Very good, very thorough post.

The more I dwell on this topic the more I think the fact that we evolved during a period of scarcity is the root cause of most of our behavior. You mention it briefly, but I think it deserves more attention as the possible basis for why we are attuned to novelty and why the habituation mechanism works as it does.

Scarcity goes a long way to toward explaining much of our behavior. Interestingly, I think the richest in our society are often the ones operating from scarcity the most, that's in fact what is driving them incessantly to greater achievement: "$1 million in the bank isn't enough, I need $10 million....(some time later) $10 million in the bank isn't enough, I need $100 million...(some time later)...$100 million isn't enough, I need $1 billion" and so on. What kind of person needs to keep growing their cache like this? The kind of person who is operating from "this (whatever this is at the moment) isn't enough" (i.e. scarcity).

Or it's common to hear on a first date how people don't speak freely about what they really want in a relationship out of fear that the person won't come back for a second date. But that only makes sense if there is a scarcity of potential mates. If the person was operating from the context that there is an abundance of potential mates, the more productive strategy would be to say what one wants right away to filter out those people who don't want the same thing. Then we would go to the next person rather than waste our time. "I couldn't possibly tell him that! What's if he's the one?" That behavior is clearly absurd and is best explained because the person is operating from the context that there isn't another potential mate to replace the discarded one (i.e. scarcity).

There are lots of other examples. For instance, "collectors" of all sorts say that they "just like collecting" and will wax poetic about how lovely each piece is, but what truly drives them to enlarge their collection? I think scarcity has a fundamental underlying role here, too.

If one looks around, we (humans) do lots of things that seem to be best explained because even though we now live in an age of abundance, our wiring is still geared for scarcity. When true scarcity does arrive, as it is already and will continue, our defense mechanisms will really kick in to protect what we've got — a necessary strategy because there won't be more of whatever it is we are protecting coming.

We could just as easily call the second half of the Age of Oil as the Age of Scarcity. We will watch international treaties fail (it's easier to be generous when there is abundance), democratic social institutions break down (same reason), fights over resources and much more.

The worldwide psychological shift about to occur in our species will be astonishing to watch. The advances we have made in subordinating our scarcity wiring are beginning to unravel.

-Andre'

The worldwide psychological shift about to occur in our species will be astonishing to watch. The advances we have made in subordinating our scarcity wiring are beginning to unravel.

Perhaps we just need to create new information feed back loops. Either that or find ways to actually short circuit the scarcity wiring loop in ways that will make us feel as if we are experiencing abundance.

5. Information flows.

There was this subdivision of identical houses, the story goes, except that the electric meter in some of the houses was installed in the basement and in others it was installed in the front hall, where the residentscould see it constantly, going round faster or slower as they used more or less electricity. Electricityconsumption was 30 percent lower in the houses where the meter was in the front hall.

Systems-heads love that story because it's an example of a high leverage point in the information structure of the system. It's not a parameter adjustment, not a strengthening or weakening of an existing loop. It's a NEW LOOP, delivering feedback to a place where it wasn't going before.

In 1986 the US government required that every factory releasing hazardous air pollutants report those emissions publicly. Suddenly everyone could find out precisely what was coming out of the smokestacks in town. There was no law against those emissions, no fines, no determination of "safe" levels, just information. But by 1990 emissions dropped 40 percent. One chemical company that found itself on the Top Ten Polluters list reduced its emissions by 90 percent, just to "get off that list."

Missing feedback is a common cause of system malfunction. Adding or rerouting information can be a powerful intervention, usually easier and cheaper than rebuilding physical structure.

Donella Meadows: Leverage Points - Places To Intervene In A System

You raise a very good point. I've found that having the instantaneous mileage feedback while driving my wife's Prius has me drive differently (her, too).

In Canada, an experiment was performed in which people were told how much their choice of medical procedures was going to cost. People chose less expensive procedures most of the time after having a conversation with their doctor about the relative merits of the options. This is astonishing because in the Canadian medical system the patient does not pay out of pocket for the procedures. It seems that when given extra information, more people choose to be parsimonious with their selections (more evidence of our evolutionary wiring to operate from scarcity, I would say).

BMW has had a realtime milage indicator (vacuum gauge) for ever and it does get your attention and cause more conservative driving habits.
If medical care was treated like any other consumer service the price would come way down.
The reason anything that is insured is very expensive is the lack of barter habits.

The more I dwell on this topic the more I think the fact that we evolved during a period of scarcity is the root cause of most of our behavior. You mention it briefly, but I think it deserves more attention as the possible basis for why we are attuned to novelty and why the habituation mechanism works as it does.

I suppose one could argue that we were archaic humans before the Toba catastrophe and modern humans after it.