Are We Financial Fools?
Is financial illiteracy “rational ignorance”—inattention that is justified because the costs of paying attention outweigh the benefits? The New Yorker says no.
Is financial illiteracy "rational ignorance"— that is justified because the costs of paying attention outweigh the benefits? The New Yorker warns that the depth of our financial ignorance is startling yet few decisions affect us more directly than the ones we make about our money. "The difference between knowing a little about your finances and knowing nothing can amount to hundreds of thousands of dollars over a lifetime." One solution is regulation, to help curb the finance industry’s most predatory excesses, it says. Another is to tinker with "choice architecture", helping nudge people toward better decisions.
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Thinking your life is worthwhile is correlated with a variety of positive outcomes.
- A new study finds that adults who feel their lives are meaningful have better health and life outcomes.
- Adults who felt their lives were worthwhile tended to be more social and had healthier habits.
- The findings could be used to help improve the health of older adults.
Even when they suffer costs in doing so.
- It's commonly thought that the suppression of female sexuality is perpetuated by either men or women.
- In a new study, researchers used economics games to observe how both genders treat sexually-available women.
- The results suggests that both sexes punish female promiscuity, though for different reasons and different levels of intensity.
Jeff Bezos, the founder of Amazon.com, explains his plan for success.
- Jeff Bezos had a clear vision for Amazon.com from the start.
- He was inspired by a statistic he learned while working at a hedge fund: In the '90s, web usage was growing at 2,300% a year.
- Bezos explains why books, in particular, make for a perfect item to sell on the internet.
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