Sunday, August 30, 2015

COST - The Failure To Recognize It, In Its Multitude Of Manifestations, Means That You Will Always Be A "Consumer And A Slave"

I am accessing the knowledge of some brilliant, insightful people who I find have a more finished model of the world of human thought and behavior and history than I have previously considered.

One such person introduced the concept of COST as a critical factor in human choices.

If the COST of a particular choice or set of choices are removed from consideration then such a body of choices, lacking a more complete set of information to the consumer, can produce BAD "PURCHASES".  

A "Bad Purchase" is one that does not align with the long term interests of the person whose POV we are considering.   Had that person had a more complete set of information, he would have likely made a different set of choices.


The above picture from "Wikipedia" whittles the concept of "Cost" down to "Money".   I disagree with this.

Though money is a shorthand for VALUE, it is more accurate to look at the array of RESOURCES that this consumer in our POV has at their own discretion and the choices that they make surrounding their trades and/or attention to it as an asset.  This asset can appreciate or depreciate - mostly based upon the VALUATION that a human being places upon it.  Value (as in a house) is determined by what someone is willing to pay for the asset if it is traded.

What if "THE STATE OF HUMAN DEVELOPMENT" was seen as a POTENTIAL ASSET and all of the choices of how we spend our time or prioritize the resources that we have at our disposal as the INVESTMENT - akin to the "Upgrade Of A Home", to increase the FUNCTIONALITY (Benefit) of that reference - again - with reference to the VALUES OF THE CONSUMER who is in our POV scope?

Could we then agree that education of that human resource, which would in turn give that resource more competencies is a CHOICE and thus has a COST assigned to it?    Surely the COST of failing to educate this person has some measurable costs (the cost that it will take to supplement their living up to the prescribed 'standard of living') and the OPPORTUNITY COSTS - in that, with the proper guidance they could have been a physician.   The opportunity cost in this case is not the salary as a physician but the competency to FULFILL THE NEEDS OF THE COMMUNITY - in this case health care.