Latest / Behavioral Economics with Fexingo: Decision Making, Bias, and How People Really Spend
The Scarcity Mindset and Financial Stress
This episode examines the psychological toll of financial scarcity, drawing on Sendhil Mullainathan’s research to explain how a lack of money reduces cognitive bandwidth. We look at specific data from rural India showing that poverty lowers effective IQ scores by roughly fourteen points due to mental load, not ability. Lucas and Luna discuss why this isn't just about willpower but about capacity, and what it means for policy, hiring, and personal finance when our brains are running on empty.
#BehavioralEconomics #ScarcityMindset #SendhilMullainathan #CognitiveBandwidth #FinancialStress…
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