Review of “Antifragile” by Nassim Taleb (a.k.a. Doc Savage) « Normal Deviate

I like the tone. It feels to me like NNT’s way of putting skin in the game. Now that he’s in Rome (book tour) perhaps there’s a chance we’ll have our offended economist fisticuffs  dust-up.

Antifragile continues the Black Swan theme but the arrogant tone has been taken up a notch.

As with Taleb’s other books, there are interesting ideas here. His main point is this: there is no word in the English language to mean the opposite of fragile. You might think that “resilient” or “robust” is the opposite of fragile but that’s not right. A system is fragile if it is sensitive to errors. A system is resilient if it is insensitive to errors. A system is antifragile if it improves with errors.

To understand antifragility, think of things that lead to improvement by trial-and-error. Evolution is an example. Entrepreneurship is another.

Generally, top-down, bureaucratic things tend to be fragile. Bottom-up, decentralized things tend to be anti-fragile. He refers to meddlers who want to impose centralized — and hence fragile — decision making on people as “fragilistas.” I love that word.

I like his ideas about antifragility. I share his dislike for centralized decision-making, bureaucrats, (as well as his dislike of Paul Krugman and Thomas Friedman). So I really wanted to like this book.

via Review of “Antifragile” by Nassim Taleb (a.k.a. Doc Savage) « Normal Deviate.

jonblogden: Why We Should Be Using Nassim Taleb’s Neologism, Antifragile

That may sound simple-minded, but the implications are important. For instance, this rule of thumb would eliminate endlessly complicated regulation like the Dodd-Frank Act which may eventually sprawl to 30,000 pages of rules—creating loopholes ripe for cronyism, but it would leave open the possibility for simple, market-wide regulations like breaking up the banks, or banning credit-default swaps.

In other words, an antifragile economy is one that implements only regulations that aren’t needlessly complex, don’t pick winners and losers, and never add hosts of bureaucrats. By this token an antifragile economy also favors diverse, simple, small and medium-sized governments over the concentrated hive of bureaucrats that Washington has become. Taleb’s uses early America and Switzerland as models to follow, and I agree.

via jonblogden: Why We Should Be Using Nassim Taleb’s Neologism, Antifragile.