One of the twenty or so must read books mentioned in Poor Charlie’s Almanac is “Getting to Yes” - a principled approach to negotiations. It is an excellent and accessible read on getting to mutually agreeable outcome during negotiations ranging from salary to nuclear disarmament talks. For my present gig I commute between South San Francisco and San Jose on a not-so-enjoyable highway 101. Listening to books is a great way to utilize this time. In the book authors point out that one of the mistake parties make during the negotiation is just thinking about one’s own positions. Parties overlook the fact that the folks on the other side of table are humans too. Focusing on the basic human needs of security, appreciation, well being etc. would result in successful results for all parties.

While keeping the human nature in focus during negotiation is definitely fruitful, but I think this principle can be applied in general to a lot more situations. Especially while talking to people in authority. For example students can keep this in mind while talking to professors. Most of the time students would be focused on their own world and think professors are this abstract entities who are after their life giving assignments, asking them to review and re-review their assignments. Same goes for employees towards their managers etc. How many times any one thinks that professors or managers may have a life too. With loving wife and kids may be a dog too. Focusing on the human side of authorities would result in better and cordial relations.

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In a NY Times article “The Wealth Trajectory” Greg Mankiw, a Harvard Professor and a famous economics blogger explains the differences in earnings for average workers and the super rich. I found the following statistics good on value of education

In 2005, each year of college yielded an additional 12.9 percent. The rate of return from each year of graduate school has risen even more — from 7.3 to 14.2 percent.

Another thing to note for the premium on education is due to the age old supply and demand equation. The demand for educated people in the last few decades outpaced the supply there by raising the earnings of educated class. That also explains the reason for immigrant me being here.

But still education can take you limited distance on the path to super richness. The “real” reason for it seem to be being educated and lucky

Maybe educational levels are like Willie Wonka’s chocolate bars. A few of them come with golden tickets that give you opportunities almost beyond imagination. But even if you aren’t lucky enough to get a golden ticket, you can still enjoy the chocolate, which by itself is well worth the price.

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