4 ms·

And this is why so many people born into money have no idea how fortunate they are compared to everyone else in the world.

• theoh 9y ago
  If they didn't have to give anything up to get their wealth, then it can't be worth anything? Hardly. I don't think opportunity cost is really relevant in the case you mention.
  • cimmanom 9y ago
    I don't think it's not worth anything. I think they fail to recognize the value of it because for them there was no opportunity cost. (Whereas for the parents or grandparents who earned the money, there was typically a cost in terms of, for instance, time spent with family.)
    • theoh 9y ago
      That's just one, very plausible, possible back story. (https://en.wiktionary.org/wiki/clogs_to_clogs_in_three_generations https://en.wiktionary.org/wiki/clogs_to_clogs_in_three_gener...) But some wealth is effectively a windfall. Tim Harford's point is that we aren't inclined to think about opportunity cost. It doesn't, in fact, come naturally. A life of privilege has opportunity costs too: it can be really hard for someone "well born" to acquire certain competences. And an (elective?) nerd's opportunity cost is all those things that jocks enjoy. (A ridiculous example, sorry!)