Here's a Twitter thread summarizing Nassim Taleb's concept of "Skin in the Game"
"Skin in the Game" refers to the idea that those who make decisions or take risks should also bear the consequences of those decisions. This ensures accountability and reduces moral hazard.
Taleb argues that people with "skin in the game" are more likely to make decisions that align with the interests of society as a whole. On the other hand, those without are more likely to make decisions that are in their own self-interest.
This concept applies to individuals, corporations, and governments alike. For example, Taleb argues that politicians should be personally responsible for the consequences of their decisions, rather than relying on taxpayer money to bail them out.
Taleb also emphasizes the importance of diversification and spreading risk. He argues that those who have "skin in the game" are more likely to diversify and reduce their risk, because they bear the consequences of their decisions.
In short, "Skin in the Game" is about accountability, responsibility, and reducing moral hazard. It's a call to action for individuals and institutions to act in the interest of society, rather than just their own self-interest.
If you're interested in learning more about "Skin in the Game" and the ideas of Nassim Taleb, be sure to check out his book of the same name!
thanks chatgtp and @nntaleb . for the alley-oop. if you don't like this thread make sure to leave a comment.
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