Take the money now or later? Financial scarcity doesn't lead to poor decision making

When people feel that their resources are scarce -- that they don't have enough money or time to meet their needs -- they often make decisions that favor short-term gains over long-term benefits. Because of that, researchers have argued that scarcity pushes people to make myopic, impulsive decisions. But a study provides support for a different, less widely held view: People experiencing scarcity make reasonable decisions based on their circumstances, and only prioritize short-term benefits over long-term gains when scarcity threatens their more immediate needs.

When people feel that their resources are scarce -- that they don't have enough money or time to meet their needs -- they often make decisions that favor short-term gains over long-term benefits. Because of that, researchers have argued that scarcity pushes people to make myopic, impulsive decisions. But a study provides support for a different, less widely held view: People experiencing scarcity make reasonable decisions based on their circumstances, and only prioritize short-term benefits over long-term gains when scarcity threatens their more immediate needs.

Read more https://www.sciencedaily.com/releases/2023/09/230914103317.htm