AI Practice Knowledge BaseCounterintuitive Facts (21): If He Doesn't Pay for His Mistakes, His Advice Is Garbage
PremiumSkin in the Game: The vast majority of experts, politicians, and executives are 'non risk sharers'
I. In ancient Rome, if a house collapsed and crushed the owner to death. What happened to the architect? The architect also had to be executed. This was the rule in the Code of Hammurabi and Roman law.
II. This is called Skin in the Game. The architect's life is tied to the house's fate. So he will definitely make the pillars as strong as possible, even if it costs more. He won't cut corners. Because the price of cutting corners is his own life.
III. The result? Roman bridges, aqueducts, coliseums still stand two thousand years later. While many modern buildings become dangerous structures after just decades.
IV. What's the difference? Ancient architects had skin in the game. Modern architects have insurance companies.
V. The 2008 financial crisis. Why did bankers dare to package junk bond
Sign in to continue reading
This is premium content. Sign in to your account to access the full content.
Counterintuitive Facts (20): Stupidity Is More Dangerous Than Evil Because Stupidity Cannot Be Refuted
Bonhoeffer's Theory of Stupidity: Stupidity isn't an intellectual deficit, stupidity is a moral choice
Counterintuitive Facts (22): Why Does the Boss Always Promote the Stupidest Person?
The Gervais Principle: Companies have only three types of people: Sociopaths, Clueless, and Losers