Meta Economics
At the age of 19, I took an econ 101 course. While taking this course, I had a realization:
this is the most important subject in the world.
almost nobody knows econ 101.
Econ 101 is basically like the laws of physics for resource allocation. It’s all about incentives, disincentives, game theory, decision making, human behavior, etc. I was surprised at how much of a pure science it really is. I thought, “what the heck is this doing in the business department and not the math department?” lol. No wonder so few people understand this subject.
There are a lot of other reasons too. In the next post I’ll explain the Economic Great Filter & how it filters out 98% of the population (even econ majors (especially econ majors)).
I have a feeling that good things will start to happen once enough of the right people develop their econ muscles. Why? How? I have some ideas but here’s a big one: in order to improve resource allocation, a natural first step is to allocate resources to the field of resource allocation.
yo dawg.
I am still eagerly awaiting part 2!!! I've been checking every few days (I've shared this with a bunch of people already, I think it's great and I can't wait to see this line of thought fully fleshed out)
I've been thinking a lot about this lightning animation (https://x.com/i/status/2036461057699688511) as a metaphor for the correct resource allocation. Once a "loop" is done, looking backwards and retroactively rewarding all the parts along the path that helped that loop close, to the degree that they helped. This is the "ultimate" / highest correctness way to do it, but it can only be done retroactively. Systems that offer reward ahead of time try their best to approximate/predict this future performance, but do need to receive feedback "when all is said and done" and update.