the nation into what it is today.

Other nations are even bored of Earth and are exploring the outer fringes of the universe as we fight each other over strips of land in an endless universe.

If we are to transform this country into the Swahili Tiger, we must shed the scarcity mentality.

Let’s talk about money next week.

The writer is a lecturer at the University of Nairobi.

[email protected]