Summary of Dan Levy's Maxims for Thinking Analytically

Please note: This is a companion version & not the original book. Book Preview:

#1 When we are trying to think clearly about a real-world situation, we often get stuck. The maxims presented in this chapter are principles to help your thinking get underway or to push you forward if you are stuck.

#2 The 2. 5-hour rule is a method that can be used to help you solve problems that involve going to an extreme to get your thinking straight. It can be especially helpful for two types of situations: to better understand a concept or problem, and to assess the best- and worst-case consequences of a decision.

#3 The marginal propensity to consume is the proportion of additional disposable income that an individual consumes. It is a difficult concept to understand, and it helps to go to extreme cases to gain some intuition for it.

#4 Going to the extreme can help you discover the key insight of a problem or situation you are trying to understand. For example, Karen Eggleston, one of Richard’s students, was working with Professor Victor Fuchs to understand the economic consequences of the demographic transition experienced by the United States and other industrialized countries during the twentieth century.

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