Author's Note: This is the first installment of the series "In The Short Run."John Maynard Keynes, perhaps the most famous economist of the 20th century, famously said, “In the long run, we’re all dead.” The purpose of this series is to propose that in the short run, we are all alive, and economics can teach us to live well.
I’ve made a habit of writing a virtual sticky note on the desktop of my MacBook computer whenever I receive a good piece of advice. About two months ago, this piece of advice stared me in the eye each time I opened my computer: “Make the hard choice. Do the hard thing.”
My math teacher imparted this snippet of wisdom when telling the class about his experience getting his PhD. He said that process was the hardest thing he’s ever done, but was the most rewarding as well. He encouraged us to take the harder path when presented the choice for that is where we grow.
This advice makes sense. Countless celebrities, parents and mentors encourage conquering hard tasks. Difficulty breeds endurance. Endurance breeds perseverance, and perseverance breedscharacter. Hard experiences makes us better people. We know this, so why is it so hard to live this out? Because doing hard things comes with the risk of failure. But to live to the full, we must believe it’s okay to fail.
Failure is a critical cog in economic invention. Tim Harford, one of my favorite economists, actually argues that failure is essential and healthy to flourishing economic systems. Failure teaches us where we can improve. When basketball teams lose because they concede too many points, they know they need to improve their defense. When candidates lose debates, they know where they need to improve their knowledge. When students don’t do well on homework, they know which section to review before the test. Failure is ruthlessly efficient at identifying weaknesses and suggesting improvements. The best economies, the best businesses and the best individuals view failure not as ghastly misfortune but as an opportunity.
Harford goes further to argue that actually creating types of chaos and failure is fruitful and healthy. While in the midst of a routine, it is difficult to see how change could lead to improvement, but doing something completely unexpected and completely random can lead to unforeseen and widely successful innovation. Failure shakes us loose from habit and opens our eyes to new ideas. Failure abolishes the static and necessitates the dynamic.
I've found Tim Harford’s thoughts to be quite freeing. With a positive view of failure, my math professor’s words are not intimidating. I can choose to do hard things because both success and failure offer opportunity for achievement, improvement and learning. Perhaps the essence of failure is summed up best in the words of Teddy Roosevelt:
The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.
If a math professor, an economist and a president all agree, I can only conclude that it’s okay to fail so we can dare greatly.
