The Boiling Frog Syndrome and Us

Have any of you heard of the financial advisor named Ric Edelman? He is the individual who crafted the idea of “The Boiling Frog Syndrome”, and how the American public has grown tolerant and unresponsive to increases in inflation.  Here is Edelman’s account of the Boiling Frog Syndrome: "If you throw a frog into a pot of boiling water, he’ll jump out. But if you place a frog into a pot of lukewarm water and slowly turn up the heat, it will boil to death.” The concept was mainly crafted to apply toward financial topics, but I feel that it can be applied here just the same.

The average price for gasoline in 2010 was around $2.85, prices do vary though relative to geography. Have you seen, or should I say felt, the prices lately? Over the last few weeks, I have seen gas prices fluctuate between $3.80 and $4.10 a gallon. What would have happened if this price change happened over night? We would have changed our behavior. We immediately would begin to look for ways to become more efficient, drive less, car pool, or maybe even buy a hybrid/electric car. It’s not just the gas prices that have risen, but also most other energy costs, such as electricity, natural gas and other utilities. We are boiling.

How much long will we stay tolerant to these rising prices before we make changes? It is important that we begin to not only take notice of the changes that are around us, but to respond to them. Taking a proactive step in what we use will not only will save us money by lowering our costs, but it will also save our environment.

In the article, “Next Great Depression? MIT study predicting ‘global economic collapse’ by 2030 still on track”, Eric Pfeiffer does a great job at highlighting how we must take a proactive step at decreasing our ecological footprint.  Using less resources, as well as disposing of them responsibly, will save us money and save the environment.  By following the full circle blog, as well as applying the practices that will be discussed here to your daily life, can make a difference in ourselves, our community and our world. Let’s be proactive and jump out of this hot water.

~Daniel