Manufactured Scarcity vs. Real Value

We've been trained to want what we can't have, but the smartest businesses give us what we actually need.

Dear Unlearners,

The economy runs on a simple equation: value for money.

But somewhere along the way, we confused scarcity with value. They're not the same thing. Manufactured scarcity is the artificial limitation of something that could be abundant.

• Limited edition sneakers made in the millions.

• Digital courses with "only 50 spots available" that cost nothing to reproduce.

• Countdown timers on websites selling information products.

These tactics work because our brains are wired to want what we can't have. FOMO is a biological response, not a rational one.

Real value works differently. It solves actual problems. It's worth more than it costs. It gets better with scale, not worse. It doesn't need artificial constraints to be desirable.

The luxury industry mastered manufactured scarcity long ago. A $10,000 handbag isn't 100 times more functional than a $100 handbag. The high price and limited availability are the product.

This makes sense for status goods. The problem is when we apply these pr…