Israeli Kindergarten. Dual-income couples often arrived late to pick up their children. As a result, the kindergarten implemented a rule that parents would face a fine if they were late; however, even though this introduced a penalty system, it also led to more delays in pickup times. By replacing feelings of guilt with money, paying a fee for being late became the new norm. After recognizing the mistake and removing the fine system, what happened? More parents started arriving late. When money becomes involved, the exchange of value fundamentally changes the nature of the relationship. And once that change occurs, it doesn’t revert. - Joseph’s “just my thoughts”
Online sales surpassed offline sales as a result of the global pandemic. Nowadays, people are purchasing signals instead of tangible items. The online environment is a web of signals. If the signal presented by the interface is not trustworthy, purchasing is not possible. For a long time, stocks have been traded based on signals that represent rights without requiring physical stock certificates. The same principle applies to gold. The challenge arises because both the tangible item and the signal react based on their value, but human greed leads to an oversupply of signals. This happens because creating a signal is much simpler than producing the actual item. The fundamental issue is that the signal serves as a representation of the tangible item. When there are more signals than tangible items, this discrepancy is termed a “bubble.” In offline contexts, signals are known as “cash.” Essentially, money is just a signal, and “trust” is crucial for believing in that signal. - Joseph’s “j...