UPGRADE PARTY
v28.0 changeset — economy log

Shortage Economy

Every shortage has a winner. The question worth asking is whether it's you.

The Core Idea
"No Profit Without Shortage"
Depression-Era Motto — And Really, For All Time
"Profit Is a Function of Supply and Demand"

The point behind both sayings is the same: a smaller supply of something — a shortage — tends to push its profit higher. Whoever controls the supply controls the profit.

Two Kinds

Shortages You Like vs. Shortages You Don't

Shortages You Don't Like

When you're the one paying prices that feel unreasonable or painful, the shortage is often no accident — it's frequently the result of shortage-creating laws and a lack of real competition.

⚠ Watch For This

Sometimes a shortage makes you feel like a victim — because you are one. Look out for the predator/victim relationship hiding inside a shortage that always seems to work out for the same people.

A Rule of Thumb
"If something does not make any sense to you, it is often because someone figured out how to make money from it."

That's not cynicism — it's a genuinely useful diagnostic. The next time a rule, a price, or a shortage seems to defy common sense, the fastest way to understand it is to ask who benefits from it staying exactly as confusing as it is.

Related Ideas

The Rest of the Economy Series