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Imagine losing 14 IQ points — not from illness or sleep deprivation, but from simply worrying about money. In this episode of The Biz Brief, we unpack the groundbreaking research behind the science of scarcity — and why poverty isn’t just a financial condition, but a cognitive tax on the brain. Drawing from the work of Harvard economist Sendhil Mullainathan and Princeton psychologist Eldar Shafir, we explore how financial stress reduces mental bandwidth, impairs executive function, and alters decision-making capacity in measurable ways. This isn’t about laziness. It’s about cognitive load. It’s about survival math running in the background of the mind. Inside this briefing: • The Minnesota Starvation Experiment and what it revealed about mental obsession • Why financial stress can cause a temporary IQ drop • The “bandwidth tax” theory explained • How scarcity affects the frontal cortex and glucose allocation • Why smart people make poor decisions under financial stress • What leaders, policymakers, and executives must understand about poverty and performance For founders, operators, policymakers, and high-level professionals — this changes how you think about productivity, inequality, and human potential. Scarcity doesn’t just limit resources. It limits cognition. Timestamps: 00:00 – The 14-Point IQ Drop That Changes Everything 01:05 – The Minnesota Starvation Experiment 02:15 – Scarcity vs Intelligence: The Breakthrough Theory 03:10 – The Shopping Mall Experiment (Rich vs Poor Results) 04:20 – The $3,000 Scenario That Crashed Test Scores 05:10 – What Is a “Bandwidth Tax”? 06:05 – The Brain Science: Frontal Cortex & Glucose Depletion 07:00 – Why Poverty Isn’t About Character 08:00 – Executive Implications: Productivity & Decision-Making 09:00 – What Leaders Must Understand About Scarcity Research Behind This Episode: • Mani, A., Mullainathan, S., Shafir, E., & Zhao, J. (2013). “Poverty Impedes Cognitive Function.” Science, 341(6149), 976–980. • Mullainathan, S. & Shafir, E. (2013). Scarcity: Why Having Too Little Means So Much. • Harvard Business Review – “The Scarcity Mindset” (HBR Magazine) #povertyscience, #behavioraleconomics, #scarcitymindset, #iqresearch, #cognitivescience, #financialstress, #leadershipthinking, #executiveperformance, #economicinequality, #thebizbrief