Real people have trouble balancing their checkbooks, much less calculating how much they need to save for retirement; they sometimes binge on food, drink, or high-definition televisions. They are more like Homer Simpson than Mr. Spock.
Interpretation
This quote highlights the struggles of real individuals in managing finances and making rational decisions.
Richard Thaler emphasizes the challenges that everyday people face when it comes to financial literacy and decision-making. In comparing them to Homer Simpson, he suggests that people often act on impulses rather than making calculated choices like the logical Mr. Spock. This illustrates the inherent difficulties and irrationalities in human behavior, especially concerning important life decisions such as saving for retirement and consumption habits.
In practice
This quote could be used in a financial literacy workshop to emphasize the importance of understanding personal finance.
The ability of businesses to monitor our behavior is already a fact of life, and it isn't going away. Of course we must protect our privacy rights. But if we're smart, we'll also use the data that is being collected to improve our own lives.
If you're trading individual securities, you're almost certainly making a mistake. Because most professional managers can't outperform their benchmarks, and there's little reason to think that individuals can.
When an economist says the evidence is "mixed," he or she means that theory says one thing and data says the opposite.
In the 1940s, economics started getting highly mathematical. It was basically because economists weren't smart enough to write down models of real behavior that they started writing down models of highly rational behavior - and they kind of forgot about humans.
Academia does not provide many opportunities for immediate gratification. You work for two years on a project, it takes two more years to get it published, and then you start hoping someone might read it.
In the world of traditional economics, it shouldn't matter whether you use an opt-in or opt-out system. So long as the costs of registering as a donor or a nondonor are low, the results should be similar. But many findings of behavioral economics show that tiny disparities in such rules can make a big difference.
Dirt's a funny thing,' the Boss said. 'Come to think of it, there ain't a thing but dirt on this green God's globe except what's under water, and that's dirt too. It's dirt makes the grass grow. A diamond ain't a thing in the world but a piece of dirt that got awful hot. And God-a-Mighty picked up a handful of dirt and blew on it and made you and me and George Washington and mankind blessed in faculty and apprehension. It all depends on what you do with the dirt. That right?
But I don't want comfort. I want God, I want poetry, I want real danger, I want freedom, I want goodness. I want sin.
But, alas! what poor Woman is ever taught that she should have a higher Design than to get her a Husband?
The magnitude of pleasure reaches its limit in the removal of all pain. When such pleasure is present, so long as it is uninterrupted, there is no pain either of body or of mind or of both together.
God is a too palpably clumsy answer; an answer which shows a lack of delicacy towards us thinkers-fundamentally, even a crude prohibition to us: you shall not think!
Maybe if I didn't pick up that one person, I wouldn't have picked up forty-two thousand.
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