Site icon The Free Market Center Journal

Small Systemic Changes

Research has shown that most fortunes begin with small regular saving. It seems like a small thing, but do a little math, and you will see. Remember, saving is easy. It happens automatically when you spend less. If you earn $30,00 and you spend $28,000, you have saved $2,000 without any effort.

Small Changes


Small systemic changes

Chaos theoreticians speak of the “butterfly effect” in which a butterfly flaps its wings in some distant location causing a local storm in the future. Although this so-called “butterfly effect” serves mostly as a metaphor, it does give a sense of the importance of small events.

Frequently, the most obvious solutions either don’t work or make matters worse. Small, targeted, actions, however, can often produce significant and enduring changes. These high leverage actions do not seem apparent to the participants in the system. A one percentage point increase in the rate of saving might, through increased investment, improve long-term consumption by more than 15 percent.


Comment

It’s my turn to implement one of these laws.

Think of a situation in which you took more action than you needed.

Or

Think of a small action you took that had a surprisingly large result. These frequently do not draw attention the way large impressive actions do.

Conclusion

Next problem you encounter, ask yourself, “What is the smallest action you can take to achieve the desired outcome?”

I have avoided providing examples of government action that amounted to more effort than needed. They usually expend more effort than needed.

Exit mobile version