Discussion

Economics and similar, for the sleep-deprived

nostrademons: Interesting that this quote was initially about stock options at tech companies. It turned out that stock options did become nearly universal in tech compensation, and companies that granted them outcompeted companies that did not. So the management that was ostensibly “doing a massive blag at the expense of shareholders” wasn’t really, time vindicated their practices and things like option backdating and not treating them as an expense weren’t even really necessary, but it took a few years. It wasn’t obvious in 2002 that this is how it would play out.And relevant to the title quote: maybe it should be amended to “good ideas do not need a lot of lies to gain public acceptance eventually”. The dynamic here is that a significant part of public opinion is simply “well, this is how things work now, and it seems to be working”, and any new and innovative idea by definition is not going to be how things work now. The lies are needed to spur action and disturb the equilibrium of today. But if you’re still telling lies a few years in, you’ve failed and it’s a bad idea to begin with.

peacebeard: So in your view, even a useful innovative idea cannot gain traction without being overhyped?

indymike: There was a body of evidence far before 2002 that dealing employees in was a good move.