cafeconomics

The much touted neo-liberal philosophies (private sector is given a free-hand with minimum regulation) of minimum government and maximum impact are increasingly being challenged in today's dynamic global landscape. Consider the following reasons: 1. Geo-political tensions: Due to the ever-growing geo-political tensions in the middle-east, Europe(Russia-Ukraine war) etc., defence capabilities and expenditure are taking center stage. The role played by a government's policies is shaping the global alliances and strategies, enhancing defence capabilities is perhaps more important now than any time in the history of the world. 2. Economic inequality and discontent: When the fruits of growth are limited to a privileged few, it is quite normal for the masses to feel discontented. The narratives of 'globalization and its benefits' are being replaced by the ideas of 'sons of soil' and protectionism. In such a situation, the role played by governments in redistribution o...

 Here are some notes from Daniel Kahneman's book 'Thinking Fast and Slow': 1. Contrary to the assumptions of economic models, human beings are not rational.  We often let our heuristics guide our conclusions rather than statistical facts.  2. You find a person with the qualities that are more representative of a librarian than a farmer and you conclude that he must be a librarian. Perhaps you are blind to the statistical fact that there are more number of farmers than librarians in this world. Our perceptions can make us blind to realities. 3. Many of our water cooler conversations at office are based on our own perceptions rather than realities. 4. Halo Effect - you are charmed by a beautiful woman and assume everything she says is correct. You associate one good quality with many other qualities which may not be valid. 5. Expert intuition works like sixth sense. It is your brain responding, perhaps subconsciously. It's like a child looking at a dog and recognizing it....