…I was not meaning to suggest that people are dumb. There is such a thing as rational ignorance. It just does not pay most people to become well informed about how markets work. Perhaps this is a deficiency of our educational system; it is not a sign of stupidity. To put the point in economic terms, there are costs of becoming well informed, and especially about issues on which the individual’s influence is very small the costs are likely to exceed the benefits. What makes economics a very interesting and challenging field is that many of its findings are counterintuitive. Naturally people not steeped in a subject reject counterintuitive assertions. That is a rational reaction.
Richard Posner
