What’s the probability that we’re idiots?
There’s a necessary assumption in lower-level economics, as well in much of philosophy, that people act rationally. Rebooting our global economy depends upon this (though it’s preceding crash ignored it), ethics necessitate a basic shared logic, and mathematics certainly assumes that we will accept conclusions using a similar rationality. Yet people waste billions of dollars per year because they make poor, emotional decisions against their nature. It’s this irrational impulse in each of us that has led to three of the largest, most mind-numbingly irrational markets in society: casinos, insurance, and religion.
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