The costs of sitting in traffic?
We all know what it is like to sit in traffic, but ever wondering how much money is wasted through lost time? An article from The Economist gives a good picture. Some research conducted by the Centre for Economics and Business Research and INRIX looked at costs of traffic jams in three ways – 1) reduced productivity, 2) higher transport costs and 3) carbon costs of fumes. Their cost estimates across four countries comes to some $200 billion. Quite a sum I think you will agree. I wonder how much of this cost relates to lost labour time – or in other words what is the opportunity cost to firms of having staff delayed in traffic. Of course, you could think of this from the view of the worker too – the opportunity cost might be at least some extra time in bed instead of the morning rush hour.
Opportunity cost – Gangnam style!
You have probably heard of Gangnam Style, – if not click here. Anyway, it broke Youtube’s counter in December and now has over 2.1 billion views. The video runs at just over 4 mins, which is 140 million man hours. Some writers at the Economist took a nice angle on Gangnam Style – the opportunity cost of us all watching it. You can read their post here, but can you believe we could have built 20 Empire State buildings, built 3 aircraft carriers or written the entire contents of wikipedia 1.5 times. It’s certainly an interesting take on the time we could have used to do better things.