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