Cost-benefit analysis

I’m a huge believer in cost-benefit analysis because it explains the very reason behind why people do things–and most of the time, people don’t even know about it.

Simply put, when the benefit is higher than the cost, we make that decision. For another word, if the benefit outweigh the cost, you do it. This explains why people go to school to get an education. This also explains why people go to school and cheat to get good grades. Moreover, this is the rudimentary reason behind why people steal money. The money is the obvious benefit, and the cost is the probability of getting caught. And in that instant moment, when the benefit exceeds the cost,  people are motivated to steal to make themselves better off. Moreover, cost-benefit analysis elucidates why people have sex and not use protection. It can also be applied to a myriad of super duper important world issues such whether to start a war or not start a war, to raise the tax or not raise the tax, to add one more police unit in the neighborhood or not to add one more police unit, to ban pornography or not ban pornography, to vote for Donald Trump or vote for Hilary Clinton. Of course, cost-benefit analysis can also be used to explain why people do stupid things because sometimes people overestimate and mistakenly interpret the cost-benefit analysis. Well, for me, cost-benefit analysis is the perfect metric that expounds why I sometimes text and drive and not wear my seat belt.

Next time when you are at a crossroad, think about the concept of cost-benefit analysis and ask yourself if this option is a good call or that option is a bad call. And then follow your instinct and execute. Hope this interesting insight gives you a different but positive perspective on pondering life. And please don’t use this as your reason to steal. There are many different ways to make the world a better place and using costs-benefit analysis as your excuse to do bad things certainly isn’t one of them. Last but not least, do not text and drive. And also please wear your seat belt because safety is sexy!

 

Have a great day,

J.H. Yeh

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