What a Rational Person is According to Economics

An Economical Mode of Putting Troops into White trousers - John Leech - AIC
An Economical Mode of Putting Troops into White trousers – 1840-1850 – John Leech – AIC

According to economics, rational people are “People who systematically and purposefully do the best they can to achieve their objectives.” This statement argues for the economic ideal that individuals are rational agents who act to achieve their objectives.

Adam Smith proposed this concept in his foundational work, The Wealth of Nations, published in 1776, the same year as the Declaration of Independence was written, where he stated that individuals act in their own self-interest to achieve their goals. Two founding fathers, Alexander Hamilton and Thomas Jefferson were  inspired by Smith’s work.

Rationality is Objective Based

To be a rational person you need to have objectives.

Meditate on what you believe will fulfill you, not what you want. Understand the difference. Wants are for weekends. Most wants should be off the path and controlled.

An irrational person has no objectives; meaning is rational. If you have no objectives, others are setting objectives for you and you are being used for their purpose; this isn’t always a bad thing, but it is bad if you are being used for no meaning to yourself, or no value to yourself.

If you have no objectives, you are incorrect, because you do. If you are unaware of them, they are shadow paths–paths you are walking down that you are unaware of, hence the path is in the shadow.

Avoiding objectives could be a shadow path. Often, people will walk the shadow path of underachieving because they are afraid to stand out or be themselves–it’s easier to conform than it is to stand out.

Australian culture has a concept known as “Tall poppy syndrome”, where the people may cut down the spirit of anyone who has achieved great success or strives to do so. The tall poppy in the field gets cut first. This is an egalitarian view, where everyone must be equal, which is a lie.

The tall poppy syndrome is the same as the metaphor of crabs in a bucket–you don’t need a lid for a crab bucket because before a crab can escape the bucket, a crab below will pull him down. This is not limited to Australian culture; holding back those who strive for greatness is a survival mechanism for the toxic weak.

Most of the time should be on the path in pursuit of achieving objectives. This is what a rational person does.

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