Ep. 023: Behavioral Economics with Michael Lewis
Michael Lewis joins "Better Off" to discuss his latest work in behavioral economics.
It was a few months back that I ran into Michael in the CBS “This Morning” green room and immediately started working my mojo to get him on the podcast. Although it took weeks and weeks of emails to finally make it happen, it was worth the wait.
Lewis is such a prolific writer that you’ve probably picked up at least one of his books—”Moneyball,” “The Blind Side,” “The Big Short” or “Flash Boys.” In this interview, we discuss his latest work, “The Undoing Project.”
The Undoing Project explores the roots of behavioral economics, a topic that has always fascinated me. I love trying to understand why people make the decisions they do—trying to figure out how the human mind works. And that’s what this book is all about.
It starts with the partnership between Israeli psychologists Daniel Kahneman and Amos Tversky. Forty years ago, the pair published a series of original studies questioning our assumptions about the decision-making process. Their papers showed the ways in which the human mind systematically erred when forced to make judgments in uncertain situations. Their work created the field of behavioral economics, revolutionized big data studies, advanced evidence-based medicine, and led to a new approach to government regulation.
We also touched on many other topics including the financial industry, the current political climate, and what Lewis plans to work on next—which means you’ll likely hear Michael again on this podcast sometime down the road. Hopefully, next time I won’t have to tackle him again in the Green Room!
This article was originally published on Jill Schlesinger’s LinkedIn.
The opinions stated on the Better Off podcast are those of the host, Jill Schlesinger, and her guests, and not those of Betterment or its employees. Any third party links provided are offered as a matter of convenience and are not intended to imply that Betterment endorses, or is affiliated with the owners of or any information contained on those sites unless expressly stated otherwise. Listen to a preview and subscribe to “Better Off” here.
How to Use 2018’s Market Volatility to Your Advantage
The latter half of 2018 was a period of increased volatility. We view this as an opportunity for every investor.
The Difference Between Vanguard and Betterment
I’ve been asked a lot in the last few months in the transition from my old role at Vanguard to my new role as Chief Growth Officer at Betterment – what’s the difference between the two companies?
The Recommended Allocation For Our Safety Net Goal Has Changed
Your Safety Net goal should ideally beat inflation while also taking on minimal risk. Learn about our updated portfolio allocation recommendations for your emergency funds.
Explore your first goal
Our high-yield account built to help you earn more on every dollar you save.
This is a great place to start—an emergency fund for life's unplanned hiccups. A safety net is a conservative portfolio.
Whether it's a long way off or just around the corner, we'll help you save for the retirement you deserve.
If you want to invest and build wealth over time, then this is the goal for you. This is an excellent goal type for unknown future needs or money you plan to pass to future generations.