Scarcity is supposed to be the mechanic of capitalist economy to stop-gap disaster. If supply runs low, the market of supposed to naturally shift to different solutions to the problem by switching to a more plentiful resource, or finding a way to do forgo, because abundant supplies are cheaper.

When that isn't happening (say in the American southwest with water shortages), that's because this axiom oversimplifies the market's possible responses to scarcity, and completely ignores the fact that scarce products are more desirable.

But the biggest factor free market economics ignores is that money doesn't represent "wealth." It represents power. Power is the real goal of making money, so you'll trade in a scarce good no matter HOW MUCH it costs, so long as you get power in return.

If you're a billionaire, you're not looking to save 15% or even 2000% when the prestige illusion you create through flaunting scarcity keeps your hold over the tourists flooding into Vegas.

#MoneyIsPower