I have a theory that if you understand it, you will be more civil. More friendly. More subtle and understanding. You will understand yourself and those around you better. It underscores the sheer complexity of human decision-making and shows why governments are utterly incapable of wise management of the world.
You see how marginal utility clarifies human decision-making? It means that we don’t think and act in black-and-white terms. It is not love or hate, embrace or reject, go for it or spit it out. We make decisions on the margin within the context of a wonderfully complex and infinite array of choices that are ultimately hidden from the view of others.
Small and great evils in the world have come from absolutism, the belief that there is only one way forward, and that if that way is not what you choose, that makes you the evil enemy. Governments think this way. They don’t think on the margin. A world of billions of people acting and thinking based on marginal utility is too complicated a notion for them. So they decide to just ignore it all and divide the world between us and them.
On the other hand, if you think in terms of marginal utility, you realize that the whole world is built in tiny steps as an extension of a complex decision-making process that is ultimately subjective, and that bringing people together can never come through force, but only through small acts of persuasion, one person at a time. Through the lens of marginal utility, we see the beautiful orderliness of anarchy.