Learning leads to negative amortisation

 

Amortisation means reduction in value of an asset or a liability. Suppose you have taken a housing loan. When you pay an instalment (say an EMI), the loan liability comes down by a certain amount. In other words, the loan is getting amortised. In this process, the EMI should be more than the interest charged. Otherwise, the loan amount will never be adjusted; rather, the loan liability will keep increasing. This is called negative amortisation.

When we learn something new, the stock of what we do not know ought to come down. But it does not happen. We start realising that what we do not know is more than what we thought we did not know. This is why the more we learn, the more we want to learn.