On: Work, Slavery, the Minority Rule and Skin in the Game.

Episode: N/A

Date: August 2017

Background: Author of “Skin in the Game”.

Key Subjects:

• Second episode with Taleb related to the general topic of skin in the game.
• Rubin trade:
  • Transfer of future risk to others in exchange for immediate payments.
  • Whenever performance is based on current (faulty) metrics.
  • There is no punishment if things go wrong later on.
  • Politics key example (reputation is a weak correction mechanism).
• The minority rule:
  • Adjustments are made when important to a small minority, if the costs to the general population are low enough.
• The Lindy effect:
  • If something has been around for a while, it will probably be around for a while longer.
  • Best prediction about the future: what was here in the past and is still here in healthy state.
• Politics of globalization – improvements needed:
  • More power from bottom-up control to set the limits for what is acceptable or desirable.
  • Better governance through smaller units (avoid the minority rule).

Key Takeaways:

• Best prediction about the future: what was here in the past and is still here in healthy state.
• Better governance through smaller units (avoid the minority rule).
• More power from bottom-up control to set the limits for what is acceptable or desirable.

Worth Listening:

8/10