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”
Books focused on “healing” often dominate the overall bestseller charts in South Korea, indicating strong reader interest in comfort. There are two primary strategies for commercializing healing concepts. The first strategy aims to alleviate guilt while fostering a sense of responsibility. The second approach aims to reinforce guilt but provides comfort after encouraging personal accountability. This methodology is also applicable in areas such as religion and counseling psychology. At the core of the healing industry is the concept of “privatizing pain.” Essentially, it means: “It’s not your fault (reducing guilt), but you have the power to change it (reinforcing responsibility).” - Joseph’s “just my thoughts”