Sunday, September 08, 2013

I am not so sure...

...Scarcity: Why Having Too Little Means So Much by Sendhil Mullainathan and Eldar Shafir – review
The cost is an undue focus on the necessity at hand, which leads to a lack of curiosity about wider issues, and an inability to imagine longer-term consequences. The effect of this scarcity-generated "loss of bandwidth" has catastrophic results in particular in relation to money. While the poor have a much sharper idea of value and cost, an obsessive concentration on where the next dollar is coming from leads not only to poor judgment, a lessened ability to make rational choices or see a bigger picture, but also to a diminishing of intelligence (even "feeling poor" lowers IQ by the same amount as a night without sleep), as well as a lowering of resistance to self-destructive temptation.
But what about the effects of love and family bonds? If there is one kind of scarcity, might it not be countered by a glut of something else?

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