Understanding the Discrepancy

Let's talk about something that hits close to home for all of us - the tendency to take our blessings for granted. You know, it's so easy to get caught up in always wanting more, bigger achievements, and constantly yearning for what we don't have. But in pursuing "more," we often forget to appreciate what we already have. It's like that thing called "marginal value" in economics - as we get more of something, the extra satisfaction we get from each additional bit diminishes. But do we apply this concept to our lives? Not so much.

In this newsletter, we're diving deep into the importance of recognizing the value of what we have and finding contentment in sufficiency. Let's explore the art of appreciation and learn to cherish the treasures we often overlook. Trust me, this journey is worth it and can lead us to a more fulfilling and meaningful existence.

Discover the real worth of the people, experiences, and opportunities in our lives. It's time to celebrate the richness of our present and stop chasing an elusive "more." gratitude awaits,

'Superstar' shines bright
Loyal soul's silent support,
Both hold worth profound.        

Understanding the Discrepancy: Actual Value vs. Marginal Value

How is it that the things that are the most important for us are the things we value the least? This paradoxical question has intrigued philosophers, economists, and psychologists alike for centuries. One insightful perspective on this matter comes from the theory of marginal value, proposed by William Stanley Jevons, a 19th-century economist. According to Jevons' theory, as we consume more of a particular commodity or resource, the additional satisfaction or benefit derived from each unit gradually decreases. Let's delve into this theory and explore how it sheds light on the difference between actual value and marginal value.

William Stanley Jevons, a renowned economist, and logician from England, introduced the concept of marginal utility in his book "The Theory of Political Economy" in 1871. The theory asserts that the value we ascribe to a good or service is not determined by its overall importance to us, but rather by the incremental satisfaction or utility we gain from obtaining an additional unit of that good or service. When we have limited access to something, we highly value each one we possess. However, as our stockpile grows, the additional value of each new unit decreases, leading to a phenomenon known as diminishing marginal utility.

Marginal value
Diminishes with excess,
True worth lies within.        

Let's consider the scenario of a company evaluating two employees: a loyal, long-term employee and a 'superstar' employee recently hired for a specific project. The dedicated employee has been with the company for years, consistently delivering good work, and their contribution is crucial for the company's smooth functioning. On the other hand, while relatively new, the 'superstar' employee has brought innovative ideas and exceptional skills, making them the driving force behind a recent successful project. Initially, the company might value the 'superstar' employee more for their immediate and impactful contributions. However, over time, as the project becomes stable and the 'superstar' employee's unique qualities become less exclusive, the marginal value they provide diminishes. In contrast, the loyal employee's consistent performance becomes more appreciated, and their actual value, which might have been undervalued in the short term, becomes more evident.

We must acknowledge that our perception of value is not fixed and can be influenced by various factors. It is easy to get caught up in the allure of novelty and overlook individuals' or resources' consistent efforts and contributions that may seem less glamorous. Being aware of the concept of marginal value can help us critically assess our priorities and appreciate the enduring worth of the things and people that have been integral to our lives.

Novelty's allure
Fades with each passing moment,
Loyalty stands strong.        

We can strive to strike a balance between embracing novelty and appreciating constancy. Recognizing the potential diminishing marginal utility of the novel experiences and possessions we acquire can help us avoid falling into the trap of constantly seeking more without finding true contentment. At the same time, acknowledging the consistent value and contributions of the people and resources in our lives can foster a sense of gratitude and a deeper understanding of the importance of these elements in shaping our well-being and success.

The distinction between actual value and marginal value is a significant aspect of our perception of worth. While the things that are essential to us might be undervalued in the short term, understanding the theory of marginal value can shed light on this phenomenon. By appreciating the incremental impact and contributions of each element in our lives, we can cultivate a more balanced and fulfilling perspective, enriching our understanding of the actual value of the things and people that matter most.

This whole idea of "marginal value" isn't just about economics; it totally affects how we see life. We get so caught up in the race for more and more that we forget to appreciate the awesome stuff we already got going on. But hey, it's time to break free from that mindset! Let's celebrate the awesomeness of our lives because when we truly appreciate the present, we open the door to a life that's full of meaning and happiness.

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