The hidden risk of not understanding the details of our reality - Deepstash
No More Broke

Learn more about personaldevelopment with this collection

Identifying and eliminating unnecessary expenses

How to negotiate better deals

Understanding the importance of saving

No More Broke

Discover 83 similar ideas in

It takes just

14 mins to read

The hidden risk of not understanding the details of our reality

Focusing on specific details in a complex system while ignoring the amount of detail contained within the system may at first show a benefit. However, it can create a massive collapse in the long-run.

In the late 18th century, the German government wanted to grow "scientific forests" to track and harvest timber. Underbrush was cleared, and tree species reduced. The first planting did well because of nutrients that were still left in the soil. But the clearing of underbrush reduced insect, mammal, and bird populations essential to soil building. Pests had few enemies left and infected the entire forest, resulting in massive forest death across the country.

117

409 reads

MORE IDEAS ON THIS

Overconfidence bias

Overconfidence bias

Most people think they know more than they really do.

Researchers showed that people believe they understand familiar manufactured objects much better than they really do. For instance, if you think you understand how a can opener works, try to draw a diagram of a can ...

131

881 reads

Managing the overconfidence bias

  • Embrace meta-rationality. Know the limits of your own understanding, know when to consult experts, which experts to defer to, and when to admit that something is impossible for anyone to know.
  • Allow for uncertainty. Confident statements seem more p...

140

475 reads

The details that form our reality

When we don't understand the details, it can cause much trouble. If a nation is overconfident that they will win a war, they will fight more wars. An investor that is to sure of their estimate of an asset's value will trade too much.

The world is too big to proces...

135

538 reads

CURATED FROM

CURATED BY

cmary

Living the life.

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving & library

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Personalized recommendations

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates