To what extent is the scarcity in modern America artificial?

The different reasons that are responsible to create an artificial scarcity are given below:

• Formation of cartels.
• Monopolies.
• The limit intensity of land resources.
• Copyrights and patents, etc.

Sometimes, for businesses and development goods, the promotion of artificial scarcity is said to be necessary. We can include here the example of digital information and the level of investment required to set up the information at an initial level.

Scarce resources and the US economy:

The different issues of scarce materials and resources in the US economy comprise the life cycle analysis for rare-earth elements. One of the important issues of the US economy and national security is the shortages of rare earth materials and some minerals. The shortages of these materials can affect the production of advanced technical products including electronics, automotive, aerospace, etc. But to some extent, this scarcity is artificially created because of these reasons:

• Future needs associated with the elements and minerals.
• Improved analysis mechanisms and techniques.
• Recovery of scarce minerals.
• Increasing social aspects of extensive recycling methods and efforts, etc.

The above reasons induce the market to create an artificial scarcity.