Scarcity, capitalism and the promise of economic democracy

This article critically examines scarcity, a foundational concept of neoclassical economics. It argues that class inequalities and the pursuit of profit shape the configurations of scarcity faced by individuals and groups in today’s society. These configurations are made up of socially constructed material wants (the demand side) and of unequally distributed resources (the supply side). Against neoclassical economics, the article argues that capitalism cannot manage scarce resources in accordance with human well-being and the ecological integrity of the planet. Only an economically democratic society that allows all people to have equal say over the way economic life becomes organised can do so.