Sunk Costs

The Money Pit parody. Image by Steve Wood.

Ahhhh…a brand new year!

It’s a time for reflection…a time for renewal…a time for making amends and choosing new, better paths to follow.

It’s an opportunity for more people to snap out of the Trump Trance and come back to a rational sense of reality.

It’s a new year…we can have new hope, right?

In business economics, there is a concept known as “sunk costs”. These are costs that have already been paid and are not recoverable. Because they are no longer recoverable, they should not be considered in a decision on future expenditures.

For example, let’s say you spent $1,000,000 on developing a new product that will ultimately cost $10,000,000 to complete and put on the market. After spending the initial $1,000,000, you learn that the product is no longer viable and you will never be able to sell it (maybe a competitor already released a version of the product that is better and cheaper).

Now a decision needs to be made.

Do you continue with the development of the new product, or do you drop it and move on to something else?

Because that $1,000,000 already spent is a sunk cost, it should not be considered in the decision, as it is now lost no matter what.

Many failed businessmen mistakenly consider that cost in the decision, figuring that they have to continue with the project because they would otherwise be out the $1,000,000 they have already invested in it. So they throw good money after bad.

In the end, they lose $10,000,000 instead of $1,000,000….and probably lose the business as well.

People make irrational decisions based on sunk costs because they are afraid of having spent that money for nothing. They continue to make bad decisions until they come to their senses or have lost everything.

You probably see where I’m going with this by now, don’t you?

Trump is a sunk cost.

Many of us recognized that he was a very bad investment from the start. Others decided that the potential gains from the investment were sufficient enough to warrant the risk. Some of those have since concluded that it was a bad investment and bailed out, but far too many are still throwing good money after bad.

This was always my concern…the ultimate damage that Trump will do as his supporters continue to invest in him, continue to cover for him, continue to lie for him, and continue to turn conservative principles on end for him.

Until all is lost.

The sooner the majority of Republicans understand that Trump was a bad investment and is a sunk cost, the better. There have been many points during the past three years where this realization should have been made and wasn’t.

But it’s now a new year. And this new year promises to provide many more reasons to dump Trump. Hopefully sooner rather than later.

Will enough Trump supporters finally come to the rational realization and cut their losses, or will they continue to fund the Trump Money Pit?

Here’s to a new year and to new hope…

About the opinions in this article…

Any opinions expressed in this article are the opinions of the author and do not necessarily reflect the opinions of this website or of the other authors/contributors who write for it.

About Steve Wood 256 Articles
I am a husband, a father, a small business owner, a veteran, and a Citizen of the United States. As my avatar depicts, I believe The People need to relearn and focus on the basic principles that our Republic was built upon. My contributions here will be geared toward that end. Please join me in rational, civil discourse.