If you like this video, I’d recommend reading the book it was based on, “Thinking Fast and Slow” by Daniel Kahneman. I haven’t done a book review of it, but it’s an excellent read.
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Right here is where so many theories fail. They sound good on paper when we are thinking things through. But when it comes to real life people don’t do that and the ideas fail miserably.
I think you’re completely right. Any policy decisions need to take this aspect of human nature into account. That was the whole point of David Brook’s book ‘The Social Animal.’
For me it was learning psychology that in large part made me realize theories like Ayn Rand’s objectivism or communism both fail due to human nature. The same goes for laissez faire capitalism, good chunks of decision theory and much of philosophy. They all falsely assume human rationality. The reality is that we are capable of being rational but usually don’t bother to.