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”
A Korean AI company developed a language-learning AI for a 5-year-old, splitting it into two systems: one displaying only children’s videos and the other showcasing YouTube videos. After two months of learning, the company was eager to assess the results. They found that children using YouTube, with fewer restrictions, had better language-learning outcomes than those who watched only children’s videos. This raised a thought in me: parents’ efforts to protect their children from certain influences may stem from an unreasonable desire. Striving for perfection can feel woefully inadequate in this world. Isn’t the essence of education about equipping individuals with the knowledge of right and wrong and guiding them to maintain their humanity? - Joseph’s “just my thoughts”