Many people are in concurrence that the society gains a lot from economic growth than it does from scarcity. Economic growth enhances integration, social parity, freedom, the rule of law and democracy. On the other hand, scarcity is mainly responsible for escalating conflicts, inequality, repression and totalitarianism (Gurr 51). Nonetheless, the most important thing is the manner in which the negative impacts of scarcity are addressed by nation-states. It is highly probable that the society will adopt progressive reforms in order to deal with the negative impacts of scarcity. This paper will hence discuss the negative impacts of scarcity on the socio-economic wellbeing of the society. The paper will also address strategies that can be used to address scarcity. The Impact of Scarcity on Inequality Economic growth is traditionally known to reduce scarcity until recently when globalization undermined the influence of labor with respect to capital. On the other hand, the escalating inequality is general believed to be caused by scarcity (Finsterbusch 93). According to the social stratification theory, economic growth has a long impact on equality. The main argument of this theory is based on the premise that economic growth attracts investments opportunities in the society. As a result of this, skilled employees as well as other professionals have an opportunity to earn high incomes attributed to increased productivity. According to this theory, skilled employees are able to bargain for better incomes that translate into improved living standards. The theory also postulates that economic growth contributes to the emergence of democratic institutions in the society. As a result, the lower groups in the society have more political clouts which they use to negotiate for economic gains as well as constructive policies. Moreover, economic growth bolsters equality with respect to changes in the consumption behaviors. The consumption gap between the rich and the poor is alleviated as the members of the lower class can afford medical services as well as other luxurious goods including cars, television sets, electricity and telephones. Although the elite class enjoy superior good and services, their standards of living do not differ so much from that of the lower class (Finsterbusch 94). On the other hand, the impacts of scarcity are undesirable. Many scholars are in agreement that inequality is mainly caused by scarcity. This proposition is supported by several arguments. The first argument is that economic growth is the opposite of scarcity. Consequently, scarcity is expected to have negative impacts. For example, economic growth creates employment opportunities and other business prospects. This phenomenon reduces exploitation of labor because people in the lower stratum have a variety of employment opportunities to select from. On the other hand, scarcity promotes exploitation of labor because it contracts the job market (particularly for unskilled jobs). It also creates stiff competition amongst the unskilled workers because they tend to compete for the limited available employment opportunities that are offered at depressed wages. Economic growth provides m