You are viewing a single comment's thread from:

RE: Trendlines over headlines: why the world is doing much better than you probably think

in #economy7 years ago

Thanks for disagreeing :)
Human brains are capable of rational thought yes, and when in that mode it is possible to understand statistics.

Most of the time we are not thinking rationally though: here is a pretty good write up:
http://www.burns-stat.com/review-thinking-fast-slow-daniel-kahneman/

Marketers, news agencies, banks, creditcard corporations, car salesmen have understood this for decades already and have been using this weakness of human minds quite successfully to rip people off constantly.

Why do people take on credit card debt, get car loans which almost double the cost of the car, buy stocks that are too expensive? Yes on paper this all should be obvious if you do a few simple sums, but most successful corporations have found that if you can keep the emotional part of the brain flooded with stimuli, people never get around to engage the rational part of their brain. Why do you think car ads had nice looking girls next to them? That is no accident,
it works and has a measurable impact on bad decision making.

Thinking, fast and slow should be mandatory reading for anyone with a brain...