Sep 12, 2023·edited Sep 12, 2023Liked by Liz Plank
OMFG SO GOOD!! I was chanting “sunk cost, sunk cost, sunk cost” and then I came up to your paragraph on sunk cost. Tired of people treating economics like it’s a science instead of an art and that people make money decisions based on logic rather than on emotion AND devaluing human emotion as if it is some sort of flaw or weakness instead of how we are primarily wired!
Girl math is also why erasing student loans (or at least all the accumulated interest) makes sense. Everyone already got paid and the value is now in the potential of everyone who went to college, not in the fantastical interest amount that is just a bunch of numbers on a spreadsheet, but actual money. If it was real money, the United States would have been hurt paying its bills due to the decrease revenue. But nary a blink. At this juncture, collecting student loan repayment is more just perfunctory because … you have to repay a loan? I dunno, but it’s all a very sunk, sunk, sunk cost (especially in light of a recent report, I think, in the WSJ about what universities are actually doing with tuition money!! YIKEZ!!)
Every economist who doesn’t study human behavior ever is almost always wrong because their models are wrong... it’s 1° to the moon; if you are 10ft off the ground, not a big deal to be 1° off line of sight but if you are 10miles up, you’re gonna miss the moon and fling yourself out into space.
OMFG SO GOOD!! I was chanting “sunk cost, sunk cost, sunk cost” and then I came up to your paragraph on sunk cost. Tired of people treating economics like it’s a science instead of an art and that people make money decisions based on logic rather than on emotion AND devaluing human emotion as if it is some sort of flaw or weakness instead of how we are primarily wired!
Girl math is also why erasing student loans (or at least all the accumulated interest) makes sense. Everyone already got paid and the value is now in the potential of everyone who went to college, not in the fantastical interest amount that is just a bunch of numbers on a spreadsheet, but actual money. If it was real money, the United States would have been hurt paying its bills due to the decrease revenue. But nary a blink. At this juncture, collecting student loan repayment is more just perfunctory because … you have to repay a loan? I dunno, but it’s all a very sunk, sunk, sunk cost (especially in light of a recent report, I think, in the WSJ about what universities are actually doing with tuition money!! YIKEZ!!)
Every economist who doesn’t study human behavior ever is almost always wrong because their models are wrong... it’s 1° to the moon; if you are 10ft off the ground, not a big deal to be 1° off line of sight but if you are 10miles up, you’re gonna miss the moon and fling yourself out into space.
i didn’t want to slander economics too much but i’ve never been so frustrated with a field!
Just the right amount of “slander” 🤏
Always a pleasure to read your insightful writing. Thanks.