Artificial Quote by James M. Buchanan
“If you create an artificial scarcity through public policy, artificial rent so to speak - setting up a new import quota or giving out a particular office that is very beneficial - people are going to invest money, time and resources in trying to secure that opportunity. If the value is created independently of the search for it, the search for it is wasted.”
About This Quote
Source Speech: Economic Policy Lecture, 1970s
Creating artificial scarcity via policy leads people to waste effort on securing benefits that are not value‑creating.
In simple terms: Policy‑driven scarcity wastes effort.
Key Takeaway
Avoid creating artificial scarcity.
Themes
economics
policy
incentives
Mood
critical
analytical
Type
theoretical
policy
When to use this quote
- government regulation
- business strategy
- investment decisions
Key Concepts
public choice
rent‑seeking
resource allocation
Questions to Reflect On
- How does policy‑induced scarcity affect innovation?
- When is rent‑seeking unavoidable?
A Different Perspective
If scarcity is natural, policy may be justified.
