Scarcity Mindset
Scarcity mindset reduces cognitive capacity
A "scarcity mindset" emerges when an individual is preoccupied with a lack of resources, whether it's money, time, or even social connection. This constant state of worry and stress consumes significant mental bandwidth, leaving fewer cognitive resources available for other tasks.
Key Effects:
- Reduced Fluid Intelligence: The ability to solve novel problems and think flexibly is impaired.
- Impaired Executive Control: Skills like planning, decision-making, and impulse control are diminished.
- Lowered IQ Scores: Studies have shown that individuals in a state of scarcity perform worse on IQ tests.
This is not a reflection of an individual's inherent intelligence, but rather a temporary state of cognitive impairment caused by the overwhelming mental load of scarcity. The constant focus on what is lacking makes it difficult to think clearly, make long-term plans, and avoid impulsive decisions.
This creates a vicious cycle, as the diminished cognitive capacity can lead to poor decisions that exacerbate the very scarcity that caused the mindset in the first place.