Subscribe to the newsletter to get the latest news on the Meaning of Life
Introduction
Once upon a time,
there was a major technical problem at a nuclear power plant.
This malfunction was slowing energy generation and reducing the efficiency
of the entire operation. As much as they tried, the plant's engineers could
not identify and solve the problem. So they brought in one of the nation's
top consultants on nuclear power plant construction and engineering to
see whether he could determine what was wrong.
The consultant arrived, put on a white coat, took his clipboard, and went
to work. For the next two days, he walked around, studying the hundreds
of dials and gauges in the control room, taking notes, and making calculations.
At the end of the second day, he took a black felt marker out of his pocket,
climbed up on a ladder, and put a large black "X" on one of the gauges.
"This is the problem," he explained.
"Repair and replace the apparatus connected to this meter, and the problem will be solved."
He then took off his white smock, drove back to the airport, and flew
home. The engineers disassembled the apparatus and discovered that, sure
enough, this was the cause of the problem. It was soon repaired, and the
plant was back up to full capacity. About a week later the plant manager
received a bill from the consultant for $10,000 for "services rendered."
The plant manager was surprised at the size of the bill, even though this was a multibillion-dollar facility and the problem had been costing an enormous amount of money in lost generating capacity. After all, he reasoned, the consultant had come in, stood around for a couple of days, written a black "X" on one of the gauges, and then returned home. Ten thousand dollars seemed
like a high fee for such a simple job. The plant manager wrote back to the consultant,
"We have received your bill. Could you please break down and itemize your charges? It seems that all you did was to write one 'X' on a single gauge. Ten thousand dollars appears to be excessive for this
amount of work."
Some days later, the plant manager received a new invoice from the consultant.
It said,
"For placing 'X' on gauge: $1.00.
For knowing which gauge to place 'X' on: $9,999."
(“FOCAL POINT” by Brian Tracy)
Are economists right when they take it as a matter of course that the strong increase in per capita real income over the past decades (and centuries) has made people happier? This figure presents the development of life satisfaction and real gross domestic product per capita for Japan from 1958 to 1991.
Japan is probably the country with the most spectacular growth in income since World War II. Between 1958 to 1991, its per capita income rose sixfold. Nevertheless, the Japanese people report a satisfaction with life that remains largely unchanged over this period.
Between 1946 and 1991, income per capita in the United States rose from about $11,000 to $27,000 in 1996 dollars - that is, rose by a factor of 2.5 or by 150 percent. This is a tremendous rise in average purchasing power. The rise was reflected in almost all households having an indoor toilet, a washing machine, telephone, and color television as well as a car. The figure also shows, however, that this tremendous rise in material well - being was accompanied by a modest decrease in average happiness.
"Penn World Tables and World Database of Happiness"