History UsefulNotes / Economics

25th Dec '17 4:48:14 AM TheOneWhoTropes
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** There have been cases in history where creditor nations have launched military actions of debtor nations in order to force repayment - the most well-known is the occupation of the Ruhr in 1923 by France and Belgium after WeimarRepublic Germany had repeatedly defaulted on its (huge) debt obligations to the Allied Powers under the terms of the Treaty of Versailles (France believed Germany was testing Allied resolve to enforce the Treaty by skirting the payments). It ended poorly for the French, as they got cast as the bad guy internationally (despite the occupation being legal under Versailles) while Germany got sympathy once the passive resistance campaign against the occupation in the Ruhr started. Other cases include the Anglo-Egyptian War of 1882, the United States' occupation of Haiti in 1915, and the proposed joint Anglo-French-Spanish expedition to Mexico in 1861 (Britain and Spain backed out and made separate deals with Mexico when it became clear Napoleon III had more on his mind than just recovering the debt it was owed). In all these cases, forcing repayment of debt was a more secondary reason to exercising hard power (which may explain the acute American paranoia over this trope, however infeasible it would be in practice).

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** There have been cases in history where creditor nations have launched military actions of debtor nations in order to force repayment - the most well-known is the occupation of the Ruhr in 1923 by France and Belgium after WeimarRepublic UsefulNotes/WeimarRepublic Germany had repeatedly defaulted on its (huge) debt obligations to the Allied Powers under the terms of the Treaty of Versailles (France believed Germany was testing Allied resolve to enforce the Treaty by skirting the payments). It ended poorly for the French, as they got cast as the bad guy internationally (despite the occupation being legal under Versailles) while Germany got sympathy once the passive resistance campaign against the occupation in the Ruhr started. Other cases include the Anglo-Egyptian War of 1882, the United States' occupation of Haiti in 1915, and the proposed joint Anglo-French-Spanish expedition to Mexico in 1861 (Britain and Spain backed out and made separate deals with Mexico when it became clear Napoleon III had more on his mind than just recovering the debt it was owed). In all these cases, forcing repayment of debt was a more secondary reason to exercising hard power (which may explain the acute American paranoia over this trope, however infeasible it would be in practice).
10th Dec '17 3:30:19 PM Specialist290
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** ''Superiority Equals Success'': This fallacy alleges that a product's market price is determined by an objectively measurable aspect of the product. For instance, lets say you place a bucket of your phlegm on the market. And then you place two buckets of phlegm on the market. By the logic of Superiority Equals Success, you should get more money for two buckets of your phlegm than one. Thankfully, [[CaptainObvious no one wants your phlegm]] and as such you wouldn't get any money for either bucket (clarification: you might get money for the buckets themselves; but the phlegm would have to be removed from the bucket). Objective superiority of any good along any measurable aspect (for instance, quantity) only translates into a higher market price if people ''want'' more of that measurable aspect (holding all other variables constant). And let's not even mention adding marketing into the mix...

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** ''Superiority Equals Success'': This fallacy alleges that a product's market price is determined by an objectively measurable aspect of the product. For instance, lets say you place a bucket of your phlegm on the market. And then you place two buckets of phlegm on the market. By the logic of Superiority Equals Success, you should get more money for two buckets of your phlegm than one. Thankfully, [[CaptainObvious no one wants your phlegm]] and as such you wouldn't get any money for either bucket (clarification: you might get money for the buckets themselves; but the phlegm would have to be removed from the bucket).bucket, and people looking to buy a bucket are going to look for the option that lets them get a bucket ''without'' needing to clean it out first). Objective superiority of any good along any measurable aspect (for instance, quantity) only translates into a higher market price if people ''want'' more of that measurable aspect (holding all other variables constant). And let's not even mention adding marketing into the mix...
4th Jun '17 2:04:37 AM MAI742
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Our brains are hardwired to use logic in the service of our emotional desires and minimise our need for hard thinking. This was perfectly attuned to the needs of proto-humans who needed to advance and maintain their social standing within groups of up to 250 proto-humans, but is remarkably ill-suited to our needs when sound happiness-related decision-making requires so much logical thought. Our brains often lead us to using our money and time in ways that make us unhappy, not least because the marketing staffs of the world have been making Herculean efforts to understand and optimally exploit our flaws for profit. So here's a list of our most fundamental cognitive flaws:

* '''We think that we are smarter than the average person''' and don't make as many silly mistakes as they do - even though this complacency is part of why "the average person" makes so many mistakes in the first place.

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Our brains are hardwired to use logic in the service of our emotional desires and minimise our need for hard thinking. This was perfectly attuned to the needs of proto-humans who needed to advance and maintain their social standing within groups of up to 250 proto-humans, but is remarkably ill-suited to our needs when sound happiness-related decision-making requires so much logical thought. Our brains often lead us to using our money and time in ways that make us unhappy, not least because the marketing staffs of the world have been making Herculean efforts to understand and optimally exploit our flaws for profit. So here's

Many of the problems stem from our instinctual conception of the world in terms of narratives. These enable us to near-instantly judge situations and peoples by matching them with pre-existing templates. These narratives include the legitimating ideologies of our whole societies (meta-), those which structure the social groups which we feel we belong to (social-), and those which we use to order the stories of our lives (personal-). However, these narratives are often inaccurate in Real Life, and are subject to internal drift and external influence. This is especially true of our personal narratives, which are generally what we are most interested in yet least equipped to assess objectively. The stories that we tell ourselves about why we do certain things and not others are, for the most part, soothing lies which bundle
a list mass of inconsistencies and contradictions.

Some
of our most fundamental cognitive flaws:

flaws include:

* '''We think default to using pre-existing narratives instead of actually assessing things''', especially when we're tired or indifferent to the consequences. Our species evolved by ''generally'' benefiting from this, but this doesn't mean ''specific'' individuals can't make catastrophic mistakes by doing this. Police killings of unarmed people from minority groups stereotyped as violent (Caucasians in Russia, Uighurs in China, Blacks in America) are quite notoriously attributable to this flaw.
* '''We feel that we have better willpower than the average person''' and don't fail to control ourselves as much as they do. This stems from our personal narratives, in which we tell ourselves that we are exceptional in all sorts of ways - particularly those which are not regularly or objectively assessed. 'Diet' and 'Exercise' companies are sustained by systemic self-discipline failure.
* '''We feel
that we are smarter than the average person''' and don't make as many silly mistakes as they do - even though this complacency is part of why "the average person" makes so many mistakes in the first place.
20th Mar '17 10:05:55 AM TheBigBopper
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This page lists the few points which the widely divergent schools of economic thought can agree upon. Each school starts from a different set of philosophical assumptions, has different goals, and uses different methods. This one of the myriad reasons why economics is sometimes called "the dismal science". [[note]]The origin of the term, "the dismal science" for economics, is from how during the time of slavery, John Stuart Mill and his fellow economists supported the equality between all men and the abolishment of the slavery, and Thomas Carlyle was afraid that the economics would cause the decadence of the society. [[http://aprendeenlinea.udea.edu.co/revistas/index.php/lecturasdeeconomia/article/viewFile/7874/7415 Source (in Spanish)]][[/note]].

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This page lists the few points which the widely divergent schools of economic thought can agree upon. Each school starts from a different set of philosophical assumptions, has different goals, and uses different methods. This one of the myriad reasons why economics is sometimes called "the dismal science". [[note]]The origin of the term, "the dismal science" for economics, term is from how during the time of slavery, John Stuart Mill and his fellow economists supported the equality between all men and the abolishment abolition of the slavery, and Thomas Carlyle was afraid that the economics would cause lead to the decadence decline of the society. [[http://aprendeenlinea.udea.edu.co/revistas/index.php/lecturasdeeconomia/article/viewFile/7874/7415 Source (in Spanish)]][[/note]].
5th Mar '17 3:03:06 AM MAI742
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* '''We feel that things we own are more valuable''' than things we don't - even if their objective value is identical. This can even apply to things that we only ''imagine'' ourselves owning, such as a vivid fantasy of us winning the lottery. This is one bias which drives us to the SunkCostFallacy, along with...

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* '''We feel that things we own are more valuable''' than things we don't - even if their objective value is identical. This can even apply to things that we only ''imagine'' ourselves owning, such as a vivid fantasy of us winning the lottery.becoming rich - a key part of most sales pitches for Pyramid/Ponzi Schemes. This is one bias which drives us to the SunkCostFallacy, along with...
4th Mar '17 3:23:05 AM MAI742
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AsYouKnow, this list doesn't even begin to touch the shortcomings in our perception [[note]] Hold out your thumb at arm's-length. See your thumbnail? That's the portion of your field of view which you actually see in sufficient detail for these words to be legible. Everything else you think you can see? That's just your brain combining (1) eye-signals giving a vague sense of motion and shape and colour with (2) your working memory of what you expect to see there [[/note]], our mental perception (e.g. ConfirmationBias), and our memories themselves. See UsefulNotes/Psychology for more details or, better yet, get your hands on some actual books on it.

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AsYouKnow, this list doesn't even begin to touch the shortcomings in our perception [[note]] Hold out your thumb at arm's-length. See your thumbnail? That's the portion of your field of view which you actually see in sufficient detail for these words to be legible. Everything else you think you can see? That's just your brain combining (1) eye-signals giving a vague sense of motion and shape and colour with (2) your working memory of what you expect to see there [[/note]], our mental perception (e.g. ConfirmationBias), and our memories themselves. See UsefulNotes/Psychology UsefulNotes/{{Psychology}} for more details or, better yet, get your hands on some actual books on it.
4th Mar '17 3:21:04 AM MAI742
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Our brains are hardwired to use logic in the service of our emotional desires and minimise our need for hard thinking. This was perfectly attuned to the needs of proto-humans who needed to advance and maintain their social standing within groups of up to 250 proto-humans, but is remarkably ill-suited to our needs when sound happiness-related decision-making requires so much logical thought. Our brains often lead us to using our money and time in ways that make us unhappy, and so we've compiled a list of our most fundamental cognitive flaws to help you (and us) out.

to:

Our brains are hardwired to use logic in the service of our emotional desires and minimise our need for hard thinking. This was perfectly attuned to the needs of proto-humans who needed to advance and maintain their social standing within groups of up to 250 proto-humans, but is remarkably ill-suited to our needs when sound happiness-related decision-making requires so much logical thought. Our brains often lead us to using our money and time in ways that make us unhappy, not least because the marketing staffs of the world have been making Herculean efforts to understand and so we've compiled optimally exploit our flaws for profit. So here's a list of our most fundamental cognitive flaws to help you (and us) out.
flaws:


Added DiffLines:

AsYouKnow, this list doesn't even begin to touch the shortcomings in our perception [[note]] Hold out your thumb at arm's-length. See your thumbnail? That's the portion of your field of view which you actually see in sufficient detail for these words to be legible. Everything else you think you can see? That's just your brain combining (1) eye-signals giving a vague sense of motion and shape and colour with (2) your working memory of what you expect to see there [[/note]], our mental perception (e.g. ConfirmationBias), and our memories themselves. See UsefulNotes/Psychology for more details or, better yet, get your hands on some actual books on it.
1st Mar '17 2:52:28 AM MAI742
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* '''We instinctively like 'Free' things''', even when there is an objective hidden cost to acquiring them. This is why "Buy one get one FREE" works so well.

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* '''We instinctively like 'Free' things''', even when there is an objective hidden cost to acquiring them. This marketing strategy works because we are not wired to think about the objective costs of actually acquiring that thing, and we are inclined to acquire FREE things even if we don't ordinarily want them. This is why "Buy one get one FREE" works so well.
1st Mar '17 2:43:55 AM MAI742
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* '''The more effort it takes to get something, the more we value it'''. This includes our enjoyment of that thing, which increases relative to that effort. This is related to...

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* '''The more effort it takes to get something, the more we value it'''. This includes our enjoyment relationships with other people, our points of that thing, view, our jobs, and even our appreciation/enjoyment of the thing which we have obtained - which increases relative to that effort. This is related to...
1st Mar '17 2:20:33 AM MAI742
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[[folder: Our Brains and Microeconomic]]

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[[folder: Our Brains and Microeconomic]]
Brains]]
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