Emily Oster on the Family Firm

In 'Wild Problems,' Russ Roberts addresses the big, uncertain decisions in life—such as who to marry, whether to have children, where to move, and how to forge a life well-lived—that cannot be solved using data, science, or traditional rational approaches. He suggests focusing less on the path that promises the most happiness and more on figuring out who you actually want to be. Roberts draws on the experiences of great artists, writers, and scientists to lay out strategies for reducing fear and the loss of control when facing these 'wild problems. ' He argues that life should be experienced as a mystery rather than a problem to be solved, and he critiques the idea of relying solely on cost-benefit analysis and utilitarianism for making life's major decisions.

In 'The Family Firm', Emily Oster uses her background as an economist and business school professor to provide a framework for parents to make informed decisions about their children's education, health, extracurricular activities, and independence. The book introduces the 'Family Firm Toolbox', which includes the 'Four F's': Framing the Question, Fact-Finding, Final Decision, and Follow-Up. Oster emphasizes the importance of a systematic approach to family decision-making, drawing parallels between managing a business and managing a family. The book covers various topics such as choosing the right school, encouraging a healthy diet, and navigating day-to-day family logistics, all with a focus on reducing stress and making better decisions.

In 'The Fatal Conceit,' Friedrich Hayek refutes socialism by highlighting the limitations of human reason in designing complex societal systems. He argues that societal order and efficiency emerge from spontaneous processes and the voluntary actions of individuals within a framework of established rules, rather than from top-down planning. Hayek emphasizes the importance of respecting and understanding the spontaneous and extended order of human cooperation, and he advocates for a humble recognition of the limits of human knowledge and the wisdom embedded in evolved social traditions and market processes. The book also critiques the concept of social justice in socialist ideologies, arguing that true social justice should be understood in terms of equality of opportunities rather than equality of outcomes.