The Rational Optimist by Matt Ridley

TLDR: The Rational Optimist is a long, well-researched, and, at times, dry book that inspires hope for the future with statistics and a refreshing appreciative attitude.

Interestingly enough, this book was recommended to me by General David Petraeus. I went to a talk and he told the audience to read it. That was nearly two years ago, but General Petraeus, I read it! It was worth it. The book is a bit dated (2010). It forced me to reflect on the history of mankind and the tremendous progress we have made. It made me hopeful that we will continue to make such progress. I agree with the central thesis of the book that trust (and the trade it enables) drives progress.

Rough Summary

  • It is great to live today compared to the past.
  • Through trade, we have multiplied our knowledge, quality of live, and pretty much everything good.
  • Things will only get better with time.
  • Climate change is not as big a threat as people think.
  • Africa is harmed by foreign aid.

It got a little too political at the end. Ridley starts ranting against environmental activism and likens it to a conspiracy, but I did not get a sense for why. I agree with many of the points (misrepresented statistics, exaggerated effects, poor science, hysteria, etc.) but to imply it is nefarious and not explain any underlying motive was strange.

There were a ton of interesting tidbits and facts. Ridley’s best quality in my opinion is turning statistics into relatable measures, like his conversion of cost to time spent working.

Quotes and Specific Thoughts

  • “Today a car emits less pollution travelling at full speed than a parked car did in 1970 from leaks.” 17

  • “Getting richer is not the only or even the best way of getting happier. Social and political liberation is far more effective, says the political scientist Ronald Ingleheart: the big gains in happiness come from living in a society that frees you to make choices about your lifestyle – about where to live, who to marry, how to express your sexuality and so on.” 27

  • “Growth will resume - unless prevented by the wrong policies.” 31. This is a comical qualifier. Growth resumes unless it doesn’t.

  • “In 1900 the average American spent $76 of every $100 on food, clothing and shelter. Today he spends $37.” 34

  • “The Sun King had dinner each night alone. He chose from forty dishes, served on gold and silver plate. It took a staggering 498 people to prepare each meal.” 36. Most of us eat better than the famously extravagant Louis XIV.

  • “True barter requires that you give up something you value in exchange for something else you value slightly more.” 59

  • “Wild chimpanzees spend six hours or more each day just masticating their food.” 60

  • “All pre-industrial economies, no matter how simple or complex, are capable of generating misery and will do so given enough time.” 137

  • 140, he seems to suggest that the fear of automation impoverishing people is Malthusian. Looking at you Andrew Yang.

  • 144, Climate change activism betrays reality. Climate activists having their way would likely make the environment worse.

  • 148, suggests water should be priced like anything else makes for more efficient use. You can’t do this because water is considered a human right.There are constraints in a sympathetic world.

  • “Because it is a monopoly, government brings inefficiency and stagnation to most things it runs; government agencies pursue the inflation of their budgets rather than the service of their customers; pressure groups form an unholy alliance with agencies to extract more money from taxpayers for their members. Yet despite all this, most clever people still call for government to run more things and assume that if it did so, it would somehow be more perfect, more selfless, next time.” 182

  • “Give local people the power to own, exploit, and profit from natural resources in a sustainable way and they will usually preserve and cherish these resources. Give them no share in a wildlife resource that is controlled - nay ‘protected’ - by a distanct government and they will generally neglect, ruin and waste it. That is the real lesson of the tragedy of the commons.” 324