salary depends on his not understanding it

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pages: 478 words: 126,416

Other People's Money: Masters of the Universe or Servants of the People? by John Kay

Affordable Care Act / Obamacare, asset-backed security, bank run, banking crisis, Basel III, Bear Stearns, Bernie Madoff, Big bang: deregulation of the City of London, bitcoin, Black Swan, Bonfire of the Vanities, bonus culture, Bretton Woods, buy and hold, call centre, capital asset pricing model, Capital in the Twenty-First Century by Thomas Piketty, cognitive dissonance, corporate governance, Credit Default Swap, cross-subsidies, dematerialisation, disinformation, disruptive innovation, diversification, diversified portfolio, Edward Lloyd's coffeehouse, Elon Musk, Eugene Fama: efficient market hypothesis, eurozone crisis, financial innovation, financial intermediation, financial thriller, fixed income, Flash crash, forward guidance, Fractional reserve banking, full employment, George Akerlof, German hyperinflation, Goldman Sachs: Vampire Squid, Growth in a Time of Debt, Ida Tarbell, income inequality, index fund, inflation targeting, information asymmetry, intangible asset, interest rate derivative, interest rate swap, invention of the wheel, Irish property bubble, Isaac Newton, James Carville said: "I would like to be reincarnated as the bond market. You can intimidate everybody.", John Meriwether, light touch regulation, London Whale, Long Term Capital Management, loose coupling, low cost airline, low cost carrier, M-Pesa, market design, millennium bug, mittelstand, Money creation, money market fund, moral hazard, mortgage debt, Myron Scholes, NetJets, new economy, Nick Leeson, Northern Rock, obamacare, Occupy movement, offshore financial centre, oil shock, passive investing, Paul Samuelson, peer-to-peer lending, performance metric, Peter Thiel, Piper Alpha, Ponzi scheme, price mechanism, purchasing power parity, quantitative easing, quantitative trading / quantitative finance, railway mania, Ralph Waldo Emerson, random walk, regulatory arbitrage, Renaissance Technologies, rent control, risk free rate, risk tolerance, road to serfdom, Robert Shiller, Robert Shiller, Ronald Reagan, salary depends on his not understanding it, Schrödinger's Cat, shareholder value, Silicon Valley, Simon Kuznets, South Sea Bubble, sovereign wealth fund, Spread Networks laid a new fibre optics cable between New York and Chicago, Steve Jobs, Steve Wozniak, The Great Moderation, The Market for Lemons, the market place, The Myth of the Rational Market, the payments system, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Tobin tax, too big to fail, transaction costs, tulip mania, Upton Sinclair, Vanguard fund, Washington Consensus, We are the 99%, Yom Kippur War

The psychologist David Tuckett had anticipated their response to Rajan’s challenge: ‘The doubts they [sceptics] raise about the new story need to be refuted and so are mocked and maligned through dismissal.’34 The great muckraker Upton Sinclair had expressed a deep insight into the relationship between the world of ideas and the world of practical men: ‘It is difficult to get a man to understand something, when his salary depends on his not understanding it.’35 Chapter 3 will describe another idea central to financialisation: the perceived need for liquidity. The Jackson Hole participants discussed risk with the aid of a well-worked-out framework of analysis with impressive intellectual coherence (if little empirical relevance). But when they – and others – discussed liquidity, they did so in a context with all the clarity of Mississippi mud. 3 Intermediation The role of the middleman There are some men whose only mission among others is to act as intermediaries; one crosses them like bridges and keeps going.

Their attitude was not the comprehensive immorality of the overt fraudster but the wilful blindness of those who do not ask questions when it would be embarrassing, or at least inconvenient, to know the answer. Upton Sinclair’s remark is again relevant: ‘it is difficult to get a man to understand something, when his salary depends on his not understanding it’. How profitable is the finance sector? Lucky fools do not bear the slightest suspicion that they may be lucky fools. Nassim Nicholas Taleb, Fooled by Randomness26 The herd instinct and associated competitive pressures led businesses to imitate the disastrous strategies of their rivals.


pages: 267 words: 71,123

End This Depression Now! by Paul Krugman

airline deregulation, Asian financial crisis, asset-backed security, bank run, banking crisis, bond market vigilante , Bretton Woods, business cycle, capital asset pricing model, Carmen Reinhart, centre right, correlation does not imply causation, credit crunch, Credit Default Swap, currency manipulation / currency intervention, debt deflation, Eugene Fama: efficient market hypothesis, financial deregulation, financial innovation, Financial Instability Hypothesis, full employment, German hyperinflation, Gordon Gekko, Hyman Minsky, income inequality, inflation targeting, invisible hand, James Carville said: "I would like to be reincarnated as the bond market. You can intimidate everybody.", Joseph Schumpeter, Kenneth Rogoff, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, Long Term Capital Management, low skilled workers, Mark Zuckerberg, Money creation, money market fund, moral hazard, mortgage debt, negative equity, paradox of thrift, Paul Samuelson, price stability, quantitative easing, rent-seeking, Robert Gordon, Ronald Reagan, salary depends on his not understanding it, Savings and loan crisis, Upton Sinclair, We are the 99%, working poor, Works Progress Administration

When we ask why policy makers were so blind to the risks of financial deregulation—and, since 2008, why they have been so blind to the risks of an inadequate response to the economic slump—it’s hard not to recall Upton Sinclair’s famous line: “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” Money buys influence; big money buys big influence; and the policies that got us where we are, while they never did much for most people, were, for a while at least, very good to a few people at the top. The Elite and the Political Economy of Bad Policies In 1998, as I mentioned in chapter 4, Citicorp—the holding company for Citibank—merged with Travelers Group to form what we now know as Citigroup.


pages: 242 words: 71,943

Strong Towns: A Bottom-Up Revolution to Rebuild American Prosperity by Charles L. Marohn, Jr.

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, A Pattern Language, American Society of Civil Engineers: Report Card, bank run, big-box store, Black Swan, Bretton Woods, British Empire, business cycle, call centre, cognitive dissonance, complexity theory, corporate governance, Detroit bankruptcy, Donald Trump, en.wikipedia.org, facts on the ground, Ferguson, Missouri, global reserve currency, housing crisis, index fund, Jane Jacobs, Jeff Bezos, low skilled workers, mass immigration, Modern Monetary Theory, mortgage debt, Network effects, new economy, New Urbanism, paradox of thrift, Paul Samuelson, pensions crisis, Ponzi scheme, quantitative easing, reserve currency, salary depends on his not understanding it, Savings and loan crisis, the built environment, The Death and Life of Great American Cities, trickle-down economics, Upton Sinclair, urban planning, urban renewal, walkable city, white flight, women in the workforce, yield curve, zero-sum game

Coming from professionals who were compensated for building all this stuff, that attitude seemed stunningly self-serving. Don’t we have an obligation to make sure that what we built could plausibly be sustained by future generations? It was Upton Sinclair who said, “It is difficult to get a man to understand something when his salary depends on his not understanding it.” With a few notable exceptions, I found Sinclair’s observation maddeningly insightful. For me, the evidence was pointing to a conclusion I found difficult to believe, yet impossible to ignore: The more our cities build, the poorer they become. The Municipal Ponzi Scheme When local governments need professional assistance, they often issue what is called a request for proposal (RFP).


pages: 287 words: 80,050

The Wisdom of Frugality: Why Less Is More - More or Less by Emrys Westacott

Airbnb, back-to-the-land, Bertrand Russell: In Praise of Idleness, Bonfire of the Vanities, carbon footprint, clean water, Community Supported Agriculture, corporate raider, critique of consumerism, Daniel Kahneman / Amos Tversky, dark matter, Diane Coyle, discovery of DNA, Downton Abbey, dumpster diving, financial independence, full employment, greed is good, happiness index / gross national happiness, haute cuisine, hedonic treadmill, income inequality, invisible hand, Isaac Newton, loss aversion, McMansion, means of production, move fast and break things, move fast and break things, negative equity, New Urbanism, paradox of thrift, Ralph Waldo Emerson, salary depends on his not understanding it, sunk-cost fallacy, Thales and the olive presses, Thales of Miletus, the market place, The Spirit Level, The Theory of the Leisure Class by Thorstein Veblen, Thorstein Veblen, Upton Sinclair, Veblen good, Zipcar

People who are dependent on the favor of others will almost inevitably be anxious about how they are viewed by their patrons. This anxiety is unpleasant in itself and constrains what they feel comfortable doing or saying. Ultimately it is likely to affect—one might well say infect—their thinking. As Upton Sinclair famously observed, “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”52 Thus when Epicurus says that “the greatest fruit of self-sufficiency is freedom,” he primarily has in mind freedom from any such inhibitions or anxieties, a condition he views as both conducive to moral integrity and necessary for peace of mind. Moral approval of self-sufficiency persists today, but in modified forms.


pages: 342 words: 86,256

Walkable City: How Downtown Can Save America, One Step at a Time by Jeff Speck

A Pattern Language, active transport: walking or cycling, car-free, carbon footprint, congestion charging, David Brooks, edge city, Edward Glaeser, Enrique Peñalosa, food miles, Frank Gehry, Guggenheim Bilbao, if you build it, they will come, Induced demand, intermodal, invisible hand, Jane Jacobs, meta-analysis, New Urbanism, peak oil, Ralph Waldo Emerson, Richard Florida, salary depends on his not understanding it, skinny streets, smart cities, starchitect, Stewart Brand, the built environment, The Death and Life of Great American Cities, transit-oriented development, Upton Sinclair, urban planning, urban renewal, urban sprawl, walkable city, white flight, white picket fence, young professional, zero-sum game, Zipcar

I have also had good experiences recently working with municipal engineers in Carmel, Indiana; Cedar Rapids; and Fort Lauderdale. But, for most of the profession, Upton Sinclair’s famous observation still holds sway: “It is difficult to get a man to understand something when his salary depends on his not understanding it.” ●AAA: “Your Driving Costs,” 2010 edition, 7. The marginal operating cost of most vehicles is well below twenty cents per mile. This explains why Zipcar and the other urban car-share programs are so effective at reducing auto use. According to the company website, each “Zipcar takes at least 15 personally-owned vehicles off the road.”


pages: 327 words: 90,542

The Age of Stagnation: Why Perpetual Growth Is Unattainable and the Global Economy Is in Peril by Satyajit Das

"Robert Solow", 9 dash line, accounting loophole / creative accounting, additive manufacturing, Airbnb, Albert Einstein, Alfred Russel Wallace, Anton Chekhov, Asian financial crisis, banking crisis, Bear Stearns, Berlin Wall, bitcoin, bond market vigilante , Bretton Woods, BRICs, British Empire, business cycle, business process, business process outsourcing, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Clayton Christensen, cloud computing, collaborative economy, colonial exploitation, computer age, creative destruction, cryptocurrency, currency manipulation / currency intervention, David Ricardo: comparative advantage, declining real wages, Deng Xiaoping, deskilling, disintermediation, disruptive innovation, Downton Abbey, Emanuel Derman, energy security, energy transition, eurozone crisis, financial innovation, financial repression, forward guidance, Francis Fukuyama: the end of history, full employment, gig economy, Gini coefficient, global reserve currency, global supply chain, Goldman Sachs: Vampire Squid, happiness index / gross national happiness, Honoré de Balzac, hydraulic fracturing, Hyman Minsky, illegal immigration, income inequality, income per capita, indoor plumbing, informal economy, Innovator's Dilemma, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, John Maynard Keynes: technological unemployment, Kenneth Rogoff, knowledge economy, knowledge worker, light touch regulation, liquidity trap, Long Term Capital Management, low skilled workers, Lyft, Mahatma Gandhi, margin call, market design, Marshall McLuhan, Martin Wolf, Mikhail Gorbachev, mortgage debt, mortgage tax deduction, new economy, New Urbanism, offshore financial centre, oil shale / tar sands, oil shock, old age dependency ratio, open economy, passive income, peak oil, peer-to-peer lending, pension reform, Plutocrats, plutocrats, Ponzi scheme, Potemkin village, precariat, price stability, profit maximization, pushing on a string, quantitative easing, race to the bottom, Ralph Nader, Rana Plaza, rent control, rent-seeking, reserve currency, ride hailing / ride sharing, rising living standards, risk/return, Robert Gordon, Ronald Reagan, salary depends on his not understanding it, Satyajit Das, savings glut, secular stagnation, seigniorage, sharing economy, Silicon Valley, Simon Kuznets, Slavoj Žižek, South China Sea, sovereign wealth fund, TaskRabbit, The Chicago School, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, the market place, the payments system, The Spirit Level, Thorstein Veblen, Tim Cook: Apple, too big to fail, total factor productivity, trade route, transaction costs, uber lyft, unpaid internship, Unsafe at Any Speed, Upton Sinclair, Washington Consensus, We are the 99%, WikiLeaks, Y2K, Yom Kippur War, zero-coupon bond, zero-sum game

They frequently did not understand the risk of the complex transactions. During a 2010 US Senate hearing on investment banking practices in the lead-up to the GFC, Goldman executives illustrated Upton Sinclair's observation: “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”7 The following exchange occurred during the hearing: Senator Levin: “Don't you also have a duty to disclose an adverse interest to your client? Do you have that duty?” Dan Sparks (head of Goldman Sach's mortgage trading): “About?” Senator Levin: “If you have an adverse interest to your client, do you have the duty to disclose that to your client?”


pages: 401 words: 93,256

Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life by Rory Sutherland

3D printing, Alfred Russel Wallace, barriers to entry, basic income, Black Swan, butterfly effect, California gold rush, call centre, Captain Sullenberger Hudson, Cass Sunstein, cognitive dissonance, Daniel Kahneman / Amos Tversky, Dava Sobel, delayed gratification, Donald Trump, double helix, Downton Abbey, Elon Musk, Firefox, George Akerlof, gig economy, Google Chrome, Google X / Alphabet X, Grace Hopper, Hyperloop, Ignaz Semmelweis: hand washing, IKEA effect, information asymmetry, James Dyson, John Harrison: Longitude, loss aversion, low cost airline, Mason jar, Murray Gell-Mann, Peter Thiel, placebo effect, race to the bottom, Richard Feynman, Richard Thaler, Rory Sutherland, salary depends on his not understanding it, shareholder value, Silicon Valley, social intelligence, Steve Jobs, supply-chain management, the map is not the territory, The Market for Lemons, The Wealth of Nations by Adam Smith, ultimatum game, universal basic income, Upton Sinclair, US Airways Flight 1549, Veblen good

Surgeons felt challenged by keyhole surgery and other new, less invasive procedures that can be carried out with the support of radiographers, because they used skills different from those that they had spent a lifetime perfecting. Similarly, you can imagine how London black cab drivers feel about Uber. As the novelist Upton Sinclair once remarked, ‘It is difficult to get a man to understand something, when his salary depends on his not understanding it.’ One of the common arguments against vaping was that it renormalised smoking, because it looks a bit like smoking. I find that quite hard to believe, frankly. Whatever you think about smoking, it does look fairly cool – a remake of Casablanca with the cigarettes replaced with vaporisers would be somewhat less romantic.


pages: 339 words: 94,769

Possible Minds: Twenty-Five Ways of Looking at AI by John Brockman

AI winter, airport security, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, artificial general intelligence, Asilomar, autonomous vehicles, basic income, Benoit Mandelbrot, Bill Joy: nanobots, Buckminster Fuller, cellular automata, Claude Shannon: information theory, Daniel Kahneman / Amos Tversky, Danny Hillis, David Graeber, easy for humans, difficult for computers, Elon Musk, Eratosthenes, Ernest Rutherford, finite state, friendly AI, future of work, Geoffrey West, Santa Fe Institute, gig economy, income inequality, industrial robot, information retrieval, invention of writing, James Watt: steam engine, Johannes Kepler, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John von Neumann, Kevin Kelly, Kickstarter, Laplace demon, Loebner Prize, market fundamentalism, Marshall McLuhan, Menlo Park, Norbert Wiener, optical character recognition, pattern recognition, personalized medicine, Picturephone, profit maximization, profit motive, RAND corporation, random walk, Ray Kurzweil, Richard Feynman, Rodney Brooks, salary depends on his not understanding it, self-driving car, sexual politics, Silicon Valley, Skype, social graph, speech recognition, statistical model, Stephen Hawking, Steven Pinker, Stewart Brand, strong AI, superintelligent machines, supervolcano, technological singularity, technoutopianism, telemarketer, telerobotics, The future is already here, the scientific method, theory of mind, Turing machine, Turing test, universal basic income, Upton Sinclair, Von Neumann architecture, Whole Earth Catalog, Y2K, you are the product, zero-sum game

The successful creation of AGI would be the biggest event in human history, so why is there so little serious discussion of what it might lead to? Here again, the answer involves multiple reasons. First, as Upton Sinclair famously quipped, “It is difficult to get a man to understand something, when his salary depends on his not understanding it.”* For example, spokesmen for tech companies or university research groups often claim there are no risks attached to their activities even if they privately think otherwise. Sinclair’s observation may help explain not only reactions to risks from smoking and climate change but also why some treat technology as a new religion whose central articles of faith are that more technology is always better and whose heretics are clueless scaremongering Luddites.


The Unknowers: How Strategic Ignorance Rules the World by Linsey McGoey

anti-globalists, battle of ideas, Branko Milanovic, British Empire, Cass Sunstein, Clive Stafford Smith, conceptual framework, Corn Laws, corporate governance, corporate raider, Credit Default Swap, David Ricardo: comparative advantage, Donald Trump, drone strike, en.wikipedia.org, European colonialism, hiring and firing, Howard Zinn, income inequality, joint-stock company, knowledge economy, market fundamentalism, mass incarceration, minimum wage unemployment, Naomi Klein, new economy, Nick Leeson, p-value, Paul Samuelson, Peter Thiel, Plutocrats, plutocrats, race to the bottom, randomized controlled trial, rent-seeking, road to serfdom, Robert Mercer, Ronald Reagan, salary depends on his not understanding it, Scientific racism, selective serotonin reuptake inhibitor (SSRI), Steven Pinker, The Chicago School, The Wealth of Nations by Adam Smith, union organizing, Upton Sinclair, Washington Consensus, wealth creators

He was inspired particularly by Rousseau, who, as Bastiat put it, ‘never spoke more truly than when he said: It takes a great deal of scientific insight to discern the facts that are closest to us.’17 George Orwell reiterated the point when he famously observed, ‘To see what is in front of one’s nose needs a constant struggle.’ These are compelling but also obvious points in a way: we know that people struggle to accept inconvenient facts, and we also have a good idea of why (Upton Sinclair’s adage applies: ‘it is difficult to get a man to understand something, when his salary depends on his not understanding it’). What we don’t really know is how. How do some people ‘get away’ with sustained ignorance when others on lower rungs of a social ladder are treated as more ignorant than the elite? We need to better understand ignorance pathways: plausible accounts of how micro-ignorance contributes to larger unknowns, and the next chapters introduce such a pathway by exploring how the language of 19th-century theorists of political economy made it seem as if economic exchange in the 19th century marked a clear break from earlier forms of state-facilitated violent appropriation, even though many mercantile forms of corporate privilege did not end.


pages: 316 words: 94,886

Decisive: How to Make Better Choices in Life and Work by Chip Heath, Dan Heath

call centre, Captain Sullenberger Hudson, Cass Sunstein, Daniel Kahneman / Amos Tversky, en.wikipedia.org, endowment effect, hindsight bias, index fund, job satisfaction, Kevin Kelly, loss aversion, medical residency, mental accounting, meta-analysis, Mikhail Gorbachev, pattern recognition, Peter Thiel, pets.com, Richard Thaler, Ronald Reagan, salary depends on his not understanding it, shareholder value, Silicon Valley, unpaid internship, Upton Sinclair, US Airways Flight 1549, young professional

The meta-study found that the confirmation bias was stronger in emotion-laden domains such as religion or politics and also when people had a strong underlying motive to believe one way or the other (as in Upton Sinclair’s observation, “It is difficult to get a man to understand something when his salary depends on his not understanding it!”). The confirmation bias also increased when people had previously invested a lot of time or effort in a given issue. In the previous section, we saw that it’s crucial to Widen Our Perspective in order to break out of a narrow frame; by doing that, we expand the number of options open to us.


pages: 403 words: 111,119

Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate Raworth

"Robert Solow", 3D printing, Asian financial crisis, bank run, basic income, battle of ideas, Berlin Wall, bitcoin, blockchain, Branko Milanovic, Bretton Woods, Buckminster Fuller, business cycle, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, choice architecture, clean water, cognitive bias, collapse of Lehman Brothers, complexity theory, creative destruction, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, dematerialisation, disruptive innovation, Douglas Engelbart, Douglas Engelbart, en.wikipedia.org, energy transition, Erik Brynjolfsson, Ethereum, ethereum blockchain, Eugene Fama: efficient market hypothesis, experimental economics, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, Financial Instability Hypothesis, full employment, Garrett Hardin, global supply chain, global village, Henri Poincaré, hiring and firing, Howard Zinn, Hyman Minsky, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of writing, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, Kickstarter, land reform, land value tax, Landlord’s Game, loss aversion, low skilled workers, M-Pesa, Mahatma Gandhi, market fundamentalism, Martin Wolf, means of production, megacity, mobile money, Money creation, Mont Pelerin Society, Myron Scholes, neoliberal agenda, Network effects, Occupy movement, off grid, offshore financial centre, oil shale / tar sands, out of africa, Paul Samuelson, peer-to-peer, planetary scale, price mechanism, quantitative easing, randomized controlled trial, Richard Thaler, Ronald Reagan, salary depends on his not understanding it, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Simon Kuznets, smart cities, smart meter, Social Responsibility of Business Is to Increase Its Profits, South Sea Bubble, statistical model, Steve Ballmer, The Chicago School, The Great Moderation, the map is not the territory, the market place, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, Torches of Freedom, Tragedy of the Commons, trickle-down economics, ultimatum game, universal basic income, Upton Sinclair, Vilfredo Pareto, wikimedia commons

At the same time all of these countries’ global ecological footprints already far exceed Earth’s capacity: it would take four planets for everyone in the world to live as they do in Sweden, Canada and the US, and five planets for all to live like an Australian or Kuwaiti.16 Does this suggest that, while aiming to get into the Doughnut, high-income countries should give up on the pursuit of GDP growth and accept that it might no longer be possible? That is not a comfortable question to consider. As Upton Sinclair famously noted, ‘It is difficult to get a man to understand something, when his salary depends on his not understanding it.’17 Some staff at the OECD must be struggling with this now because, whether or not growth can be green and equitable, it doesn’t look like growth is coming in some of the world’s richest nations. The average GDP growth rate of 13 long-standing OECD member countries had fallen from over 5% in the early 1960s to under 2% by 2011.18 Diverse reasons for this have been suggested, from shrinking and ageing populations, falling labour productivity, and an overhang of debt to widening wealth inequality, rising commodity prices, and the costs of responding to climate change.19 Whatever the mix of reasons in each country, the declining long-term GDP growth trend raises the very real possibility that these economies could be close to the top of their S curves, with growth tailing off.


pages: 446 words: 117,660

Arguing With Zombies: Economics, Politics, and the Fight for a Better Future by Paul Krugman

affirmative action, Affordable Care Act / Obamacare, Andrei Shleifer, Asian financial crisis, bank run, banking crisis, basic income, Berlin Wall, Bernie Madoff, bitcoin, blockchain, bond market vigilante , Bonfire of the Vanities, business cycle, capital asset pricing model, carbon footprint, Carmen Reinhart, central bank independence, centre right, Climategate, cognitive dissonance, cryptocurrency, David Ricardo: comparative advantage, different worldview, Donald Trump, Edward Glaeser, employer provided health coverage, Eugene Fama: efficient market hypothesis, Fall of the Berlin Wall, fiat currency, financial deregulation, financial innovation, financial repression, frictionless, frictionless market, fudge factor, full employment, Growth in a Time of Debt, hiring and firing, illegal immigration, income inequality, index fund, indoor plumbing, invisible hand, job automation, John Snow's cholera map, Joseph Schumpeter, Kenneth Rogoff, knowledge worker, labor-force participation, large denomination, liquidity trap, London Whale, market bubble, market clearing, market fundamentalism, means of production, Modern Monetary Theory, New Urbanism, obamacare, oil shock, open borders, Paul Samuelson, Plutocrats, plutocrats, Ponzi scheme, price stability, quantitative easing, road to serfdom, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, salary depends on his not understanding it, secular stagnation, Seymour Hersh, The Chicago School, The Great Moderation, the map is not the territory, The Wealth of Nations by Adam Smith, trade liberalization, transaction costs, universal basic income, very high income, working-age population

In particular, if you want to preserve protection for people with pre-existing conditions—the health issue that matters most to voters, including half of Republicans—Obamacare is the most conservative policy that can do that. The only other options are things like Medicare for All that would involve moving significantly to the left, not the right. Health economists have explained this point many times over the years; but as always, it’s difficult to get a man to understand something when his salary depends on his not understanding it. Still, let’s try one more time. If you want private insurers to cover people with pre-existing conditions, you have to ban discrimination based on medical history. But that in itself isn’t enough, because if policies cost the same for everyone, those who sign up will be sicker than those who don’t, creating a bad risk pool and forcing high premiums.


pages: 389 words: 112,319

Think Like a Rocket Scientist: Simple Strategies You Can Use to Make Giant Leaps in Work and Life by Ozan Varol

Affordable Care Act / Obamacare, Airbnb, airport security, Albert Einstein, Amazon Web Services, Andrew Wiles, Apple's 1984 Super Bowl advert, Arthur Eddington, autonomous vehicles, Ben Horowitz, Cal Newport, Clayton Christensen, cloud computing, Colonization of Mars, dark matter, delayed gratification, different worldview, discovery of DNA, double helix, Elon Musk, fear of failure, functional fixedness, Gary Taubes, George Santayana, Google Glasses, Google X / Alphabet X, Inbox Zero, index fund, Isaac Newton, James Dyson, Jeff Bezos, job satisfaction, Johannes Kepler, Kickstarter, knowledge worker, late fees, lateral thinking, lone genius, longitudinal study, Louis Pasteur, low earth orbit, Marc Andreessen, Mars Rover, meta-analysis, move fast and break things, move fast and break things, multiplanetary species, obamacare, Occam's razor, out of africa, Peter Thiel, Pluto: dwarf planet, Ralph Waldo Emerson, Richard Feynman, Richard Feynman: Challenger O-ring, Ronald Reagan, salary depends on his not understanding it, Sam Altman, Schrödinger's Cat, Search for Extraterrestrial Intelligence, self-driving car, Silicon Valley, Simon Singh, Steve Ballmer, Steve Jobs, Steven Levy, Stewart Brand, sunk-cost fallacy, Thomas Kuhn: the structure of scientific revolutions, Thomas Malthus, Upton Sinclair, Vilfredo Pareto, We wanted flying cars, instead we got 140 characters, Whole Earth Catalog, women in the workforce, Yogi Berra

Vested interests also reinforce the status quo. High-level executives at Fortune 500 companies shun innovation because their compensation is tied to short-term quarterly outcomes that may be temporarily disrupted by forging a new path. “It’s difficult to get a man to understand something,” Upton Sinclair said, “when his salary depends on his not understanding it.” If you were a horse breeder in Detroit in the early 1900s, you would have assumed that your competition was other breeders raising stronger and faster horses. If you ran a cab company ten years ago, you would have assumed that your competition was other cab companies. If you run airport security, you assume that the primary threat will come from another guy with a bomb in his shoe, so you “solve” terrorism by making everyone take off their shoes.


pages: 1,239 words: 163,625

The Joys of Compounding: The Passionate Pursuit of Lifelong Learning, Revised and Updated by Gautam Baid

activist fund / activist shareholder / activist investor, Airbnb, Albert Einstein, Andrei Shleifer, asset allocation, Atul Gawande, availability heuristic, backtesting, barriers to entry, beat the dealer, Benoit Mandelbrot, Bernie Madoff, bitcoin, Black Swan, business process, buy and hold, Cal Newport, Cass Sunstein, Checklist Manifesto, Clayton Christensen, cognitive dissonance, collapse of Lehman Brothers, commoditize, corporate governance, correlation does not imply causation, creative destruction, cryptocurrency, Daniel Kahneman / Amos Tversky, delayed gratification, deliberate practice, discounted cash flows, disintermediation, disruptive innovation, Dissolution of the Soviet Union, diversification, diversified portfolio, dividend-yielding stocks, Edward Thorp, Elon Musk, Everything should be made as simple as possible, financial independence, financial innovation, fixed income, follow your passion, framing effect, George Santayana, Hans Rosling, hedonic treadmill, hindsight bias, Hyman Minsky, index fund, intangible asset, invention of the wheel, invisible hand, Isaac Newton, Jeff Bezos, Joseph Schumpeter, Kickstarter, knowledge economy, Lao Tzu, Long Term Capital Management, loss aversion, Louis Pasteur, Mahatma Gandhi, mandelbrot fractal, margin call, Mark Zuckerberg, mental accounting, Milgram experiment, moral hazard, Nate Silver, Network effects, Nicholas Carr, offshore financial centre, oil shock, passive income, passive investing, pattern recognition, Peter Thiel, Ponzi scheme, price anchoring, quantitative trading / quantitative finance, Ralph Waldo Emerson, Ray Kurzweil, reserve currency, Richard Feynman, Richard Thaler, risk free rate, risk-adjusted returns, Robert Shiller, Robert Shiller, salary depends on his not understanding it, Savings and loan crisis, shareholder value, six sigma, software as a service, software is eating the world, South Sea Bubble, special economic zone, Stanford marshmallow experiment, Steve Jobs, Steven Levy, Steven Pinker, stocks for the long run, sunk-cost fallacy, tail risk, the market place, The Signal and the Noise by Nate Silver, The Wisdom of Crowds, time value of money, transaction costs, tulip mania, Upton Sinclair, Walter Mischel, wealth creators, Yogi Berra, zero-sum game

It doesn’t take a lot of money to have a truly wealthy life, but it does take financial independence, which gives us control over our time. This is the important topic that we will address in the next chapter. CHAPTER 9 ACHIEVING FINANCIAL INDEPENDENCE It is difficult to get a man to understand something, when his salary depends on his not understanding it. —Upton Sinclair Whose bread I eat, his song I sing. —Charlie Munger Truth is hard to assimilate when it is opposed by interest. You cannot really understand how the world truly works unless you have financial independence. Once you achieve this state, it changes everything.


pages: 825 words: 228,141

MONEY Master the Game: 7 Simple Steps to Financial Freedom by Tony Robbins

3D printing, active measures, activist fund / activist shareholder / activist investor, addicted to oil, affirmative action, Affordable Care Act / Obamacare, Albert Einstein, asset allocation, backtesting, Bear Stearns, bitcoin, buy and hold, clean water, cloud computing, corporate governance, corporate raider, correlation does not imply causation, Credit Default Swap, Dean Kamen, declining real wages, diversification, diversified portfolio, Donald Trump, estate planning, fear of failure, fiat currency, financial independence, fixed income, forensic accounting, high net worth, index fund, Internet of things, invention of the wheel, Jeff Bezos, Kenneth Rogoff, lake wobegon effect, Lao Tzu, London Interbank Offered Rate, market bubble, money market fund, mortgage debt, new economy, obamacare, offshore financial centre, oil shock, optical character recognition, Own Your Own Home, passive investing, profit motive, Ralph Waldo Emerson, random walk, Ray Kurzweil, Richard Thaler, risk free rate, risk tolerance, riskless arbitrage, Robert Shiller, Robert Shiller, salary depends on his not understanding it, San Francisco homelessness, self-driving car, shareholder value, Silicon Valley, Skype, Snapchat, sovereign wealth fund, stem cell, Steve Jobs, survivorship bias, tail risk, telerobotics, The future is already here, the rule of 72, thinkpad, transaction costs, Upton Sinclair, Vanguard fund, World Values Survey, X Prize, Yogi Berra, young professional, zero-sum game

Myth 4 will help us quickly determine if the person on the other side of the desk is working for you or the name on their company’s letterhead. As “Deep Throat” from the Watergate scandal said: “Follow the money. Always follow the money.” CHAPTER 2.4 MYTH 4: “I’M YOUR BROKER, AND I’M HERE TO HELP” * * * “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” —UPTON SINCLAIR LET ME GET THIS STRAIGHT So let us recap: The mutual funds sold to me are charging me astronomical fees that could strip me of up to 70% of my future nest egg. Over any sustained period of time, 96% of actively managed mutual funds are underperforming the market (or their benchmarks).