Dan Ariely, behavioral economist and author of Predictably Irrational, explains why saving is so difficult. Here's his advice on making financial decisions.
Dan Ariely is so interesting. Definately has a seat on my Dream Dinner Guest list, if I actually ever had people over at all or ate dinner regularly..lol
What 'stock market thing'? The only crash I saw was one of government-back securities. That was the only source of toxic assets. Furthermore there's no way to make annuities better, because they're defective by design. Guaranteeing their payment like student loans would get you the same grab bag of problems. People aren't going to act more rational by being told what to do.
It's really too bad that Dan is a statist. Doctors and hospitals worked in the free market before the government took over them, and the equilibrium was reached. Dan says you wouldn't call to a hospital to find out their rates when you have pain in your ribs, but of course you would! If you don't have a lot of money, you would check. But more efficiently, there would be rating agencies that can give a better view on which hospital is more suitable for you, just like in any other market domain.
he's actually a marketing professor. his work is more economic psychology (psychological principles applied to economic decisions) than behavioral economics (incorporating psych principles in formal economic models).
Government debt which results in printing massive amounts of money ensures that $1000 saved today may have very little value in 30 years or even 5. It is illogical to save money when it is being rapidly devalued.
Dan should stick to psychology, because he doesn't understand economics(especially healthcare). The free market is extremely efficient and ethical. Private healthcare could easily be provided, too bad it is illegal.
You sign up for insurrance BEFORE you get sick. You don't call hospitals after you are sick. Maybe Dan should stay away from the topic of economy and stick to what he knows.
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I love how Dan breaks these concepts down into such dimple terms that even I can understand.
Dan Ariely is so interesting. Definately has a seat on my Dream Dinner Guest list, if I actually ever had people over at all or ate dinner regularly..lol
You do realize he is one of the world's leading professors on economics ;)
What 'stock market thing'? The only crash I saw was one of government-back securities. That was the only source of toxic assets. Furthermore there's no way to make annuities better, because they're defective by design. Guaranteeing their payment like student loans would get you the same grab bag of problems. People aren't going to act more rational by being told what to do.
Hard-liner but I can think of a few types of scenarios where you might be right, but a free market with rules is not a free market then is it? :P
It's really too bad that Dan is a statist. Doctors and hospitals worked in the free market before the government took over them, and the equilibrium was reached. Dan says you wouldn't call to a hospital to find out their rates when you have pain in your ribs, but of course you would! If you don't have a lot of money, you would check.
But more efficiently, there would be rating agencies that can give a better view on which hospital is more suitable for you, just like in any other market domain.
Anyone with a chess board can prove the free market does not work to the benefit of all parties without rules.
he's actually a marketing professor. his work is more economic psychology (psychological principles applied to economic decisions) than behavioral economics (incorporating psych principles in formal economic models).
Did you read his books? Behavioural economics is prevailing in his research
Government debt which results in printing massive amounts of money ensures that $1000 saved today may have very little value in 30 years or even 5. It is illogical to save money when it is being rapidly devalued.
nice article
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Yes, but it is relatively trivial to invest money to match the rate of inflation.
Dan looks like an Italian Pablo Escobar.
@kamikazeknutter
Please use arguments.
Dan should stick to psychology, because he doesn't understand economics(especially healthcare). The free market is extremely efficient and ethical. Private healthcare could easily be provided, too bad it is illegal.
free market doesn't benefit all parties, by definition, with or without rules
You sign up for insurrance BEFORE you get sick. You don't call hospitals after you are sick. Maybe Dan should stay away from the topic of economy and stick to what he knows.
you're contradicting yourself