The World's Best Book Summaries
Does automation contribute to unemployment? How can we adapt to the world where most jobs are performed by technology? The age of automation is upon us. Already, many jobs that used to be performed by humans can be completed by robots, and this is only the beginning. To address the looming challenges of automation, we must build a people-centered economy. Keep reading to learn about the looming challenges increasing automation brings.
What is “homo economicus”? Does the assumption of homo economicus reflect an average economic agent? Economics, once focused on the study of the production of goods and services, has branched into psychology and now purports to explain the motivations and beliefs of the human beings who produce those goods and services. At the heart of the current economic theory is “homo economicus”—the idea that humans are rational beings making optimal economic choices in the light of perfect access to information. Here’s why the homo economicus model is ultimately flawed, according to Kate Raworth.
How does the social environment affect human behavior? Do you behave differently around the higher-ups? Social environment has a tremendous influence on human behavior. People tend to act differently than their normal self around higher-ups and people from out-groups. Also, men tend to take greater risks in the company of women. Keep reading to learn about the psychology of social interaction.
What are the major obstacles to innovation in organizations? Why do innovative ideas get shot down? According to Safi Bahcall, the major obstacle to innovation is disbelief: Groundbreaking innovative ideas are often dismissed as crazy and overly ambitious. He calls such ideas “loonshots” (loonshot = loony + moonshot). In addition, innovation-focused companies may fall into traps that keep them from innovating successfully. Here are three traps that kill innovation.
What is the relationship between poverty and education? Why do the poor choose not to send their children to school? Poverty is a major obstacle to obtaining an education. But even when education is available, poor parents may choose not to send their children to school. This is because there’s often a lack of well-paying jobs in poor areas, so parents don’t bother educating their children because they see little point in doing so. Here’s why the poor often choose not to make use of the educational opportunities that are available to them.
What is a neurotransmitter? What are the key neurotransmitters that shape our behavior and moods? Neurotransmitters are chemical messengers in the brain that pass on signals between the brain’s cells—neurons. Neurotransmitters play a key role in how you feel and act moment to moment. There are dozens of neurotransmitters at work in the human brain, but the most noteworthy ones are dopamine, serotonin, oxytocin, and testosterone. Let’s take a look at the major brain neurotransmitters and how they drive behavior.
Why do most people give up trading? Is trading really that hard as it’s made out to be? What does it take to become a successful trader? One of the keys to achieving success in trading is simply a matter of trading a lot. Provided you have a sound strategy, over time you’ll become more adept at reading market patterns and predicting what happens next with ever-increasing accuracy. Here’s how to achieve success in trading.
What are the core economic assumptions? Do the current economic assumptions align with the ultimate goal of economics? According to Kate Raworth, economics has developed some core assumptions about human nature, what an economy exists to do, and what the social science of economics is meant to achieve. According to her, if the economy is to better serve humanity’s needs, these core assumptions need to change. Here’s why the traditional economic assumptions are flawed, according to Raworth.
How can companies encourage innovative thinking? What can you, as a leader, do to inspire creative ideation that translates into a useful innovation? According to Safi Bahcall, the author of Loonshots, companies focused on innovation should separate innovators from implementers. This is because innovation tends to occur in a climate that’s highly unstructured. Successful implementation, however, needs order and structure. Here’s how to encourage innovation in your organization.
Why is it so hard to get out of poverty? What is the key factor that keeps people stuck in the poverty trap? Poverty is an insidious trap that is extremely difficult to escape. Poor people are so focused on stretching their limited resources that they simply don’t have the time or energy to think about anything else. According to Esther Duflo and Abhijit Banerjee, the authors of Poor Economics, one way to break the vicious cycle of poverty is to give the poor easier choices. Here’s how lack of choices keeps people in the poverty trap.