We should not be focusing on quick solutions. The really important concern for policymakers everywhere is to prevent disasters - that is, the outlier events that matter the most.
Interpretation
The quote emphasizes the importance of long-term planning over short-term fixes to avoid significant negative events.
Robert J. Shiller highlights that while quick solutions may seem appealing, true leadership focuses on preventing catastrophic events that have far-reaching consequences. Policymakers should prioritize strategies that mitigate risks and safeguard against unforeseen disasters, rather than just addressing immediate issues.
In practice
During a policy conference, this quote can be used to stress the need for long-term strategies in public safety.
Those on the downside of rising economic inequality generally do not want government policies that look like handouts. They typically do not want the government to make the tax system more progressive, to impose punishing taxes on the rich, in order to give the money to them. Redistribution feels demeaning. It feels like being labeled a failure.
Speculative markets have always been vulnerable to illusion. But seeing the folly in markets provides no clear advantage in forecasting outcomes, because changes in the force of the illusion are difficult to predict.
That's the world we live in: when it comes to economics, people have emotions; it's not like chemistry or physics.
Money management has been a profession involving a lot of fakery - people saying they can beat the market, and they really can't.
If we wait until income inequality is much more severe, we will have a whole class of new superrich who will probably feel entitled to their wealth and will have the means to defend their interest. That's already gone far enough. We shouldn't let it become more extreme.
I think that a lot of people in all walks of life have the impression, of course, that, 'I specialize in something. I can't - I don't have the time to read other things. I'll just go to pure entertainment when I'm relaxing, and then I'll come back to my pure specialty.' That produces - that attitude produces idiot savants, unfortunately.
There is a long history of founders returning to companies and doing great things. Founders are able to set the vision for their companies with an authority no one else can.
When I left Dortmund, I said it's not important what people think when you come in but what they think when you leave.
Leaders is the new organisation do not lack motivational tools, but the tools are different from those of traditional corporate bureaucrats. The new rewards are based not on status but on contribution, and they consist not of regular promotion and automatic pay rises, but of excitement about the mission and a share of the glory of success.
Corporate culture matters. How management chooses to treat its people impacts everything - for better or for worse.
What should be the aim of management? What is their job? Quality is the responsibility of the top people. Its origin is in the boardroom. They are the ones who decide.
That was one of the big problems in the [Black Panther] Party. Criticism and self-criticism were not encouraged, and the little that was given often wasnβt taken seriously. Constructive criticism and self-criticism are extremely important for any revolutionary organization. Without them, people tend to drown in their mistakes, not learn from them.
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