Skin in the Game – 008

Skin in the Game, by Nassim Nicholas Taleb, is as thought provoking as anything you’ve read or heard from that writer/philosopher. It’s central tenant is the concept of having skin in the game, meaning an exposure to both the positive and negative consequences of your actions in the real world. He argues that we should set up systems (meaning governments, companies, and even for ourselves) that put the maximum amount of skin in the game possible in order to get the best outcomes and prevent asymmetries. An example of a lack of skin in the game were bankers who collected massive bonuses leading up to the recession in 2008 but didn’t lose anything in the crash. In this episode I talk about many of my favorite parts of this interesting book.

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