We worship efficiency

We often see efficiency as good and inefficiency as wasteful. Economists teach us that increased efficiency improves our standard of living and make our lives better.

However, too much of a good thing has the opposite effect. Some motivation produces excellent performance while too much produce choking. Some choice creates good outcomes but too much leads to paralysis and bad decisions. The challenge we face is in finding the right balance.

In the face of radical uncertainty, instead of asking which option will give the best results, we should be asking which option will provide us with good-enough results under the broadest range of future states.

Instead of maximizing return on investments, we should be...