People who understand high finance are of two kinds: those who have vast fortunes of their own and those who have nothing at all. To the actual millionaire a million dollars is something real and comprehensible. To the applied mathematician and the lecturer in economics (assuming both to be practically starving) a million dollars is at least as real as a thousand, they having never possessed either sum. But the world is full of people who fall between these two categories, knowing nothing of millions but well accustomed to think in thousands, and it is of these that finance committees are mostly comprised. The result is a phenomenon that has often been observed but never yet investigated. It might be termed the Law of Triviality. Briefly stated, it means that the time spent on any item of the agenda will be in inverse proportion to the sum involved.
C. Northcote Parkinson, “High Finance, Or The Point Of Vanishing Interest”, Parkinson’s Law (and other studies in administration), 1957.
July 24, 2014
QotD: The Law of Triviality
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