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The Foundations Are Math and Logic


3m read
·Nov 3, 2024

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And to me, foundational things are principles. There are algorithms. They're deep-seated logical understandings where you can defend it or attack it from any angle.

And that's why microeconomics is important because macroeconomics, a lot of memorization. A lot of macro, as Nassim Taleb says, it is easier to macro than it is to micro because macroeconomics is voodoo. Complex science meets politics. You can't find two macro economists to agree on anything these days.

Different macro economists get used by different politicians to peddle their different pet theories. There are even macro economists out there now peddling something called modern monetary theory, which basically says, “Hey, except for this pesky thing called inflation, we can just print all the money that we want.” Yes, except for this pesky thing called inflation. That's like saying, “Instead of limited energy, we can fire rockets off into space all day long.” It's just nonsense.

But the fact that there are people who have macroeconomists in their title and are peddling modern monetary theory just tells you that macroeconomics, as a so-called science, has been corrupted. It's a blanch of politics. So you really want to focus on the foundations. The ultimate foundation are mathematics and logic.

If you understand logic and mathematics, then you have the basis for understanding the scientific method. Once you understand the scientific method, then you can understand how to separate truth from falsehood in other fields and other things that you're reading. So, be very careful about reading other people's opinions, and even be careful about reading facts because so-called facts are often just opinions, but you know, with a veneer around them.

What you really are looking for is algorithms, but you're really looking for his understanding. It's better to go through a book really slowly and struggle and stumble and rewind than it is to fly through it quickly and say, “Well, now I read 20 books” or “I've read 30 books” or “I've read 50 books in the field.”

It's like Bruce Lee said, “I don't fear the man who knows a thousand kicks and a thousand punches. I fear the man who's practiced one punch ten thousand times or one kick ten thousand times.” It's the understanding that comes through repetition and three usage and through logic and foundations that really makes you a smart thinker.

To lay a foundation for the rest of your life, I think you need two things. If I was going to try and sum it up: one, practical persuasion; and two, you need to go deep in some technical category, whether it's abstract math or you want to read Donald Knuth books on algorithms, or you want to read Feynman's lectures on physics.

If you have practical persuasion and a deep understanding of some complex topic, I think you'll have a great foundation for learning for the rest of your life. Yeah, if I can expand it a little bit, I would say that the five most important skills are, of course, reading, writing, arithmetic, and then, as you are adding in, persuasion, which is talking, and then finally, I would add computer programming just because it's an applied form of arithmetic that just gets you so much leverage for free in any domain that you operate in.

If you're good with computers, if you're good at basic mathematics, if you're good at writing, if you're good at speaking, and if you like reading, you're set for life.

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