What Is The Dunning-Kruger Effect? Why Incompetents Think They’re Awesome

What is the Dunning-Kruger effect? You've probably heard about this, but maybe you aren't quite sure what it is. But, one thing's for sure, you and I have definitely experienced it in our daily lives because it seems to be *everywhere!* So here, let's find out what the Dunning-Kruger effect is.

Show Notes

Here are links and resources mentioned in today's video. Enjoy!

  • Nothing here just yet.

Transcription

Okay let's take a look at the dunning-kruger effect. This concept states that the least talented or informed people tend to over-estimate their skills or competency. In fact, it's safe to say that the first rule of the Dunning-Kruger effect is that those who suffer from it are completely unaware that they suffer from it!

So this means that there's a huge lack of self-awareness happening. In short, the Dunning–Kruger effect is when someone's too incompetent to know how incompetent they are.

They simply lack the ability to acknowledge that they may not be as smart or as skilled as they think they are. And sadly, they're doomed to act out their incompetence forever.

Learn how to build your small business website!

And I mean, if you need some examples just swivel your head in any direction! Bad writers tend to think they're great writers...and that's WHY they're bad writers!...

...they can't recognize their bad writing. Or bad marketers or salespeople often think they're really great at what they do...yet they refuse to look at the hard facts of their sales results...which has them continuing to get such bad results.

Or even minimum-wage employees -- many of them believe they're underpaid and are far more competent than they are. Many are not, which is why they're stuck.

See, in a free and open economy (which is largely what we have -- not entirely, but for the most part)...people get paid what they're worth...people get paid what their accumulated skills and knowledge are worth to other people.

This is all about supply and demand. A large supply of a certain level of skills and knowledge means lower demand and lower wages for those skills and knowledge.

So the question becomes, how difficult is it to replace you?

This explains why brain surgeons earn much more than mortgage brokers, why mortgage brokers earn more then auto mechanics, and why auto mechanics earn more than coffee baristas.

It's all about the value we provide to other people...and the value we provide to other people comes from our accumulated skills and knowledge, and how we use those to serve the needs of others.

What we earn is directly proportional to the size and number of problems we can solve for other people.

So if we want to make more money for ourselves, what we need to do is start solving bigger and more complex problems for other people.

Other people (your boss, your customers) would LOVE to pay you more money...because they have all sorts of problems, issues, and frustrations that they're dealing with that they'd pay a lot to have fixed.

So ask yourself what sorts of problems you can solve right now with your current set of accumulated skills and knowledge. Are there other skills you could add to your Skill Stack that would enhance what you've already got?

And here's another one: What kinds of people do you enjoy being around and working with? And what kinds of problems do you like working on and fixing?

Share this!
Geoff Blake, Ten Ton Online

Hey there, I’m Geoff! Business, marketing, and the web can seem like a tangled, confusing mess, right? Well if you wanna get clear, straight info on all this stuff (no gimmicks or hypey nonsense)...then you're definitely in the right spot! Start here (free!)