Marginal Utility Theory – Let it shape your Life

For those of you who haven’t heard of marginal utility theory, I’ll try and explain. Basically, marginal utility theory states that the value of a single unit can vary depending on who owns it.

To put it simply. Say Bill Gates loses £1000 tomorrow. Now imagine you lose £1000 tomorrow. Who do you think is going to be upset? Blam - you just understood marginal utility theory. It’s exactly the same amount of money, but it’s value to the owner is significantly different.

Therefore Marginal Utility Theory suggests that if one unit were to pass between Bill Gates and yourself, the value of that unit would increase simply due to the fact it’s new owner values it higher. The value of an object is only based on perception in other words.

Marginal Utility Theory should be put into practice in your daily life. Say you walk past a guy living on the streets. Give him £2. You don’t care about £2, he does. He gets a sandwich, you don’t really notice it’s gone.

BLAM – Marginal Utility Theory

That £2 was more valuable when not spent by you, so really the maths demand that you give it to him. It’s not wrong to feel sympathy for a homeless person, so many people seem to think every homeless person only has themselves to blame, and that’s just ignorant. Now I’m all for people taking responsibility for their own actions, but the majority of homeless people are extremely young when they become homeless, and at that stage in their lives it’s their parents who should be responsible, not them. My favourite anti-homeless comment is the “Get a job” line. Do people actually think before they say this, or is it just a conditioned noise response to seeing someone on the streets. The guy stinks, he’s got plastic bags for shoes, and has no fixed address. Who’s Hiring?

Seriously, where do they expect the poor bloke to get employment. It’s just not going to happen. Once you’re homeless getting out of that situation isn’t as simple as just looking through the paper and getting a job. Fucking think before you talk morons. When you don’t show compassion towards these people you look like a dick, and girls wont want to sleep with you (It’s always men who are dicks to homeless people, or more specifically it’s always men who’s only goal in life is to get laid, I think they believe it makes them look strong).

Then there’s the “He’ll just spent it on drink” argument. Also stupid. Let him. If I’m ever stuck on the streets in subzero temperatures in the middle of January, I hope to god I’m drunk when it happens. Of course he’ll spend it on drink, and he bloody should. People seem to think that every bit of change he is given should be placed in an ISA or invested on the stock market until he has enough money to buy himself a house.

STUPID

He’s going to spend it on things to get by, and when you’re homeless, the things to get by are food and alcohol. He doesn’t have a piggy bank he can keep it in, the change you give him isn’t to help him get out of his situation, it’s to help him out within his situation.

If by taking a certain action the perceived benefit to someone else is greater than the perceived loss to you, you should take that action. In short, give the homeless your change.

Try it out for a week, you’ll be a better person, and it’ll be thanks to me.

Give money to these people as well. Marginal Utility Theory demands it.
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