Economic inequality in the United States is growing and people are pissed off. For a while, this anger was channeled at Wall Street—and given the jaw-dropping profits and dubious economic benefits of recent financial "innovation" this seemed like an appropriate target. However, as financial reform advocates lost momentum in Washington, a new target has emerged that can be stymied locally and is not yet politically entrenched—the sharing economy.
Daniel Kahneman has done as much to change the way we think about economics as anyone—and yet, he is no economist, or at least not as we would traditionally think of one. Kahneman is a psychologist; a psychologist, however, with a Nobel Prize in Economics and the acclamation for having:
"Pretty much created the field of behavioral economics and revolutionized large parts of cognitive psychology and social psychology."
To illustrate how our brain works, Daniel Kahneman devised two systems of thinking. System 1 is the unconscious thought process that effortlessly manages the majority of our behavior (generally, without error). System 2 comprises our active cognitions and requires concentrated effort to apply. System 1, unbeknownst to System 2, automatically makes a number of serial errors that Kahneman has masterfully identified.
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