On Taking Risks And The Expert Problem

You need to have skin in the game to avoid the expert problem.

The expert problem arises when people or business are judged by their peers rather than being accountable to reality.

It’s when an economist’s ideas are judged by other economists rather than the economy.

When economists never invest a single dollar of their own money to test their theories.

It’s when journalists are awarded by other journalists rather than the readers.

They need to have skin in the game.

A direct opposite is a pilot.

Where are the bad pilots? They’re dead.

It’s when cooks or food sellers need to eat their own food first.

It’s when the captain has to leave the ship last.

It’s when the general has to be first in battle.

It’s Jesus Christ dying by the cross.

It also means not giving any advice that you don’t take yourself.

You need to take risk to earn the right to have authority.

Because by surviving the risk, you signal that you earned it and are continuing to earn it.

You can fake virtue.

You can’t fake taking risk.