Scarcity Trap: Why Having Too Little Means You Can't Think Clearly

Why do poor people take payday loans with 400% interest? Why do busy executives make terrible decisions about their health? We often blame these behaviors on a lack of discipline or education. But behavioral economist Sendhil Mullainathan and psychologist Eldar Shafir propose a different, radical theory: Scarcity itself lowers your IQ.

"The Scarcity Trap" explains that when your brain is obsessed with a lack of something—whether it's money, time, or calories—it "tunnels" on that immediate pr...