Why Smart People Do Dumb Things

Culled from business headlines and corporate files, Why Smart People Do Dumb Things is an in-depth examination of the ultimate in boardroom breakdown--a postmortem of the mega-mistakes made by highly regarded leaders in business and public life. From the "New Coke" debacle to the poor subscription showing of the Olympic Triplecast to the swirling controversy of Whitewater, Feinberg describes how strong minds can misuse their power, and why bright people often seize upon--and advocate brilliantly--ideas that others recognize as ridiculous.

Why Smart People Do Stupid Things addresses a question that’s frequently on our minds. When Bill Clinton’s affair with Monica Lewinsky was exposed many people were utterly astounded. How could he? Most of us were asking. Answers aren’t easy to come by because we have spent considerable time building on our strengths to the neglect of our dark side. We aren’t only puzzled when we see friends, co-workers, or public leaders engage in stupid, unseemly, unexplainable acts, we are personally threatened by it. If them, why not still others or perhaps ourselves. This book looks at numerous examples of apparently unexplainable stupidities with particular focus upon Richard Nixon and Bill Clinton. Every mindless act doesn’t turn out wrong. There are occasions when the outcome greatly benefits us. On the other hand, there are many times when the result goes against us to our disadvantage if not to the point of tragedy. Why? This book addresses the complex issues involved in making rational decisions, including excusable error. Analyses are offered in a readily understandable style. Potential solutions are described. The topic is of vital interest to us individually as well as to the nation.

For many of us, planning our own financial future presents pitfalls at every turn, because the truth is, when it comes to money, we are not always rational. Now you can take control of your economic life with confidence. Bert Whitehead, one of the top money-management advisors in America, gives you all the information you need to manage your wealth wisely by relying on your strongest asset-yourself. Book jacket.

Psychologist Van Hecke argues that much of what we label stupidity can better be explained as blind spots. Full of funny, poignant stories about human foibles, "Blind Spots" offers many insights for improving our social and political lives.

“A serious attempt to understand a common phenomenon” from the author of The Nature of Human Intelligence (Psychology Today). One need not look far to find breathtaking acts of stupidity committed by people who are smart, or even brilliant. The behavior of clever individuals—from presidents to prosecutors to professors—is at times so amazingly stupid as to seem inexplicable. Why do otherwise intelligent people think and behave in ways so stupid that they sometimes destroy their livelihoods or even their lives? This is an investigation of psychological research to see what it can tell us about stupidity in everyday life. The contributors to the volume—scholars in various areas of human intelligence—present examples of people messing up their lives, and offer insights into the reasons for such behavior. From a variety of perspectives, the contributors discuss: The nature and theory of stupidity How stupidity contributes to stupid behavior Whether stupidity is measurable. While many millions of dollars are spent each year on intelligence research and testing to determine who has the ability to succeed, next to nothing is spent to determine who will make use of their intelligence and not squander it by behaving stupidly. The contributors focus on the neglected side of this discussion, reviewing the full range of theory and research on stupid behavior and analyzing what it tells us about how people can avoid stupidity and its devastating consequences. “Marvelous, devilishly clever, and culturally timely book . . . A fascinating exploration.” —Choice “Easily readable and well referenced . . . May provide just enough momentum for change.” —International Journal of Intelligence

You’re smart. So don’t be dumb about money. Pinpoint your biggest money blind spots and take control of your finances with these tools from CBS News Business Analyst and host of the nationally syndicated radio show Jill on Money, Jill Schlesinger. “A must-read . . . This straightforward and pleasingly opinionated book may persuade more of us to think about financial planning.”—Financial Times Hey you . . . you saw the title. You get the deal. You’re smart. You’ve made a few dollars. You’ve done what the financial books and websites tell you to do. So why isn’t it working? Maybe emotions and expectations are getting in the way of good sense—or you’re paying attention to the wrong people. If you’ve started counting your lattes, for god’s sake, just stop. Read this book instead. After decades of working as a Wall Street trader, investment adviser, and money expert for CBS News, Jill Schlesinger reveals thirteen costly mistakes you may be making right now with your money. Drawing on personal stories and a hefty dose of humor, Schlesinger argues that even the brightest people can behave like financial dumb-asses because of emotional blind spots. So if you’ve saved for college for your kids before saving for retirement, or you’ve avoided drafting a will, this is the book for you. By following Schlesinger’s rules about retirement, college financing, insurance, real estate, and more, you can save money and avoid countless sleepless nights. It could be the smartest investment you make all year. Praise for The Dumb Things Smart People Do with Their Money “Common sense is not always common, especially when it comes to managing your money. Consider Jill Schlesinger’s book your guide to all the things you should know about money but were never taught. After reading it, you’ll be smarter, wiser, and maybe even wealthier.”—Chris Guillebeau, author of Side Hustle and The $100 Startup “A must-read, whether you’re digging yourself out of a financial hole or stacking up savings for the future, The Dumb Things Smart People Do with Their Money is a personal finance gold mine loaded with smart financial nuggets delivered in Schlesinger’s straight-talking, judgment-free style.”—Beth Kobliner, author of Make Your Kid a Money Genius (Even If You’re Not) and Get a Financial Life

“Well-written and fascinating . . . this is the kind of book you want everyone to read.”—Cleveland Plain Dealer “Curiosity, awareness, attention,” Laurence Gonzales writes. “Those are the tools of our everyday survival. . . . We all must be scientists at heart or be victims of forces that we don’t understand.” In this fascinating account, Gonzales turns his talent for gripping narrative, knowledge of the way our minds and bodies work, and bottomless curiosity about the world to the topic of how we can best use the blessings of evolution to overcome the hazards of everyday life. Everyday Survival will teach you to make the right choices for our complex, dangerous, and quickly changing world—whether you are climbing a mountain or the corporate ladder.

How to assess critical aspects of cognitive functioning that are not measured by IQ tests: rational thinking skills. Why are we surprised when smart people act foolishly? Smart people do foolish things all the time. Misjudgments and bad decisions by highly educated bankers and money managers, for example, brought us the financial crisis of 2008. Smart people do foolish things because intelligence is not the same as the capacity for rational thinking. The Rationality Quotient explains that these two traits, often (and incorrectly) thought of as one, refer to different cognitive functions. The standard IQ test, the authors argue, doesn't measure any of the broad components of rationality—adaptive responding, good judgment, and good decision making. The authors show that rational thinking, like intelligence, is a measurable cognitive competence. Drawing on theoretical work and empirical research from the last two decades, they present the first prototype for an assessment of rational thinking analogous to the IQ test: the CART (Comprehensive Assessment of Rational Thinking). The authors describe the theoretical underpinnings of the CART, distinguishing the algorithmic mind from the reflective mind. They discuss the logic of the tasks used to measure cognitive biases, and they develop a unique typology of thinking errors. The Rationality Quotient explains the components of rational thought assessed by the CART, including probabilistic and scientific reasoning; the avoidance of “miserly” information processing; and the knowledge structures needed for rational thinking. Finally, the authors discuss studies of the CART and the social and practical implications of such a test. An appendix offers sample items from the test.