People Aren’t Dumb. The World Is Hard.

People aren’t dumb. The world is hard.”  So says Professor Thaler, the 2017 Nobel laureate in economics.

From an ecosynomic perspective, the world is hard, for two reasons: the environment and the individual.  The environment is the exterior experience of the embedded agreements we live in.  The individual is the interior experience of our perception of our existence in the world.

Professor Thaler uses this quote to point at what we can do to improve our outcomes and experiences.  It you think people are dumb, then you can either make them smarter or deal with the fact that they are dumb.  If you think people are not dumb, and the world is hard, then you can try to make interacting in the world less hard.  Thaler suggests it is more the environment than the people.  We agree.  

We can understand the embedded agreements, in a way that works with our ability to perceive.  We can develop lenses on our agreements and processes for shifting them, which we can test, to see if they lead to the behaviors (outcomes and experiences) we want to have.

[To hear Professor Thaler describe what he means with this quote, listen to the July 11, 2018 Freakonomics podcast.]

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