Withdrawing From Reality

Withdrawing From Reality

It’s interesting why behavior that we readily recognize, on an individual level, as undesirable, we routinely promote and accept as government and social policy.

What rational person would suggest that being detached from reality is a good thing?

Or what rational person does not want good information when making important decisions?

But increasingly we live in an environment, created by government driven policies, in which the picture of reality we have is false, and the information available to us for making routine decisions is distorted.

University of Chicago economist Raghuram Rajan demonstrates this problem in what he...