Scarcity refers to the lack of enough resources, in other words, the lack of capital due to the fact that the human beings have unlimited needs and wants but there are only a finite amount of resources to meet them, and when a country is dealing with economic issues, scarcity is one of the consequences.
Scarcity exists as a result of the effects of nature including drought, storms, pest infestation, fire, floods and the like. Real scarcity can also exist by over use of non-renewable resources.
This is because the main reason that led to the rise of nativism in the 1920's was the increase of immigrants into the USA. The most feared of these immigrants were the German.