Monday II

So the earlier post was set apart from my normal ramblings out of respect for our veterans. It doesn't seem quite right to honor the vets, and then shift gears and lament the reality of Olberbaman's new MSNBC contract.

Anyway, my topic tonight is marginalism. Actually, I want to make (more than) a few observations, and maybe some distinctions, about the application of marginal analysis in a person's (mostly mine) daily life. I know that 3 has a half of a double major in Economics, and 2 has had at least one MBA course in macro econ, but the stuff I think about is decidedly micro. I vaguely remember the old "Guns or Butter" discussion from Week 1 of Econ 101, many years ago, but I find that most of my choices today are truly off on the margins.

There's really not much marginal cost or marginal benefit in these obscurities. And the end result is usually the same place.

As a further aside, its worth noting that "marginal" has been used in our family as an adjective of conduct, originally used to describe one (or more) of the girls' deportment in Sunday church. I think that the term is still in use when the girls need to respond to an inquiry over any social arrangement that doesn't quite make the grade, as in, "The party was marginal."

Marginal analysis really needs to be distinguished from risk tolerance or the cost-benefit ratio. Both of these concepts suggest that a decision is predicated on producing a different and preferred outcome from other alternatives. Investing in CD's usually allows one to sleep better at night than buying pork belly futures contracts. The $15 dollar bottle of wine tastes just fine compared to the $50 bottle. (Well, maybe not for my pal Roy.)

My first marginal decision of the day comes as I awaken and need to decide whether it is easier to check the time by rolling over to look at the clock-radio on the bed-side table, or in the alternative, check my Ironman wrist watch. In the Summer, a look at the wrist watch is a lay-up. Very little effort. Come Fall and Winter, waking in the dark means that the wrist watch option requires two moves, moving the left arm for the proper angle, and moving the right arm to push the Indiglo button. I've laid there thinking about this choice for several minutes some mornings.

Next, after minor choices while getting ready for work, I need to decide whether I take the Taurus, the Buick, or Margret to work. Margret doesn't go out in bad weather, or the threat of bad weather (or in the months of November through March). The Taurus doesn't travel out of town. And I try to limit the Buick's miles, generally, and those in snow in particular. Client travel is also a consideration as the Buick doesn't go on a visit to the Ford dealer, and the Buick stays away from the GM store.

Then I need to decide on a route to work with coffee and the papers on the way. There are a number of SB's options, and a couple of other places, all influenced by the need or desire (or lack thereof) for a bagel or other treat.

Most of the work day is about risk tolerance and cost-benefit. And responsibilities.

After work, I need to map my workout, biking most of the year, running in the Fall. (Hello Turkey Trot!) My regular routes are loops of some sort, and total distance is the deciding factor. Which way is the wind blowing? Which direction do I want to take on the hills? What time is sundown?

After the workout, we're talking din-din, and the options are geometric. Is there anything that needs to be done before dark? If I water the plants and garden, are the results better than waiting until the morning? After my shower, what's the coefficient of water usage if I throw in a medium load of laundry, compared with waiting another day or two for a large load? If I have another glass of wine, is there another midnight trip to the bathroom in my future?

And, of course, if I add to the blog, will anyone care? Is there anything that I need to get off my chest? Do I have anything creative going? Or is it another day of blah, blah, blah?

All for now. Get out there and make some choices!

But...

BCOT