Why Having Too Little Means So Much
By: Sendhil Mullainathan, Eldar Shafir
Narrated by: Robert Petkoff
Length: 8 hrs and 47 mins
Release date: 09-03-13
Publisher: Simon & Schuster Audio
Excellent read about how not having affects the brain. From not having money affects how the brain is wired and that it creates a positive feedback loop. The author uses an example of a poor person knows exactly how much a dollar is worth and what it buys regardless of the context. Where a richer person doesn’t connect with a dollar and values it based on the context of how the dollar is used (price/cost).
My example is going to the supermarket you walk in with how much you can spend to the penny, and as you fill the cart you are doing the math in your mind cause you only have x dollars. Where many more wealthy ppl just go and get what they need/want and worry about the price of things sometimes not at all.
Scarcity focuses the mind…