GMR 153: How a Scarcity Mindset Harms You

The scarcity mindset believes there are limited resources and inequality in possession of those resources. It further believes that for one person to succeed, someone must lose. In this episode of GMR, we reveal the truth about the scarcity mindset and why it isn't to your benefit to embrace it.

Show Notes

The Scarcity Mindset

The scarcity mindset is the belief that there will never be enough — whether it's money, food, or something else entirely — and as a result, your actions and thought stem from a place of lack. The belief that there are limited resources and if you have something, it means you’ve taken it off the market and taken someone else’s ability to have it. If you earn money, that’s money that I can’t earn. This is a false mentality.

Good | Cheap | Fast

The wealth of the world

1% of people own 44% of the world’s wealth...

56% have less than $10,000 in wealth.

This doesn’t take into account the fact that anyone can produce value out of nothing. Just because “anyone” can, doesn’t mean everyone will. But we want to encourage people to create, we want to incentivize people to produce.

Changing Terms: Owns to Manages

Jeff Bezos

Warren Buffet

Elon Musk

Musk, Buffet, and Bezos have an incentive to serve people… they increase as others increase.

Bezos has a direct incentive to serve the masses, if he’s efficient, he can hire more people, sell more products (to people who want to buy them), and he’ll personally increase in wealth.

Musk is doing much more to increase the likelihood of safe autonomously driving vehicles, or highly efficient batteries for electric vehicles than a government organization, or an individual who is not personally incentivized to serve others.

The wealthiest people have 90%+ wrapped up in their companies, which they manage.

Two other options available:

1. Have the government manage everything

Elected officials have very little incentive to be efficient and effective in their management. In fact, there’s a huge incentive to be corrupt, take bribes, and benefit their friends and family instead of the masses of people.

2. Re-distribute all the current wealth

Good managers will increase, while the poor managers will decrease.

Within a short period of time, wealth will be increased by those who manage it well, while decreasing for those who manage it poorly.

Resources

Beta Course Application
Debt tools and other free resources - https://leosabo.com/resources
David’s website - www.stewardshippastors.com