Law of Diminishing Returns

Apologies, here’s amusing from my morning ablutions.

For some reason economics just popped into my head this morning. Its been an age since I studied economics. I remember my 5th and 6th  Form scholastic endeavours well, as economics seemed to come easy to me and it was one of those subjects I didn’t need to study particularly hard to do well. Then a few years later, while working for the The National Bank of NZ  I continued my studies.

The Law of Diminishing Returns as I remember, and in my own words is:

‘The more you put in – proportionally, the less you get out.’

Can this law be applied to Human behaviour?

Over recent years Behavioural Economics has become quite popular. Behavioural Ecomonics is defined as:

‘a method of economic analysis that applies psychological insights into human behaviour to explain economic decision-making.’

I looked at my hair covered 52 year old face today, studied it with great interest:

  • Crooked nose,
  • worry lines,
  • a chipped tooth
  • One eyelid set back further
  • small scars on my forehead, lip and nose
  • lips too thin

my face

It’s a lived in face. A face which I think is neither handsome nor ugly. It’s just a face, my face.

As I shaved off my awful scraggy grey, white and brown flecked beard I began thinking about Diminishing Returns (as you do). I started think about Behavioural Economics.

Did my beard get better or worse over growing time?

Did my follicular monstrosity somehow influence my behaviour?

Well after some reflection both in the mirror and within my mind, I came to the conclusion that it did.

My beard has clearly stopped me from a career in Hollywood, it is obviously the reason my book has never taken off. Its clearly the reason I drive a family car rather than a Maserati!

Seriously though, I do believe in Diminishing Returns for humans, but this is entirely dependent upon the inputs you put in. If you are putting in the wrong stuff, then of course you will get diminished returns.

So, as I watched my face this morning, watch this space, as I go about changing the inputs into my life.  Should be fun and exciting and a lot more productive.

Kia Ora Roly







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