Open-mindedness doesn't mean going along with what you don't believe in; it means considering the reasoning of others instead of stubbornly and illogically holding on to your own point of view. To be radically open-minded, you need to be so open to the possibility that you could be wrong that you encourage others to tell you so. #principleoftheday

So much of our current political and economic climate can be explained by debt cycles— and how those cycles build on each other over time. I explain why in my new book, How Countries Go Broke: The Big Cycle. But if you’d like more context on how all of these pieces come together, I recommend you watch my 30-minute explainer “How the Economic Machine Works” on YouTube here:

In any conversation, there is a responsibility to express and a responsibility to listen. Misinterpretations and misunderstandings are always going to happen. Often, difficulty in communication is due to people having different ways of thinking (e.g., left-brained thinkers talking to right-brained thinkers). Very simple tricks--like repeating what you're hearing someone say to make sure you're actually getting it--can be invaluable. Start by assuming you're either not communicating or listening well instead of blaming the other party. #principleoftheday

Most people seem much more eager to put out (convey their thinking and be productive) than to take in (learn). That’s a mistake even if one’s primary goal is to put out, because what one puts out won’t be good unless one takes in as well. #principleoftheday

The basic picture has not changed — if the US doesn’t cut the deficit to 3% of the GDP, and soon, we risk facing an economic heart attack in the next three years. The good news is that these cuts are possible. If we change spending and income (tax returns) by 4% while the economy is still good, the interest rate will go down as a result and we’ll be in a much better situation. And we know this kind of balance is possible because it happened between 1991-1998. My fear is that we will probably not make these needed cuts due to political reasons, and will have even more debt and debt service encroaching on our spending that will ultimately lead to a serious supply-demand problem.

The person responsible for a decision must be able to explain the thinking behind it openly and transparently so that everyone can understand and assess it. In the event of disagreement, an appeal should be made to either the decision maker's boss or an agreed-upon, knowledgeable group of others, generally people more knowledgeable than and senior to the decision maker. #principleoftheday

Put your insecurities away and get on with achieving your goals. Reflect and remind yourself that an accurate criticism is the most valuable feedback you can receive. Imagine how silly and unproductive it would be to respond to your ski instructor as if he were blaming you when he told you that you fell because you didn't shift your weight properly. It's no different if a supervisor points out a flaw in your work process. Fix it and move on. #principleoftheday

What can the former Dutch Empire teach us about the importance of capitalism in driving long-term success? #principles #raydalio #history #capitalism

They're likely to be more concerned with appearances than actually achieving the goal; this can lead to ruin over time. #principleoftheday

Most people are reluctant to take in information that is inconsistent with what they have already concluded. When I ask why, a common answer is: "I want to make up my own mind." These people seem to think that considering opposing views will somehow threaten their ability to decide what they want to do. Nothing could be further from the truth. Taking in others' perspectives in order to consider them in no way reduces your freedom to think independently and make your own decisions. It will just broaden your perspective as you make them. #principleoftheday