12 Things Lee Kuan Yew Taught Me About the World

“It’s no accident that Singapore has a much better record, given where it started, than the United States. There, power was concentrated in one enormously talented person, Lee Kuan Yew, who was the Warren Buffett of Singapore.”
— Charlie Munger

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Singapore seemed destined for failure or subservience to a more powerful neighbor. The country is by far the smallest in Southeast Asia and was not gifted with many natural resources. Lee Kuan Yew thought otherwise. “His vision,” wrote Henry Kissinger, “was of a state that would not simply survive, but prevail by excelling. Superior intelligence, discipline, and ingenuity would substitute for resources.”

To give you an idea of the magnitude of success that Lee Kuan Yew achieved, when he took over, per capita income was about $400 and now, in less than a generation, it exceeds $50,000.

Here are 12 things I learned from Lee Kuan Yew about the world and the source of many of our present ills reading  Lee Kuan Yew: The Grand Master’s Insights on China, the United States, and the World

  1. You need a free exchange of ideas. “China will inevitably catch up to the U.S. in absolute GDP. But its creativity may never match America’s, because its culture does not permit a free exchange and contest of ideas.”
  2. Technology will change how governance operates. “Technology is going to make (China’s) system of governance obsolete. By 2030, 70% or maybe 75% of their people will be in cities, small towns, big towns, mega big towns. They are going to have cell phones, Internet, satellite TV. They are going to be well-informed; they can organize themselves. You cannot govern them the way you are governing them now, where you just placate and monitor a few people, because the numbers will be so large.”
  3. Don’t try to install a democracy in a country that has never had one. “I do not believe you can impose on other countries standards which are alien and totally disconnected with their past. So to ask China to become a democracy, when in its 5,000 years of recorded history it never counted heads; all rulers ruled by right of being the emperor, and if you disagree, you chop off heads, not count heads.”
  4. Welcome the best the world has to offer. “Throughout history, all empires that succeeded have embraced and included in their midst people of other races, languages, religions, and cultures.”
  5. It’s about results, not promises. “When you have a popular democracy, to win voices you have to give more and more. And to beat your opponent in the next election, you have to promise to give more away. So it is a never-ending process of auctions—and the cost, the debt being paid for by the next generation. Presidents do not get reelected if they give a hard dose of medicine to their people. So, there is a tendency to procrastinate, to postpone unpopular policies in order to win elections. So problems such as budget deficits, debt, and high unmployment have been carried forward from one administration to the next.”
  6. Governments shouldn’t have an easy way out. “American and European governments believed that they could always afford to support the poor and the needy: widows, orphans, the old and homeless, disadvantaged minorities, unwed mothers. Their sociologists expounded the theory that hardship and failure were due not to the individual person’s character, but to flaws in the economic system. So charity became “entitlement,” and the stigma of living on charity disappeared. Unfortunately, welfare costs grew faster than the government’s ability to raise taxes to pay for it. The political cost of tax increases is high. Governments took the easy way out by borrowing to give higher benefits to the current generation of voters and passing the costs on to the future generations who were not yet voters. This resulted in persistent government budget deficits and high public debt.”
  7. What goes into a standard of living? “A people’s standard of living depends on a number of basic factors: first, the resources it has in relation to its population . . .; second, its level of technological competence and standards of industrial development; third, its educational and training standards; and fourth, the culture, the discipline and drive in the workforce.”
  8. The single most important factor to national competitiveness … “The quality of a nation’s manpower resources is the single most important factor determining national competitiveness. It is a people’s innovativeness, entrepreneurship, team work, and their work ethic that give them the sharp keen edge in competitiveness. Three attributes are vital in this competition—entrepreneurship to seek out new opportunities and to take calculated risks. Standing still is a sure way to extinction. . . . The second attribute, innovation, is what creates new products and processes that add value. . . . The third factor is good management. To grow, company managements have to open up new markets and create new distribution channels. The economy is driven by the new knowledge, new discoveries in science and technology, innovations that are taken to the market by entrepreneurs. So while the scholar is still the greatest factor in economic progress, he will be so only if he uses his brains—not in studying the great books, classical texts, and poetry, but in capturing and discovering new knowledge, applying himself in research and development, management and marketing, banking and finance, and the myriad of new subjects that need to be mastered.”
  9. Earning your place in history … “A nation is great not by its size alone. It is the will, the cohesion, the stamina, the discipline of its people, and the quality of their leaders which ensure it an honorable place in history.”
  10. Weak leaders rely on opinion polls. “I have never been overconcerned or obsessed with opinion polls or popularity polls. I think a leader who is, is a weak leader. If you are concerned with whether your rating will go up or down, then you are not a leader. You are just catching the wind … you will go where the wind is blowing. . . . Between being loved and feared, I have always believed Machiavelli was right. If nobody is afraid of me, I am meaningless. When I say something … I have to be taken very seriously.”
  11. We are fundamentally competitive. “Human beings are not born equal. They are highly competitive. Systems like Soviet and Chinese communism have failed, because they tried to equalize benefits. Then nobody works hard enough, but everyone wants to get as much as, if not more than, the other person.”
  12. The value of history: “If you do not know history, you think short term. If you know history, you think medium and long term.”

 

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Lee Kuan Yew: The Grand Master’s Insights on China, the United States, and the World offers Yew’s timeless wisdom.

Gary Taubes and the Exquisite Balancing Act of Getting it Right

Last year, the wonderful Gary Taubes, whose ideas about nutrition we have written about before, gave a commencement address to the students of the Schmid College of Science and Technology at Chapman University in California.

The address is near and dear to our way of thinking, because Taubes raises a difficult and correct truth: In order to pursue new knowledge of the world, we must be confident that our ideas are correct, but because we are very susceptible to fooling ourselves, this tendency will lead us to believe lots of untruth as well. He calls it a tightrope walk: The thin line between being confident in an unpopular or yet unknown piece of knowledge and being a fool who buys into his cherished untruths.

Part of the speech is reprinted below, but be sure to check the whole thing out.

The idea is we’re always going to try to fool ourselves – that’s how our brains are wired — but here’s a way of thinking that will help us minimize the tendency. Another great philosopher of Science, Robert Merton, in the 1960s, put it this way: he said that Aristotle was right when he said “all men by nature desire to know” but then he added, what makes scientists different is they “desire to know that what they know is really so.”

Now here’s the catch: In science, as in life, you have to have faith in yourself and your ideas. You have to make decisions about what you’ll pursue, what you’ll continue pursuing despite times getting very tough, who you’ll do it with, who you’ll stay doing it with even after times get tough, where you’ll do it; why other people should do it with you and keep doing it with you through the tough times. You’ll make these decisions based on the assumption that what you believe is true really is. Without this belief we don’t do anything; it’s what drives us forward and allows us to act decisively. But if we fool ourselves, and we’re the easiest person to fool, we’ll make the wrong decisions – as individuals, as a society.

From this perspective, life becomes a tightrope walk in which you never actually see the rope. But it’s there. And, in all honesty, there’s almost invariably a net, too, so our missteps are rarely as damaging as we fear they’ll be while they’re happening. On this rope, we have to find the balance, time and again, between this need to think critically and skeptically about what we believe, and the need to have faith that what we’re doing and what we believe is right. Faith moves us forward; skeptical critical thinking keeps us balanced.

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Still Interested? Check out a few other great commencement speeches or read up on Gary Taubes’ thoughts on Why we Get Fat.

Why Fiddling With Prices Doesn’t Work

The fact is, if you don’t find it reasonable that prices should reflect relative scarcity,
then fundamentally you don’t accept the market economy,
because this is about as close to the essence of the market as you can find.

— Joseph Heath

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Inevitably, when the price of a good or service rises rapidly, there follows an accusation of price-gouging. The term carries a strong moral admonition on the price-gouger, in favor of the price-gougee. Gas shortages are a classic example. With a local shortage of gasoline, gas stations will tend to mark up the price of gasoline to reflect the supply issue. This is usually rewarded with cries of unfairness. But does that really make sense?

In his excellent book Economics Without Illusions, Joseph Heath argues that it doesn’t.

In fact, this very scenario is market pricing reacting just as it should. With gasoline in short supply, the market price rises too so that those who need gasoline have it available, and those who simply want it do not. The price system ensures that everyone makes their choice correctly. If you’re willing to pay up, you pay up. If you’re not, you make alternative arrangements – drive less, use less heat, etc. This is exactly what market pricing is for – to give us a reference as we make our choices. But it’s still hard for many well-intentioned people to understand. Let’s think it through a little, with Heath’s help.

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Civilization and its Fundamental Passions

“To describe a culture is to describe the structure of its institutions.”
— Joseph Tussman

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In his book The Burden of Office, the educator and philosopher Joseph Tussman, who brought us profound wisdom, does a remarkable job, in just a few short pages, of describing one of the fundamental truths of human life: The same things we cherish are also the things that destroy us. It is exactly the qualities which give us vitality that create our problems. This is a fundamental truth. (Gary Taubes made a similar point recently, calling the thirst for knowledge a tightrope walk.)

Tussman breaks down the fundamental passions into five areas: Eros (Love), Indignation (Moral Righteousness), Curiosity, Acquisitiveness, and Pride. These are the things which bless and bedevil us, as Tussman puts it.

On Eros:

Powerful, necessary, the root of self-transcendence, of the varieties of love and all that we value flowing from that. And yet, a source of anguish, of misery, of torment, of unhappiness, of conflict, madness, murder, war. Half of wisdom is learning to tiptoe in the presence of eros.

On Moral Fervor:

A deeply instinctive reaction to something that threatens us, the social group, the basic human unit. Its absence–indifference, genuine carelessness–is a fatal disease. Its moderate presence supports the justice that makes trust and cooperation possible. Its raging presence brings fanatical or holy war, the horrors of unslaked vengeance, the interminable feud.

On Curiosity:

Without it, no knowledge, no science, no arts, no power. But feared today as the human passion that may bring us to the end of the world. In its grip we stop at nothing recognizing no forbidden fruit, undeterred by decency.

On Acquisitiveness:

If we do not leap to a pejorative sense, we see that it begins as a kind of prudent concern to get what we need to satisfy our wants, now and in the future, to provide for ourselves, our families, our friends, our fellows […] But carried away, we can become misers, acquire the Midas touch, turn ugly with greed, cupidity, avarice–transforming a virtue into a destructive vice.

On Pride:

At one end of the scale we find something desirable and necessary–proper pride, self-respect, a sense of dignity, the capacity to know shame, to feel disgrace. At the other end we encounter the thirst for fame, for status, for glory–the arrogance, the heedless autonomy, the pride that goes before a fall.

Civilizing Passion

In the face of these two-faced passions, the whole point of human civilization and culture is to harness them into being useful and safe. This reminds one of the English saying that Politics is the art of marshaling hatreds. In other words, we build our culture knowing full well what the passions are and what they’re capable of.

Some people, of course, hate the rule-making and the institutionalizing of passions. We all probably do, from time to time. Many political campaigns have been run on the idea that society is reigning in the glorious individual too much.

But rarely do we give society much credit for what it accomplishes by creating useful institutions to marshal our passions. Tussman points out a few that have been especially useful. The first one being the modern legal system, which provides a great example of how we tame the passion of moral fury for the sake of civilization.

Moral indignation gives way to legal argument; fury is tied in legal knots–trapped, confined, restrained, transformed, tamed. The passion finds itself institutionalized, learns to express itself in a set of appropriate habits. Impulse and intuition give way to bureaucracy. Morality bows to legality. War gives way to the rule of law. We become civilized.

The story of fury and its taming into law is the story of all the great passions. We develop the forms within which they are both recognized, acknowledged, satisfied, and nevertheless, banked, kept within limits, restrained.

We do this with Eros too — we find ways to tame and institutionalize love, one of the most fundamental biological passions of humanity:

In its most assertive mood, the institution of marriage aspires to a total monopoly of legitimate sexuality. A rather daring claim, not unlike the claim of the institutions of the sovereign to a monopoly of legitimate coercive power, honored only to a degree. But the point is that marriage and its ancillary institutions are cultural attempts to tame eros into a benign form The pattern may vary from culture to culture and time to time, but every human group will erect its temples to this deity.

It’s even true with the passion for knowledge — something we’d all consider a fundamental right and generally a positive passion for the world. It’s given us so much. But we rein it in all the same, recognizing its power to mislead.

The passion for knowledge might not seem to belong in this fevered company, and may not seem to need restraining. At least it may not seem so in the academic world where we commonly worry more about kindling the passion than dampening. But there is a long tradition of the fear of the mad scientist with his unquenchable thirst–Faust and all those restless probing minds uncovering the secrets of the atom, of the genetic code, of the mind, of the soul, of all that heady fruit the taste of which may threaten what remains of innocence. In spite of bold claims to freedom, however, even the pursuit of truth is subject to social and political constraint. Much of it could not even go on without governmental sanction and support.

Yuval Harari makes similar points in his awesome book Sapiens: There is a long marriage between governmental and capitalistic institutions and the pursuit of knowledge. These pursuits don’t exist independently of each other, but work as complements. Karl Popper also wrote deeply about the need for an Open Society–the need for proper institutions to support the growth of knowledge, which can be suppressed under the wrong conditions.

In the end, says Tussman, we are the sum of our passions and our institutions — every culture answers this problem in its own way.

Civilization requires the institutionalization of the necessary but dangerous passions. Any civilization is a particular way of doing so, achieving–growing into–its complex forms more or less by happy accident. To describe a culture is to map its institutions. To criticize or evaluate a culture is to judge the adequacy of its institutions in light of some conception of how the various passions can best be expressed or shaped or harnessed to serve a variety of human purposes.

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Still Interested? Check out Tussman’s brilliant quote on understanding the world.

Eager to Be Wrong

“You know what Kipling said? Treat those two impostors just the same — success and failure. Of course, there’s going to be some failure in making the correct decisions. Nobody bats a thousand. I think it’s important to review your past stupidities so you are less likely to repeat them, but I’m not gnashing my teeth over it or suffering or enduring it. I regard it as perfectly normal to fail and make bad decisions. I think the tragedy in life is to be so timid that you don’t play hard enough so you have some reverses.”
— Charlie Munger

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When was the last time you said to yourself I hope I’m wrong and really meant it?

Have you ever really meant it?

Here’s the thing: In our search for truth we must realize, thinking along two tracks, that we’re frequently led to wrong solutions by the workings of our natural apparatus. Uncertainty is a very mentally demanding, and in a certain way, physically demanding process. The brain uses a lot of energy when it has to process conflicting information. To show yourself, try reading up on something contentious like the abortion debate, but with a completely open mind to either side (if you can). Pay attention as your brain starts twisting itself into a very uncomfortable state while you explore completely opposing sides of an argument.

This mental pain is called cognitive dissonance and it’s really not that much fun. Charlie Munger calls the process of resolving this dissonance doubt avoidance tendency – the tendency to resolve conflicting information as quickly as possible to return to physical and mental comfort. To get back to your happy zone.

Combine this tendency to resolve doubt with the well-known first conclusion bias (something Francis Bacon knew about long ago), and the logical conclusion is that we land on a lot of wrong answers and stay there because it’s easier.

Let that sink in. We don’t stay there because we’re correct, but because it’s physically easier. It’s a form of laziness.

Don’t believe me? Spend a single day asking yourself this simple question: Do I know this for sure, or have I simply landed on a comfortable spot?

You’ll be surprised how many things you do and believe just because it’s easy. You might not even know how you landed there. Don’t feel bad about it — it’s as natural as breathing. You were wired that way at birth.

But there is a way to attack this problem.

Munger has a dictum that he won’t allow himself to hold an opinion unless he knows the other side of the argument better than that side does. Such an unforgiving approach means that he’s not often wrong. (It sometimes takes many years to show, but posterity has rarely shown him to be way off.) It’s a tough, wise, and correct solution.

It’s still hard though, and doesn’t solve the energy expenditure problem. What can we tell ourselves to encourage ourselves to do that kind of work? The answer would be well-known to Darwin: Train yourself to be eager to be wrong.

Right to be Wrong

The advice isn’t simply to be open to being wrong, which you’ve probably been told to do your whole life. That’s nice, and correct in theory, but frequently turns into empty words on a page. Simply being open to being wrong allows you to keep the window cracked when confronted with disconfirming evidence — to say Well, I was open to it! and keep on with your old conclusion.

Eagerness implies something more. Eager implies that you actively hope there is real, true, disconfirming information proving you wrong. It implies you’d be more than glad to find it. It implies that you might even go looking for it. And most importantly, it implies that when you do find yourself in error, you don’t need to feel bad about it. You feel great about it! Imagine how much of the world this unlocks for you.

Why be so eager to prove yourself wrong? Well, do you want to be comfortable or find the truth? Do you want to say you understand the world or do you want to actually understand it? If you’re a truth seeker, you want reality the way it is, so you can live in harmony with it.

Feynman wanted reality. Darwin wanted reality. Einstein wanted reality. Even when they didn’t like it. The way to stand on the shoulders of giants is to start the day by telling yourself I can’t wait to correct my bad ideas, because then I’ll be one step closer to reality. 

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Post-script: Make sure you apply this advice to things that matter. As stated above, resolving uncertainty takes great energy. Don’t waste that energy on deciding whether Nike or Reebok sneakers are better. They’re both fine. Pick the ones that feel comfortable and move on. Save your deep introspection for the stuff that matters.

Ryan Holiday on Reading, What it Means to be a Stoic, and How to Take Notes

On this episode of The Knowledge Project, I talk reading and so much more with Ryan Holiday.

Ryan Holiday is the author of Trust Me I’m Lying, The Obstacle is the Way, and Ego is the Enemy.

On this episode you’ll learn how he reads, what it means to be a Stoic, the two sides of Seneca, dealing with over-work, what he learned from working with Robert Greene and his system for taking notes.

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Listen

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Books Mentioned:
Marcus Aurelius Meditations
Diogenes Laertius Lives of Eminent Philosophers (Stoics in Book 7)
Robert Greene The 48 Laws of Power
James Romm Dying Every Day: Seneca at the Court of Nero
Pierre Hadot The Inner Citadel
Robert Caro The Years of Lyndon Johnson

 

Transcript:
A complete transcript is available for members.