Standard economic theory assumes people act rationally: Workers, left to their own devices, should save and invest properly to meet their long-term goals.
But Thaler and other adherents of behavioral economics pointed out that workers saving for retirement can be their own worst enemies. Without help, Thaler argued, they’ll never retire. “. Except from Bloomberg.com
Is there even one person on the planet who believes human beings act rationally in economic or other matters?
oh yeah, some economists apparently.
Workers left to their own devices should do a lot of things they don’t do. They should make better choices about health care benefits and they don’t do that either. I spent most of my life trying to get workers to make rational decisions, hell just to pay attention so they could make rational decisions. Forget it.
That inability to exercise rational decision-making more than any other factor is why individuals end up in economic trouble. And in my view it’s mostly just being lazy in thought and action.