Re:“Pain Is the Only School-Teacher”
by ve55 on Monday June 08, 2020 @10:24PM
(#23463025)
It definitely took me quite a few lessons to have a good idea what I was doing there myself. Skin in the game is definitely important, and has become increasingly less common in society, to the detriment of many systems.
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Re:“Pain Is the Only School-Teacher”
by WalterBright on Tuesday June 09, 2020 @05:33AM
(#23465104)
A big reason free markets work so well is it is an inherently "skin in the game" setup. This does a better job of weeding out irrational and unproductive behavior than any other system.
My teacher (organizational psychologist) was warning banks before the 2008 crisis about their bonus culture, precisely because they don’t have enough skin in the game.
Also, as an employee, I don’t have enough skin either. I could get fired, I might not be promoted. That’s a whole different level than that one could lose everything immediately as some entrepreneurs.