Mental Models: Money, genetics and your brain, lessons from “Behave” by Robert Sapolsky: #70

Mental Models Podcast It's not a brain in a jar, that's the gist!

Financial insecurity impacts our brain and body throughout human development. Stress is increased with more authority & responsibility. Lessons from of Robert Sapolsky’s book “Behave: The Biology of Humans at Our Best and Worst” For more on best investing strategies, avoiding bias and learning about your brain BUY 5 star reviewed book “Understanding Behavioral Bia$” on Amazon - link here: http://amzn.to/2XHtsOE Continue to listen to Mental Models Podcast to avoid the biases that are keeping you from making a profit in the market. Stay safe and healthy out there! Sapolsky's book provides a bird’s eye view on how our behavior evolves from seconds to months and years prior to the time that we act. It is well-stocked with excellent lessons about neuroscience, biology, genes, and culture. This lengthy book is engaging throughout and tackles complicated and controversial topics. Sapolsky provides an important biological link to explain the ways that we behave. He emphasizes that our biology is inextricably linked to our cultures and hierarchies. He takes on the challenges of social comparisons, wealth inequality, and systemic poverty. Relative positions in society link back to our mental health with implications for our health and biological function. Human happiness in the corporate world is discussed. It is impacted by A. Autonomy, B. Place in the hierarchy, and C. Number of direct supervised employees. A and B impact our well being in a positive way, while C increases our perceived stress. Three keys to lowering executive stress are noted: 1. Maintain a strong place in a hierarchy 2. Gain autonomy over your decisions 3. Outsource much of the daily micro management Other critical drivers of behaviors are discussed related to market participation. These include economic exchange games including the ultimatum game. People who participate in high trade volume (whether it be in a financial market or a street market) tend toward making fair offers. This establishes trust and reputation which lead to human thriving and the development of productive civilizations. This has implications about need for autonomy and experience in growing your own success. Zero-sum thinking leads toward people avoiding you. There needs to be a healthy balance between cooperation and competition. You can go very far in life if you ensure that you maintain mutual benefit with any sort of deal you make. The book frames many sophisticated and complex behaviors in terms of evolutionary theory, genes, and neurobiology. Honor and revenge cultures lead to tremendous stress and unhappiness. Sapolsky reminds us that so many systems from culture down to genes is one of modulation. Links: Robert Sopolsky’s book “Behave: The Biology of Humans at Our Best and Worst” https://www.amazon.com/Behave-Biology-Humans-Best-Worst/dp/1594205078