Two brothers, Charles and Joseph, are sitting at home reading the news. The following is a conversation between the two:
Charles: Joe, did you see the nation of Zimbabwe is facing a terrible drought?
Joseph: Are they? What fabulous luck for them!
C: Luck? How is this luck?
J: My dear brother, have you no capacity to reason? The drought is a blessing for the farmers of Zimbabwe! First, since it makes the supply of food more dear, the prices rise. The farmers get more money! This, they can spend on employing more workers (since the land is now less fertile) toiling all day to get the wheat out of the ground. The demand for workers will increase their wages, making the Zimbabwean worker better off. Surely, only good times can follow! This is just Economics 101!
C: Perhaps, Joe, but this is only because there is less food. Perhaps, in nominal terms, workers earn more, but they can buy less with their money. Are they not worse off?
J: My dear brother, have you learned nothing? Their increased pay will make them richer! What they can’t spend on food, they’ll surely spend on other things! That’ll further increase demand for workers, raising wages even higher!
C: But that doesn’t solve the initial problem, Joe. There is still less food to go around. Sure, they may have more money, but that doesn’t calm an angry belly. Would it not be better for the rains to come and have the fields of Zimbabwe overflow with grains?
J: And have the price of food plummet? Have the workers no longer needed (since the fields are now more productive) be unemployed? Why, think of the chaos of having all those people unemployed! You would undo the Zimbabwean worker with your mana from Heaven!
C: Perhaps there would initially be people who no longer need work in the fields, but they’d have more full bellies. Since they are freed up from the labor, they could do other things (maybe make clothing?).
J: You are simply a theorist! No, brother, it is far better for the people of Zimbabwe to have drought, to drive up prices, use more resources for less output. Indeed, it is in scarcity, not abundance, that true wealth lies!
C: But you live with less-
J: So? The workers have work! That is all they need! They have a sense of purpose, a sense of living! What more could a person want?
C: Food, shelter, clothing, leisure…
J: Bah! More of your theorizing! The true strength of an economy is the number of jobs it has!
C: But what good are those jobs if you can’t buy anything?
J: Better than having lots to buy and not enough farm jobs.
C: But there are other kinds of jobs. They can do something else.
J: “Something else!” More theorizing! Such an unsatisfying answer.
C: But true nonetheless.
(The conversation continued in this manner for some time).
Joe’s comments may seem weird to our ears, and yet it is the common claim of those who practice the doctrine of scarcity commonly known as “protectionism.” Since scarcity, and not “protection” or “abundance”, is the foundation for “protectionism” I propose calling these people “scarcitists.”
The scarcitists have a weird idea that it is from scarcity that wealth arises, not abundance. It is as if the best thing to happen to Man was to be cast from the Garden of Eden. It is as if Hell, and not Heaven, is our goal. Scarcisim is a strange doctrine.