Welcome to the bloggy home of Noah Brier. I'm the co-founder of Percolate and general internet tinkerer. This site is about media, culture, technology, and randomness. It's been around since 2004 (I'm pretty sure). Feel free to get in touch. Get in touch.

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Decisionless

As I was digging through my old Instapapers while I was away (I read like a madman and hardly got through any), I came across this article about Obama from 2010. This little story about trying to make fewer decisions really struck me:

Rahm Emanuel tells a story. The time is last December, when the White House was juggling an agenda that included the Afghanistan troop surge, the health-care bill, the climate talks in Copenhagen, and Obama’s acceptance of a Nobel Peace Prize that threatened to do him more political harm than good—one issue on top of another. It got to the point where Obama and Emanuel would joke that, when it was all over, they were going to open a T-shirt stand on a beach in Hawaii. It would face the ocean and sell only one color and one size. “We didn’t want to make another decision, or choice, or judgment,” Emanuel told me. They took to beginning staff meetings with Obama smiling at Emanuel and simply saying “White,” and Emanuel nodding back and replying “Medium.”

It’s especially interesting when you add this nugget from Michael Lewis’s October piece on the president (which I haven’t read yet, but this quote came across my internets somehow):

“You’ll see I wear only gray or blue suits,” he said. “I’m trying to pare down decisions. I don’t want to make decisions about what I’m eating or wearing. Because I have too many other decisions to make.” He mentioned research that shows the simple act of making decisions degrades one’s ability to make further decisions. It’s why shopping is so exhausting. “You need to focus your decision-making energy. You need to routinize yourself. You can’t be going through the day distracted by trivia.”

January 3, 2013 // This post is about: , , ,

Working by Failing

Back in 2009 Obama famously choose to employ some behavioral economics strategies in distributing the stimulus to citizens. The administration choose to dole out payments in small pieces over an extended period instead of delivering it in one lump sum. The logic went something like this: “By giving people the sense that their incomes had grown, doling out the money paycheck by paycheck was supposed to make recipients more likely to spend it, thereby lifting the economy.”

Except it didn’t exactly work that way and it now looks like lump sum payments work better than the slow drip. A serious blow to behavioral economics? Not exactly …

Traditional economic theory predicts that the design of a tax credit like Making Work Pay should have no effect on its efficacy: A tax cut is a tax cut, whether it comes in a check, reduced paycheck withholdings, or, for that matter, a briefcase full of cash. How money is delivered should have no effect on whether people spend or save.

So the failure of the program actually proves that people are not perfectly rational about the way they spend, otherwise it would have made no difference. A real failure would have been if the Obama approach had the exact same outcome as lump sum.

November 15, 2011 // This post is about: , ,