Incentives Of Life Quotes

Believe me, It would be better if we didn't meet again. Go back to school. Go back to your life. And next time they ask you, say no. Killing is for grown-ups and you're still a child.

My Creed I do not choose to be a common man, It is my right to be uncommon … if I can, I seek opportunity … not security. I do not wish to be a kept citizen. Humbled and dulled by having the State look after me. I want to take the calculated risk; To dream and to build. To fail and to succeed. I refuse to barter incentive for a dole; I prefer the challenges of life To the guaranteed existence; The thrill of fulfillment To the stale calm of Utopia. I will not trade freedom for beneficence Nor my dignity for a handout I will never cower before any master Nor bend to any threat. It is my heritage to stand erect. Proud and unafraid; To think and act for myself, To enjoy the benefit of my creations And to face the world boldly and say: This, with God’s help, I have done All this is what it means To be an Entrepreneur.

People who are bred, selected, and compensated to find complicated solutions do not have an incentive to implement simplified ones.

You do it because it’s who you are and it feels good to be you. The more a habit becomes part of your life, the less you need outside encouragement to follow through. Incentives can start a habit. Identity sustains a habit.

School prepares people for the alienating institutionalization of life, by teaching the necessity of being taught. Once this lesson is learned, people loose their incentive to develop independently; they no longer find it attractive to relate to each other, and the surprises that life offers when it is not predetermined by institutional definition are closed.

Most of us have no sympathy with the rich idler who spends his life in pleasure without ever doing any work. But even he fulfills a function in the life of the social organism. He sets an example of luxury that awakens in the multitude a consciousness of new needs and gives industry the incentive to fulfill them.

Our society does reward beauty on the outside over health on the inside. Women must not be blamed for choosing short-term beauty "fixes" that harm our long-term health, since our life spans are inverted under the beauty myth, and there is no great social or economic incentive for women to live a long time. A thin young woman with precancerous lungs [who smokes to stay thin] is more highly rewarded socially that a hearty old crone. Spokespeople sell women the Iron Maiden [an intrinsically unattainable standard of beauty used to punish women for their failure to achieve and conform to it]and name her "Health": if public discourse were really concerned with women's health, it would turn angrily upon this aspect of the beauty myth.

Pick a leader who will make their citizens proud. One who will stir the hearts of the people, so that the sons and daughters of a given nation strive to emulate their leader's greatness. Only then will a nation be truly great, when a leader inspires and produces citizens worthy of becoming future leaders, honorable decision makers and peacemakers. And in these times, a great leader must be extremely brave. Their leadership must be steered only by their conscience, not a bribe.

A NATION'S GREATNESS DEPENDS ON ITS LEADER To vastly improve your country and truly make it great again, start by choosing a better leader. Do not let the media or the establishment make you pick from the people they choose, but instead choose from those they do not pick. Pick a leader from among the people who is heart-driven, one who identifies with the common man on the street and understands what the country needs on every level. Do not pick a leader who is only money-driven and does not understand or identify with the common man, but only what corporations need on every level. Pick a peacemaker. One who unites, not divides. A cultured leader who supports the arts and true freedom of speech, not censorship. Pick a leader who will not only bail out banks and airlines, but also families from losing their homes -- or jobs due to their companies moving to other countries. Pick a leader who will fund schools, not limit spending on education and allow libraries to close. Pick a leader who chooses diplomacy over war. An honest broker in foreign relations. A leader with integrity, one who says what they mean, keeps their word and does not lie to their people. Pick a leader who is strong and confident, yet humble. Intelligent, but not sly. A leader who encourages diversity, not racism. One who understands the needs of the farmer, the teacher, the doctor, and the environmentalist -- not only the banker, the oil tycoon, the weapons developer, or the insurance and pharmaceutical lobbyist. Pick a leader who will keep jobs in your country by offering companies incentives to hire only within their borders, not one who allows corporations to outsource jobs for cheaper labor when there is a national employment crisis. Choose a leader who will invest in building bridges, not walls. Books, not weapons. Morality, not corruption. Intellectualism and wisdom, not ignorance. Stability, not fear and terror. Peace, not chaos. Love, not hate. Convergence, not segregation. Tolerance, not discrimination. Fairness, not hypocrisy. Substance, not superficiality. Character, not immaturity. Transparency, not secrecy. Justice, not lawlessness. Environmental improvement and preservation, not destruction. Truth, not lies. Most importantly, a great leader must serve the best interests of the people first, not those of multinational corporations. Human life should never be sacrificed for monetary profit. There are no exceptions. In addition, a leader should always be open to criticism, not silencing dissent. Any leader who does not tolerate criticism from the public is afraid of their dirty hands to be revealed under heavy light. And such a leader is dangerous, because they only feel secure in the darkness. Only a leader who is free from corruption welcomes scrutiny; for scrutiny allows a good leader to be an even greater leader. And lastly, pick a leader who will make their citizens proud. One who will stir the hearts of the people, so that the sons and daughters of a given nation strive to emulate their leader's greatness. Only then will a nation be truly great, when a leader inspires and produces citizens worthy of becoming future leaders, honorable decision makers and peacemakers. And in these times, a great leader must be extremely brave. Their leadership must be steered only by their conscience, not a bribe.

In the United States especially, politics and economics don’t mix well. Politicians have all sorts of reasons to pass all sorts of laws that, as well-meaning as they may be, fail to account for the way real people respond to real-world incentives.

You seek escape from pain. We seek the achievement of happiness. You exist for the sake of avoiding punishment. We exist for the sake of earning rewards. Threats will not make us function; fear is not our incentive. It is not death that we wish to avoid, but life that we wish to live

Pay for the person, not the job. Look at what people in comparable jobs with comparable experience and credentials make, add some small premium over that, and build in bonuses or other incentives so they will be motivated to knock the cover off the ball. Never pay based on the job title alone.

Are people innately altruistic?" is the wrong kind of question to ask. People are people, and they respond to incentives. They can nearly always be manipulated--for good or ill--if only you find the right levers.

I do not choose to be a common person. It is my right to be uncommon-- if I can. I seek opportunity--not security. I do not wish to be a kept citizen, humbled and dulled by having the State look after me. I want to take the calculated risk--to dream and to build, to fail and to succeed. I refuse to barter incentive for a dole; I prefer the challenges of life to the guaranteed existence, the thrill of fulfillment to the stale calm of Utopia. I will not trade freedom for beneficence nor my dignity for a handout. I will never cower before any master nor bend to any threat. It is my heritage to stand erect, proud and unafraid, to think and to act for myself, to enjoy the benefit of my creations and to face the world boldly and say, This, with God's help, I have done. All this is what it means to be an Entrepreneur!

following of authority in any form, whether self-imposed or established from outside, as well as any form of imitation, copying, is destructive of incentive, of creativeness, and that it blocks the discovery of what is true.

Death is not a release, but an incentive. The more focused you are on your death, the more righteously you live your life.

I do not choose to be a common man…it is my right to be uncommon—if I can…I seek opportunity—not security…I want to take the calculated risk; to dream and to build, to fail and to succeed… to refuse to barter incentive for a dole… I prefer the challenges of life to the guaranteed existence, the thrill of fulfillment to the stale calm of utopias….

The Lord's appearing, His coming back, is a warning, an encouragement, and an incentive to us; we should love His appearing and look forward to it with earnest expectation and joy.

People aren’t “good” or “bad.” People are people, and they respond to incentives. They can nearly always be manipulated—for good or ill—if only you find the right levers.

I speak of a tragic optimism, that is, an optimism in the face of tragedy and in view of the human potential which at its best always allows for: (1) turning suffering into a human achievement and accomplishment; (2) deriving from guilt the opportunity to change oneself for the better; and (3) deriving from life’s transitoriness an incentive to take responsible action.

Incentives are the cornerstone of modern life. And understanding them — or, often, ferreting them out — is the key to solving just about any riddle, from violent crime to sports cheating to online dating.

Most of economics can be summarized in four words: “People respond to incentives.” The rest is commentary.

People who buy annuities, it turns out, live longer than people who don’t, and not because the people who buy annuities are healthier to start with. The evidence suggests that an annuity’s steady payout provides a little extra incentive to keep chugging along.

Life’s a brawl. You must fight for what you want.

A goal without real consequences is wishful thinking. Good follow-through doesn't depend on the right intentions. It depends on the right incentives.

Today I realized that I am nothing more than tomorrow's ghost. In a way, it robs my sense of self to know I'm always changing; at the same time, it provides incentive to have the best today possible so I can have a positive influence on tomorrow and, if need be, shake some sense into the living. (Samantha Green)

Sometimes I think my ability to concentrate is being nibbled away by the internet; other times I think it's being gulped down in huge, Jaws-shaped chunks. In those quaint days before the internet, once you made it to your desk there wasn't much to distract you. You could sit there working or you could just sit there. Now you sit down and there's a universe of possibilities – many of them obscurely relevant to the work you should be getting on with – to tempt you. To think that I can be sitting here, trying to write something about Ingmar Bergman and, a moment later, on the merest whim, can be watching a clip from a Swedish documentary about Don Cherry – that is a miracle (albeit one with a very potent side-effect, namely that it's unlikely I'll ever have the patience to sit through an entire Bergman film again). Then there's the outsourcing of memory. From the age of 16, I got into the habit of memorising passages of poetry and compiling detailed indexes in the backs of books of prose. So if there was a passage I couldn't remember, I would spend hours going through my books, seeking it out. Now, in what TS Eliot, with great prescience, called "this twittering world", I just google the key phrase of the half-remembered quote. Which is great, but it's drained some of the purpose from my life. Exactly the same thing has happened now that it's possible to get hold of out-of-print books instantly on the web. That's great too. But one of the side incentives to travel was the hope that, in a bookstore in Oregon, I might finally track down a book I'd been wanting for years. All of this searching and tracking down was immensely time-consuming – but only in the way that being alive is time-consuming.

The argument was this: a civilization shackled to the strictures of excessive control on its populace, from choice of religion through to the production of goods, will sap the will and the ingenuity of its people – for whom such qualities are no longer given sufficient incentive or reward. At face value, this is accurate enough. Trouble arrives when the opponents to such a system institute its extreme opposite, where individualism becomes godlike and sacrosanct, and no greater service to any other ideal (including community) is possible. In such a system rapacious greed thrives behind the guise of freedom, and the worst aspects of human nature come to the fore, a kind of intransigence as fierce and nonsensical as its maternalistic counterpart. And so, in the clash of these two extreme systems, one is witness to brute stupidity and blood-splashed insensitivity; two belligerent faces glowering at each other across the unfathomed distance, and yet, in deed and in fanatic regard, they are but mirror reflections. This would be amusing if it weren’t so pathetically idiotic…

Every Daydream-hope starts with little incentives !

How does paying people more money make you more money? It works like this. The more you pay your workers, the more they spend. Remember, they're not just your workers- they're your consumers, too. The more they spend their extra cash on your products, the more your profits go up. Also, when employees have enough money that they don't have to live in constant fear of bankruptcy, they're able to focus more on their work- and be more productive. With fewer personal problems and less stress hanging over them, they'll lose less time at work, meaning more profits for you. Pay them enough to afford a late model car (i.e. one that works), and they'll rarely be late for work. And knowing that they'll be able to provide a better life for their children will not only give them a more positive attitude, it'll give them hope- and an incentive to do well for the company because the better the company does, the better they'll do. Of course, if you're like most corporations these days- announcing mass layoffs right after posting record profits- then you're already hemorrhaging the trust and confidence of your remaining workforce, and your employees are doing their jobs in a state of fear. Productivity will drop. That will hurt sales. You will suffer. Ask the people at Firestone: Ford has alleged that the tire company fired its longtime union employees, then brought in untrained scab workers who ended up making thousands of defective tires- and 203 dead customers later, Firestone is in the toilet.

If you wanted to predict how people would behave, Munger said, you only had to look at their incentives. FedEx couldn’t get its night shift to finish on time; they tried everything to speed it up but nothing worked—until they stopped paying night shift workers by the hour and started to pay them by the shift. Xerox created a new, better machine only to have it sell less well than the inferior older ones—until they figured out the salesmen got a bigger commission for selling the older one. “Well, you can say, ‘Everybody knows that,’ ” said Munger. “I think I’ve been in the top five percent of my age cohort all my life in understanding the power of incentives, and all my life I’ve underestimated it. And never a year passes but I get some surprise that pushes my limit a little

I was all too aware that life wasn't free, that it costs us each something, but I had already paid more than my fair share, giving up that gave me incentive to live in the first place. Life had cost me everything. I had nothing left to lose.

We have made money our god and called it the good life. We have trained our children to go for jobs hat bring the quickest corporate advancements at the highest financial levels. We have taught them careerism but not ministry and wonder why ministers are going out of fashion. We fear coddling the poor with food stamps while we call tax breaks for the rich business incentives. We make human community the responsibility of government institutions while homelessness, hunger, and drugs seep from the centers of our cities like poison from open sores for which we do not seek either the cause or the cure. We have created a bare and sterile world of strangers where exploitation is a necessary virtue. We have reduced life to the lowest of values so that the people who have much will not face the prospect of having less. Underlying all of it, we have made women the litter bearers of a society where disadvantage clings to the bottom of the institutional ladder and men funnel to the top, where men are privileged and women are conscripted for the comfort of the human race. We define women as essential to the development of the home but unnecessary to the development of society. We make them poor and render them powerless and shuttle them from man to man. We sell their bodies and question the value of their souls. We call them unique and say they have special natures, which we then ignore in their specialness. We decide that what is true of men is true of women and then say that women are not as smart as men, as strong as men, or as capable as men. We render half the human race invisible and call it natural. We tolerate war and massacre, mayhem and holocaust to right the wrongs that men say need righting and then tell women to bear up and accept their fate in silence when the crime is against them. What’s worse, we have applauded it all—the militarism, the profiteering, and the sexisms—in the name of patriotism, capitalism, and even religion. We consider it a social problem, not a spiritual one. We think it has something to do with modern society and fail to imagine that it may be something wrong with the modern soul. We treat it as a state of mind rather than a state of heart. Clearly, there is something we are failing to see.

No intelligent radical can fail to realize the need of the rational education of the young. The rearing of the child must become a process of liberation by methods which shall not impose ready-made ideas, but which should aid the child's natural self-unfoldment. The purpose of such an education is not to force the child's adaptation to accepted concepts. but to give free play to his [and her] originality, initiative, and individuality. Only by freeing education from compulsion and restraint can we create the environment for the manifestation of the spontaneous interest and inner incentives on the part of the child. Only thus can we supply rational conditions favorable to the development of the child's natural tendencies and his latent emotional and mental faculties. Such methods of education, essentially aiding the child's imitative quality and ardor for knowledge, will develop a generation of healthy intellectual independence. It will produce men and women capable, in the words of Francisco Ferrer, “of evolving without stopping, of destroying and renewing their environment without cessation; of renewing themselves also; always ready to accept what is best, happy in the triumph of new ideas, aspiring to live multiple lives in one life.

Incentives are the cornerstone of modern life. And understanding them—or, often, deciphering them—is the key to understanding a problem, and how it might be solved.

when we have no memory or little imagination of an alternative to a life centered on work, there are few incentives to reflect on why we work as we do and what we might wish to do instead.

I'd like to meet the pilot before we take off. Get his credentials and all. Maybe he's willing to take a bribe." "A bribe? Henry, if the plane crashes, he's going to be dead too. I'm pretty sure survival is more than enough incentive for him." "Maybe, but what if he has a massive gambling debt and needs the life insurance money to take care of his twelve children and handicapped wife?

Europe, he says, is frightened that an influx of foreigners will erode European values. But what values will there to be uphold if we abandon our duty to protect those less fortunate than ourselves? Wat incentive do we give to refugees to maintain the fabric of our society if that fabric is so ragged in the first place? "If Europe is not able to show a better way of life to them, then they will think that their morality is better than ours." "They need to face some higher standards of morality, " he says. "If not, they will set their own." [Quoting Serbian priest Tibor Varga]

The only way of life satisfying the need of all times must be motivated by incentives and rewards – materially, morally and spiritually because motivation for work is produced by incentives and rewards only, an aspect built into the fundamental specification of human nature itself. Any prescription not recognising this important aspect of life is bound to fail in the life-styles of human beings.

When the solution to a given problem doesn’t lay right before our eyes, it is easy to assume that no solution exists. But history has shown again and again that such assumptions are wrong. This is not to say the world is perfect. Nor that all progress is always good. Even widespread societal gains inevitably produce losses for some people. That’s why the economist Joseph Schumpeter referred to capitalism as “creative destruction.” But humankind has a great capacity for finding technological solutions to seemingly intractable problems, and this will likely be the case for global warming. It isn’t that the problem isn’t potentially large. It’s just that human ingenuity—when given proper incentives—is bound to be larger. Even more encouraging, technological fixes are often far simpler, and therefore cheaper, than the doomsayers could have imagined. Indeed, in the final chapter of this book we’ll meet a band of renegade engineers who have developed not one but three global-warming fixes, any of which could be bought for less than the annual sales tally of all the Thoroughbred horses at Keeneland auction house in Kentucky.

The gym exposes deficiencies in our bodies’ strength and stamina—and appearance. You can wear all kinds of daytime clothes that hide or minimize aspects of your body that you would like to be less visible to the eye. But in the gym, you cannot hide them. There you and your coach (and unfortunately everyone around you) can see where you bulge where you shouldn’t. It’s an incentive to get to work. And so this metaphor tells us that when life is going along just fine, the flaws in our character can be masked and hidden from others and from ourselves. But when troubles and difficulties hit, we are suddenly in “God’s gymnasium”—we are exposed. Our inner anxieties, our hair-trigger temper, our unrealistic regard of our own talents, our tendency to lie or shade the truth, our lack of self-discipline—all of these things come out.

Eons of evolution gave you and me a brain in a near-constant state of discontentment. We’re wired this way for a simple reason. As a study published in the Review of General Psychology notes, “If satisfaction and pleasure were permanent, there might be little incentive to continue seeking further benefits or advances.

In the United States I saw how the market liberates the individual and allows people to be free to make personal choices. But the biggest drawback was that the market always pushes things to the side of the powerful. I thought the poor should be able to take advantage of the system in order to improve their lot. Grameen is a private-sector self-help bank, and as its members gain personal wealth they acquire water-pumps, latrines, housing, education, access to health care, and so on. Another way to achieve this is to let abusiness earn profit that is then txed by the government, and the tax can be used to provide services to the poor. But in practice it never works that way. In real life, taxes only pay for a government bureaucracy that collects the tax and provides little or nothing to the poor. And since most government bureaucracies are not profit motivated, they have little incentive to increase their efficiency. In fact, they have a disincentive: governments often cannot cut social services without a public outcry, so the behemoth continues, blind and inefficient, year after year.

How does anyone lose against the Foxes with Andrew in your goal?" "He's good, right? [...] Coach bribed Andrew into saving our collective asses with some really nice booze." "Bribed?" Neil echoed. "Andrew's good," Nicky said again, "but it doesn't really matter to him if we win or lose. You want him to care, you gotta give him incentive." "He can't play like that and not care." "Now you sound like Kevin. You'll find out the hard way, same as Kevin did. Kevin gave Andrew a lot of grief this spring [...]. Andrew walked off the court for an entire month. He said he'd break his own fingers if Coach made him play with Kevin again." The thought of Andrew willingly destroying his talent made Neil's heart clench. "But he's playing now." [...] "Only because Kevin is. Kevin got back on the court with a racquet in his right hand, and Andrew wasn't far behind him. Up until then they were fighting like cats and dogs. Now look at them. They're practically trading friendship bracelets and I couldn't fit a crowbar between them if it'd save my life." "But why?" Neil asked. "Andrew hates Kevin's obsession with Exy." "The day they start making sense to you, let me know," Nicky said [...]. "I gave up trying to sort it all out weeks ago.

I do not choose to be a common man. It is my right to be uncommon—if I can. I seek opportunity—not security. I do not wish to be a kept citizen, humbled and dulled by having the state look after me. I want to take the calculated risk; to dream and to build, to fail and to succeed. I refuse to barter incentive for a dole. I prefer the challenges of life to the guaranteed existence; the thrill of fulfillment to the stale calm of utopia. I will not trade freedom for beneficence nor my dignity for a handout. I will never cower before any master nor bend to any threat. It is my heritage to stand erect, proud and unafraid; to think and act for myself, enjoy the benefit of my creations, and to face the world boldly and say, this I have done.

I’d driven past this old gas station all my life and had mourned as the vegetation took it over and began to pull it down over the past few years. I knew, though, that no one in our rural mountain county was going to buy the place, not after someone had been murdered there twenty years ago. A single gas pump on a country road wasn’t enough incentive to take on that bad mojo.

Jesus offered a single incentive to follow him; it was woven into all he said and did. Here is how I would after twenty-four years of following summarize his selling point: "Follow me, and you might be happy--or you might not. Follow me, and might be empowered--or you might not. Follow me, and you might have more friends--or you might not. Follow me, and you might have the answers--or you might not. Follow me, and you might be better off--or you might not. If you follow me, you may be worse off in every way you use to measure life. Follow me nevertheless. Because I have an offer that is worth giving up everything you have: you will learn to love well.

There are crimes of which the motive is want; and for these Phaleas expects to find a cure in the equalization of property, which will take away from a man the temptation to be a highwayman, because he is hungry or cold. But want is not the sole incentive to crime; men also wish to enjoy themselves and not to be in a state of desire- they wish to cure some desire, going beyond the necessities of life, which preys upon them; nay, this is not the only reason- they may desire superfluities in order to enjoy pleasures unaccompanied with pain, and therefore they commit crimes.

It’s not the drug that causes the junkie it’s the laws that causes the junkie because of course the drug laws means that he can’t go and get help because he is afraid of being arrested. He also can’t have a normal life because the war on drugs has made drugs so expensive and has made drug contracts unenforceable which means they can only be enforced through criminal violence. It becomes so profitable to sell drugs to addicts that the drug dealers have every incentive to get people addicted by offering free samples and to concentrate their drug to the highest possible dose to provoke the greatest amount of addiction as possible. Overall it is a completely staggering and completely satanic human calamity. It is the new gulag and in some ways much more brutal than the soviet gulag. In the soviet gulags there was not a huge prison rape problem and in this situation your life could be destroyed through no fault of your own through sometimes, no involvement of your own and the people who end up in the drug culture are walled off and separated as a whole and thrown into this demonic, incredibly dangerous, underworld were the quality of the drugs can’t be verified. Were contracts can’t be enforced except through breaking peoples kneecaps and the price of drugs would often led them to a life of crime. People say “well, I became a drug addict and I lost my house, family, and my job and all that.” It’s not because you became a drug addict but, because there is a war on drugs which meant that you had to pay so much for the drugs that you lost your house because you couldn't go and find help or substitutes and ended up losing your job. It’s all nonsense. The government can’t keep drugs out of prisons for heaven’s sakes. The war on drugs is not designed to be won. Its designed to continue so that the government can get the profits of drug running both directly through the CIA and other drug runners that are affiliated or through bribes and having the power of terrorizing the population. To frame someone for murder is pretty hard but to palm a packet of cocaine and say that you found it in their car is pretty damn easy and the government loves having that power." -Stefan Molyneux

Where's the incentive to be frugal with life's pleasures, to save up the pages in your favourite book for later, if you're going to be plunged into the darkened abyss at some arbitrary hour? If life is a book, then read it while you can. Don't save up any pages for later, because there might not be one.

Other and more powerful forms of association have existed, but the major moral and psychological influences on the individual’s life have emanated from the family and local community and the church. Within such groups have been engendered the primary types of identification: affection, friendship, prestige, recognition. And within them also have been engendered or intensified the principal incentives of work, love, prayer, and devotion to freedom and order.

I have the better right to indulgence herein, because my devotion to letters strengthens my oratorical powers, and these, such as they are, have never failed my friends in their hour of peril. Yet insignificant though these powers may seem to be, I fully realize from what source I draw all that is highest in them. Had I not persuaded myself from my youth up, thanks to the moral lessons derived from a wide reading, that nothing is to be greatly sought after in this life save glory and honour, and that in their quest all bodily pains and all dangers of death or exile should be lightly accounted, I should never have borne for the safety of you all the burnt of many a bitter encounter, or bared my breast to the daily onsets of abandoned persons. All literature, all philosophy, all history, abounds with incentives to noble action, incentives which would be buried in black darkness were the light of the written word not flashed upon them.

The real problem here is that we’re all dying. All of us. Every day the cells weaken and the fibres stretch and the heart gets closer to its last beat. The real cost of living is dying, and we’re spending days like millionaires: a week here, a month there, casually spunked until all you have left are the two pennies on your eyes. Personally, I like the fact we’re going to die. There’s nothing more exhilarating than waking up every morning and going ‘WOW! THIS IS IT! THIS IS REALLY IT!’ It focuses the mind wonderfully. It makes you love vividly, work intensely, and realise that, in the scheme of things, you really don’t have time to sit on the sofa in your pants watching Homes Under the Hammer. Death is not a release, but an incentive. The more focused you are on your death, the more righteously you live your life. My traditional closing-time rant – after the one where I cry that they closed that amazing chippy on Tollington Road; the one that did the pickled eggs – is that humans still believe in an afterlife. I genuinely think it’s the biggest philosophical problem the earth faces. Even avowedly non-religious people think they’ll be meeting up with nana and their dead dog, Crackers, when they finally keel over. Everyone thinks they’re getting a harp. But believing in an afterlife totally negates your current existence. It’s like an insidious and destabilising mental illness. Underneath every day – every action, every word – you think it doesn’t really matter if you screw up this time around because you can just sort it all out in paradise. You make it up with your parents, and become a better person and lose that final stone in heaven. And learn how to speak French. You’ll have time, after all! It’s eternity! And you’ll have wings, and it’ll be sunny! So, really, who cares what you do now? This is really just some lacklustre waiting room you’re only going to be in for 20 minutes, during which you will have no wings at all, and are forced to walk around, on your feet, like pigs do. If we wonder why people are so apathetic and casual about every eminently avoidable horror in the world – famine, war, disease, the seas gradually turning piss-yellow and filling with ringpulls and shattered fax machines – it’s right there. Heaven. The biggest waste of our time we ever invented, outside of jigsaws. Only when the majority of the people on this planet believe – absolutely – that they are dying, minute by minute, will we actually start behaving like fully sentient, rational and compassionate beings. For whilst the appeal of ‘being good’ is strong, the terror of hurtling, unstoppably, into unending nullity is a lot more effective. I’m really holding out for us all to get The Fear. The Fear is my Second Coming. When everyone in the world admits they’re going to die, we’ll really start getting some stuff done.

I want my students to learn what life readers know: reading is its own reward. Reading is a university course in life; it makes us smarter by increasing our vocabulary and background knowledge of countless topics. Reading allows us to travel to destinations that we will never experience outside of the pages of a book. Reading is a way to find friends who have the same problems we do and who can give advice on solving those problems. Through reading, we can witness all that is noble, beautiful, or horrifying about other human beings. From a book’s characters, we can learn how to conduct ourselves. And most of all, reading is a communal act that connects you to other readers, comrades who have traveled to the same remarkable places that you have and been changed by them, too. Rewarding reading with prizes cheapens it, and undermines students’ chance to appreciate the experience of reading for the possibilities that it brings to their life. For students who read a lot, these programs are neither an incentive, nor a challenge. Yes, my classes participate in the schoolwide incentive programs when they are offered; after all, they would blaze past the requirements anyway. But I never let my students lose sight of what the true prize is; an appreciation of reading will add more to their life than a hundred days at Six Flags ever could.

what matters is to make the best of any given situation. “The best,” however, is that which in Latin is called optimum—hence the reason I speak of a tragic optimism, that is, an optimism in the face of tragedy and in view of the human potential which at its best always allows for: (1) turning suffering into a human achievement and accomplishment; (2) deriving from guilt the opportunity to change oneself for the better; and (3) deriving from life’s transitoriness an incentive to take responsible action.

The man who is respected merely for being the son of his father loses one of the normal incentives to useful effort. He is likely to develop views of life which attach undue importance to the accident of birth and to think that by merely existing he does enough to command respect. He believes himself rather better than other men and therefore becomes rather worse. All distinctions not based upon intrinsic merit have this bad effect upon character and on this ground, if on no other, deserve to be abolished,

A civil servant can make rules that are friendly to an industry such as banking—and then go off to J.P. Morgan and recoup a multiple of the difference between his or her current salary and the market rate. (Regulators, you may recall, have an incentive to make rules as complex as possible so their expertise can later be hired at a higher price.)

There are moments when the future looks so black that one is afraid to let one's thoughts dwell on it, refuses to let one's mind function and tries to convince oneself that the future will not be, and the past has not been. At such moments, when the will is not governed or modified by reflection and the only incentives that remain in life are our physical instincts, I can understand how a child, being particularly prone owing to lack of experience to fall into such a state, may without the least hesitation or fear, with a smile of curiosity deliberately set fire to his own house - and then fan the flames where is brothers, his father an his mother, all of who he loves dearly, are sleeping.

When you’re deciding whether to motivate someone, you should first think about whether your incentive might crowd out the willingness to perform well without an incentive

The individual’s incentives must be aligned with the group’s goals.

Disregard nuisances and obstacles, for they are merely a brush-stroke on the bigger picture

This is the danger of any collaboration. Sometimes the collaborators don’t share the same incentives or the same vision. Their vision was based on their experience.

The best incentives in the life of a person involved in sales can be offering valuable products and solving end user problems. No bonus can replace that. Remember that.

I think there’s this expectation that confinement alone will create the incentive and the means for an individual to make a change in their life. But it doesn’t.

The list total isn't important, but the birds themselves are important. Every bird you see. So the list is just a frivolous incentive for birding, but the birding itself is worthwhile.

Nature gave us one hell of an incentive to have sex in the form of the great pleasure it provides, even though the purpose of having sex is to contribute to the advancement of the DNA.

This "want-to-hard-enough" is the great inciting power in life. Desire is the fire which rouses up the steam of Will. Without Incentive – and that means Desire – we accomplish nothing.

One of the most important lessons in my life is this: leave more on the table for the other guy than he thinks he should get. And one of the most important rules in capitalism is incentive.

Whenever we sin, we endeavor to frustrate the aim and purpose of the entire life, death and ministry of Jesus Christ! If this doesn’t work as an incentive for living a holy life, nothing will.

So what is the reality of greatness? Nietzsche came to the same conclusion Dan Chambliss did. Great things are accomplished by those “people whose thinking is active in one direction, who employ everything as material, who always zealously observe their own inner life and that of others, who perceive everywhere models and incentives, who never tire of combining together the means available to them.

The incentive is to fight anarchy. That’s all Man lives for. Reclaiming life from its natural muddle. Making patterns.” “Patterns for what?” “For the sake of patterns. To create meaning. What else is there?

It is a wonderful quirk of our species that the incentives of social life don’t reward strictly ruthless behavior. Leaders who are too domineering are often penalized. Rampant lying and cheating are often caught and punished. Freeloaders frequently get the boot. At the same time, people are often positively rewarded—with friendship, social status, a better reputation—for their service to others. As if our oversized brains and hairless skin didn’t make us an uncanny enough species, our genes long ago decided that, in the relentless competition to survive and reproduce, their best strategy was to build ethical brains.

As a medium, the internet is defined by a built-in performance incentive. In real life, you can walk around living life and be visible to other people. But you can’t just walk around and be visible on the internet—for anyone to see you, you have to act. You have to communicate in order to maintain an internet presence. And, because the internet’s central platforms are built around personal profiles, it can seem—first at a mechanical level, and later on as an encoded instinct—like the main purpose of this communication is to make yourself look good. Online reward mechanisms beg to substitute for offline ones, and then overtake them.

turning suffering into a human achievement and accomplishment; (2) deriving from guilt the opportunity to change oneself for the better; and (3) deriving from life’s transitoriness an incentive to take responsible action.

the diverse individuals in the community are no longer incentives for talking and judging and condemning, and thus excuses for self-justification. They are rather cause for rejoicing in one another and serving one another.

(1) turning suffering into a human achievement and accomplishment; (2) deriving from guilt the opportunity to change oneself for the better; and (3) deriving from life’s transitoriness an incentive to take responsible action.

Humans have the potential of turning suffering into a human achievement and accomplishment; deriving from guilt the opportunity to change oneself for the better; and deriving from life’s transitoriness an incentive to take responsible action.

Far back in history, there is evidence that men who have attempted to solve the riddle of water have been bitterly attacked. Every attempt to explain the nature of water in old books has been demolished in the later editions. In any case, maintaining the sense of mystery about water ensures the prosperity of the capital intensive economy, for financial interest thrives only on a defective economy. If the riddle surrounding the origins of water were solved, it would be possible to make as much pure water available as required at any location; in this way vast areas of desert would become fertile. As a consequence, the selling values of the produce would sink so low that there would be no more incentive to speculate, or to develop agricultural machinery. The concept of unrestricted production and cheap machine power is so revolutionary, that the way of life all over the world would experience a change. Maintaining the mystery of water, therefore, maintains the value of capital, so every attempt to come nearer to an explanation is attacked.

A secular morality teaches that what man thinks, says, and does lives after him and influences for good or ill future generations. This is a higher, nobler, and greater, incentive to righteousness than any life of personal reward or fear of punishment in a future life.

human potential which at its best always allows for: (1) turning suffering into a human achievement and accomplishment; (2) deriving from guilt the opportunity to change oneself for the better; and (3) deriving from life’s transitoriness an incentive to take responsible action.

My desire to work—my desire to engage with my creativity as intimately and as freely as possible—is my strongest personal incentive to fight back against pain, by any means necessary, and to fashion a life for myself that is as sane and healthy and stable as it can possibly be. But

Imagine how profoundly trustworthy you would be to the people who work for you if they felt no problem could arise between you that you were not prepared to own. Imagine how much incentive they would have to cooperate if they knew they could count on you to clear the pathways for accomplishment.

Any system that penalizes success and accomplishment is wrong. Any system that discourages work, discourages productivity, discourages economic progress, is wrong. If, on the other hand, you reduce tax rates and allow people to spend or save more of what they earn, they’ll be more industrious; they’ll have more incentive to work hard, and money they earn will add fuel to the great economic machine that energizes our national progress. The result: more prosperity for all—and more revenue for government. A few economists call this principle supply-side economics. I just call it common sense.

This is how power works. The ones at the top make use of ideals, beliefs and money to entice those below them to give up their lives. People want to find some lofty reason for existence, or else to lead a quiet life. You’d need to give them a big incentive for them to willingly enslave themselves. If

Embrace Reality and Deal with It 1.1 Be a hyperrealist. a. Dreams + Reality + Determination = A Successful Life. 1.2 Truth—or, more precisely, an accurate understanding of reality—is the essential foundation for any good outcome. 1.3 Be radically open-minded and radically transparent. a. Radical open-mindedness and radical transparency are invaluable for rapid learning and effective change. b. Don’t let fears of what others think of you stand in your way. c. Embracing radical truth and radical transparency will bring more meaningful work and more meaningful relationships. 1.4 Look to nature to learn how reality works. a. Don’t get hung up on your views of how things “should” be because you will miss out on learning how they really are. b. To be “good,” something must operate consistently with the laws of reality and contribute to the evolution of the whole; that is what is most rewarded. c. Evolution is the single greatest force in the universe; it is the only thing that is permanent and it drives everything. d. Evolve or die. 1.5 Evolving is life’s greatest accomplishment and its greatest reward. a. The individual’s incentives must be aligned with the group’s goals. b. Reality is optimizing for the whole—not for you. c. Adaptation through rapid trial and error is invaluable. d. Realize that you are simultaneously everything and nothing—and decide what you want to be. e. What you will be will depend on the perspective you have. 1.6 Understand nature’s practical lessons. a. Maximize your evolution. b. Remember “no pain, no gain.” c. It is a fundamental law of nature that in order to gain strength one has to push one’s limits, which is painful. 1.7 Pain + Reflection = Progress. a. Go to the pain rather than avoid it. b. Embrace tough love. 1.8 Weigh second- and third-order consequences. 1.9 Own your outcomes. 1.10 Look at the machine from the higher level. a. Think of yourself as a machine operating within a machine and know that you have the ability to alter your machines to produce better outcomes. b. By comparing your outcomes with your goals, you can determine how to modify

Once there were three tribes. The Optimists, whose patron saints were Drake and Sagan, believed in a universe crawling with gentle intelligence—spiritual brethren vaster and more enlightened than we, a great galactic siblinghood into whose ranks we would someday ascend. Surely, said the Optimists, space travel implies enlightenment, for it requires the control of great destructive energies. Any race which can't rise above its own brutal instincts will wipe itself out long before it learns to bridge the interstellar gulf. Across from the Optimists sat the Pessimists, who genuflected before graven images of Saint Fermi and a host of lesser lightweights. The Pessimists envisioned a lonely universe full of dead rocks and prokaryotic slime. The odds are just too low, they insisted. Too many rogues, too much radiation, too much eccentricity in too many orbits. It is a surpassing miracle that even one Earth exists; to hope for many is to abandon reason and embrace religious mania. After all, the universe is fourteen billion years old: if the galaxy were alive with intelligence, wouldn't it be here by now? Equidistant to the other two tribes sat the Historians. They didn't have too many thoughts on the probable prevalence of intelligent, spacefaring extraterrestrials— but if there are any, they said, they're not just going to be smart. They're going to be mean. It might seem almost too obvious a conclusion. What is Human history, if not an ongoing succession of greater technologies grinding lesser ones beneath their boots? But the subject wasn't merely Human history, or the unfair advantage that tools gave to any given side; the oppressed snatch up advanced weaponry as readily as the oppressor, given half a chance. No, the real issue was how those tools got there in the first place. The real issue was what tools are for. To the Historians, tools existed for only one reason: to force the universe into unnatural shapes. They treated nature as an enemy, they were by definition a rebellion against the way things were. Technology is a stunted thing in benign environments, it never thrived in any culture gripped by belief in natural harmony. Why invent fusion reactors if your climate is comfortable, if your food is abundant? Why build fortresses if you have no enemies? Why force change upon a world which poses no threat? Human civilization had a lot of branches, not so long ago. Even into the twenty-first century, a few isolated tribes had barely developed stone tools. Some settled down with agriculture. Others weren't content until they had ended nature itself, still others until they'd built cities in space. We all rested eventually, though. Each new technology trampled lesser ones, climbed to some complacent asymptote, and stopped—until my own mother packed herself away like a larva in honeycomb, softened by machinery, robbed of incentive by her own contentment. But history never said that everyone had to stop where we did. It only suggested that those who had stopped no longer struggled for existence. There could be other, more hellish worlds where the best Human technology would crumble, where the environment was still the enemy, where the only survivors were those who fought back with sharper tools and stronger empires. The threats contained in those environments would not be simple ones. Harsh weather and natural disasters either kill you or they don't, and once conquered—or adapted to— they lose their relevance. No, the only environmental factors that continued to matter were those that fought back, that countered new strategies with newer ones, that forced their enemies to scale ever-greater heights just to stay alive. Ultimately, the only enemy that mattered was an intelligent one. And if the best toys do end up in the hands of those who've never forgotten that life itself is an act of war against intelligent opponents, what does that say about a race whose machines travel between the stars?

The transition from foreign enemies to domestic enemies is a natural sequence when safety is emphasized over liberty. It involves the FISA court, PATRIOT Act authority, out of control NSA surveillance, and enthusiastic presidential use of the Espionage Act of 1917 to suppress and intimidate truth-tellers and whistle-blowers. We have an FBI that participates in and encourages the process by breaking laws in its sting operations and entrapments. Plus, there are illegal seizures of property at all levels of government. Property confiscated is not turned over to general government revenue. Instead, it automatically is put in the treasury of the policing organization that did the confiscating. This process is dangerous; it systematically undermines our liberty while providing funding and perverse incentives for organizations that do the policing. This brings to mind the CIA using drug money to finance secret activities during Iran-Contra.

If you’re asking the schools to be the answer, you’re also asking a lot. If you take a kid from a bad background and expect the overburdened teachers to turn him around in seven hours a day, it might or might not happen. What about the other seventeen hours in a day? People often ask us if, through our research and experience, we can now predict which children are likely to become dangerous in later life. Roy Hazelwood’s answer is, “Sure. But so can any good elementary school teacher.” And if we can get them treatment early enough and intensively enough, it might make a difference. A significant role-model adult during the formative years can make a world of difference. Bill Tafoya, the special agent who served as our “futurist” at Quantico, advocated a minimum of a ten-year commitment of money and resources on the magnitude of what we sent into the Persian Gulf. He calls for a wide-scale reinstatement of Project Head Start, one of the most effective long-term, anticrime programs in history. He doesn’t think more police are the answer, but he would bring in “an army of social workers” to provide assistance for battered women, homeless families with children, to find good foster homes. And he would back it all up with tax incentive programs. I’m not sure this is the total answer, but it would certainly be an important start. Because the sad fact is, the shrinks can battle all they want, and my people and I can use psychology and behavioral science to help catch the criminals, but by the time we get to use our stuff, the severe damage has already been done.

I think my political transformation began with my exposure to the business-as-usual attitude of many civil service bureaucrats during the war; then came the attempted Communist take-over of the picture business, which a lot of my liberal friends refused to admit ever happened; next, I had a brief experience living in a country that promised the kind of womb-to-tomb utopian benevolence a lot of these liberal friends wanted to bring to America. In 1949, I spent four months in England filming The Hasty Heart while the Labor Party was in power. I saw firsthand how the welfare state sapped incentive to work from many people in a wonderful and dynamic country.

Her parties are always the best. She gets the top shelf liquor and plays only eighties music, which is fine by me. Dancing drunk to the eighties is life. But, more than that, she makes a point of inviting handsome men as an incentive for her girlfriends to attend. I’d be fine with just the expensive booze, but I suppose the scenery is a nice plus.

Our study suggests that given the right culture, women are as competitively inclined as men, and even more so in many situations. Competitiveness, then, is not only set by evolutionary forces that dictate that men are naturally more so inclined than women. The average woman will compete more than the average man if the right cultural incentives are in place.

My desire to work—my desire to engage with my creativity as intimately and as freely as possible—is my strongest personal incentive to fight back against pain, by any means necessary, and to fashion a life for myself that is as sane and healthy and stable as it can possibly be. But that’s only because of what I have chosen to trust, which is quite simply: love.

The analysis of the psychological motivations behind certain doctrines or ideas can never be a substitute for a rational judgment of the validity of the doctrine and of the values which it implies, although such analysis may lead to a better understanding of the real meaning of a doctrine and thereby influence one’s value judgment. What the psychological analysis of doctrines can show is the subjective motivations which make a person aware of certain problems and make him seek for answers in certain directions. Any kind of thought, true or false, if it is more than a superficial conformance with conventional ideas, is motivated by the subjective needs and interests of the person who is thinking. It happens that some interests are furthered by finding the truth, others by destroying it. But in both cases the psychological motivations are important incentives for arriving at certain conclusions. We can go even further and say that ideas which are not rooted in powerful needs of the personality will have little influence on the actions and on the whole life of the person concerned.

Since the very beginning of the Communist regime, I had carefully studied books on Marxism and pronouncements by Chinese Communist Party leaders. It seemed to me that socialism in China was still very much an experiment nad had no fixed course of development for the country had yet been decided upon. This, I thought, was why the government's policy was always changing, like a pendulum swinging from left to right and back again. When things went to extremes and problems emerged. Beijing would take corrective measures. Then these very corrective measures went too far and had to be corrected. The real difficulty was, of course, that a state-controlled economy only stifled productivity, and economic planning from Beijing ignored local conditions and killed incentive. When a policy changed from above, the standards of values changed with it. What was right yesterday became wrong today, and visa versa. Thus the words and actions of a Communist Party official at the lower level were valid for a limited time only... The Cultural Revolution seemed to me to be a swing to the left. Sooner or later, when it had gone too far, corrective measures would be taken. The people would have a few months or a few years of respite until the next political campaign. Mao Zedong believed that political campaigns were the motivating force for progress. So I thought the Proletarian Cultural Revolution was just one of an endless series of upheavals the Chinese people must learn to put up with.

But these facts are not very useful to women, because there is a double standard for “health” in men and women. Women are not getting it wrong when they smoke to lose weight. Our society does reward beauty on the outside over health on the inside. Women must not be blamed for choosing short-term beauty “fixes” that harm our long-term health, since our life spans are inverted under the beauty myth, and there is no great social or economic incentive for women to live a long time. A thin young woman with precancerous lungs is more highly rewarded socially than a hearty old crone. Spokespeople sell women the Iron Maiden and name her “Health”; if public discourse were really concerned with women’s health, it would turn angrily upon this aspect of the beauty myth.

And yet, as we’ve seen throughout the book, beliefs aren’t always in the driver’s seat. Instead, they’re often better modeled as symptoms of the underlying incentives, which are frequently social rather than psychological. This is the religious elephant in the brain: We don’t worship simply because we believe. Instead, we worship (and believe) because it helps us as social creatures.

hence the reason I speak of a tragic optimism, that is, an optimism in the face of tragedy and in view of the human potential which at its best always allows for: (1) turning suffering into a human achievement and accomplishment; (2) deriving from guilt the opportunity to change oneself for the better; and (3) deriving from life’s transitoriness an incentive to take responsible action.

People do some crazy things with money. But no one is crazy. Here’s the thing: People from different generations, raised by different parents who earned different incomes and held different values, in different parts of the world, born into different economies, experiencing different job markets with different incentives and different degrees of luck, learn very different lessons. Everyone has their own unique experience with how the world works. And what you’ve experienced is more compelling than what you learn second-hand. So all of us—you, me, everyone—go through life anchored to a set of views about how money works that vary wildly from person to person. What seems crazy to you might make sense to me. Housel, Morgan. The Psychology of Money (p. 17). Kindle Edition.

Biology teaches us that we’re competitive social animals, with all the instincts you’d expect from such creatures. And consciousness is useful—that’s why it evolved. So shouldn’t it stand to reason that we’d be hyper-conscious of our deepest biological incentives? And yet, most of the time, we seem almost willfully unaware of them. We all know they’re there. And yet they make us uncomfortable, so we mentally flinch away.

In short, the five or seven hours a day which each will have at his disposal, after having consecrated several hours to the production of necessities, would amply suffice to satisfy all longings for luxury, however varied. Thousands of associations would undertake to supply them. What is now the privilege of an insignificant minority would be accessible to all. Luxury, ceasing to be a foolish and ostentatious display of the bourgeois class, would become an artistic pleasure. Everyone would be the happier for it. In collective work, performed with a light heart to attain a desired end, a book, a work of art, or an object of luxury, each will find an incentive and the necessary relaxation that makes life pleasant. In working to put an end to the division between master and slave, we work for the happiness of both, for the happiness of humanity.

WHY WAS A BEAUTIFUL YOUNG WOMAN SUCH A BIG DEAL? Beauty was a sign of health and reproductive capability; thus, a beautiful woman historically had wide hips (for childbearing), body symmetry (indicating no deformities), hair and teeth that weren’t falling out (indicating health). And she was young—at the beginning of her fertile years. Society needed to reinforce men’s biological dependency on female beauty for the same reasons it needed to make women dependent on male income: dependency created an incentive to marry. A man who was addicted to a woman’s beauty, youth, and sex would temporarily “lose his mind”—he would make the irrational decision to support her for the rest of his life. Female beauty, then, can be thought of as nature’s marketing tool: the way of marketing a woman for the survival of her genes.42 Which is why female beauty is the world’s most potent drug.

At one time he owned as many as three buildings divided up into rental units. It was as a landlord and as a black man who had overcome so much on his own that he came to hate the welfare system that grew so fast in the fifties, sixties, and seventies. “It just killed ambition,” according to Holmes. “I had all of these tenants who in their late twenties had never worked a day in their life. They just waited around for that government check. No incentive.

PERHAPS there is no subject for meditation more suitable to every class of persons than the most sacred Passion of our Lord Jesus Christ. In it may sinners find the encouragement and graces necessary for their conversion; from it may beginners derive strength and fervor wherewith to subdue their passions; in it may the good discover fresh incentives to advance in the paths of virtue. In short, there are none who will not find it an inexhaustible mine of hidden treasures, and an endless source of graces and spiritual blessings.

Perhaps there was, in the dim past, a communistic society, when the family was the only state, and pasturage or simple tillage the only form of life. But “in a more divided state of society,” where the division of labor into unequally important functions elicits and enlarges the natural inequality of men, communism breaks down because it provides no adequate incentive for the exertion of superior abilities. The stimulus of gain is necessary to arduous work; and the stimulus of ownership is necessary to proper industry, husbandry and care.

If government is truly limited to being small and nearly irrelevant, there will be no incentive to “own” government. For this change to occur, the following will be required: a philosophical rejection of government waging war without consent, running people’s lives, and violating social or economic liberty; nullification of laws by public pressure or by state action; legalization of private alternatives to all government programs; prohibition of fraudulent money, private and government; peaceful civil disobedience; acceptance of responsibility to care for oneself and one’s family instead of relying on government or private theft; refusal to participate in government crimes through the military and tax system with full realization of the risks of practicing civil disobedience since government will not go away quietly; jury nullification of bad laws, especially with regard to taxes, drugs, and overregulation of social and voluntary activities; and acceptance that, while sins and vices may be a negative, they aren’t in themselves crimes and are not to be restricted by the state.

You’ll get all dusty.” He made a sound deep in his throat. “You can brush me off.” She grinned wickedly. “Now that’s what I call incentive!” He chuckled. “Cut it out. We’ve got a serious and sensitive situation here.” “So you intimated on the phone.” She glanced around the airport. “Where’s baggage claim? I brought some tools and electronic equipment, too.” “How about clothes?” She stared at him blankly. “What do I need with a lot of clothes cluttering up my equipment case? These are wash-and-wear.” He made another sound. “You can’t expect to go to a restaurant in that!” “Why not? And who’s taking me to any restaurant?” she demanded. “You never do.” He shrugged. “I’m going to do penance while we’re out here.” Her eyes sparkled. “Great! Your bed or mine?” He laughed in spite of himself. She was the only person in his life who’d ever been able to make him feel carefree, even briefly. She lit fires inside him, although he was careful not to let them show too much. “You never give up, do you?” “Someday you’ll weaken,” she assured him. “And I’m prepared. I have a week’s supply of Trojans in my fanny pack…” He managed to look shocked. “Cecily!” She shrugged. “Women have to think about these things. I’m twenty-three, you know.” She added, “You came into my life at a formative time and rescued me from something terrible. Can I help it if you make other potential lovers look like fried sea bass by comparison?” “I didn’t bring you out here to discuss your lack of lovers,” he pointed out. “And here I hoped you were offering yourself up as an educational experience,” she sighed. He glared down at her as they walked toward baggage claim. “Okay,” she said glumly. “I’ll give up, for now.

If you hang out with people who constantly whine about how tired, broke and worried about the economy they are, you’ll feel like a hero just for getting out of bed in the morning. Hang out with people who are living on purpose, who meet their challenges with a step aside, suckers attitude, who are dating super awesome people, making exactly the kind of money they want to be making (or working toward it) or taking the kinds of vacations they, and you, want to be taking, and you’ll not only see what’s possible for you, too, but you’ll have more incentive to follow suit.

For the psychologist Paul Bloom, this is a huge downside. Empathy, he argues, focuses our attention on single individuals, leading us to become both parochial and insensitive to scale.62 As Bertrand Russell is often reported to have said, “The mark of a civilized man is the capacity to read a column of numbers and weep,”63 but few of us are capable of truly feeling statistics in this way. If only we could be moved more by our heads than our hearts, we could do a lot more good. And yet the incentives to show empathy and spontaneous compassion are overwhelming. Think about it: Which kind of people are likely to make better friends, coworkers, and spouses—“calculators” who manage their generosity with a spreadsheet, or “emoters” who simply can’t help being moved to help people right in front of them? Sensing that emoters, rather than calculators, are generally preferred as allies, our brains are keen to advertise that we are emoters. Spontaneous generosity may not be the most effective way to improve human welfare on a global scale, but it’s effective where our ancestors needed it to be: at finding mates and building a strong network of allies.

Nevertheless, scholars keep obsessing about selfish motives, simply because both economics and behaviorism have indoctrinated them that incentives drive everything that animals or humans do. I don’t believe a word of it, though, and a recent ingenious experiment on children drives home why. The German psychologist Felix Warneken investigated how young chimpanzees and children assist human adults. The experimenter was using a tool but dropped it in midjob: would they pick it up? The experimenter’s hands were full: would they open a cupboard for him? Both species did so voluntarily and eagerly, showing that they understood the experimenter’s problem. Once Warneken started to reward the children for their assistance, however, they became less helpful. The rewards, it seems, distracted them from sympathizing with the clumsy experimenter.50 I am trying to figure how this would work in real life. Imagine that every time I offered a helping hand to a colleague or neighbor—keeping a door open or picking up their mail—they stuffed a few dollars in my shirt pocket. I’d be deeply offended, as if all I cared about was money! And it would surely not encourage me to do more for them. I might even start avoiding them as being too manipulative. It is curious to think that human behavior is entirely driven by tangible rewards, given that most of the time rewards are nowhere in sight. What are the rewards for someone who takes care of a spouse with Alzheimer’s? What payoffs does someone derive from sending money to a good cause? Internal rewards (feeling good) may very well come into play, but they work only via the amelioration of the other’s situation. They are nature’s way of making sure that we are other-oriented rather than self-oriented.

A prison is perhaps the easiest place to see the power of bad incentives. And yet in many walks of life, we find otherwise normal men and women caught in the same trap and busily making the world much less good than it could be. Elected officials ignore long-term problems because they must pander to the short-term interests of voters. People working for insurance companies rely on technicalities to deny desperately ill patients the care they need. CEOs and investment bankers run extraordinary risks—both for their businesses and for the economy as a whole—because they reap the rewards of success without suffering the penalties of failure. District attorneys continue to prosecute people they know to be innocent because their careers depend on winning cases. Our government fights a war on drugs that creates the very problem of black-market profits and violence that it pretends to solve. We need systems that are wiser than we are. We need institutions and cultural norms that make us more honest and ethical than we tend to be. The project of building them is distinct from—and, in my view, even more important than—an individual’s refining his personal ethical code.

In agricultural communities, male leadership in the hunt ceased to be of much importance. As the discipline of the hunting band decayed, the political institutions of the earliest village settlements perhaps approximated the anarchism which has remained ever since the ideal of peaceful peasantries all round the earth. Probably religious functionaries, mediators between helpless mankind and the uncertain fertility of the earth, provided an important form of social leadership. The strong hunter and man of prowess, his occupation gone or relegated to the margins of social life, lost the umambiguous primacy which had once been his; while the comparatively tight personal subordination to a leader necessary to the success of a hunting party could be relaxed in proportion as grain fields became the center around which life revolved. Among predominantly pastoral peoples, however, religious-political institutions took a quite different turn. To protect the flocks from animal predators required the same courage and social discipline which hunters had always needed. Among pastoralists, likewise, the principal economic activity- focused, as among the earliest hunters, on a parasitic relation to animals- continued to be the special preserve of menfolk. Hence a system of patrilineal families, united into kinship groups under the authority of a chieftain responsible for daily decisions as to where to seek pasture, best fitted the conditions of pastoral life. In addition, pastoralists were likely to accord importance to the practices and discipline of war. After all, violent seizure of someone else’s animals or pasture grounds was the easiest and speediest way to wealth and might be the only means of survival in a year of scant vegetation. Such warlikeness was entirely alien to communities tilling the soil. Archeological remains from early Neolithic villages suggest remarkably peaceful societies. As long as cultivable land was plentiful, and as long as the labor of a single household could not produce a significant surplus, there can have been little incentive to war. Traditions of violence and hunting-party organization presumably withered in such societies, to be revived only when pastoral conquest superimposed upon peaceable villagers the elements of warlike organization from which civilized political institutions without exception descend.

It is for this reason that I have so largely set down the particulars of the caresses I was treated with by the jeweller, and also by this prince; not to make the story an incentive to the vice, which I am now such a sorrowful penitent for being guilty of (God forbid any should make so vile a use of so good a design), but to draw the just picture of a man enslaved to the rage of his vicious appetite; how he defaces the image of God in his soul, dethrones his reason, causes conscience to abdicate the possession, and exalts sense into the vacant throne; how he deposes the man and exalts the brute.

Only those who have lost as much as we have see the particularly nasty slice of smile on someone who thinks they’re winning when they say “Get over it.” This is the thing: If you have the option to not think about or even consider history, whether you learned it right or not, or whether it even deserves consideration, that’s how you know you’re on board the ship that serves hors d’oeuvres and fluffs your pillows, while others are out at sea, swimming or drowning, or clinging to little inflatable rafts that they have to take turns keeping inflated, people short of breath, who’ve never even heard of the words hors d’oeuvres or fluff. Then someone from up on the yacht says, “It’s too bad those people down there are lazy, and not as smart and able as we are up here, we who have built these strong, large, stylish boats ourselves, we who float the seven seas like kings.” And then someone else on board says something like, “But your father gave you this yacht, and these are his servants who brought the hors d’oeuvres.” At which point that person gets tossed overboard by a group of hired thugs who’d been hired by the father who owned the yacht, hired for the express purpose of removing any and all agitators on the yacht to keep them from making unnecessary waves, or even referencing the father or the yacht itself. Meanwhile, the man thrown overboard begs for his life, and the people on the small inflatable rafts can’t get to him soon enough, or they don’t even try, and the yacht’s speed and weight cause an undertow. Then in whispers, while the agitator gets sucked under the yacht, private agreements are made, precautions are measured out, and everyone quietly agrees to keep on quietly agreeing to the implied rule of law and to not think about what just happened. Soon, the father, who put these things in place, is only spoken of in the form of lore, stories told to children at night, under the stars, at which point there are suddenly several fathers, noble, wise forefathers. And the boat sails on unfettered. If you were fortunate enough to be born into a family whose ancestors directly benefited from genocide and/or slavery, maybe you think the more you don’t know, the more innocent you can stay, which is a good incentive to not find out, to not look too deep, to walk carefully around the sleeping tiger. Look no further than your last name. Follow it back and you might find your line paved with gold, or beset with traps.

More often than not, the people around me weren’t simply deciding to give up. They were living in a culture of dependency that had been passed down from birth. My mother and grandmother gave in to the culture. And they expected me to figure out the best way to live on that same track, to game the system and not even try to escape. My friend Ben agrees. 'Most of the time, what you see in the housing projects are generations of families,' he says. 'People accustomed to this lifestyle. It becomes comfortable, so they don’t move away, and even their children stay and raise kids in the same environment.' In neighborhoods like the ones where Ben and I grew up, there is no perceived incentive to advance. After all, the checks for housing and the food stamps and assistance arrive every month. This is why the system must be reformed. Welfare should exist only for a certain period of time, unless you’re disabled and can’t physically work. It should not last for a generation or more. There are millions of jobs open, without enough people to fill them or, rather, without enough people who have the necessary skills and training. This is where the government should come in, providing incentives for real-world training and educating recipients about a life beyond government dependence.

For most people, the question of free will is really one about making choices in life. How do you choose what to eat for breakfast? How do you choose where to go on vacation? Where to work? Whom to marry? Whom to vote for? People imagine that they make these choices “freely.” Ideologies such as liberalism and capitalism encourage people to think that way. This makes people very incurious about themselves. As long as I think that my choices reflect my free will, I have no incentive to investigate what made me choose this or that—I simply did it of my own free will. Therefore I completely identify with whatever choices I make, and I remain ignorant about the biological, social, and cultural forces that have really shaped my decisions. This is how belief in free will becomes a big barrier to self-exploration and self-understanding.

They want to find work they’re passionate about. Offering benefits and incentives are mere compromises. Educating people is important but not enough—far too many of our most educated people are operating at quarter-speed, unsure of their place in the world, contributing too little to the productive engine of modern civilization, still feeling like observers, like they haven’t come close to living up to their potential. Our guidance needs to be better. We need to encourage people to find their sweet spot. Productivity explodes when people love what they do. We’re sitting on a huge potential boom in productivity, which we could tap into if we got all the square pegs in the square holes and round pegs in round holes. It’s not something we can measure with statistics, but it’s a huge economic issue. It’s a great natural resource that we’re ignoring.

After all," saying yes to life in spite of everything," to use the phrase in which the title of a German book of mine is couched, presupposes that life is potentially meaningful under any conditions, even those which are most miserable. And this in turn presupposes the human capacity to creatively turn life's negative aspects into something positive or constructive. In other words, what matters is to make the best of any given situation. "The best," however, is that which in Latinis called optimum—hence the reason I speak of tragic optimism, that is, optimism in the face of tragedy and in view of the human potential which at its best always allows for: (1) turning suffering into a human achievement and accomplishment; (2) deriving from guilt the opportunity to change oneself for the better; and (3) deriving from life's transitoriness an incentive to take responsible action.

Back in 1995, Munger had given a talk at Harvard Business School called “The Psychology of Human Misjudgment.” If you wanted to predict how people would behave, Munger said, you only had to look at their incentives. FedEx couldn’t get its night shift to finish on time; they tried everything to speed it up but nothing worked—until they stopped paying night shift workers by the hour and started to pay them by the shift. Xerox created a new, better machine only to have it sell less well than the inferior older ones—until they figured out the salesmen got a bigger commission for selling the older one. “Well, you can say, ‘Everybody knows that,’” said Munger. “I think I’ve been in the top five percent of my age cohort all my life in understanding the power of incentives, and all my life I’ve underestimated it. And never a year passes but I get some surprise that pushes my limit a little farther.” Munger’s

Suppose that Art is a real hothead. If Bud rats on him, Art will be so enraged that nothing will stop him from killing Bud, even if he has to wait ten years, and even if he has to chase Bud to the ends of the earth. If Bud knows of Art’s vengeful nature, then Bud has a strong incentive not to rat on him. Thus, by being vengeful, and being known for it, Art can be his own robotic hit man, incentivizing others to cooperate with him through his high-flying, credible threats. Of course, being vengeful can be very costly. Art could lose everything if he does, in fact, devote his life to exacting vengeance on Bud. Still, if all goes well, Art will never actually need to go after Bud, because people like Bud won’t dare cross him. Thus, the emotions that fuel vengeful behaviors are, or can be, a kind of rational irrationality. They serve our interests by publicly committing us to doing things that are not in our own interest. We

Even as we became increasingly sad and ugly on the internet, the mirage of the better online self continued to glimmer. As a medium, the internet defined by a built-in performance incentive. In real life, you can walk around living life and be visible to other people. But you can't just walk around and be visible on the internet—for anyone to see you, you have to ACT. You have to communicate in order to maintain an internet presence. And, because the internet's central platforms are built around personal profiles, it can seem—first at a mechanical level, and later on as an encoded instinct—like the main purpose of this communication is to make yourself look good. Online reward mechanisms beg to substitute for offline ones, and then overtake them. This is why everyone seems so smug and triumphant on Facebook, this is why, on Twitter, making a righteous political statement has come to seem, for many people, like a political good in itself.

Incentives are the cornerstone of modern life. And understanding them - or, often, deciphering them - is the key to understanding a problem, and how it might be solved. Knowing what to measure, and how to measure it, can make a complicated world less so. There is nothing like the sheer power of numbers to scrub away lawyers of confusion and contradiction, especially with emotional, hot-button topics. The conventional wisdom is often wrong. And a blithe acceptance of it can lead to sloppy, wasteful, or even dangerous outcomes. Correlation does not equal causality. When two things travel together, it is tempting to assume that one causes the other. Married people, for instance, are demonstrably happier than single people; does this mean that marriage causes happiness? Not necessarily. The data suggest that happy people are more likely to get married in the first place. As one researcher memorably put it, "If you're grumpy, who the hell wants to marry you?

Welfare was taking away the very thing that people needed most—the initiative to provide for themselves. At the same time it was undermining the family: Teenagers from the inner cities, who for various reasons decided they didn’t want to live at home anymore, discovered that by getting pregnant—they didn’t even have to wait for their baby to be born—they got a welfare check that allowed them to rent their own apartment, and they discovered they could increase their monthly welfare check any time they chose simply by getting pregnant again. Meanwhile, the father of the child might have a good job and want to live with his family. But he was told his family was better off financially if he walked out on them; if he stayed, they wouldn’t get a welfare check. Not only was the welfare program a tax-financed incentive for immorality that was destroying the family, it was responsible for an endless and malignant cycle of despair in which generation after generation went on the dole and never had any incentive to leave it.

How is it possible to say yes to life in spite of all that? How, to pose the question differently, can life retain its potential meaning in spite of its tragic aspects? After all, "saying yes to life in spite of everything," to use the phrase in which the title of a German book of mine is couched, presupposes that life is potentially meaningful under any conditions, even those which are most miserable. And this in turn presupposes the human capacity to creatively turn life's negative aspects into something positive or constructive. In other words, what matters is to make the best of any given situation. "The best," however, is that which in Latin is called optimum - hence the reason I speak of a tragic optimism, that is, an optimism in the face of tragedy and in view of the human potential which at its best always allows for: (1) turning suffering into a human achievement and accomplishment; (2) deriving from guilt the opportunity to change oneself for the better; and (3) deriving from life's transitoriness an incentive to take responsible action.

Is more committed to being honest about his or her mistakes and apologizing when necessary than in defending his or her ego. A partner who can’t admit he was wrong but instead loudly insists he was justified in his unkind behavior is not a good candidate for intimacy. Imagine that same kind of ego in a doctor—or a president. (I recall an interview in which Henry Kissinger said that Richard Nixon did not end the war in Vietnam early on in his terms because “he did not want to be remembered as the president who lost a war.” Imagine having a son in the army with that attitude in the White House.) We can take both trustworthiness and untrustworthiness as information about whether a relationship can go on but never as an incentive to hurt back if we are betrayed or to stay put if we are hurt. We can also do an audit of our sex life:   How interested am I in being sexual with you?   How delighted am I by seeing you, being with you, or thinking about you?   How is our sexuality contributing to our intimacy?   Can we be intimate without having to be sexual every time?

Social life was similarly affected by the teachings of the Koran. At a time when in Christian Europe an epidemic was regarded as a scourge of God to which man had but to submit meekly - at that time, and long before it, the Muslims followed the injunction of their Prophet which directed them to combat epidemics by segregating the infected towns and areas. And at a time when even the kings and nobles of Christendom regarding bathing as an almost indecent luxury, even the poorest of Muslim houses had at least one bathroom, while elaborate public baths were common in every Muslim city (in the ninth century, for instance, Córdoba had three hundred of them): and all this in response to the Prophet’s teaching that ‘Cleanliness is part of faith’. A Muslim did not come into conflict with the claims of spiritual life if he took pleasure in the beautiful things of material life, for, according to the Prophet, ‘God loves to see on His servants an evidence of His bounty’. In short, Islam gave a tremendous incentive to cultural achievements which constitute one of the proudest pages in the history of mankind; and it gave this incentive by saying Yes to the intellect and No to obscurantism, Yes to action and no to quietism, Yes to life and No to ascetism. Little wonder, then, that as soon as it emerged beyond the confines of Arabia, Islam won new adherents by leaps and bounds. Born and nurtured in the world-contempt of Pauline and Augustinian Christianity, the populations of Syria and North Africa, and a little layer of Visigothic Spain, saw themselves suddenly confronted with a teaching which denied the dogma of Original Sin and stressed the inborn dignity of earthly life: and so they rallied in ever-increasing numbers to the new creed that gave them to understand that man was God’s vicar on earth. This, and not a legendary ‘conversion at the point of the sword’, was the explanation of Islam’s amazing triumph in the glorious morning of its history. It was not the Muslims that had made Islam great: it was Islam that had made the Muslims great. But as soon as their faith became habit and ceased to be a programme of life, to be consciously pursued, the creative impulse that underlay their civilisation waned and gradually gave way to indolence, sterility and cultural decay.

Scholars call this false equivalency. It means that when you find a mountain to expose in one person or party, you have to pick a molehill on the other side and make it into a mountain to avoid being accused of bias. The built-up molehills also have large benefits: increased coverage on the evening news, millions of retweets, and more talk-show fodder. When the mountains and molehills all look the same, campaigns and governments devote too little time and energy debating the issues that matter most to our people. Even when we try to do that, we’re often drowned out by the passion of the day. There’s a real cost to this. It breeds more frustration, polarization, paralysis, bad decisions, and missed opportunities. But with no incentive to actually accomplish something, more and more politicians just go with the flow, fanning the flames of anger and resentment, when they should be acting as the fire brigade. Everybody knows it’s wrong, but the immediate rewards are so great we stagger on, just assuming that our Constitution, our public institutions, and the rule of law can endure each new assault without doing permanent damage to our freedoms and way of life.

There is no guarantee that a socialized economy will always succeed. The state-owned economies of Eastern Europe and the former Soviet Union suffered ultimately fatal distortions in their development because of the backlog of poverty and want in the societies they inherited; years of capitalist encirclement, embargo, invasion, devastating wars, and costly arms buildup; poor incentive systems, and a lack of administrative initiative and technological innovation; and a repressive political rule that allowed little critical feedback while fostering stagnation and elitism. Despite all that, the former communist states did transform impoverished countries into relatively advanced societies. Whatever their mistakes and political crimes, they achieved—in countries that were never as rich as ours—what U.S. free-market capitalism cannot and has no intention of accomplishing: adequate food, housing, and clothing for all; economic security in old age; free medical care; free education at all levels; and a guaranteed income. Today by overwhelming majorities, people in Russia and other parts of Eastern Europe say that life was better under communism than under the present freemarket system.

In a traditional society, individuals are aware that they will need children to support them in the future, and so will spend their healthy young years starting a family and investing in giving their children the best life possible. But if long-term investment in general is disincentivized, if saving is likely to be counterproductive as money depreciates, this investment becomes less profitable. Further, as politicians sell people the lie that eternal welfare and retirement benefits are possible through the magic of the monetary printing press, the investment in a family becomes less and less valuable. Over time, the incentive to start a family declines and more and more people end up leading single lives. More marriages are likely to break down as partners are less likely to put in the necessary emotional, moral, and financial investment to make them work, while marriages that do survive will likely produce fewer children. The well-known phenomenon of the modern breakdown of the family cannot be understood without recognizing the role of unsound money allowing the state to appropriate many of the essential roles that the family has played for millennia, and reducing the incentive of all members of a family to invest in long-term familial relations.

If there are costs to becoming legal, there are also bound to be costs to remaining outside the law. We found that operating outside the world of legal work and business was surprisingly expensive. In Peru, for example, the cost of operating a business extralegally includes paying 10 to 15 per cent of its annual income in bribes and commissions to authorities. Add to such payoffs the costs of avoiding penalties, making transfers outside legal channels and operating from dispersed locations and without credit, and the life of the extralegal entrepreneur turns out to be far more costly and full of daily hassles than that of the legal businessman. Perhaps the most significant cost was caused by the absence of institutions that create incentives for people to seize economic and social opportunities to specialize within the market place. We found that people who could not operate within the law also could not hold property efficiently or enforce contracts through the courts; nor could they reduce uncertainty through limited liability systems and insurance policies, or create stock companies to attract additional capital and share risk. Being unable to raise money for investment, they could not achieve economies of scale or protect their innovations through royalties and patents.

This happens because data scientists all too often lose sight of the folks on the receiving end of the transaction. They certainly understand that a data-crunching program is bound to misinterpret people a certain percentage of “he time, putting them in the wrong groups and denying them a job or a chance at their dream house. But as a rule, the people running the WMDs don’t dwell on those errors. Their feedback is money, which is also their incentive. Their systems are engineered to gobble up more data and fine-tune their analytics so that more money will pour in. Investors, of course, feast on these returns and shower WMD companies with more money. And the victims? Well, an internal data scientist might say, no statistical system can be perfect. Those folks are collateral damage. And often, like Sarah Wysocki, they are deemed unworthy and expendable. Big Data has plenty of evangelists, but I’m not one of them. This book will focus sharply in the other direction, on the damage inflicted by WMDs and the injustice they perpetuate. We will explore harmful examples that affect people at critical life moments: going to college, borrowing money, getting sentenced to prison, or finding and holding a job. All of these life domains are increasingly controlled by secret models wielding arbitrary punishments.

The Endless Argument Political life in a democracy is a nonstop flow of contradictions and conflicts. What shall we do when the will of the majority infringes on the rights of a minority? If we want both freedom and justice, what is the proper balance of unrestrained personal or economic activity and government regulation? Which is most effective in transforming various kinds of behaviors: education, incentives, or legal sanctions? In the face of a foreign threat, is our national interest more likely to be secured through quiet diplomacy or saber-rattling? In the face of divergent problems like these, what kinds of institutions will allow people who disagree to open up and work together rather than shut down and turn against each other? When America's founders wrestled with that question, they were motivated in part by a desire to grow beyond Old World traditions of “resolving” conflicts by royal decree. But their more immediate motivation was the need to deal with the serious conflicts among themselves. The fact that the founders were all white, male landholders did not make for a united approach to declaring independence from British rule and framing a national constitution. Far from it. Their own diversity of convictions compelled them to invent political institutions capable of surviving conflict and of putting it to good use.

The transformation of "evil" impulses is the result of two factors operating in the same sense, one inwardly and the other outwardly. The inner factor consists in influencing the evil or selfish impulses through erotic elements, the love needs of man interpreted in the widest sense. The addition of erotic components transforms selfish impulses into social impulses. We learn to value being loved as an advantage for the sake of which we can renounce other advantages. The outer factor is the force of education which represents the demands of the civilized environment and which is then continued through the direct influence of the cultural milieu. [...] The influences of civilization work through the erotic components to bring about the transformation of more and more of the selfish tendencies into altruistic and social tendencies. We may indeed assume that the inner compulsion which makes itself felt in the development of man was originally, that is, in the history of mankind, a purely external compulsion. Today people bring along a certain tendency (disposition) to transform the egotistic into social impulses as a part of their hereditary organization, which then responds to further slight incentives to complete the transformation. A part of this transformation of impulse must also be made during life. In this way the individual man is not only under the influence of his own contemporary cultural milieu but is also subject to the influences of his ancestral civilization.

A common problem plagues people who try to design institutions without accounting for hidden motives. First they identify the key goals that the institution “should” achieve. Then they search for a design that best achieves these goals, given all the constraints that the institution must deal with. This task can be challenging enough, but even when the designers apparently succeed, they’re frequently puzzled and frustrated when others show little interest in adopting their solution. Often this is because they mistook professed motives for real motives, and thus solved the wrong problems. Savvy institution designers must therefore identify both the surface goals to which people give lip service and the hidden goals that people are also trying to achieve. Designers can then search for arrangements that actually achieve the deeper goals while also serving the surface goals—or at least giving the appearance of doing so. Unsurprisingly, this is a much harder design problem. But if we can learn to do it well, our solutions will less often meet the fate of puzzling disinterest. We should take a similar approach when reforming a preexisting institution by first asking ourselves, “What are this institution’s hidden functions, and how important are they?” Take education, for example. We may wish for schools that focus more on teaching than on testing. And yet, some amount of testing is vital to the economy, since employers need to know which workers to hire. So if we tried to cut too much from school’s testing function, we could be blindsided by resistance we don’t understand—because those who resist may not tell us the real reasons for their opposition. It’s only by understanding where the resistance is coming from that we have any hope of overcoming it. Not all hidden institutional functions are worth facilitating, however. Some involve quite wasteful signaling expenditures, and we might be better off if these institutions performed only their official, stated functions. Take medicine, for example. To the extent that we use medical spending to show how much we care (and are cared for), there are very few positive externalities. The caring function is mostly competitive and zero-sum, and—perhaps surprisingly—we could therefore improve collective welfare by taxing extraneous medical spending, or at least refusing to subsidize it. Don’t expect any politician to start pushing for healthcare taxes or cutbacks, of course, because for lawmakers, as for laypeople, the caring signals are what makes medicine so attractive. These kinds of hidden incentives, alongside traditional vested interests, are what often make large institutions so hard to reform. Thus there’s an element of hubris in any reform effort, but at least by taking accurate stock of an institution’s purposes, both overt and covert, we can hope to avoid common mistakes. “The curious task of economics,” wrote Friedrich Hayek, “is to demonstrate to men how little they really know about what they imagine they can design.”8

In order to grasp the meaning of this liberal program we need to imagine a world order in which liberalism is supreme. Either all the states in it are liberal, or enough are so that when united they are able to repulse an attack of militarist aggressors. In this liberal world, or liberal part of the world, there is private property in the means of production. The working of the market is not hampered by government interference. There are no trade barriers; men can live and work where they want. Frontiers are drawn on the maps but they do not hinder the migrations of men and shipping of commodities. Natives do not enjoy rights that are denied to aliens. Governments and their servants restrict their activities to the protection of life, health, and property against fraudulent or violent aggression. They do not discriminate against foreigners. The courts are independent and effectively protect everybody against the encroachments of officialdom. Everyone is permitted to say, to write, and to print what he likes. Education is not subject to government interference. Governments are like night-watchmen whom the citizens have entrusted with the task of handling the police power. The men in office are regarded as mortal men, not as superhuman beings or as paternal authorities who have the right and duty to hold the people in tutelage. Governments do not have the power to dictate to the citizens what language they must use in their daily speech or in what language they must bring up and educate their children. Administrative organs and tribunals are bound to use each man’s language in dealing with him, provided this language is spoken in the district by a reasonable number of residents. In such a world it makes no difference where the frontiers of a country are drawn. Nobody has a special material interest in enlarging the territory of the state in which he lives; nobody suffers loss if a part of this area is separated from the state. It is also immaterial whether all parts of the state’s territory are in direct geographical connection, or whether they are separated by a piece of land belonging to another state. It is of no economic importance whether the country has a frontage on the ocean or not. In such a world the people of every village or district could decide by plebiscite to which state they wanted to belong. There would be no more wars because there would be no incentive for aggression. War would not pay. Armies and navies would be superfluous. Policemen would suffice for the fight against crime. In such a world the state is not a metaphysical entity but simply the producer of security and peace. It is the night-watchman, as Lassalle contemptuously dubbed it. But it fulfills this task in a satisfactory way. The citizen’s sleep is not disturbed, bombs do not destroy his home, and if somebody knocks at his door late at night it is certainly neither the Gestapo nor the O.G.P.U. The reality in which we have to live differs very much from this perfect world of ideal liberalism. But this is due only to the fact that men have rejected liberalism for etatism.

With China and Russia, the ideological contrast is clearer. Putin, the commandant of a petro-state that also happens to be, given its geography, one of the few nations on Earth likely to benefit from continued warming, sees basically no benefit to constraining carbon emissions or greening the economy—Russia’s or the world’s. Xi, now the leader-for-life of the planet’s rising superpower, seems to feel mutual obligations to the country’s growing prosperity and to the health and security of its people—of whom, it’s worth remembering, it has so many. In the wake of Trump, China has become a much more emphatic—or at least louder—green energy leader. But the incentives do not necessarily suggest it will make good on that rhetoric. In 2018, an illuminating study was published comparing how much a country was likely to be burdened by the economic impacts of climate change to its responsibility for global warming, measured by carbon emissions. The fate of India showcased the moral logic of climate change at its most grotesque: expected to be, by far, the world’s most hard-hit country, shouldering nearly twice as much of the burden as the next nation, India’s share of climate burden was four times as high as its share of climate guilt. China is in the opposite situation, its share of guilt four times as high as its share of the burden. Which, unfortunately, means it may be tempted to slow-walk its green energy revolution. The United States, the study found, presented a case of eerie karmic balance: its expected climate damages matching almost precisely its share of global carbon emissions. Not to say either share is small; in fact, of all the nations in the world, the U.S. was predicted to be hit second hardest.

Well before the end of the 20th century however print had lost its former dominance. This resulted in, among other things, a different kind of person getting elected as leader. One who can present himself and his programs in a polished way, as Lee Quan Yu you observed in 2000, adding, “Satellite television has allowed me to follow the American presidential campaign. I am amazed at the way media professionals can give a candidate a new image and transform him, at least superficially, into a different personality. Winning an election becomes, in large measure, a contest in packaging and advertising. Just as the benefits of the printed era were inextricable from its costs, so it is with the visual age. With screens in every home entertainment is omnipresent and boredom a rarity. More substantively, injustice visualized is more visceral than injustice described. Television played a crucial role in the American Civil rights movement, yet the costs of television are substantial, privileging emotional display over self-command, changing the kinds of people and arguments that are taken seriously in public life. The shift from print to visual culture continues with the contemporary entrenchment of the Internet and social media, which bring with them four biases that make it more difficult for leaders to develop their capabilities than in the age of print. These are immediacy, intensity, polarity, and conformity. Although the Internet makes news and data more immediately accessible than ever, this surfeit of information has hardly made us individually more knowledgeable, let alone wiser, as the cost of accessing information becomes negligible, as with the Internet, the incentives to remember it seem to weaken. While forgetting anyone fact may not matter, the systematic failure to internalize information brings about a change in perception, and a weakening of analytical ability. Facts are rarely self-explanatory; their significance and interpretation depend on context and relevance. For information to be transmuted into something approaching wisdom it must be placed within a broader context of history and experience. As a general rule, images speak at a more emotional register of intensity than do words. Television and social media rely on images that inflamed the passions, threatening to overwhelm leadership with the combination of personal and mass emotion. Social media, in particular, have encouraged users to become image conscious spin doctors. All this engenders a more populist politics that celebrates utterances perceived to be authentic over the polished sound bites of the television era, not to mention the more analytical output of print. The architects of the Internet thought of their invention as an ingenious means of connecting the world. In reality, it has also yielded a new way to divide humanity into warring tribes. Polarity and conformity rely upon, and reinforce, each other. One is shunted into a group, and then the group polices once thinking. Small wonder that on many contemporary social media platforms, users are divided into followers and influencers. There are no leaders. What are the consequences for leadership? In our present circumstances, Lee's gloomy assessment of visual media's effects is relevant. From such a process, I doubt if a Churchill or Roosevelt or a de Gaulle can emerge. It is not that changes in communications technology have made inspired leadership and deep thinking about world order impossible, but that in an age dominated by television and the Internet, thoughtful leaders must struggle against the tide.

[...] Kevin had grown up playing left-handed. Seeing him take on Andrew right-handed was ballsy enough, seeing him actually score was surreal. Kevin kicked them off the court [...], but instead of following [...] he stayed behind with Andrew to keep practicing. Neil watched them over his shoulder. "I saw him first," Nicky said. "I thought you had Erik," Neil said. "I do, but Kevin's on the List," Nicky said. When Neil frowned, Nicky explained. "It's a list of celebrities we're allowed to have affairs with. Kevin is number three." Neil pretended to understand and changed the topic. "How does anyone lose against the Foxes with Andrew in your goal?" "He's good, right? [...] Coach bribed Andrew into saving our collective asses with some really nice booze." "Bribed?" Neil echoed. "Andrew's good," Nicky said again, "but it doesn't really matter to him if we win or lose. You want him to care, you gotta give him incentive." "He can't play like that and not care." "Now you sound like Kevin. You'll find out the hard way, same as Kevin did. Kevin gave Andrew a lot of grief this spring [...]. Up until then they were fighting like cats and dogs. Now look at them. They're practically trading friendship bracelets and I couldn't fit a crowbar between them if it'd save my life." "But why?" Neil asked. "Andrew hates Kevin's obsession with Exy." "The day they start making sense to you, let me know," Nicky said [...]. "I gave up trying to sort it all out weeks ago. [...] But as long as I'm doling out advice? Stop staring at Kevin so much. You're making me fear for your life over here." "What do you mean?" "Andrew is scary territorial of him. He punched me the first time I said I'd like to get Kevin too wasted to be straight." Nicky pointed at his face, presumably where Andrew had decked him. "So yeah, I'm going to crush on safer targets until Andrew gets bored of him. That means you, since Matt's taken and I don't hate myself enough to try Seth. Congrats." "Can you take the creepy down a level?" Aaron asked. "What?" Nikcy asked. "He said he doesn't swing, so obviously he needs a push." "I don't need a push," Neil said. "I'm fine on my own." "Seriously, how are you not bored of your hand by now?" "I'm done with this conversation," Neil said. "This and every future variation of it [...]." The stadium door slammed open as Andrew showed up at last. [...] "Kevin wants to know what's taking you so long. Did you get lost?" "Nicky's scheming to rape Neil," Aaron said. "There are a couple flaws in his plan he needs to work out first, but he'll get there sooner or later." [...] "Wow, Nicky," Andrew said. "You start early." "Can you really blame me?" Nicky glanced back at Neil as he said it. He only took his eyes off Andrew for a second, but that was long enough for Andrew to lunge at him. Andrew caught Nicky's jersey in one hand and threw him hard up against the wall. [...] "Hey, Nicky," Andrew said in stage-whisper German. "Don't touch him, you understand?" "You know I'd never hurt him. If he says yes-" "I said no." "Jesus, you're greedy," Nicky said. "You already have Kevin. Why does it-" He went silent, but it took Neil a moment to realize why. Andrew had a short knife pressed to Nicky's Jersey. [...] Neil was no stranger to violence. He'd heard every threat in the book, but never from a man who smiled as bright as Andrew did. Apathy, anger, madness, boredom: these motivators Neil knew and understood. But Andrew was grinning like he didn't have a knife point where it'd sleep perfectly between Nicky's ribs, and it wasn't because he was joking. Neil knew Andrew meant it. [...] "Hey, are we playing or what?" Neil asked. "Kevin's waiting." [...] Andrew let go of Nicky and spun away. [...] Nicky looked shaken as he stared after the twins, but when he realized Neil was watching him he rallied with a smile Neil didn't believe at all. "On second thought, you're not my type after all [...].

This and Rothbard’s own life-long cultural conservatism notwithstanding, however, from its beginnings in the late 1960s and the founding of a libertarian party in 1971, the libertarian movement had great appeal to many of the counter-cultural left that had then grown up in the U.S. in opposition to the war in Vietnam. Did not the illegitimacy of the state and the non-aggression axiom imply that everyone was at liberty to choose his very own non-aggressive lifestyle, no matter what it was? Much of Rothbard’s later writings, with their increased emphasis on cultural matters, were designed to correct this development and to explain the error in the idea of a leftist multi-counter-cultural libertarianism, of libertarianism as a variant of libertinism. It was false—empirically as well as normatively—that libertarianism could or should be combined with egalitarian multiculturalism. Both were in fact sociologically incompatible, and libertarianism could and should be combined exclusively with traditional Western bourgeois culture; that is, the old-fashioned ideal of a family-based and hierarchically structured society of voluntarily acknowledged rank orders of social authority. Empirically, Rothbard did not tire to explain, the left-libertarians failed to recognize that the restoration of private-property rights and laissez-faire economics implied a sharp and drastic increase in social “discrimination.” Private property means the right to exclude. The modern social-democratic welfare state has increasingly stripped private-property owners of their right to exclude. In distinct contrast, a libertarian society where the right to exclude was fully restored to owners of private property would be profoundly unegalitarian. To be sure, private property also implies the owner’s right to include and to open and facilitate access to one’s property, and every private-property owner also faces an economic incentive of including (rather than excluding) so long as he expects this to increase the value of his property.

If you have the option to not think about or even consider history, whether you learned it right or not, or whether it even deserves consideration, that’s how you know you’re on board the ship that serves hors d’oeuvres and fluffs your pillows, while others are out at sea, swimming or drowning, or clinging to little inflatable rafts that they have to take turns keeping inflated, people short of breath, who’ve never even heard of the words hors d’oeuvres or fluff. Then someone from up on the yacht says, “It’s too bad those people down there are lazy, and not as smart and able as we are up here, we who have built these strong, large, stylish boats ourselves, we who float the seven seas like kings.” And then someone else on board says something like, “But your father gave you this yacht, and these are his servants who brought the hors d’oeuvres.” At which point that person gets tossed overboard by a group of hired thugs who’d been hired by the father who owned the yacht, hired for the express purpose of removing any and all agitators on the yacht to keep them from making unnecessary waves, or even referencing the father or the yacht itself. Meanwhile, the man thrown overboard begs for his life, and the people on the small inflatable rafts can’t get to him soon enough, or they don’t even try, and the yacht’s speed and weight cause an undertow. Then in whispers, while the agitator gets sucked under the yacht, private agreements are made, precautions are measured out, and everyone quietly agrees to keep on quietly agreeing to the implied rule of law and to not think about what just happened. Soon, the father, who put these things in place, is only spoken of in the form of lore, stories told to children at night, under the stars, at which point there are suddenly several fathers, noble, wise forefathers. And the boat sails on unfettered. If you were fortunate enough to be born into a family whose ancestors directly benefited from genocide and/or slavery, maybe you think the more you don’t know, the more innocent you can stay, which is a good incentive to not find out, to not look too deep, to walk carefully around the sleeping tiger. Look no further than your last name. Follow it back and you might find your line paved with gold, or beset with traps.

Politicians have all sorts of reasons to pass all sorts of laws that, as well-meaning as they may be, fail to account for the way real people respond to real-world incentives.

Once superintelligent AI has settled another solar system or galaxy, bringing humans there is easy — if humans have succeeded in programming the AI with this goal. All the necessary information about humans can be transmitted at the speed of light, after which the AI can assemble quarks and electrons into the desired humans. This could be done either in a low-tech way by simply transmitting the 2 gigabytes of information needed to specify a person’s DNA and then incubating a baby to be raised by the AI, or the AI could assemble quarks and electrons into full-grown people who would have all the memories scanned from their originals back on Earth. This means that if there’s an intelligence explosion, the key question isn’t if intergalactic settlement is possible, but simply how fast it can proceed. Since all the ideas we've explored above come from humans, they should be viewed as merely lower limits on how fast life can expand; ambitious superintelligent life can probably do a lot better, and it will have a strong incentive to push the limits, since in the race against time and dark energy, every 1% increase in average settlement speed translates into 3% more galaxies colonized. For example, if it takes 20 years to travel 10 light-years to the next star system with a laser-sail system, and then another 10 years to settle it and build new lasers and seed probes there, the settled region will be a sphere growing in all directions at a third of the speed of light on average. In a beautiful and thorough analysis of cosmically expanding civilizations in 2014, the American physicist Jay Olson considered a high-tech alternative to the island-hopping approach, involving two separate types of probes: seed probes and expanders. The seed probes would slow down, land and seed their destination with life. The expanders, on the other hand, would never stop: they'd scoop up matter in flight, perhaps using some improved variant of the ramjet technology, and use this matter both as fuel and as raw material out of which they'd build expanders and copies of themselves. This self-reproducing fleet of expanders would keep gently accelerating to always maintain a constant speed (say half the speed of light) relative to nearby galaxies, and reproduce often enough that the fleet formed an expanding spherical shell with a constant number of expanders per shell area. Last but not least, there’s the sneaky Hail Mary approach to expanding even faster than any of the above methods will permit: using Hans Moravec’s “cosmic spam” scam from chapter 4. By broadcasting a message that tricks naive freshly evolved civilizations into building a superintelligent machine that hijacks them, a civilization can expand essentially at the speed of light, the speed at which their seductive siren song spreads through the cosmos. Since this may be the only way for advanced civilizations to reach most of the galaxies within their future light cone and they have little incentive not to try it, we should be highly suspicious of any transmissions from extraterrestrials! In Carl Sagan’s book Contact, we earthlings used blueprints from aliens to build a machine we didn’t understand — I don’t recommend doing this ... In summary, most scientists and sci-fi authors considering cosmic settlement have in my opinion been overly pessimistic in ignoring the possibility of superintelligence: by limiting attention to human travelers, they've overestimated the difficulty of intergalactic travel, and by limiting attention to technology invented by humans, they've overestimated the time needed to approach the physical limits of what's possible.

As a medium, the internet is defined by a built-in performance incentive. In real life, you can walk around living life and be visible to other people. But you can’t just walk around and be visible on the internet—for anyone to see you, you have to act. You have to communicate in order to maintain an internet presence.

But look, the list itself doesn’t matter. The record doesn’t matter. It’s like when a bunch of friends are playing football in the back yard, you go all out to win, but afterwards it doesn’t matter who won. Here’s what’s different about it, though,” he said, turning serious. “The list total isn’t important, but the birds themselves are important. Every bird you see. So the list is just a frivolous incentive for birding, but the birding itself is worthwhile. It’s like a trip where the destination doesn’t have any significance except for the fact that it makes you travel. The journey is what counts.” Skua in fight When the boat pulled back in to the dock, I was deep in thought.

Look at stocks as part ownership of a business. 2. Look at Mr. Market—volatile stock price fluctuations—as your friend rather than your enemy. View risk as the possibility of permanent loss of purchasing power, and uncertainty as the unpredictability regarding the degree of variability in the possible range of outcomes. 3. Remember the three most important words in investing: “margin of safety.” 4. Evaluate any news item or event only in terms of its impact on (a) future interest rates and (b) the intrinsic value of the business, which is the discounted value of the cash that can be taken out during its remaining life, adjusted for the uncertainty around receiving those cash flows. 5. Think in terms of opportunity costs when evaluating new ideas and keep a very high hurdle rate for incoming investments. Be unreasonable. When you look at a business and get a strong desire from within saying, “I wish I owned this business,” that is the kind of business in which you should be investing. A great investment idea doesn’t need hours to analyze. More often than not, it is love at first sight. 6. Think probabilistically rather than deterministically, because the future is never certain and it is really a set of branching probability streams. At the same time, avoid the risk of ruin, when making decisions, by focusing on consequences rather than just on raw probabilities in isolation. Some risks are just not worth taking, whatever the potential upside may be. 7. Never underestimate the power of incentives in any given situation. 8. When making decisions, involve both the left side of your brain (logic, analysis, and math) and the right side (intuition, creativity, and emotions). 9. Engage in visual thinking, which helps us to better understand complex information, organize our thoughts, and improve our ability to think and communicate. 10. Invert, always invert. You can avoid a lot of pain by visualizing your life after you have lost a lot of money trading or speculating using derivatives or leverage. If the visuals unnerve you, don’t do anything that could get you remotely close to reaching such a situation. 11. Vicariously learn from others throughout life. Embrace everlasting humility to succeed in this endeavor. 12. Embrace the power of long-term compounding. All the great things in life come from compound interest.

the notion of incentives as limited to financial gain cannot otherwise explain the very existence of an economics academia that promotes the idea of self-interest.

If we work in an environment in which leadership tells the truth, in which layoffs are not the default in hard times and in which incentive structures do not pit us against one another, the result, thanks to the increased levels of oxytocin and serotonin, is trust and cooperation. This is what work-life balance means.

Here is his secret set down in his own words—words that ought to be cast in eternal bronze and hung in every home and school, every shop and office in the land— words that children ought to memorise instead of wasting their time memorising the conjugation of Latin verbs or the amount of the annual rainfall in Brazil—words that will all but transform your life and mine if we will only live them: ‘I consider my ability to arouse enthusiasm among my people,’ said Schwab, ‘the greatest asset I possess, and the way to develop the best that is in a person is by appreciation and encouragement. ‘There is nothing else that so kills the ambitions of a person as criticisms from superiors. I never criticise anyone. I believe in giving a person incentive to work. So I am anxious to praise but loath to find fault. If I like anything, I am hearty in my approbation and lavish in my praise.

Quick communication discourages reflection and thoughtfulness and is notoriously error prone; cheap communication provides little or no incentive to get the message right the first time; and easy communication has fooled us into thinking that interactions require little or no effort.

You seek escape from pain. We seek the achievement of happiness. You exist for the sake of avoiding punishment. We exist for the sake of earning rewards. Threats will not make us function; fear is not our incentive. It is not death that we wish to avoid, but life that we wish to live. “You, who have lost the concept of the difference, you who claim that fear and joy are incentives of equal power—and secretly add that fear is the more ‘practical’—you do not wish to live, and only fear of death still holds you to the existence you have damned. You dart in panic through the trap of your days, looking for the exit you have closed, running from a pursuer you dare not name to a terror you dare not acknowledge, and the greater your terror the greater your dread of the only act that could save you: thinking. The purpose of your struggle is not to know, not to grasp or name or hear the thing I shall now state to your hearing: that yours is the Morality of Death.

If it is God’s desire that everybody acknowledge Jesus, it must be our desire as well. Hindus speak of “the Lord Krishna” and Buddhists of “the Lord Buddha,” but we cannot accept these claims. Only Jesus is Lord. He has no rivals. There is no greater incentive to world mission than the lordship of Jesus Christ. Mission is neither an impertinent interference in other people’s private lives, nor a dispensable option which may be rejected, but an unavoidable deduction from the universal lordship of Jesus Christ.

The mind is a complex operating system that intermingles action with dependencies on incentives and desires.

(Regulators, you may recall, have an incentive to make rules as complex as possible so their expertise can later be hired at a higher price.)

Willpower is the resource which allows us to operate under circumstances where there is low desire to act, or the incentive tied to an action is not immediately apparent.

Just as the United States helped create the prosperity that enabled the Party’s control, U.S. technology has been copied, repurposed, and enhanced to secure that control—sometimes with investment from U.S. venture capital. Across China, a program known as Police Cloud allows for the collection and integration of previously unimaginable amounts of information: who you’re in contact with, what you buy, where you travel, when you shop, whether you pay your parking tickets, and so on. A “social credit” system allows the government to affix a score to someone: How reliable are you? Could you pose a threat of some sort? You live your life with the knowledge that the sum total of your actions could be evaluated by someone, somewhere, with some purpose. This creates incentives and disincentives, given the reach of the Party into people’s lives. Disincentives are clear: Say the wrong thing, and you could end up detained. But the incentives may be even more powerful: Want a good job? Want your kids to get into a good school? You may have to consider those aspirations with everything you do.

Generally speaking, the bigger the following someone has, the less interested a service is in banning them. Platforms like YouTube thrive on traffic, and crowdfunding sites like GoFundMe get a percentage of the funds raised. The incentives for these companies to remove abusive uses or not as compelling as they should be. I want to believe that it's not intentional, but it's hard to understand why episodes of Game of Thrones are wiped from places like YouTube within nanoseconds well chronic abusive users are allowed to flourish.

At regular intervals in the past we have witnessed debates about the use of mathematics in economics. The critics of mathematics have focused on two main arguments. First, they have pointed out that mathematical models must by necessity build on so many conceptual simplifications that they are unable to capture the complexity of human relationships and the structure of social and economic life. Second, they have maintained that the increasing standard of theoretical formalization has led to unfortunate consequences for economists’ choice of topics for their research. Those who strive to achieve status and prestige among their colleagues will have an incentive to choose research problems that are easy to formalize rather than being related to important problems in the real world.

Ultimately it is a good incentive that motivates one to be good.

Over time, though, the team was able to arrive at a coherent set of principles to guide a shift in strategy. Under the emerging plan, U.S. officials across agencies would be expected to deliver a consistent and coordinated message on the need for reform; they would develop specific recommendations for liberalizing political and civic life in various countries and offer a range of new incentives to encourage their adoption. By

of climate change. What was needed was a massive nudge in the right direction. In the past, the stick of regulation and the rod of taxation were the methods that environmentalists believed could break the fossil fuel economy. But the Inflation Reduction Act doesn’t rely on such punitive tactics, because Manchin culled them from the bill. Instead, it imagined that the United States could become the global leader of a booming climate economy, if the government provided tax credits and subsidies, a lucrative set of incentives. There was a cost associated with the bill. By the Congressional Budget Office’s score, it offered $386 billion in tax credits to encourage the production of wind turbines, solar panels, geothermal plants, and battery storage. Tax credits would reduce the cost of electric vehicles so that they would become the car of choice for Middle America. But $386 billion was an estimate, not a price tag, since the legislation didn’t cap the amount of money available in tax credits. If utilities wanted to build more wind turbines or if demand for electric vehicles surged, the government would keep spending. When Credit Suisse studied the program, it estimated that so many businesses and consumers will avail themselves of the tax credits that the government could spend nearly $800 billion. If Credit Suisse is correct, then the tax credits will unleash $1.7 trillion in private sector spending on green technologies. Within six years, solar and wind energy produced by the US will be the cheapest in the world. Alternative energies will cross a threshold: it will become financially irresponsible not to use them. Even though Joe Biden played a negligible role in the final negotiations, the Inflation Reduction Act exudes his preferences. He romanticizes the idea of factories building stuff. It is a vision of the Goliath of American manufacturing, seemingly moribund, sprung back to life. At the same time that the legislation helps to stall climate change, it allows the United States to dominate the industries of the future. This was a bill that, in the end, climate activists and a broad swath of industry could love. Indeed, strikingly few business lobbies, other than finance and pharma, tried to stymie the bill in its final stages. It was a far cry from the death struggles over energy legislation in the Clinton and Obama administrations, when industry scuppered transformational legislation. The Inflation Reduction Act will allow the United States to prevent its own decline. And not just economic decline. Without such a meaningful program, the United States would have had no standing to prod other countries to respond more aggressively to climate change. It would have been a marginal player in shaping the response to the planet’s greatest challenge. The bill was an investment in moral authority.

In the six years that we dealt with them, they never broke any term of the agreement. Did I trust them? I didn’t even know them! So here is a key. In the absence of trust, you need a mechanical substitute to give them an incentive not to cheat. It can be a monetary structure as above. It can be money in escrow or potential negative opinions by third parties. It can be the net present value of future profits from the deal.

Everything comes with overhead, that's reality. Everything comes with pieces you don't like. You could be a supreme court justice and there's still going to be pieces of your job you don't like. You can be a university professor and you still have to go to committee meetings. Every job comes with pieces you don't like. And we need to say: That's part of it. That's part of everything. Nothing worth pursuing is free. The price is usually proportionate to the rewards. But there's rarely a price tag and you don't pay the price with cash. Most things worth pursuing is paid for in stress, uncertainty, dealing with quirky people, bureaucracy, other people's conflicting incentives, hassle, nonsense, long hours and constant doubt. That's the overhead costs of getting ahead. You have to realize that it's a price that has to be paid, there are few coupons and sales are rare.

Incentives: the most powerful force in the world. When the incentives are crazy, the behavior is crazy. People can be lead to justify and defend nearly anything.

Emotions, positive and negative, come in two usefully differentiated variants. Satisfaction (technically, satiation) tells us that what we did was good, while hope (technically, incentive reward) indicates that something pleasurable is on the way. Pain hurts us, so we won’t repeat actions that produced personal damage or social isolation (as loneliness is also, technically, a form of pain). Anxiety makes us stay away from hurtful people and bad places so we don’t have to feel pain. All these emotions must be balanced against each other, and carefully judged in context, but they’re all required to keep us alive and thriving. We therefore do our children a disservice by failing to use whatever is available to help them learn, including negative emotions, even though such use should occur in the most merciful possible manner.

In the United States especially, politics and economics don’t mix well. Politicians have all sorts of reasons to pass all sorts of laws that, as well-meaning as they may be, fail to account for the way real people respond to real-world incentives.

The only right way to proceed is to consider the past as completely different from the future. We should judge past facts historically and morally, in order to learn what is possible and what is morally right. We should not try at all to derive trends and directions from the past in order to make predictions about the future. For the future is open. Anything can happen. Unfortunately, this way of looking at the future does not seem easy to grasp. Some intellectuals are simply incapable of making this distinction between the future and the past and present - intellectuals who have learnt from Marxism to require some wise man to point the way into the future. More than once I have been told that my optimism must be at least a disguised pointer, because there are no optimists about the present who are not also optimists about the future. But all that my optimism about the present can offer for the future is hope. It can give us hope and incentive; for we have succeeded in making a lot of things better, and similar success is not impossible in the future. As far as the future is concerned, we should not seek to prophesy but simply try to act in a way that is morally right and responsible. This means we have a duty to learn to see the present correctly, not through the tinted spectacles of an ideology. We can learn from reality what it is possible to achieve. But if we see reality through the lens of one of those three ideological conceptions of history, we violate our duty to learn. The future is open, and we have a responsibility to do our best to make the future still better than the present. But this responsibility presupposes freedom. In a despotic system we are slaves, and slaves are not fully responsible for what they do.

Fulfilling a White House ambition expressed as early as 1944, Congress authorized a Strategic Petroleum Reserve with up to a billion barrels stockpiled against a national emergency; expanded powers for the executive in the event of another oil embargo; incentives for more environmentally friendly coal production; and tough new efficiency mandates for electrical appliances.

Robert Zion, the social psychologist, once described cognitive psychology as ‘social psychology with all the interesting variables set to zero’. The point he was making is that humans are a deeply social species (which may mean that research into human behaviour or choices in artificial experiments where there is no social context isn’t really all that useful). In the real world, social context is absolutely critical. For instance, as the anthropologist Pierre Bourdieu observes, gift giving is viewed as a good thing in most human societies, but it only takes a very small change in context to make a gift an insult rather than a blessing; returning a present to the person who has given it to you, for example, is one of the rudest things you can do. Similarly, offering people money when they do something you like makes perfect sense according to economic theory and is called an incentive, but this does not mean you should try to pay your spouse for sex.*

The truth: we should consider listening to the medical system if we have an acute issue like a life-threatening infection or broken bone. But when it comes to the chronic conditions that plague our lives, we should question almost every institution regarding nutrition or chronic disease advice. All you need to do is follow the money and incentives.

no small incentives for organisms that make

The dynamic of foraging created very different incentives to work than those to which we have become accustomed since the advent of farming. The capital requirements for life as a forager were minimal. A few primitive tools and weapons sufficed. There was no outlet for investment, not even private property in land. ... Having no permanent homes, they had little need to work hard to acquire property or maintain it. ... With no reason to earn and almost no division of labor, the concept of hard work as a virtue must have been foreign to hunting-and-gathering groups. ... There was literally nothing to be gained by working beyond the bare minimum required for survival.

people whose thinking is active in one direction, who employ everything as material, who always zealously observe their own inner life and that of others, who perceive everywhere models and incentives, who never tire of combining together the means available to them.

In institutional settings, we need to be alert to the wide divergence between what is good for the company and what is good for the individual. Ironically, the kind of incentives we put in place to encourage people to perform may lead to them to be unwilling to take any risks that have a potential personal downside – even when this would be the best approach for the company overall. For example, preferring a definite 5 per cent gain in sales to a 50 per cent chance of a 20 per cent gain. Why else do you think Management Consultancies are so rich?

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The incentive for a religious person turning into an atheist is to have a better and happier life

Focusing more on the ritual of her smoking, I urged, 'Explain to me more about taking in the smoke deeply, holding it until you can really feel it in your chest, and then letting out what is in you.' Then she began to sob, saying, 'Having someone really take me in, really listen to me, really feel me and then speak from their heart is the essence of life. I want that; I want to give that. It's what makes life worth living.' From her simple announcement 'It's what makes life worth living,' it was clear to see that the threat of illness or a shortened life could not compete with the power of the incentive that fueled her desire: she wanted to share with others deeply, from the heart. Smoking a cigarette the way she did gave her an experience of being alive, of feeling the nature of her own life force

To appreciate how income taxation reduces prosperity form what it could be, imagine a 100 percent tax on incomes. We wouldn't expect much prosperity in such a society. People would have no incentive to earn money. They would devote resources to hiding the little they did earn. No investments would be made. No savings would exist to increase living standards. People's activities would be grossly influenced by the tax. If we lower the rate from 100 percent, the principle does not change. . . If you want less of something, tax it.

Why do some of us work hard and some of us sit on our asses all day? Dan Pink, a New York Times and Wallstreet Journal bestselling author, argues that there are three main motivators―and they’re not what you think. Money doesn’t make the list. In fact, money can be a demotivator. It turns out that once you get beyond work that only requires rudimentary cognitive skill, higher monetary rewards are inversely related to performance. Instead, emotion becomes the driving force. More specifically, Pink defines the three main motivators as autonomy, mastery, and purpose.2 This has been backed up by numerous scientific studies. Here’s one: “Psychologists Teresa Amabile and Steven Kramer interviewed over 600 managers and found a shocking result. 95 percent of managers misunderstood what motivates employees. They thought what motivates employees was making money, getting raises and bonuses. In fact, after analyzing over 12,000 employee diary entries, they discovered that the number one work motivator was emotion, not financial incentive: It’s the feeling of making progress every day toward a meaningful goal.”3 Consider what this means. If you aren’t hardworking, maybe it’s not because you’re lazy, but because you hate what you’re working on! I believe there’s a hustler in all of us. It isn’t about your genetic makeup. It’s about your environment and the emotional state in which you’re operating. If you’re having trouble getting up in the morning and going to work, there’s a good chance you’d be happier hustling. You just need to find the right thing to be hustling toward, and the right people to support you. If you had all the free time in the world, what would you want to master? What would give you a sense of purpose? What would make your heart beat a little louder? The hustle is somewhere inside you. You just have to find it and set it free.

A goal without real consequences is wishful thinking. Good follow-through doesn’t depend on the right intentions. It depends on the right incentives.

As with most bad behaviors, drunk driving could probably be wiped out entirely if a strong-enough incentive were instituted—random roadblocks, for instance, where drunk drivers are executed on the spot—but our society probably doesn’t have the appetite for that.

Polygamy was common [amongst the Navajo], but women had superior property rights, owning sheep and the houses. A man who deserted his family would be destitute -- a powerful incentive to stay married.

Every successful person, no matter whether they realize it or not, has put the 5 Pillars of Success to work for them. They Plan and Prepare properly, they have Professional Accountability and Social Support, they have chosen an Incentive to inspire them, and they have given themselves a Big Deadline.

Godliness must be presented with its profit and incentives, not only for the good of the nation and society, but of eternal value.

Many people fear that decriminalization and the controlled dispensing of drugs will lead to widespread substance use among people who are now deterred from becoming addicts only by existing legal prohibitions. Like other tenets of the War on Drugs, this view entirely lacks supporting evidence. Any data on the subject points to the opposite prediction. For example, for many decades in the United Kingdom, heroin has been dispensed, under legal supervision, to addicts. The same type of program has been offered on a limited basis in other countries as well, and nowhere has it been found that this measure served in any way to entice unaddicted people into addiction. That is not surprising, given that addiction is a response to life experience, not simply to a drug. People who do not suffer the searing emotional pain that drives hardcore drug addiction will rarely fall into dependency on chemicals, even if these were more readily available — and, once more, public access to habit-forming substances is not being proposed. The call for the decriminalization of drugs for personal use does not imply legal acceptance of drug dealing. Criminalization and prevention are not identical — if anything, the first undermines the other. Paradoxical though it may seem, current drug laws against possession make drugs more readily available to potential new users than decriminalization would. Only the War on Drugs creates the raison d’être of the international trafficking industry, most of whose wealth is based on satisfying the cravings of established drug addicts. Without the exorbitant profits yielded by supplying to addicted users desperate for their substances, the illegal market would shrink to a fragment of its present size. Further, much of the street-level front-line sales force of the illicit drug trade consists of users raising money to support their habit. With the decriminalization of possession for personal use and the medically supervised distribution of drugs, the incentive to sell to new “customers,” including young kids, would largely evaporate. Policing resources could then be concentrated on the remaining large-scale traffickers — if any.

When rewards ignore individual performance, the incentive to strive for excellence is lost.

Both the Ittihad and the Nazis—each originally a marginal political party—managed to perpetrate genocide by enlisting the established institutions of conventional life—the national courts, commercial structures, scholarly community, and so on—in the tasks of mass persecution and eventually mass murder. In both cases, the ruling party achieved its genocidal aims in part by offering economic incentives for persecution, the most basic of which were the opportunity to share in the spoils of deported people and the ability to transfer the costs of economic crisis onto the shoulders of the despised group.

If (as is generally accepted) over 75% of a typical software project’s life-cycle costs will be in maintenance and debugging and extensions, then the common price policy of charging a high fixed purchase price and relatively low or zero support fees is bound to lead to results that serve all parties poorly. Consumers lose because, even though software is a service industry, the incentives in the factory model all work against a vendor’s offering competent service. If the vendor’s money comes from selling bits, most effort will go into making bits and shoving them out the door; the help desk, not a profit center, will become a dumping ground for the least effective employees and get only enough resources to avoid actively alienating a critical number of customers.

The urgency to own stuff and have it now is promulgated by our culture. In the USA, tax incentives for mortgage debt have been around since the 1930s. The idea was that debt enslaved—a man with a mortgage won’t go on strike. It was a way to control a worker for his or her working years.

Temptation Bundling One approach to fighting wayward urges involves “temptation bundling,” in which subjects couple a “want” activity with a “should.” In one experiment, Milkman divided participants into three groups. The full group was allowed to listen to audio novels of their choice only at the gym; after their workouts, the novels were locked away. The intermediate group was allowed to keep the audio novels but was encouraged to listen only at the gym. The third, unrestricted group was not limited in any way and could listen to novels whenever they chose. At the start of a nine-week intervention, the full group visited the gym 51 percent more often than the unrestricted group. The intermediates visited the gym 29 percent more than the unrestricteds. Meaning: pairing a “want” activity (listening to a juicy audiobook) with a “should” one (going to the gym) was a strong incentive to exercise. The method was so valuable that when the experiment was done, 61 percent of the participants opted to pay the gym to restrict access to their audiobooks. The effect fades over several months, though, so people have to switch the “want” activity to stay engaged. Even so, these results open up multitudes of possibilities. If we pair an unappealing chore with something we like to do, we increase the odds that we’ll perform the challenging task. For example, you could buy yourself an item of clothing every week you lose some weight. This will force you to assess your body and give you a reward for being disciplined. This is temptation bundling, but it’s also giving yourself a break from a constant stream of “should” activities. It recharges your brain and makes you stronger for the next time a little self-control is required (see below, “Don’t Overdo It”). Another method of improving self-control is the use of precommitment devices, which allow you to lock in good behavior tomorrow based on your good intentions today. An example of this is a website called stickK.com that helps people create commitment contracts. On the site you create a contract with yourself in which you set a goal—for example, losing ten pounds by a specified date. You deposit money into an account and then you select a trainer or coach to referee and confirm whether or not you achieved your goal. If you don’t hit your target, you lose that money. The process ensures that once tomorrow becomes today, you’ll feel a strong pinch if you break the contract. For example, you can commit to giving $500 to charity if you don’t achieve your goal by the specified date. Or choose an anticharity, meaning if you fail you must give money to an organization you don’t want to help, such as the opposing political party, which is an extra incentive not to fail. Using precommitment devices is a way of forcing your future self to do what your present self thinks it should.

No discussion of this pattern would be complete without mentioning one fateful little tweak we have introduced into the set of rules that governs these types of organizations. This tweak is what makes the difference between a simple hierarchy and a bureaucracy. Whereas a traditional hierarchy appoints individuals from outside the organization to the various leadership roles, a classic bureaucracy relies upon internal promotion. It allows its members to move up through the ranks as a reward for successful completion of their assigned duties within the organization. This small innovation, which is generally credited to the Chinese, can generate significant improvements in organizational efficiency. A traditional hierarchy relies quite heavily upon negative sanctions in order to keep members “in line” at every tier. These sanctions tend to accumulate in force as one moves downward through the hierarchy, so that those at the very bottom often get “dumped on.” As a result, the overall quality of life of subordinates generally deteriorates as one moves down the organizational hierarchy. As they say in the corporate world, “Shit rolls downhill.” Bureaucratic forms of organization, however, turn this into a virtue. The prospect of moving up is used as an incentive to improve performance at every level. There is something vaguely diabolical about the incentive structure that is offered to subordinates, of course, because it organizes things in such a way that the only chance to reduce the amount that you get “dumped on” in the long term is to let people dump on you for now. But there can be no doubt that this incentive structure works.

The reasons for the failure of the Leninist economic model have been studied thoroughly and in the case of North Korea they were essentially the same as elsewhere: distorted price information, lack of incentives for innovation and quality improvement, and an ingrained inability to handle data efficiently.

Rich, I don’t understand. Nobody around here seems to be very competitive. You’re not into competing. So how come you’re working so hard on this year list?” Rich smiled. “That’s worth thinking about,” he said. “But look, the list itself doesn’t matter. The record doesn’t matter. It’s like when a bunch of friends are playing football in the back yard, you go all out to win, but afterwards it doesn’t matter who won. Here’s what’s different about it, though,” he said, turning serious. “The list total isn’t important, but the birds themselves are important. Every bird you see. So the list is just a frivolous incentive for birding, but the birding itself is worthwhile. It’s like a trip where the destination doesn’t have any significance except for the fact that it makes you travel. The journey is what counts.

Why should you buy the cow, if you can get the milk for free?” Answer: There is no reason, no incentive, no need to buy the cow. If the cow continues to supply free milk, the milk’s value and the cow’s value are greatly reduced and free milk will keep that cow feeling empty, misused and unwanted. This is the harsh reality of giving out discounts. Of course, we are not cows, but rather sons and daughters of the Most High God, so let’s be mindful not to discount the price that was paid for us on Calvary.

As you see, you can follow our guidelines and still enjoy eating. In fact, if you like to eat, you should have extra incentive to live longer. Just think -if you add only five years to your life- that means you get to eat at least 5,500 more meals.

When there is no leverage or no incentive, all brains get stuck.

As Charlie Munger has said, “I think I’ve been in the top 5% of my age cohort almost my entire adult life in understanding the power of incentives, and yet I’ve always underestimated that power. Never a year passes but I get some surprise that pushes a little further my appreciation of incentive superpower.” An example from FedEx is one of his favorite cases in point. As he explains, the integrity of the FedEx system relies heavily on the ability to unload and then quickly reload packages at one central location within an allotted time. Years ago, the company was having a terrible problem getting its workers to get all the boxes off and then back on the planes in time. They tried numerous different things that didn’t work, until someone had the brilliant idea of paying the workers by the shift as opposed to by the hour. Poof, the problem was solved.2 FedEx’s old pay-by-the-hour system rewarded those who took longer to get the job done. They were incentivized to take longer. By switching to pay-by-the-shift, workers were motivated to work faster and without error so they could go home, yet still earn the wages of a full shift. For the workers, finishing early amounted to a higher effective hourly wage. By aligning the business’s interests with the worker’s incentives, FedEx got the outcome it and its workers both desired. The

:-I'd like to meet the pilot before we take off. Get his credentials and all. Maybe he's willing to take a bribe. -A bribe? Henry, if the plane crashes, he's going to be dead too. I'm pretty sure survival is more than enough incentive for him. -Maybe, but what if he has a massive gambling debt and needs the life insurance money to take care of his twelve children and handicapped wife?

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The most significant factor in an individual’s ability to remain in good health may be a sense of control over the events of life,” one psychologist has remarked.

if, like Charles Silberman, we think school “should prepare people not just to earn a living but to live a life—a creative, humane, and sensitive life,”22 then children’s attitudes toward learning are at least as important as how well they perform at any given task.

Belief in God’s sovereignty coupled with his promises to reward those who diligently seek him (Heb. 11:6) provides even more powerful incentive to pray.