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Tim Harford05 November 2022

Why Is Thinking Clearly So Difficult? - Tim Harford - #548

0Frameworks
20Insights

Insights & moments

The myth-busts, hot takes, explainers, and tools worth keeping.

Myth Buster· 1

Myth Buster11:30

The Inflation Myth: It's Not All the Same Kind of Price Rise

Harford explains that 'textbook' inflation is everything rising together, including wages, which leaves people no worse off in real terms. The 2022 spike, driven by Putin cutting off energy supplies, was instead a relative price shock — food, gas and oil surged while wages didn't — making people genuinely poorer, a distinction central banks struggle to respond to correctly.

  • Pure inflation means prices AND wages rise together, so nobody is really worse off.
  • 2022's price spike was largely a relative price shock from the energy/food crisis, not classic inflation.
  • Relative price shocks make people poorer because wages don't rise to match the specific goods that got expensive.
  • Central banks should respond very differently to each type, but 2022 was a confusing mix of both.
  • Even top FT economists Harford consulted gave contradictory policy advice on interest rates.

the price in the store went up by 10% and your salary went up by 10%... so basically nothing is really getting any more expensive…

Tim Harford · 12:30

in many ways that's much worse than inflation because you're actually poorer

Tim Harford · 13:30
#economics#inflation#policy

Hot Take· 1

Hot Take16:00

Indiscriminate Doubt Is as Dangerous as Indiscriminate Belief

Harford argues that reflexive skepticism ('you can prove anything with statistics') is just as much a failure of thinking as reflexive credulity. He uses QAnon believers — who distrust every source of authority yet believe an elaborate conspiracy — and Peter Thiel's observation about climate skeptics and optimists both landing on 'do nothing,' to show doubt and belief can be equally unmoored from evidence.

  • The line 'indiscriminate doubt is at least as dangerous as indiscriminate belief' is from Harford's book The Data Detective.
  • QAnon believers doubt every institution yet believe a highly elaborate unproven theory — showing skepticism and gullibility aren't opposites.
  • Peter Thiel's point: climate skeptics and climate optimists both conclude 'do nothing,' just via opposite reasoning.
  • Reflexive contrarianism is an easy, low-effort way to look smart.

indiscriminate doubt is at least as dangerous as indiscriminate belief

Tim Harford · 16:05

the reflexive heterodoxy or reflexive contrarianism is a very easy way for people to seem smart

Tim Harford · 18:15
#misinformation#critical-thinking#statistics

Explainer· 6

Explainer02:00

What Google Searches Reveal That Facebook Never Will

Harford discusses Seth Stephens-Davidowitz's 'Everybody Lies,' which contrasts what people type into Google versus what they post on Facebook. Google searches reveal people's true, often uncomfortable, questions and desires, while Facebook posts reveal how people want to be perceived.

  • Facebook posts about 'my boyfriend is...' skew positive: loving, caring, the best.
  • Google searches about 'my boyfriend is...' skew negative: not having sex with me, having an affair, falling out of love.
  • Stated preferences (what we say) diverge sharply from revealed preferences (what we search/do).
  • Harford connects this to economists' traditional distrust of 'cheap talk' vs actions with real stakes.

we tell Google things that we don't even tell ourselves

Tim Harford · 03:30

my boyfriend is not having sex with me... my boyfriend is having an affair

Tim Harford · 03:00
#behavioral-economics#data#psychology#seth-stephens-davidowitz
Explainer18:30

Why It's Easier to Dunk on the Other Side Than Defend Your Own

Harford cites 1990s psychology research on the capital punishment debate showing people find it far easier to generate arguments attacking the opposing view than positive arguments for their own side. He suggests this asymmetry helps explain the internet's pull toward negativity and 'toxic cynicism.'

  • 1990s study asked people to argue about capital punishment.
  • Arguments attacking the opposing side flowed far more easily than positive arguments for one's own side.
  • Harford's hunch: 'there's more ways to be wrong than to be right.'
  • This asymmetry helps explain why negativity and dunking dominate online discourse.

if you ask people to come up with reasons why the other side is stupid, they can do that — there's so many arguments, they…

Tim Harford · 19:15

it may just be there's more ways to be wrong than to be right

Tim Harford · 20:05
#psychology#critical-thinking#social-media
Explainer23:00

Check the News Less Often to See What Actually Matters

Harford explains that the timescale on which you consume news changes what kind of 'news' you see: hourly checking surfaces gossip and market noise, while checking on a decade timescale reveals real trends like declining child mortality or rising global temperatures. He connects this to David Perel's observation that most consumed content is less than 24 hours old.

  • Checking news hour-by-hour surfaces gossip, market moves, and things 'blowing up.'
  • Checking once a year surfaces a different, more meaningful set of events.
  • Checking on a 10-25 year timescale reveals slow, important trends impossible to see day-to-day (child mortality, global temperature).
  • David Perel's insight: almost all consumed content was created in the last 24 hours; some platforms are deliberately 'anti-Lindy.'

if you look at the news once a year you can actually pick up totally different sorts of events

Tim Harford · 23:45

do not confuse the noise for the signal — that's what everybody's doing

Chris Williamson · 24:30
#media#attention#david-perel
Explainer32:00

How the World's Top Vermeer Expert Fell for a Forgery

Harford outlines three reasons people get things wrong when consuming information — lack of skill, motivated reasoning, and inattention — and illustrates motivated reasoning with the story of art critic Abraham Bredius, who knew more about Vermeer than anyone alive yet endorsed a blatant forgery because he desperately wanted it to be genuine.

  • Three failure modes: incompetence (information deficit), motivated reasoning (wanting to believe), and simple inattention.
  • Abraham Bredius was the world's leading Vermeer expert but still endorsed a forgery that didn't resemble any real Vermeer.
  • No amount of additional skill or information would have stopped him — he was 'desperate to believe.'
  • This is one of the opening stories in Harford's book The Data Detective / How to Make the World Add Up.

he was just so desperate to believe

Tim Harford · 32:20

you couldn't have given him any more information, you couldn't have given him any more skill — he still made the mistake

Tim Harford · 32:15
#critical-thinking#expertise#psychology
Explainer51:30

How the Bicycle Liberated Women

Drawing on his book '50 Things That Made the Modern Economy,' Harford explains how the bicycle reshaped society far beyond transport, becoming a major force in women's emancipation by letting them travel without a chaperone — despite moral panic at the time that fixated on trousers rather than the bicycle itself.

  • Campaigners warned the bicycle would lead to 'fornication and prostitution.'
  • A tabloid headline fixated on a divorced woman cycling 'in trousers,' with no one worried about the bicycling itself.
  • A leading 19th-century women's suffrage campaigner reportedly named the bicycle as the single greatest contributor to women's freedom.
  • Inventions like the bicycle change the world not by solving a narrow problem but by reshaping society and creating new winners and losers.

she wore trousers... divorced lady cycling around in trousers — but the interesting thing was everyone was excited about the trousers, no one was worried…

Tim Harford · 52:45

what had been the greatest contributor to women's freedom? She said: the bicycle

Tim Harford · 53:20
#history#economics#inventions
Explainer54:00

How Caffeine and a Tax Cut Changed Public Health

A wide-ranging historical thread: coffee houses replaced alcohol-fueled pubs as the venue for serious daytime discussion, Aristotle allegedly used smaller cups to reduce drinking at dinners, and Prime Minister Henry Pelham's 18th-century tea tax cut inadvertently improved public health by boosting boiled-water tea consumption before germ theory even existed.

  • Before coffee houses, serious daytime discussion happened in pubs, where conversation degenerated with drinking.
  • Aristotle reportedly swapped in smaller cups at dinners to reduce alcohol consumption while preserving good conversation.
  • Henry Pelham slashed British tea tax in the 1700s, killing smuggling and increasing legal tea consumption and tax revenue.
  • Economist Francesca Antman traced the resulting spike in tea drinking to a measurable drop in mortality, driven by people boiling water for tea — decades before germ theory was understood.

she could actually track this massive spike in the consumption of tea... through to the mortality figures

Tim Harford · 56:15

they didn't have germ theory, they didn't know it was making the water safer — but it was

Tim Harford · 56:25
#history#economics#public-health

Story· 9

Story04:30

Why a Comfortable Delay Beats a Miserable One

Harford recounts being stuck on a stationary Eurostar train in 30-degree heat and using the downtime to write a column about it. He argues that regulators and train companies only measure the length of a delay, completely ignoring the conditions passengers experience during it.

  • Harford wrote an FT column live from a delayed, stationary Eurostar train.
  • Rail regulators only penalize companies for delays over a fixed time threshold (e.g. 3 hours).
  • The passenger experience of a delay (comfort, power, information) matters as much as its length.
  • Compares this to Uber's innovation being the arrival countdown, not just app-based booking.

there's all the difference in the world between I'm sitting in comfort with power and I can work... versus I'm standing, I'm stressed, I have…

Tim Harford · 06:00
#behavioral-economics#customer-experience#transport
Story07:00

How Wait-Time Signs Fixed Heathrow's Complaint Problem

Discussion of how Heathrow's Terminal 5 security queues generated huge complaint volumes. Before spending hundreds of millions on an engineering fix (more scanners, faster staff), Ogilvy's behavioral science team tried a cheap psychological trick borrowed from Disney World: simple signs showing estimated wait times at intervals along the queue.

  • Heathrow treated congested security queues as an engineering/logistics problem first.
  • A behavioral fix was tried before expensive infrastructure changes: staged wait-time signage, Disney-style.
  • Complaints dropped dramatically even though actual wait times didn't necessarily shorten.
  • The insight: people tolerate waits better when they know how long the wait will be.

it's not necessarily about the length of time of the wait... it's about knowing how long the wait is going to be

Chris Williamson · 08:30
#behavioral-economics#customer-experience#rory-sutherland
Story09:00

The Cautionary Tale of Two Economists Who Missed the Crash

Harford tells the story of John Maynard Keynes and Irving Fisher, two of the era's greatest economists, both of whom made catastrophic forecasts and missed the 1929 Wall Street crash. Despite making the same mistake, they ended up in wildly different places, illustrating that too much 'skin in the game' can be as dangerous as too little.

  • Both Keynes and Fisher failed to foresee the 1929 crash, which wiped out 89% of share value.
  • Fisher had so much personal money and reputation on the line that he 'could no longer think clearly.'
  • Keynes had less at stake, could absorb the loss, and recovered his reputation and finances.
  • The story is the basis for one of the first episodes of Harford's Cautionary Tales podcast.

he had so much skin in the game... he was completely invested, he could no longer think clearly, he was completely backed into a corner

Tim Harford · 10:15
#economics#behavioral-economics#history#risk
Story20:30

Why Tim Harford's Calm Tweets Never Go Viral

Harford reflects that despite having nearly 200,000 Twitter followers, his measured, reasonable tweets almost never get retweeted — only his rare 'gotcha' quotes exposing hypocrisy go viral. He connects this to statistician Andrew Gelman's observation that long-form writing (like blogging) skews positive because there's no cost to praise, but real consequences to public takedowns.

  • Harford has ~200k Twitter followers but says he 'never gets any retweets' for calm, reasonable content.
  • His rare viral tweets are ones exposing politicians' hypocrisy via direct quotes.
  • Social media is built for engagement, which is disproportionately driven by negative emotion.
  • Andrew Gelman's point: blog posts praising others carry no risk, while takedowns require rigor and invite consequences (e.g. being sued).

I've got nearly 200,000 followers on Twitter, I never get any retweets... maybe I'm boring, but I like to think that's because I'm calm

Tim Harford · 21:45

no one cares if you got your facts right if you're just being friendly to everyone

Tim Harford · 23:15
#social-media#twitter#psychology
Story27:30

The Expert Who Says 'I Don't Know' — David Spiegelhalter

Harford praises statistician Sir David Spiegelhalter, former president of the Royal Statistical Society, as one of the few experts willing to openly admit the limits of his knowledge instead of speculating. He argues this honesty is rare, a signal of trustworthiness, and something the media ecosystem often discourages because broadcasters want confident, broad-overview guests.

  • Sir David Spiegelhalter is a 'National Treasure' UK statistician who readily says 'I don't know' on topics outside his expertise.
  • This trait is unusual — most experts extend their confidence into areas they're not actually expert in.
  • Radio/TV producers often prefer guests who will confidently answer anything over ones who admit ignorance.
  • Admitting uncertainty is a signal of honesty and trustworthiness, though it's rarely rewarded by media incentives.

not a clue — ask me another question

Tim Harford · 28:15

it's a signal of trustworthiness, I think, and honesty

Tim Harford · 28:35
#expertise#media#statistics
Story34:30

The Pickpocket Trick That Explains Misinformation

Harford describes theatrical pickpocket Apollo Robbins' technique of drawing a mark's attention to one object (their wallet) while stealing another (their watch), and how this reveals the illusion that we're monitoring everything at once. He draws a direct parallel to how people believe they're carefully evaluating information online when they're actually not paying attention at all.

  • Apollo Robbins misdirects marks by having them check on one item while he steals a different one.
  • The trick works because people believe they can monitor multiple things simultaneously — they can't.
  • This is the same illusion at play when people believe they're evaluating the truth of everything they read online.
  • Harford recommends Robbins' nine-minute TED Talk as a masterclass in storytelling.

the things right in front of us are often the hardest to see

Chris Williamson · 34:35

you think you know your senses are monitoring them both, but they're not — you've just got this illusion that they are

Tim Harford · 35:40
#attention#psychology#misinformation
Story44:30

How Sherlock Holmes' Creator Fell for Two Girls' Fairy Photos

Harford tells the story of Arthur Conan Doyle championing a hoax by two Yorkshire girls who photographed 'fairies' in their garden, even writing an entire book declaring it genuine. Decades later the British Journal of Photography identified four different fakery methods across the five photos — and ironically, Doyle's own background as a trained expert photographer made him more susceptible, not less, once he was emotionally invested.

  • Two young girls from Yorkshire produced fairy photographs starting in 1916/1917; Conan Doyle championed them as genuine in his book 'The Coming of the Fairies.'
  • The British Journal of Photography later published an ~80-page exposé identifying at least four distinct fakery techniques used across five photos (retouching, double exposure, paper cutouts).
  • Conan Doyle's own deep photography expertise (his first published work was in the British Journal of Photography) made him overconfident that the girls couldn't have faked it.
  • Illustrates Harford's broader point: expertise is an advantage when thinking clearly, but becomes a liability once you're emotionally invested in a conclusion.

expertise is an advantage if you're thinking clearly and you're not emotional, but once you're emotionally engaged, expertise can be an active disadvantage

Tim Harford · 50:00

when intelligent people affiliate themselves to ideology, their intellect ceases to guard against wishful thinking and instead begins to fortify it, causing them to inadvertently…

Tim Harford · 50:20
#critical-thinking#history#expertise#cautionary-tales
Story56:30

The WWII Spy Gadgets Built From Aniseed Balls and Condoms

The host recounts colorful anecdotes from the book 'Churchill's Ministry of Ungentlemanly Warfare,' about Britain's secret WWII sabotage unit, including an edible guerrilla warfare pamphlet timed for consumption and a bomb detonator built from aniseed sweets kept dry using condoms.

  • Britain's secret WWII sabotage unit recruited inventors, criminals and soldiers with unconventional skills.
  • One inventor created an edible guerrilla-warfare pamphlet, timed to be consumable in under two minutes with a glass of water.
  • The same inventor discovered aniseed balls dissolved at a reliably consistent rate, making them useful as timed detonators for limpet mines.
  • Condoms were found to be the perfect size to waterproof the aniseed-ball detonators during transport.

a gentleman could consume the entire pamphlet in less than two minutes

Chris Williamson · 58:00

it is unclear whether or not there was an increase in childbirths nine months later

Chris Williamson · 60:05
#history#world-war-2#story
Story60:30

How a 6-Week Notice Baby Bonus Doubled Birth Rates Overnight

Harford recounts an Australian government policy roughly 15 years ago that announced a baby bonus with just six weeks' notice, dismissing warnings that parents would try to time births to qualify. The birth rate on the policy's start date was more than double the rate the day before, a stark demonstration of how strongly people respond to financial incentives.

  • Australia announced a ~AU$3,000 baby bonus with only six weeks' notice, effective a set date.
  • Officials dismissed concerns that families would deliberately delay births to qualify.
  • The birth rate on July 1st (the policy start) was more than twice the rate on June 30th.
  • A similar timing effect was found around the abolition of inheritance tax, extending to death dates as well as births.

the birth rate on the 1st of July was more than twice the birth rate on the last day of June

Tim Harford · 61:20

people respond to incentives — this is the classic economist in me, rational choice theory, it does actually explain a few things

Tim Harford · 61:45
#economics#incentives#policy

Q&A· 2

Q&A35:30

The Study That Shows You Already Know What's Fake — You Just Don't Check

Harford details a study by MIT's David Rand and University of Regina's Gord Pennycook showing people readily retweet fake news that flatters their political side, even though they can correctly identify the same headlines as false when directly asked. Simply asking people once whether a headline is true measurably reduces their sharing of false claims for the following 48 hours.

  • People retweet fake news that favors their political tribe even when they could identify it as false if asked.
  • When asked directly 'is this true?', people are actually quite good at spotting fake headlines.
  • The disconnect isn't ignorance or bias alone — it's simply not stopping to think before sharing.
  • Asking someone once to evaluate a headline's truth changes their retweeting behavior for the next 48 hours, both in the lab and on live Twitter.

they're just not paying attention

Tim Harford · 37:35

it lasts 48 hours — it's incredible

Tim Harford · 38:00
#misinformation#social-media#psychology#research
Q&A63:30

Should Governments Pay Women to Have Children?

Asked about tax incentives for mothers to have more children, Harford pushes back on the framing, questioning whether society actually has good reason to want more children than individuals would freely choose, and pointing out that advocates for baby bonuses rarely also advocate for freer immigration, even though both would achieve the stated population goal.

  • Harford questions whether there's real evidence society 'wants' more children than individual mothers would choose.
  • The UK already incentivizes children indirectly via child benefit payments until age 18.
  • If the real goal is more people, immigration is a logical alternative lever — but baby-bonus advocates rarely also push for freer immigration.
  • He notes the UK's experience with young EU immigrants working and paying taxes with low benefit demands as an underappreciated comparison.

do you have any reason to believe that society wants more or fewer children than individual mothers would choose by themselves?

Tim Harford · 64:00
#economics#policy#demographics

Tool· 1

Tool69:00

Dollars and Sex — the Economist Studying Why Women Aren't Having the Kids They Want

Harford recommends economist Marina Adshade of the University of British Columbia, author of 'Dollars and Sex,' whose research suggests women in general are having fewer children than they say they would like — a gap Harford argues deserves far more attention than simple demographic-pyramid hand-wringing.

  • Marina Adshade is an economist at UBC and author of 'Dollars and Sex.'
  • Her research indicates women, on average, are having fewer children than they'd ideally want.
  • Harford argues this gap between desired and actual fertility is the real issue policymakers should study, not the shape of the population pyramid.
  • He suggests a large-sample study asking women how many children they wanted versus how many they had would be genuinely valuable.

women are in general having fewer children than they would like, and that is something that would concern me much more than just looking at…

Tim Harford · 70:00
#economics#demographics#books#recommendation