The relativity of values causes us to use money irrationally. I go to the supermarket to buy a $15 pen, and the clerk smiles and says, “You can buy this pen for $7 if you walk 5 minutes from here.” Then, most people walk five minutes and buy a $15 pen for $7. But if you want to buy a $1,000 jacket and the clerk smiles and says, “You can get a $992 jacket in five minutes from here,” most people simply buy the $1,000 jacket. Reasonably, walking for 5 minutes equals the effort, and the profit of $8 is the same. However, people might go to a store that sells pens cheaper, but not for the jacket, because the discount rate is too low. In other words, the relativity of comparing values makes us act irrationally. The pen’s discount rate is 55%, and the jacket’s is only 0.8%. Yet, the total amount is the same for all $8, and the effort to gain that profit is identical. Attitudes and misconceptions about consumption influence how we build wealth. - Joseph’s “just my thoughts”
Although it is not possible to draw a conclusion due to insufficient study, scholars are examining “Is it really fair that humans are rewarded according to their abilities?” and the results suggest that luck and community support are decisive for success. Of course, one cannot ignore or disparage an individual’s abilities. However, it is more accurate to say that they have a limited impact on success. In humans, parental influence —namely, genetic and environmental factors —emerges as the most important aspect according to the study results. The issue is that no one can choose their parents. This is the fundamental reason we must remain humble. - Joseph’s “just my thoughts”