THE CURRENT STATE OF THINGS – UNDERSTANDING MARGINAL COSTS AND FULL COSTS
We use Clay Christensen’s framework of marginal costs vs full costs to talk about what’s wrong with the way so many Americans are thinking about the coronavirus:
– Bryan shares his day-to-day experience of being in Japan and how much more unified the Japanese response compared to America
– The bad logic many people use when they distrust organizations who don’t get everything right from the beginning
– The problem of too many voices and too much distrust
– Why Bryan is cynical about the media and its structural bias toward manipulating emotions to sustain attention
– The responsibility we need to take to make good decisions for everyone in our community
– Clay Christensen’s idea of marginal costs and full costs, and how we tend to put a lot of emphasis on the marginal costs and not enough attention on the full costs
– What may have been true about the coronavirus three months ago can be different today, and the full costs need to be taken more seriously now
– The importance of seriously asking the question: “What will I do if somebody in my life gets it?” and having a plan for that unlikely scenario because even though it’s unlikely, the effects are huge
– The reality of how we overestimate the effect of marginal costs and why that leads us to make bad decisions
– Why we can think this way even if we don’t believe the worst case scenario is going to happen; and why using driving is a good way to compare the current situation to something we do consistently
– Why we felt it is important to address these topics as a mission-based company focused on helping people chase their dreams
– Why it’s important to stick with it, don’t get yourself down about the inconveniences and sacrifices, and make sure you come out of this healthy
If you liked this episode, you may also like our interviews with Ben Auerbach and Ron Sarmiento.
Recorded July 15, 2020.
References
Japan’s “3 C’s” – Ministry of Health, Labor & Welfare
How Will You Measure Your Life? by Clay Christensen, James Allworth & Karen Dillon – Amazon
You Can’t Go Be More if You’re Dead – Go Be More Blog
Coronavirus is a Local Challenge and Your Actions Matter – Go Be More Blog
Plans are Worthless but Planning is Everything – Go Be More Blog
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