Adam D. Schwab, CFA, CAIA

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10 Ideas You Should Know from: Factfulness: Ten Reasons We're Wrong About the World--and Why Things Are Better Than You Think by Hans Rosling

The 10 Big Ideas:

  • The Gap Instinct: The Temptation to Divide Things with a Gap Representing Injustice or Conflict

  • Averages Mislead by Hiding the Spread

  • Your Worldviews are Made Up of Nonrepresentative, Extraordinary Events

  • Don’t Censor Terrible Past

  • Better and Bad: Things Can Be Both Better and Bad at the Same Time

  • What Evidence Would Convince Me to Change My Mind

  • Fear Appropriate Dangers, not Everything

  • Never Do Anything Perfectly

  • Why Individuals Create More Change that Statistics

  • Resources are Finite: Don’t Let Emotion Trample Doing the Most Good

My Highlights From the Book:

The Gap Instinct: The Temptation to Divide Things with a Gap Representing Injustice or Conflict:

This chapter is about the first of our ten dramatic instincts, the gap instinct. I’m talking about that irresistible temptation we have to divide all kinds of things into two distinct and often conflicting groups, with an imagined gap—a huge chasm of injustice—in between. It is about how the gap instinct creates a picture in people’s heads of a world split into two kinds of countries or two kinds of people: rich versus poor.

Journalists know this. They set up their narratives as conflicts between two opposing people, views, or groups. They prefer stories of extreme poverty and billionaires to stories about the vast majority of people slowly dragging themselves toward better lives. Journalists are storytellers. So are people who produce documentaries and movies. Documentaries pit the fragile individual against the big, evil corporation. Blockbuster movies usually feature good fighting evil.

Averages Mislead by Hiding the Spread:

All you averages out there, please do not take offense at what I am about to say. I love averages. They are a quick way to convey information, they often tell us something useful, and modern societies couldn’t function without them. Nor could this book. There will be many averages in this book. But any simplification of information may also be misleading, and averages are no exception. Averages mislead by hiding a spread (a range of different numbers) in a single number.

When we compare two averages, we risk misleading ourselves even more by focusing on the gap between those two single numbers, and missing the overlapping spreads, the overlapping ranges of numbers, that make up each average. That is, we see gaps that are not really there.

Much more often, gap stories are a misleading overdramatization. In most cases there is no clear separation of two groups, even if it seems like that from the averages. We almost always get a more accurate picture by digging a little deeper and looking not just at the averages but at the spread: not just the group all bundled together, but the individuals. Then we often see that apparently distinct groups are in fact very much overlapping.

Beware comparisons of averages. If you could check the spreads you would probably find they overlap. There is probably no gap at all.

Beware comparisons of extremes. In all groups, of countries or people, there are some at the top and some at the bottom. The difference is sometimes extremely unfair. But even then the majority is usually somewhere in between, right where the gap is supposed to be. The view from up here. Remember, looking down from above distorts the view. Everything else looks equally short, but it’s not.

Your Worldviews are Made Up of Nonrepresentative, Extraordinary Events:

Your most important challenge in developing a fact-based worldview is to realize that most of your firsthand experiences are from Level 4; and that your secondhand experiences are filtered through the mass media, which loves nonrepresentative extraordinary events and shuns normality.

Don’t Censor Terrible Pasts:

Don’t Censor History When we hang on to a rose-tinted version of history we deprive ourselves and our children of the truth. The evidence about the terrible past is scary, but it is a great resource. It can help us to appreciate what we have today and provide us with hope that future generations will, as previous generations did, get over the dips and continue the long-term trends toward peace, prosperity, and solutions to our global problems.

Better and Bad: Things Can Be Both Better and Bad at the Same Time:

To control the negativity instinct, expect bad news. Better and bad. Practice distinguishing between a level (e.g., bad) and a direction of change (e.g., better). Convince yourself that things can be both better and bad. Good news is not news. Good news is almost never reported. So news is almost always bad. When you see bad news, ask whether equally positive news would have reached you. Gradual improvement is not news. When a trend is gradually improving, with periodic dips, you are more likely to notice the dips than the overall improvement. More news does not equal more suffering. More bad news is sometimes due to better surveillance of suffering, not a worsening world. Beware of rosy pasts. People often glorify their early experiences, and nations often glorify their histories.

What Evidence Would Convince Me to Change My Mind?

First, make sure you know what it looks like when a child dies from measles. Most children who catch measles recover, but there is still no cure and even with the best modern medicine, one or two in every thousand will die of it. Second, ask yourself, “What kind of evidence would convince me to change my mind?” If the answer is “no evidence could ever change my mind about vaccination,” then you are putting yourself outside evidence-based rationality, outside the very critical thinking that first brought you to this point. In that case, to be consistent in your skepticism about science, next time you have an operation please ask your surgeon not to bother washing her hands.

Fear Appropriate Dangers, not Everything:

Fear vs. Danger: Being Afraid of the Right Things. Fear can be useful, but only if it is directed at the right things. The fear instinct is a terrible guide for understanding the world. It makes us give our attention to the unlikely dangers that we are most afraid of, and neglect what is actually most risky.

The drama is so much stronger when multiple fears are triggered. Yet here’s the paradox: the image of a dangerous world has never been broadcast more effectively than it is now, while the world has never been less violent and more safe.

Never Do Anything Perfectly:

I remember the words of Ingegerd Rooth, who had been working as a missionary nurse in Congo and Tanzania before she became my mentor. She always told me, “In the deepest poverty you should never do anything perfectly. If you do you are stealing resources from where they can be better used.”

Why Individuals Create More Change that Statistics:

Paying too much attention to the individual visible victim rather than to the numbers can lead us to spend all our resources on a fraction of the problem, and therefore save many fewer lives. This principle applies anywhere we are prioritizing scarce resources.

Resources are Finite: Don’t Let Emotion Trample Doing the Most Good:

It is hard for people to talk about resources when it comes to saving lives, or prolonging or improving them. Doing so is often taken for heartlessness. Yet so long as resources are not infinite—and they never are infinite—it is the most compassionate thing to do to use your brain and work out how to do the most good with what you have.