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priyankaghosh

How to Become a Great Investor like Warren Buffet - 0 views

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    Warren Buffet is no less than a God for the investors around the world. His investment journey dates back to the time when he started trading in stocks at the very young age of 11. By the time he turned 16, he had already made a net worth of $6000 (the equivalent of $53,000 today). With a net worth over $70 billion, this 87-year-old wealth creator is currently the second richest person in the world, behind his friend Bill Gates. So, what did Warren Buffet do right to amass such a huge wealth? Here are a few of his key investment strategies from which you can pick up useful tips. Click the link above to read full article.
caelengrubb

The Economics of Well-Being - 0 views

  • Money isn’t everything. But for measuring national success, it has long been pretty much the only thing
  • And the era of GNP and GDP has been characterized by a huge global rise in living standards and in wealth.
  • At the moment, though, GDP is embattled. Economists and national leaders are increasingly talking about measuring a country’s status with other metrics and even with a squishy-seeming concept like “happiness.”
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  • As everyone in business knows, you manage what you measure. So although the replacing-GDP discussion may seem a little airy, its growing credibility in important circles could give it a real impact on economic policy
  • The story usually begins with Jeremy Bentham, an Englishman who in 1781 outlined a philosophy of utility that assessed the merits of an action according to how much happiness it produced. This was during the Enlightenment, when thinkers sought to replace religion-based rules with rational, scientific guides to decision making and life.
  • It’s true that the challenges of tracking energy use or pollution aren’t huge. But the politics are extremely tricky. In its early days the Clinton administration pushed the Bureau of Economic Analysis—the agency that measures U.S. GDP—to develop a green GDP
  • For its original purpose—measuring short-term economic fluctuations—GDP is not likely to be supplanted anytime soon. It may even be gaining ground: A major discussion is under way concerning whether the U.S. Federal Reserve and other central banks should in times of crisis focus not on inflation but on GDP growth.
  • Compiling GDP involves making a lot of choices, and even reasonable choices can lead to skewed results. Statisticians understandably favor goods and services that are bought and sold—and thus easily valued by market price—over economic activities whose value must be estimated
  • Developing nations with lots of foreign direct investment saw GDP grow much faster than GNP would have—but didn’t necessarily reap the benefits, because the investments’ profits went mostly to multinational corporations.
  • Economists, the most enthusiastic adopters of the concept, came to focus instead on the tangible expression of people’s needs and desires: what they were willing to spend money on.
  • Many things of value in life cannot be fully captured by GDP, but they can be measured by metrics of health, education, political freedom, and the like
  • The idea that economic and other data can be better presented with a dashboard of indicators than as a single number or ranked list is very much in the air among experts and policy makers.
  • In Sarkozy’s 2009 report on alternatives to GDP, the word “dashboard” appears 78 times. But the notion of dashboards hasn’t captured the public’s imagination. What has is a word that shows up just 29 times in the Sarkozy report (mostly in the bibliography): “happiness.”
  • In the 1950s and 1960s psychologists and sociologists reopened the question of whether it could be quantified. Opinion polls, then entering their heyday as measurers (and in some cases determiners) of the public mood, were an obvious vehicle for the attempt.
  • The economist Richard Easterlin imported the happiness discussion to his discipline with a 1974 paper pointing out that the results of national happiness polls did not correlate all that well with per capita income.
  • The interest in happiness surveys has also led to critical scrutiny of the Easterlin paradox. After reevaluating decades’ worth of polling data, the economists Betsey Stevenson and Justin Wolfers made headlines in 2008 by refuting the paradox—at least the part that said people in wealthy nations weren’t happier than those in poor nations
  • They were unable to conclusively debunk the argument that rises in income over time fail to deliver increased happiness, but the evidence they marshaled certainly muddied the waters
  • Money can’t buy happiness. But it could perhaps buy the ability to measure it.
clairemann

Robinhood app makes Wall Street feel like a game to win - instead of a place where you can lose your life savings in a New York minute - 0 views

  • Wall Street has long been likened to a casino. Robinhood, an investment app that just filed plans for an initial public offering, makes the comparison more apt than ever.
  • Similarly, Robinhood’s slick and easy-to-use app resembles a thrill-inducing video game rather than a sober investment tool
  • Using gamelike features to influence real-life actions can be beneficial, such as when a health app uses rewards and rankings to encourage people to move more or eat healthier food. But there’s a dark side too, and so-called gamification can lead people to forget the real-world consequences of their decisions.
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  • sometimes with disastrous consequences, such as last year when a Robinhood user died by suicide after mistakenly believing that he’d lost US$750,000.
  • The psychological impact of game play can also be harnessed for profit.
  • Games also mimic rites of passage similar to religious rituals and draw players into highly focused “flow states” that dramatically alter self-awareness. This sensory blend of flow and mastery are what make games fun and sometimes addicting: “Just one more turn” thinking can last for hours, and players forget to eat and sleep. Players who barely remember yesterday’s breakfast recall visceral details from games played decades ago.
  • The reason games are so captivating is that they challenge the mind to learn new things and are generally safe spaces to face and overcome failure.
  • For example, many free-to-play video games such as Angry Birds 2 and Fortnite give players the option to spend real money on in-game items such as new and even angrier birds or character skins.
  • This “free-to-play” model is so profitable that it’s grown increasingly popular with video game designers and publishers.
  • Gamification, however, goes one step further and uses gaming elements to influence real-world behavior.
  • . Common elements include badges, points, rankings and progress bars that visually encourage players to achieve goals.
  • Many readers likely have experienced this type of gamification to improve personal fitness, get better grades, build savings accounts and even solve major scientific problems. Some initiatives also include offering rewards that can be cashed in for participating in actual civic projects, such as volunteering in a park, commenting on a piece of legislation or visiting a government website.
lucieperloff

Why Riders Abandoning Buses and Trains is a Problem for Climate Change - The New York Times - 0 views

  • On the London Underground, Piccadilly Circus station is nearly vacant on a weekday morning, while the Delhi Metro is ferrying fewer than half of the riders it used to. In Rio, unpaid bus drivers have gone on strike. New York City subway traffic is just a third of what it was before the pandemic.
  • Public transit offers a relatively simple way for cities to lower their greenhouse gas emissions, not to mention a way to improve air quality, noise and congestion.
  • “It’s urgent to act.”
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  • transportation experts are scrambling to figure out how to better adapt public transit to the needs of riders as cities begin to emerge from the pandemic.
  • In India, a company that sells secondhand cars online saw sales swell in 2020 and its own value as a company jump to $1 billion, according to news reports. Elsewhere, bike sales have grown, suggesting that people are pedaling a bit more.
  • Both London and Paris sought to use lockdowns to expand bike lanes.
  • ridership was just over half of normal in the first two months of this year.
  • Most importantly, if transit systems continue to lose passenger fare revenues, they will not be able to make the investments necessary to be efficient, safe and attractive to commuters.
  • The city transit agency, which had once projected a budget surplus for 2020, has instead been relying on government bailouts since the pandemic hit.
  • “only travel when absolutely necessary.”
  • There’s even more distress in cities where people rely in large part on private bus companies.
  • Strikes by bus drivers have made bus travel even slower and more chaotic.
  • efficient bus system is critical for Rio to not only reduce its carbon emissions but also to clean its air. “It’s not just an environmental issue, but a public health issue,” Ms. Celidonio said.
  • “Those cities that were investing, they will get out stronger,”
caelengrubb

Free Market - Econlib - 0 views

  • Free market” is a summary term for an array of exchanges that take place in society.
  • Each exchange is undertaken as a voluntary agreement between two people or between groups of people represented by agents. These two individuals (or agents) exchange two economic goods, either tangible commodities or nontangible services
  • Both parties undertake the exchange because each expects to gain from it. Also, each will repeat the exchange next time (or refuse to) because his expectation has proved correct (or incorrect) in the recent past.
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  • Trade, or exchange, is engaged in precisely because both parties benefit; if they did not expect to gain, they would not agree to the exchange.
  • This simple reasoning refutes the argument against free trade typical of the “mercantilist” period of sixteenth- to eighteenth-century Europe and classically expounded by the famed sixteenth-century French essayist Montaigne.
  • The mercantilists argued that in any trade, one party can benefit only at the expense of the other—that in every transaction there is a winner and a loser, an “exploiter” and an “exploited.”
  • We can immediately see the fallacy in this still-popular viewpoint: the willingness and even eagerness to trade means that both parties benefit. In modern game-theory jargon, trade is a win-win situation, a “positive-sum” rather than a “zero-sum” or “negative-sum” game.
  • Each one values the two goods or services differently, and these differences set the scene for an exchange.
  • Two factors determine the terms of any agreement: how much each participant values each good in question, and each participant’s bargaining skills.
  • the market in relation to how favorably buyers evaluate these goods—in shorthand, by the interaction of their supply with the demand for them.
  • On the other hand, given the buyers’ evaluation, or demand, for a good, if the supply increases, each unit of supply—each baseball card or loaf of bread—will fall in value, and therefore the price of the good will fall. The reverse occurs if the supply of the good decreases.
  • The market, then, is not simply an array; it is a highly complex, interacting latticework of exchanges.
  • Production begins with natural resources, and then various forms of machines and capital goods, until finally, goods are sold to the consumer.
  • At each stage of production from natural resource to consumer good, money is voluntarily exchanged for capital goods, labor services, and land resources. At each step of the way, terms of exchanges, or prices, are determined by the voluntary interactions of suppliers and demanders. This market is “free” because choices, at each step, are made freely and voluntarily.
  • The free market and the free price system make goods from around the world available to consumers.
  • Saving and investment can then develop capital goods and increase the productivity and wages of workers, thereby increasing their standard of living.
  • The free competitive market also rewards and stimulates technological innovation that allows the innovator to get a head start in satisfying consumer wants in new and creative ways.
  • Government, in every society, is the only lawful system of coercion. Taxation is a coerced exchange, and the heavier the burden of taxation on production, the more likely it is that economic growth will falter and decline
  • The ultimate in government coercion is socialism.
  • Under socialist central planning the socialist planning board lacks a price system for land or capital goods.
  • Market socialism is, in fact, a contradiction in terms.
  • The fashionable discussion of market socialism often overlooks one crucial aspect of the market: When two goods are exchanged, what is really exchanged is the property titles in those goods.
  • This means that the key to the existence and flourishing of the free market is a society in which the rights and titles of private property are respected, defended, and kept secure.
  • The key to socialism, on the other hand, is government ownership of the means of production, land, and capital goods.
  • Under socialism, therefore, there can be no market in land or capital goods worthy of the name.
  • ome critics of the free market argue that property rights are in conflict with “human” rights. But the critics fail to realize that in a free-market system, every person has a property right over his own person and his own labor and can make free contracts for those services.
  • A common charge against the free-market society is that it institutes “the law of the jungle,” of “dog eat dog,” that it spurns human cooperation for competition and exalts material success as opposed to spiritual values, philosophy, or leisure activities.
  • It is the coercive countries with little or no market activity—the notable examples in the last half of the twentieth century were the communist countries—where the grind of daily existence not only impoverishes people materially but also deadens their spirit.
caelengrubb

Distribution of Income - Econlib - 0 views

  • The distribution of income lies at the heart of an enduring issue in political economy—the extent to which government should redistribute income from those with more income to those with less.
  • The term “income distribution” is a statistical concept. No one person is distributing income. Rather, the income distribution arises from people’s decisions about work, saving, and investment as they interact through markets and are affected by the tax system.
  • In the longer view, the path of income inequality over the twentieth century is marked by two main events: a sharp fall in inequality around the outbreak of World War II and an extended rise in inequality that began in the mid-1970s and accelerated in the 1980s. Income inequality today is about as large as it was in the 1920s.
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  • Over multiple years, family income fluctuates, and so the distribution of multiyear income is moderately more equal than the distribution of single-year income.
  • n one sense, the growth of inequality in the last part of the twentieth century comes as a surprise. In the 1950s, the bottom part of the income distribution contained large concentrations of two kinds of families: farm families whose in-kind income was not counted in Census data, and elderly families, many of whom were ineligible for the new Social Security program
  • Over subsequent decades, farm families declined as a proportion of the population while increased Social Security benefits and an expanding private pension system lifted elderly incomes. Both trends favored greater income equality but were outweighed by four main factors.
  • Family structure. Over time, the two-parent, one-earner family was increasingly replaced by low-income single-parent families and higher-income two-parent, two-earner families
  • Trade and technology increasingly shifted demand away from less-educated and less-skilled workers toward workers with higher education or particular skills. The result was a growing earnings gap between more- and less-educated/skilled workers.
  • With improved communications and transportation, people increasingly functioned in national, rather than local, markets. In these broader markets, persons with unique talents could command particularly high salaries.
  • In 2002, immigrants who had entered the country since 1980 constituted nearly 11 percent of the labor force (see immigration). A relatively high proportion of these immigrants had low levels of education and increased the number of workers competing for low-paid work.
  • A second offset to estimated inequality is economic mobility. Because most family incomes increase as people’s careers develop, long-run incomes are more equal than standard single-year statistics suggest
  • Is inequality of wages and incomes bad? The question seems ludicrous. Of course inequality is bad, isn’t it? Actually, no. What matters crucially is how the inequality came about.
  • Inequality of wages and incomes is clearly bad if it results from government privileges. Many people would find such an outcome unjust, but even more important to many economists is that such inequality sets up perverse incentives.
  • But inequality in wages and incomes in relatively free economies serves two important social functions.
anonymous

Opinion | Biden Plots a Revolution for America's Children - The New York Times - 0 views

  • Biden Plots a Revolution for America’s Children
  • National pre-K and affordable day care don’t have to be a dream.
  • The most revolutionary part of President Biden’s agenda so far is his focus on a constituency that doesn’t write whiny op-ed columns, doesn’t vote, doesn’t hire lobbyists and so has been neglected for half a century: children.
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  • Biden’s proposal to establish a national pre-K and child care system would be a huge step forward for children and for working parents alike.
  • You drop a kid off at a high-quality prekindergarten program in the morning and pick the child up on the way home from work.
  • When my wife and I lived in Japan in the late 1990s, we sent our kids to one of these nurseries, and they were a dream.
  • But the United States never developed such a system, because for half a century as other countries were investing in children, the United States was stiffing them.
  • Today one of our saddest statistics is this: American children ages 1 to 19 are 57 percent more likely to die than children in other rich countries.
  • Some of those kids die because the United States doesn’t provide universal health care to children — only to senior citizens, who vote and thus are a priority.
  • Just as Franklin Roosevelt revolutionized conditions for the elderly by instituting Social Security, Biden may be able to do the same for children.
  • But still more important for America’s future, in my view, will be the elements focused on children.
  • Making his child allowances permanent.
  • Expanding home visitation programs that help at-risk moms and dads from pregnancy through early childhood
  • Working toward universal access to high-quality pre-K for 3- and 4-year-olds.
  • Ensuring high-quality affordable day care for parents
  • One model the White House is studying is the excellent day care system offered by the U.S. military,
  • For some of my middle-aged friends wrestling with homelessness, mental health crises and decades of addiction, with more of a criminal record than an educational record, it may not be possible to turn lives around. For their kids and grandkids, we have to try.
  • please, President Biden, push on. This is about America’s future. This is your chance to preside over a Rooseveltian revolution that sprinkles opportunity and averts tragedies for decades to come.
  • he question isn’t whether we can afford to invest in children and break cycles of poverty, educational failure and substance abuse. It’s whether we can afford not to.
caelengrubb

How Cognitive Bias Affects Your Business - 0 views

  • Human beings often act in irrational and unexpected ways when it comes to business decisions, money, and finance.
  • Behavioral finance tries to explain the difference between what economic theory predicts people will do and what they actually do in the heat of the moment. 
  • There are two main types of biases that people commit causing them to deviate from rational decision-making: cognitive and emotional.
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  • Cognitive errors result from incomplete information or the inability to analyze the information that is available. These cognitive errors can be classified as either belief perseverance or processing errors
  • Processing errors occur when an individual fails to manage and organize information properly, which can be due in part to the mental effort required to compute and analyze data.
  • Conservatism bias, where people emphasize original, pre-existing information over new data.
  • Base rate neglect is the opposite effect, whereby people put too little emphasis on the original information. 
  • Confirmation bias, where people seek information that affirms existing beliefs while discounting or discarding information that might contradict them.
  • Anchoring and Adjustment happens when somebody fixates on a target number, such as the result of a calculation or valuation.
  • Hindsight bias occurs when people perceive actual outcomes as reasonable and expected, but only after the fact.
  • Sample size neglect is an error made when people infer too much from a too-small sample size.
  • Mental accounting is when people earmark certain funds for certain goals and keep them separate. When this happens, the risk and reward of projects undertaken to achieve these goals are not considered as an overall portfolio and the effect of one on another is ignored.
  • Availability bias, or recency bias skews perceived future probabilities based on memorable past events
  • Framing bias is when a person will process the same information differently depending on how it is presented and received.
  • Cognitive errors in the way people process and analyze information can lead them to make irrational decisions which can negatively impact business or investing decisions
  • . These information processing errors could have arisen to help primitive humans survive in a time before money or finance came into existence.
huffem4

Why Don't We Prepare Enough for Disasters? - 1 views

  • Why do so many of us hide our heads in the sand when faced with the possibility of a catastrophic future event?
  • we are governed by two cognitive systems: one that is more automated and drives instinctual decisions—like quickly moving away from danger—and another that involves more considered thought and drives deliberate decisions—like deciding what house to buy.
  • In these cases, we tend to rely on six biases that can lead us to misperceive our situation and potentially take wrong action (or avoid action altogether). These are nicely described in The Ostrich Paradox, as follows: Myopia: The tendency to focus more on the short-term costs than the future potential benefits of investments. Amnesia: The tendency to forget the lessons of past disasters. Optimism: The tendency to underestimate the likelihood of future hazards. Inertia: The tendency to maintain the status quo or adopt the default option when uncertain about the future benefits of investing now. Simplification: The tendency to selectively consider only certain factors when making choices involving risk. Herding: The tendency to follow the “wisdom” of the crowd.
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  • if taking action now to prevent a future disaster involves a difficult hurdle—such as bureaucratic red tape or high financial, social, or political costs—we will tend to focus on the immediate (avoiding public resistance to increased taxes) versus the future (preventing a catastrophe)
  • it’s best if decision makers don’t prepare for future consequences only by looking at objective risks and vulnerabilities. Instead, planners should be encouraged “to think first about how individuals in hazard-prone areas are likely to perceive risks and why they might not adopt different preparedness measures.
  • The challenge is how to get the public to adopt these principles
runlai_jiang

Why Blockchain Will Survive, Even If Bitcoin Doesn't - WSJ - 0 views

  • We’re now awash in “crypto” hype—cryptocurrencies like bitcoin and fundraising efforts like initial coin offerings. For every venture capitalist or technical expert, there’s a half-dozen hype men and fly-by-night startups making the entire space look like a 21st-century version of the Amsterdam tulip mania.
  • These applications can’t be found on a coin exchange, and they aren’t going to turn anyone into an overnight billionaire. But they could bring much-needed change to some of the world’s most critical, if unsexy, industries. This means new ways of transferring real estate titles, managing cargo on shipping vessels, mapping the origins of conflict materials, guaranteeing the safety of the food we eat and more. Using blockchain, you could prove that a particular diamond on sale in a Milan boutique came from a particular mine in Russia.
  • The third reason is that hype I mentioned. The current excitement around cryptocurrency gives blockchain the visibility to attract developers and encourage adoption.
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  • In this way, blockchain resembles another buzzword, “the cloud.” While detractors argued that the cloud was just “someone else’s computer,”
katherineharron

The stimulus bill includes a tax break for the 1% (opinion) - CNN - 0 views

  • We face a frightening pandemic. More than 100,000 American have been infected with Covid-19, while tens of millions more continue to shelter at home. Meanwhile, the markets are crashing.
  • While health care workers and local governments frantically race against the clock to keep up with the escalating medical caseloads while trying to keep themselves and their families safe, Congress was still able to find the time to give money away to rich people.
  • Now here is what changed in the historic $2 trillion stimulus bill. Previously, if a married couple had depreciation deductions that exceeded their real estate business income, the couple could claim that "loss" to write off taxes on a maximum of $500,000 in income from other sources, like wages from a day job.
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  • Under the change, our rich taxpayer couple -- and this applies only for individuals, not corporations -- can now deduct an unlimited amount of "excess losses" in real estate against income from other sources. So now real estate moguls with lucrative day jobs or bountiful capital gains from other investments can go back to living tax-free, the Kushner way, before limits were put in place as part of the 2017 tax reform bill.
johnsonel7

JP Morgan economists warn of 'catastrophic' climate change - BBC News - 0 views

  • In a hard-hitting report to clients, the economists said that without action being taken there could be "catastrophic outcomes".The bank said the research came from a team that was "wholly independent from the company as a whole".Climate campaigners have previously criticised JP Morgan for its investments in fossil fuels.
  • Carbon emissions in the coming decades "will continue to affect the climate for centuries to come in a way that is likely to be irreversible," they said, adding that climate change action should be motivated "by the likelihood of extreme events".Climate change could affect economic growth, shares, health, and how long people live, they said.
  • JP Morgan itself has been strongly criticised in the past for heavy investment in fossil fuels.The Rainforest Action Network released a 2019 report claiming that the US banking giant provided the most fossil fuel firm financing of any bank in from 2016 to 2018.
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  • Developed countries were worried that cutting emissions would affect competitiveness and jobs, while less developed countries "see carbon intensive activity as a way of raising living standards.""It is a global problem but no global solution is in sight," the report added.
  • He said if the bank's own researchers were "saying the very future of the human race is at stake" then the bank itself should change its direction."It's good they [the researchers] are telling the truth more - it's not good they [the bank] remain a strong funder of fossil fuels," he said."Everyone has to have responsibility for change, whether they are asset managers, or institutional investors, or chief executives, or shareholders," he added.
  • Talking about a timeframe he added: "We are a bit concerned about putting a date on it as yet because some of the technologies are still evolving. We will get there, the only question is how quickly we can get there.''
tongoscar

JP Morgan economists warn climate crisis is threat to human race | Environment | The Guardian - 0 views

  • The world’s largest financier of fossil fuels has warned clients that the climate crisis threatens the survival of humanity and that the planet is on an unsustainable trajectory, according to a leaked document.
  • The study implicitly condemns the US bank’s own investment strategy and highlights growing concerns among major Wall Street institutions about the financial and reputational risks of continued funding of carbon-intensive industries, such as oil and gas.
  • Its report was obtained by Rupert Read, an Extinction Rebellion spokesperson and philosophy academic at the University of East Anglia, and has been seen by the Guardian.
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  • “We cannot rule out catastrophic outcomes where human life as we know it is threatened,” notes the paper, which is dated 14 January.
  • Drawing on extensive academic literature and forecasts by the International Monetary Fund and the UN Intergovernmental Panel on Climate Change (IPCC), the paper notes that global heating is on course to hit 3.5C above pre-industrial levels by the end of the century. It says most estimates of the likely economic and health costs are far too small because they fail to account for the loss of wealth, the discount rate and the possibility of increased natural disasters.
  • Environmental groups remain wary because huge sums are invested in petrochemical firms, but some veteran financial analysts say the tide is changing.
Javier E

'The Fourth Turning' Enters Pop Culture - The New York Times - 0 views

  • According to “fourth turning” proponents, American history goes through recurring cycles. Each one, which lasts about 80 to 100 years, consists of four generation-long seasons, or “turnings.” The winter season is a time of upheaval and reconstruction — a fourth turning.
  • The theory first appeared in “The Fourth Turning,” a work of pop political science that has had a cult following more or less since it was published in 1997. In the last few years of political turmoil, the book and its ideas have bubbled into the mainstream.
  • According to “The Fourth Turning,” previous crisis periods include the American Revolution, the Civil War and World War II. America entered its latest fourth turning in the mid-2000s. It will culminate in a crisis sometime in the 2020s — i.e., now.
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  • One of the book’s authors, Neil Howe, 71, has become a frequent podcast guest. A follow-up, “The Fourth Turning Is Here,” comes out this month.
  • The play’s author, Will Arbery, 33, said he heard about “The Fourth Turning” while researching Stephen K. Bannon, the right-wing firebrand and former adviser to President Donald J. Trump, who is a longtime fan of the book and directed a 2010 documentary based on its ideas.
  • He described it as “this almost fun theory about history,” but added: “And yet there’s something deeply menacing about it.”
  • Mr. Arbery, who said he does not subscribe to the theory, sees parallels between the fourth turning and other nonscientific beliefs. “I modeled the way that Teresa talks about the fourth turning on the way that young liberals talk about astrology,” he said.
  • The book’s outlook on the near future has made it appealing to macro traders and crypto enthusiasts, and it is frequently cited on the podcasts “Macro Voices,” “Wealthion” and “On the Margin.”
  • In the new book, he describes what a coming civil war or geopolitical conflict might look like — though he shies away from casting himself as a modern-day Nostradamus.
  • “The Fourth Turning” captured a mood of decline in recent American life. “I remember feeling safe in the ’90s, and then as soon as 9/11 hit, the world went topsy-turvy,” he said. “Every time my cohort got to the point where we were optimistic, another crisis happened. When I read the book, I was like, ‘That makes sense.’”
  • “The Fourth Turning” was conceived during a period of relative calm. In the late 1980s, Mr. Howe, a Washington, D.C., policy analyst, teamed with William Strauss, a founder of the political satire troupe the Capitol Steps.
  • Their first book, “Generations,” told a story of American history through generational profiles going back to the 1600s. The book was said to have influenced Bill Clinton to choose a fellow baby boomer, Al Gore, as his running mate
  • when the 2008 financial crisis hit at almost exactly the point when the start of the fourth turning was predicted, it seemed to many that the authors might have been onto something. Recent events — the pandemic, the storming of the Capitol — have seemingly provided more evidence for the book’s fans.
  • Historically, a fourth turning crisis has always translated into a civil war, a war of great nations, or both, according to the book. Either is possible over the next decade, Mr. Howe said. But he is a doomsayer with an optimistic streak: Each fourth turning, in his telling, kicks off a renaissance in civic life.
  • “I’ve read ‘The Fourth Turning,’ and indeed found it useful from a macroeconomic investing perspective,” Lyn Alden, 35, an investment analyst, wrote in an email. “History doesn’t repeat, but it kind of gives us a loose framework to work with.”
  • “This big tidal shift is arriving,” Mr. Howe said. “But if you’re asking me which wave is going to knock down the lighthouse, I can’t do that. I can just tell you that this is the time period. It gives you a good idea of what to watch for.”
Javier E

Opinion | Elon Musk, Geoff Hinton, and the War Over A.I. - The New York Times - 0 views

  • Beneath almost all of the testimony, the manifestoes, the blog posts and the public declarations issued about A.I. are battles among deeply divided factions
  • Some are concerned about far-future risks that sound like science fiction.
  • Some are genuinely alarmed by the practical problems that chatbots and deepfake video generators are creating right now.
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  • Some are motivated by potential business revenue, others by national security concerns.
  • Sometimes, they trade letters, opinion essays or social threads outlining their positions and attacking others’ in public view. More often, they tout their viewpoints without acknowledging alternatives, leaving the impression that their enlightened perspective is the inevitable lens through which to view A.I.
  • you’ll realize this isn’t really a debate only about A.I. It’s also a contest about control and power, about how resources should be distributed and who should be held accountable.
  • It is critical that we begin to recognize the ideologies driving what we are being told. Resolving the fracas requires us to see through the specter of A.I. to stay true to the humanity of our values.
  • Because language itself is part of their battleground, the different A.I. camps tend not to use the same words to describe their positions
  • One faction describes the dangers posed by A.I. through the framework of safety, another through ethics or integrity, yet another through security and others through economics.
  • The Doomsayers
  • These are the A.I. safety people, and their ranks include the “Godfathers of A.I.,” Geoff Hinton and Yoshua Bengio. For many years, these leading lights battled critics who doubted that a computer could ever mimic capabilities of the human mind
  • Many doomsayers say they are acting rationally, but their hype about hypothetical existential risks amounts to making a misguided bet with our future
  • Reasonable sounding on their face, these ideas can become dangerous if stretched to their logical extremes. A dogmatic long-termer would willingly sacrifice the well-being of people today to stave off a prophesied extinction event like A.I. enslavement.
  • The technology historian David C. Brock calls these fears “wishful worries” — that is, “problems that it would be nice to have, in contrast to the actual agonies of the present.”
  • OpenAI’s Sam Altman and Meta’s Mark Zuckerberg, both of whom lead dominant A.I. companies, are pushing for A.I. regulations that they say will protect us from criminals and terrorists. Such regulations would be expensive to comply with and are likely to preserve the market position of leading A.I. companies while restricting competition from start-ups
  • the roboticist Rodney Brooks has pointed out that we will see the existential risks coming, the dangers will not be sudden and we will have time to change course.
  • While we shouldn’t dismiss the Hollywood nightmare scenarios out of hand, we must balance them with the potential benefits of A.I. and, most important, not allow them to strategically distract from more immediate concerns.
  • The Reformers
  • While the doomsayer faction focuses on the far-off future, its most prominent opponents are focused on the here and now. We agree with this group that there’s plenty already happening to cause concern: Racist policing and legal systems that disproportionately arrest and punish people of color. Sexist labor systems that rate feminine-coded résumés lower
  • Superpower nations automating military interventions as tools of imperialism and, someday, killer robots.
  • Propagators of these A.I. ethics concerns — like Meredith Broussard, Safiya Umoja Noble, Rumman Chowdhury and Cathy O’Neil — have been raising the alarm on inequities coded into A.I. for years. Although we don’t have a census, it’s noticeable that many leaders in this cohort are people of color, women and people who identify as L.G.B.T.Q.
  • Others frame efforts to reform A.I. in terms of integrity, calling for Big Tech to adhere to an oath to consider the benefit of the broader public alongside — or even above — their self-interest. They point to social media companies’ failure to control hate speech or how online misinformation can undermine democratic elections. Adding urgency for this group is that the very companies driving the A.I. revolution have, at times, been eliminating safeguards
  • reformers tend to push back hard against the doomsayers’ focus on the distant future. They want to wrestle the attention of regulators and advocates back toward present-day harms that are exacerbated by A.I. misinformation, surveillance and inequity.
  • Integrity experts call for the development of responsible A.I., for civic education to ensure A.I. literacy and for keeping humans front and center in A.I. systems.
  • Surely, we are a civilization big enough to tackle more than one problem at a time; even those worried that A.I. might kill us in the future should still demand that it not profile and exploit us in the present.
  • Other groups of prognosticators cast the rise of A.I. through the language of competitiveness and national security.
  • Some arguing from this perspective are acting on genuine national security concerns, and others have a simple motivation: money. These perspectives serve the interests of American tech tycoons as well as the government agencies and defense contractors they are intertwined with.
  • they appear deeply invested in the idea that there is no limit to what their creations will be able to accomplish.
  • U.S. megacompanies pleaded to exempt their general purpose A.I. from the tightest regulations, and whether and how to apply high-risk compliance expectations on noncorporate open-source models emerged as a key point of debate. All the while, some of the moguls investing in upstart companies are fighting the regulatory tide. The Inflection AI co-founder Reid Hoffman argued, “The answer to our challenges is not to slow down technology but to accelerate it.”
  • The warriors’ narrative seems to misrepresent that science and engineering are different from what they were during the mid-20th century. A.I. research is fundamentally international; no one country will win a monopoly.
  • As the science-fiction author Ted Chiang has said, fears about the existential risks of A.I. are really fears about the threat of uncontrolled capitalism
  • Regulatory solutions do not need to reinvent the wheel. Instead, we need to double down on the rules that we know limit corporate power. We need to get more serious about establishing good and effective governance on all the issues we lost track of while we were becoming obsessed with A.I., China and the fights picked among robber barons.
  • By analogy to the health care sector, we need an A.I. public option to truly keep A.I. companies in check. A publicly directed A.I. development project would serve to counterbalance for-profit corporate A.I. and help ensure an even playing field for access to the 21st century’s key technology while offering a platform for the ethical development and use of A.I.
  • Also, we should embrace the humanity behind A.I. We can hold founders and corporations accountable by mandating greater A.I. transparency in the development stage, in addition to applying legal standards for actions associated with A.I. Remarkably, this is something that both the left and the right can agree on.
Javier E

Instagram's Algorithm Delivers Toxic Video Mix to Adults Who Follow Children - WSJ - 0 views

  • Instagram’s Reels video service is designed to show users streams of short videos on topics the system decides will interest them, such as sports, fashion or humor. 
  • The Meta Platforms META -1.04%decrease; red down pointing triangle-owned social app does the same thing for users its algorithm decides might have a prurient interest in children, testing by The Wall Street Journal showed.
  • The Journal sought to determine what Instagram’s Reels algorithm would recommend to test accounts set up to follow only young gymnasts, cheerleaders and other teen and preteen influencers active on the platform.
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  • Following what it described as Meta’s unsatisfactory response to its complaints, Match began canceling Meta advertising for some of its apps, such as Tinder, in October. It has since halted all Reels advertising and stopped promoting its major brands on any of Meta’s platforms. “We have no desire to pay Meta to market our brands to predators or place our ads anywhere near this content,” said Match spokeswoman Justine Sacco.
  • The Journal set up the test accounts after observing that the thousands of followers of such young people’s accounts often include large numbers of adult men, and that many of the accounts who followed those children also had demonstrated interest in sex content related to both children and adults
  • The Journal also tested what the algorithm would recommend after its accounts followed some of those users as well, which produced more-disturbing content interspersed with ads.
  • The Canadian Centre for Child Protection, a child-protection group, separately ran similar tests on its own, with similar results.
  • Meta said the Journal’s tests produced a manufactured experience that doesn’t represent what billions of users see. The company declined to comment on why the algorithms compiled streams of separate videos showing children, sex and advertisements, but a spokesman said that in October it introduced new brand safety tools that give advertisers greater control over where their ads appear, and that Instagram either removes or reduces the prominence of four million videos suspected of violating its standards each month. 
  • The Journal reported in June that algorithms run by Meta, which owns both Facebook and Instagram, connect large communities of users interested in pedophilic content. The Meta spokesman said a task force set up after the Journal’s article has expanded its automated systems for detecting users who behave suspiciously, taking down tens of thousands of such accounts each month. The company also is participating in a new industry coalition to share signs of potential child exploitation.
  • “Our systems are effective at reducing harmful content, and we’ve invested billions in safety, security and brand suitability solutions,” said Samantha Stetson, a Meta vice president who handles relations with the advertising industry. She said the prevalence of inappropriate content on Instagram is low, and that the company invests heavily in reducing it.
  • Even before the 2020 launch of Reels, Meta employees understood that the product posed safety concerns, according to former employees.
  • Robbie McKay, a spokesman for Bumble, said it “would never intentionally advertise adjacent to inappropriate content,” and that the company is suspending its ads across Meta’s platforms.
  • Meta created Reels to compete with TikTok, the video-sharing platform owned by Beijing-based ByteDance. Both products feed users a nonstop succession of videos posted by others, and make money by inserting ads among them. Both companies’ algorithms show to a user videos the platforms calculate are most likely to keep that user engaged, based on his or her past viewing behavior
  • The Journal reporters set up the Instagram test accounts as adults on newly purchased devices and followed the gymnasts, cheerleaders and other young influencers. The tests showed that following only the young girls triggered Instagram to begin serving videos from accounts promoting adult sex content alongside ads for major consumer brands, such as one for Walmart that ran after a video of a woman exposing her crotch. 
  • When the test accounts then followed some users who followed those same young people’s accounts, they yielded even more disturbing recommendations. The platform served a mix of adult pornography and child-sexualizing material, such as a video of a clothed girl caressing her torso and another of a child pantomiming a sex act.
  • Experts on algorithmic recommendation systems said the Journal’s tests showed that while gymnastics might appear to be an innocuous topic, Meta’s behavioral tracking has discerned that some Instagram users following preteen girls will want to engage with videos sexualizing children, and then directs such content toward them.
  • Instagram’s system served jarring doses of salacious content to those test accounts, including risqué footage of children as well as overtly sexual adult videos—and ads for some of the biggest U.S. brands.
  • Preventing the system from pushing noxious content to users interested in it, they said, requires significant changes to the recommendation algorithms that also drive engagement for normal users. Company documents reviewed by the Journal show that the company’s safety staffers are broadly barred from making changes to the platform that might reduce daily active users by any measurable amount.
  • The test accounts showed that advertisements were regularly added to the problematic Reels streams. Ads encouraging users to visit Disneyland for the holidays ran next to a video of an adult acting out having sex with her father, and another of a young woman in lingerie with fake blood dripping from her mouth. An ad for Hims ran shortly after a video depicting an apparently anguished woman in a sexual situation along with a link to what was described as “the full video.”
  • Current and former Meta employees said in interviews that the tendency of Instagram algorithms to aggregate child sexualization content from across its platform was known internally to be a problem. Once Instagram pigeonholes a user as interested in any particular subject matter, they said, its recommendation systems are trained to push more related content to them.
  • Part of the problem is that automated enforcement systems have a harder time parsing video content than text or still images. Another difficulty arises from how Reels works: Rather than showing content shared by users’ friends, the way other parts of Instagram and Facebook often do, Reels promotes videos from sources they don’t follow
  • In an analysis conducted shortly before the introduction of Reels, Meta’s safety staff flagged the risk that the product would chain together videos of children and inappropriate content, according to two former staffers. Vaishnavi J, Meta’s former head of youth policy, described the safety review’s recommendation as: “Either we ramp up our content detection capabilities, or we don’t recommend any minor content,” meaning any videos of children.
  • At the time, TikTok was growing rapidly, drawing the attention of Instagram’s young users and the advertisers targeting them. Meta didn’t adopt either of the safety analysis’s recommendations at that time, according to J.
  • Stetson, Meta’s liaison with digital-ad buyers, disputed that Meta had neglected child safety concerns ahead of the product’s launch. “We tested Reels for nearly a year before releasing it widely, with a robust set of safety controls and measures,” she said. 
  • After initially struggling to maximize the revenue potential of its Reels product, Meta has improved how its algorithms recommend content and personalize video streams for users
  • Among the ads that appeared regularly in the Journal’s test accounts were those for “dating” apps and livestreaming platforms featuring adult nudity, massage parlors offering “happy endings” and artificial-intelligence chatbots built for cybersex. Meta’s rules are supposed to prohibit such ads.
  • The Journal informed Meta in August about the results of its testing. In the months since then, tests by both the Journal and the Canadian Centre for Child Protection show that the platform continued to serve up a series of videos featuring young children, adult content and apparent promotions for child sex material hosted elsewhere. 
  • As of mid-November, the center said Instagram is continuing to steadily recommend what the nonprofit described as “adults and children doing sexual posing.”
  • Meta hasn’t offered a timetable for resolving the problem or explained how in the future it would restrict the promotion of inappropriate content featuring children. 
  • The Journal’s test accounts found that the problem even affected Meta-related brands. Ads for the company’s WhatsApp encrypted chat service and Meta’s Ray-Ban Stories glasses appeared next to adult pornography. An ad for Lean In Girls, the young women’s empowerment nonprofit run by former Meta Chief Operating Officer Sheryl Sandberg, ran directly before a promotion for an adult sex-content creator who often appears in schoolgirl attire. Sandberg declined to comment. 
  • Through its own tests, the Canadian Centre for Child Protection concluded that Instagram was regularly serving videos and pictures of clothed children who also appear in the National Center for Missing and Exploited Children’s digital database of images and videos confirmed to be child abuse sexual material. The group said child abusers often use the images of the girls to advertise illegal content for sale in dark-web forums.
  • The nature of the content—sexualizing children without generally showing nudity—reflects the way that social media has changed online child sexual abuse, said Lianna McDonald, executive director for the Canadian center. The group has raised concerns about the ability of Meta’s algorithms to essentially recruit new members of online communities devoted to child sexual abuse, where links to illicit content in more private forums proliferate.
  • “Time and time again, we’ve seen recommendation algorithms drive users to discover and then spiral inside of these online child exploitation communities,” McDonald said, calling it disturbing that ads from major companies were subsidizing that process.
Javier E

Google's Relationship With Facts Is Getting Wobblier - The Atlantic - 0 views

  • Misinformation or even disinformation in search results was already a problem before generative AI. Back in 2017, The Outline noted that a snippet once confidently asserted that Barack Obama was the king of America.
  • This is what experts have worried about since ChatGPT first launched: false information confidently presented as fact, without any indication that it could be totally wrong. The problem is “the way things are presented to the user, which is Here’s the answer,” Chirag Shah, a professor of information and computer science at the University of Washington, told me. “You don’t need to follow the sources. We’re just going to give you the snippet that would answer your question. But what if that snippet is taken out of context?”
  • Responding to the notion that Google is incentivized to prevent users from navigating away, he added that “we have no desire to keep people on Google.
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  • Pandu Nayak, a vice president for search who leads the company’s search-quality teams, told me that snippets are designed to be helpful to the user, to surface relevant and high-caliber results. He argued that they are “usually an invitation to learn more” about a subject
  • “It’s a strange world where these massive companies think they’re just going to slap this generative slop at the top of search results and expect that they’re going to maintain quality of the experience,” Nicholas Diakopoulos, a professor of communication studies and computer science at Northwestern University, told me. “I’ve caught myself starting to read the generative results, and then I stop myself halfway through. I’m like, Wait, Nick. You can’t trust this.”
  • Nayak said the team focuses on the bigger underlying problem, and whether its algorithm can be trained to address it.
  • If Nayak is right, and people do still follow links even when presented with a snippet, anyone who wants to gain clicks or money through search has an incentive to capitalize on that—perhaps even by flooding the zone with AI-written content.
  • Nayak told me that Google plans to fight AI-generated spam as aggressively as it fights regular spam, and claimed that the company keeps about 99 percent of spam out of search results.
  • The result is a world that feels more confused, not less, as a result of new technology.
  • The Kenya result still pops up on Google, despite viral posts about it. This is a strategic choice, not an error. If a snippet violates Google policy (for example, if it includes hate speech) the company manually intervenes and suppresses it, Nayak said. However, if the snippet is untrue but doesn’t violate any policy or cause harm, the company will not intervene.
  • experts I spoke with had several ideas for how tech companies might mitigate the potential harms of relying on AI in search
  • For starters, tech companies could become more transparent about generative AI. Diakopoulos suggested that they could publish information about the quality of facts provided when people ask questions about important topics
  • They can use a coding technique known as “retrieval-augmented generation,” or RAG, which instructs the bot to cross-check its answer with what is published elsewhere, essentially helping it self-fact-check. (A spokesperson for Google said the company uses similar techniques to improve its output.) They could open up their tools to researchers to stress-test it. Or they could add more human oversight to their outputs, maybe investing in fact-checking efforts.
  • Fact-checking, however, is a fraught proposition. In January, Google’s parent company, Alphabet, laid off roughly 6 percent of its workers, and last month, the company cut at least 40 jobs in its Google News division. This is the team that, in the past, has worked with professional fact-checking organizations to add fact-checks into search results
  • Alex Heath, at The Verge, reported that top leaders were among those laid off, and Google declined to give me more information. It certainly suggests that Google is not investing more in its fact-checking partnerships as it builds its generative-AI tool.
  • Nayak acknowledged how daunting a task human-based fact-checking is for a platform of Google’s extraordinary scale. Fifteen percent of daily searches are ones the search engine hasn’t seen before, Nayak told me. “With this kind of scale and this kind of novelty, there’s no sense in which we can manually curate results.”
  • Creating an infinite, largely automated, and still accurate encyclopedia seems impossible. And yet that seems to be the strategic direction Google is taking.
  • A representative for Google told me that this was an example of a “false premise” search, a type that is known to trip up the algorithm. If she were trying to date me, she argued, she wouldn’t just stop at the AI-generated response given by the search engine, but would click the link to fact-check it.
Javier E

Molly White is becoming the crypto world's biggest critic - The Washington Post - 0 views

  • Almost 90 percent of Americans have heard about cryptocurrency and 16 percent say they have invested in or used one, according to a November 2021 Pew Research study.
  • White and her fellow skeptics say the traditional media has mishandled the story, treating bitcoin as an exciting innovation while underplaying the idea it could be a giant pyramid scheme.
  • Crypto-focused publications tend to have ties to the industry, while financial news organizations treat it like an asset class. “The crypto industry has benefited from the siloing of journalism,”
Javier E

There's More to Life Than Being Happy - Emily Esfahani Smith - The Atlantic - 1 views

  • "Everything can be taken from a man but one thing," Frankl wrote in Man's Search for Meaning, "the last of the human freedoms -- to choose one's attitude in any given set of circumstances, to choose one's own way."
  • This uniqueness and singleness which distinguishes each individual and gives a meaning to his existence has a bearing on creative work as much as it does on human love. When the impossibility of replacing a person is realized, it allows the responsibility which a man has for his existence and its continuance to appear in all its magnitude. A man who becomes conscious of the responsibility he bears toward a human being who affectionately waits for him, or to an unfinished work, will never be able to throw away his life. He knows the "why" for his existence, and will be able to bear almost any "how."
  • "To the European," Frankl wrote, "it is a characteristic of the American culture that, again and again, one is commanded and ordered to 'be happy.' But happiness cannot be pursued; it must ensue. One must have a reason to 'be happy.'"
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  • the book's ethos -- its emphasis on meaning, the value of suffering, and responsibility to something greater than the self -- seems to be at odds with our culture, which is more interested in the pursuit of individual happiness than in the search for meaning.
  • "Happiness without meaning characterizes a relatively shallow, self-absorbed or even selfish life, in which things go well, needs and desire are easily satisfied, and difficult or taxing entanglements are avoided,"
  • about 4 out of 10 Americans have not discovered a satisfying life purpose. Forty percent either do not think their lives have a clear sense of purpose or are neutral about whether their lives have purpose. Nearly a quarter of Americans feel neutral or do not have a strong sense of what makes their lives meaningful
  • the single-minded pursuit of happiness is ironically leaving people less happy, according to recent research. "It is the very pursuit of happiness," Frankl knew, "that thwarts happiness."
  • Examining their self-reported attitudes toward meaning, happiness, and many other variables -- like stress levels, spending patterns, and having children -- over a month-long period, the researchers found that a meaningful life and happy life overlap in certain ways, but are ultimately very different. Leading a happy life, the psychologists found, is associated with being a "taker" while leading a meaningful life corresponds with being a "giver."
  • How do the happy life and the meaningful life differ?
  • While happiness is an emotion felt in the here and now, it ultimately fades away, just as all emotions do
  • Happiness, they found, is about feeling good. Specifically, the researchers found that people who are happy tend to think that life is easy, they are in good physical health, and they are able to buy the things that they need and want.
  • Most importantly from a social perspective, the pursuit of happiness is associated with selfish behavior -- being, as mentioned, a "taker" rather than a "giver." The psychologists give an evolutionary explanation for this: happiness is about drive reduction. If you have a need or a desire -- like hunger -- you satisfy it, and that makes you happy. People become happy, in other words, when they get wh
  • Happy people get a lot of joy from receiving benefits from others while people leading meaningful lives get a lot of joy from giving to others,"
  • People who have high meaning in their lives are more likely to help others in need.
  • What sets human beings apart from animals is not the pursuit of happiness, which occurs all across the natural world, but the pursuit of meaning, which is unique to humans
  • People whose lives have high levels of meaning often actively seek meaning out even when they know it will come at the expense of happiness. Because they have invested themselves in something bigger than themselves, they also worry more and have higher levels of stress and anxiety in their lives than happy people.
  • Meaning is not only about transcending the self, but also about transcending the present moment -- which is perhaps the most important finding of the study,
  • nearly 60 percent all Americans today feel happy without a lot of stress or worry
  • Meaning, on the other hand, is enduring. It connects the past to the present to the future. "Thinking beyond the present moment, into the past or future, was a sign of the relatively meaningful but unhappy life,"
  • Having negative events happen to you, the study found, decreases your happiness but increases the amount of meaning you have in life.
  • "If there is meaning in life at all," Frankl wrote, "then there must be meaning in suffering."
  • "Being human always points, and is directed, to something or someone, other than oneself -- be it a meaning to fulfill or another human being to encounter. The more one forgets himself -- by giving himself to a cause to serve or another person to love -- the more human he is."
Javier E

A Million First Dates - Dan Slater - The Atlantic - 0 views

  • . In his 2004 book, The Paradox of Choice, the psychologist Barry Schwartz indicts a society that “sanctifies freedom of choice so profoundly that the benefits of infinite options seem self-evident.” On the contrary, he argues, “a large array of options may diminish the attractiveness of what people actually choose, the reason being that thinking about the attractions of some of the unchosen options detracts from the pleasure derived from the chosen one.”
  • Psychologists who study relationships say that three ingredients generally determine the strength of commitment: overall satisfaction with the relationship; the investment one has put into it (time and effort, shared experiences and emotions, etc.); and the quality of perceived alternatives. Two of the three—satisfaction and quality of alternatives—could be directly affected by the larger mating pool that the Internet offers.
  • as the range of options grows larger, mate-seekers are liable to become “cognitively overwhelmed,” and deal with the overload by adopting lazy comparison strategies and examining fewer cues. As a result, they are more likely to make careless decisions than they would be if they had fewer options,
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  • research elsewhere has found that people are less satisfied when choosing from a larger group: in one study, for example, subjects who selected a chocolate from an array of six options believed it tasted better than those who selected the same chocolate from an array of 30.
  • evidence shows that the perception that one has appealing alternatives to a current romantic partner is a strong predictor of low commitment to that partner.
  • But the pace of technology is upending these rules and assumptions. Relationships that begin online, Jacob finds, move quickly. He chalks this up to a few things. First, familiarity is established during the messaging process, which also often involves a phone call. By the time two people meet face-to-face, they already have a level of intimacy. Second, if the woman is on a dating site, there’s a good chance she’s eager to connect. But for Jacob, the most crucial difference between online dating and meeting people in the “real” world is the sense of urgency. Occasionally, he has an acquaintance in common with a woman he meets online, but by and large she comes from a different social pool. “It’s not like we’re just going to run into each other again,” he says. “So you can’t afford to be too casual. It’s either ‘Let’s explore this’ or ‘See you later.’ ”
  • he phenomenon extends beyond dating sites to the Internet more generally. “I’ve seen a dramatic increase in cases where something on the computer triggered the breakup,” he says. “People are more likely to leave relationships, because they’re emboldened by the knowledge that it’s no longer as hard as it was to meet new people. But whether it’s dating sites, social media, e‑mail—it’s all related to the fact that the Internet has made it possible for people to communicate and connect, anywhere in the world, in ways that have never before been seen.”
  • eople seeking commitment—particularly women—have developed strategies to detect deception and guard against it. A woman might withhold sex so she can assess a man’s intentions. Theoretically, her withholding sends a message: I’m not just going to sleep with any guy that comes along. Theoretically, his willingness to wait sends a message back: I’m interested in more than sex.
  • people who are in marriages that are either bad or average might be at increased risk of divorce, because of increased access to new partners. Third, it’s unknown whether that’s good or bad for society. On one hand, it’s good if fewer people feel like they’re stuck in relationships. On the other, evidence is pretty solid that having a stable romantic partner means all kinds of health and wellness benefits.” And that’s even before one takes into account the ancillary effects of such a decrease in commitment—on children, for example, or even society more broadly.
  • As online dating becomes increasingly pervasive, the old costs of a short-term mating strategy will give way to new ones. Jacob, for instance, notices he’s seeing his friends less often. Their wives get tired of befriending his latest girlfriend only to see her go when he moves on to someone else. Also, Jacob has noticed that, over time, he feels less excitement before each new date. “Is that about getting older,” he muses, “or about dating online?” How much of the enchantment associated with romantic love has to do with scarcity (this person is exclusively for me), and how will that enchantment hold up in a marketplace of abundance (this person could be exclusively for me, but so could the other two people I’m meeting this week)?
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