Show me the incentives and I will show you the outcome

“Show me the incentives and I will show you the outcome.” That’s a Charlie Munger quote about how incentives drive nearly everything. I have come to accept this philosophy as one of the simplest, strongest heuristics through which to view nearly everything pertaining to human affairs. Nothing I’ve seen in my industry has ever contradicted it. It’s why capitalism works but has periodic massive...

source http://thereformedbroker.com/2018/08/26/show-me-the-incentives-and-i-will-show-you-the-outcome/