The last two paragraphs from Matt Ridley read:
Human achievement is based on collective intelligence — the nodes in the human neural network are people themselves. By each doing one thing and getting good at it, then sharing and combining the results through exchange, people become capable of doing things they do not even understand. As the economist Leonard Read observed in his essay "I, Pencil' (which I'd like everybody to read), no single person knows how to make even a pencil — the knowledge is distributed in society among many thousands of graphite miners, lumberjacks, designers and factory workers.The opening two paragraphs from Daniel Kahneman read:
That's why, as Friedrich Hayek observed, central planning never worked: the cleverest person is no match for the collective brain at working out how to distribute consumer goods. The idea of bottom-up collective intelligence, which Adam Smith understood and Charles Darwin echoed, and which Hayek expounded in his remarkable essay "The use of knowledge in society", is one idea I wish everybody had in their cognitive toolkit.
Education is an important determinant of income — one of the most important — but it is less important than most people think. If everyone had the same education, the inequality of income would be reduced by less than 10%. When you focus on education you neglect the myriad other factors that determine income. The differences of income among people who have the same education are huge.And there are lots of other interesting ideas, go read!
Income is an important determinant of people's satisfaction with their lives, but it is far less important than most people think. If everyone had the same income, the differences among people in life satisfaction would be reduced by less than 5%.