EconTalk Nassim Nicholas Taleb on Work, Slavery, the Minority Rule, and Skin in the Game
Aug 14, 2017
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Risk Transfer in Modernity
- Modernity evaluates people based on metrics, not actions, leading to a transfer of risk.
- This creates a "Reuben trade" where individuals profit from success but offload losses onto others.
Employee vs. Contractor
- Russ Roberts shares an anecdote about a pilot who cancelled on him for a better offer.
- Taleb explains that employees, unlike contractors, provide risk management due to their higher stakes.
Roman Stewards
- Romans preferred slaves as stewards due to the harsher punishments for mistakes.
- This highlights the concept of skin in the game as a filter for competence and loyalty.