Video Link: https://youtu.be/Pjpw5fyEucE
In this episode, Charlie Munger was asked on how important being rational is throughout his life and aside from the tips and tricks that he has, what steps we can take to become more rational?
In this episode, you’ll learn:
What is rationality by Charlie Munger?
Why being rational is important in life?
The Republicans and Democrats in America on social safety net.
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AUDIENCE MEMBER 00:08
I've had two foldable questions. The first is, it’s been a while since you’ve had the psychology of human misjudgment as a talk. And I was wondering if there are any additions you would have, that you’ve seen more recently?
And the second part is, you’ve mentioned how important being rational is throughout your life. Can you walk us through aside from the tips and tricks that you have what steps we can take to become more rational?
CHARLIE MUNGER 00:30
Well, it’s a long process. I don’t think anybody just flashes into it. It’s not like somebody who tells you all you’ve got to do is run down to the front of the revival meeting and shout out and you get a wonderful here after.
Rationality is something you get slowly and it has a variable result. But it’s better than not having it. No, I just think that – you can just see how awful it is when people get into these furies of resentment and anger, and sure they’re right about everything. It’s hard to know exactly how human civilization ought to be organized.
In my own life, I’ve often reflected about how well the system has worked. What I concluded was that the social safety net is – it’s just come up enormously as the world has gotten more prosperous. That was a very desirable thing.
And that the Republicans who always opposed it were wrong. And I’ve also…the Democrats that always wanted to push the safety net too far ahead, as they did for a while with the welfare program, that was also wrong. And that, by and large, what we have is about right.
And we wouldn’t have got it from either party alone. If either party had been totally in control in a one-party government, we wouldn’t have had the result that we had, which is close to right.
I think power does corrupt. I think too much power…Part of the genius of the American system is, is no one person gets too much power. If either party had all the power, I don’t think American civilization would’ve work as well as it has with this ebb and flow.
And I don’t know what the exact right safety net is. I don’t think it matters that much. I think the United States would be about as happy if it had five percent more, or five percent less safety net.