Scarcity is considered one of the first truths of economics. Knowing that all things are scarce allows for the pricing mechanism to handle how these scarce goods should be utilized in the most efficient ways. Not only does this keep supply at a maximum, but also keeps prices as low as possible for the people that can actually benefit society the most by using them.

Let’s take steel for example. Steel is used in hundreds of products ranging from armor plating to cookware to building construction. It is truly a versatile and international commodity; people from around the world are constantly bidding on the price of steel. Since the quantity of steel is finite (both naturally, and by the amount that can be physically manufactured each year), there is not enough for everyone that desires to use it. Knowing this, people must continually try to outbid each other for the rights to the metal which results in its free market price. Only the people who are able to turn a profit while using highly priced steel are able to purchase it. In turn they are putting it to use where the most demand currently resides. Without the pricing mechanism as a derivative of scarcity, the steel could be used to make medieval breast plates instead of where the demand actually exists.

Enter the “All You Can Eat Buffet”. In the United States, there are buffets for literally any type of food imaginable: Sushi, Chinese, Pizza, BBQ, “Soul Food”, pasta/salad bars and some places with all the above. A place comes to mind named “Buffet City” which must be the epitome of “All You Can Eat”. For one price (~$10), you can indulge yourself on the food of your choice, and the varieties are nearly endless. There is no time limit on the duration of your meal, and no limit on the number of trips to the buffet. Eat and eat until your heart and stomach are both content. You can even choose from an array of pastries, cakes, pies and ice cream for dessert.

It seems as if the food will never end, and scarcity is no longer an issue. “Getting your money’s worth” is the theme of the outing, and you will definitely achieve this goal. The last thought on your mind is “Should I leave some for the next guest?” Not a chance! It’s there and it’s up for grabs!

How can a place like Buffet City exist in the face of the economic truth of scarcity? How can the merchant ever make a profit if everyone has the ability to continually eat, at times wastefully, until they feel that the amount of food consumed AT LEAST equals the price paid?

The answer is by having a stable currency. By using a stable currency, the buffet owner is able to continually project his costs in to the future and plan accordingly to overcome those potentially profit-eating customers. The Free Market force of scarcity requires the business owner to constantly manage his resources as efficiently as possible in order to remain cash flow positive and to stay in business, even though his customers are doing their best to eliminate his profits and bankrupt the establishment which they patronize.

Scarcity remains one of the most demanding of the free market forces, and every businessman knows that even the smallest miscalculation can cause his whole experiment to end belly up.