Do you feel that when you first get a piece of money, you're particularly excited to buy the first one, but the more you buy, the less the satisfaction gets? Even sometimes the more money is spent, the more empty the heart. Behind this is an ancient wisdom of economics — the diminishing marginal utility — which, like a silent wise man, whispers to us: the truth of wealth is not how much it is, but how to feel the temperature of every acquisition。
I. Core rationale: the diminishing nature of marginality
1. What is marginal utility diminishing
Declining marginal utility means that as the consumption of a particular commodity or service increases, the additional satisfaction associated with each additional unit decreases. In short, first-time satisfaction is strongest and then every subsequent satisfaction decreases. It's like drinking the first glass of water when you're thirsty, and then the second, it's probably just lubricating。
2. Why is this happening
From a biological point of view, human senses have adaptation mechanisms. When the same irritation is repeated, neuro-exulsion decreases and satisfaction decreases. From a psychological point of view, people are born with a new aversion, and the sense of freshness fades with repeated contact. As the saying goes, "into the room of zeran, without hearing its scent," our senses will gradually adapt to the environment, reducing the stimuli。
3. Importance in economics
The diminishing marginality is one of the principles underlying microeconomics, which explains why people do not consume the same commodity indefinitely. This principle applies not only to the area of consumption but also to economic activities such as production and investment, and is an important tool for understanding human economic behaviour. It reveals a simple and profound truth: human desires are limited and resources are scarce。
Ii. The realization of life: the employment of languages
1. Declining marginality in diet
When you are hungry, eating the first meal brings great satisfaction, but as the intake increases, the satisfaction per meal decreases. The buffet is a typical example: when you come into the restaurant, you can't wait to get a lot of it, but as more and more food is eaten, the satisfaction of the new foods is declining。
2. Declining marginal utility in recreation
Assuming you have a holiday, the first day of your trip to the playground, you'll be particularly excited and happy; the next day you'll go to a similar project, which is happy, but probably not the first day of your trip; and you'll probably get tired of it if you keep playing similar things in the park for the next few days。
3. Declining marginal utility in consumer shopping
When you buy new clothes, you may like it very much, often, and it gives you a high degree of satisfaction; but when you keep buying new clothes, and the number of clothes is increasing, the freshness and satisfaction of newly purchased clothes is less than the first. That's why we often find clothes in our closets, but they're like, "no clothes."。
Wealth and happiness: the marginal utility of money
1. The "happiness point" of money
Scholars at princeton university have found that when a standard of living is comfortable, no more income can bring happiness. This "comfort standard" is different in different countries, us$750. China's first-line urban residents' "happiness point" earns about $400,000 to $600,000 a year for their families, while the third-line cities account for 200,000 to 300,000 yuan. Money buys happiness, but there's a ceiling。
2. Why "the more you spend, the less you're satisfied"
When income meets the basic needs of life, the increase in wealth has a significant effect on well-being; however, beyond this threshold, the contribution of increased income to happiness has gradually diminished. This is because human needs are hierarchical and when material needs are secured, people are more concerned with higher levels of needs, such as emotional belonging and self-realization。
3. Complex relationship between wealth and happiness
Annual income increased from $25,000 to $55,000, and happiness increased by only 9 per cent. This indicates that the marginal utility of money is decreasing rapidly. Wealth is a tool, not an end. Many high-income people confess that, despite the availability of material resources, the sense of loneliness and emptiness goes hand in hand because money cannot buy the true sense of belonging and meaning。
Iv. The consumerism trap: the marginal effects of neglect
Commercial marketing strategies
Businesses know how to reduce marginality, create a sense of scarcity with time-limited discounts, limited sales, and induce continuous consumption with "upgrading packages", "member privilege". These strategies take advantage of people's quest for freshness, and we get lost in the cycle of "buy more, buy less, buy more."。
2. The psychological trap of buying and buying
Consumption can be "addicted" and the desire to consume for consumption is unwieldy and uncontrollable. We often feel brief satisfaction after shopping, but that satisfaction quickly fades, leaving more emptyness and anxiety. The pleasure of consumption is "sensitized" and requires a greater incentive to satisfy it。
3. Diversion of social values
When society succeeds in material possession, people get caught in a "comparative trap": you buy a horse, i buy a limited edition; you have a big villa, i do seascape. This arms race-like consumption has increased the shadow of diminishing marginal utility, and we have pursued numbers while forgetting that happiness is a feeling inside。
V. A smart life: understanding the declining significance of marginality
1. Redefining "worthy"
Rather than searching blindly in the ocean of matter, think: will this commodity meet my real needs? Will it bring lasting value? Shifting consumption from "quantity" to "quality" by investing in one deep trip is better than ten card trips; buying a good book makes more sense than hoarding useless things。
2. Looking for "increased marginal utility"
Some things, more investment, more returns. For example: time with family, skills to develop, satisfaction to help others. These "psychiatric investments" tend to be marginal and incremental, with even compounding effects. As yingko, the founder of japan's "leaving out" said, "forgetting unnecessary material will make room for something really important."
3. Return experience and creativity
Empirical consumption (e. G., learning to bake, climbing) and creative activities (e. G. Writing, gardening) can bring a lasting sense of happiness. Because these processes are themselves full of a sense of freshness and achievement, they will not be depreciated by duplication. It is the true wisdom of wealth to simplify the matter, enrich the spirit and seek unlimited limits。
Concluding remarks
Declining marginality is not a curse, but a gentle warning from the universe that the temperature of the mind can rise indefinitely when the number of digits of the account balance eventually reaches its peak. Real wealth lies not in having much, but in how it is experienced, created and given. When you read this pattern, you might find your own anchor of happiness in the flood of matter。
