torreens

Typical partial-rationality. Humans are not robots. Having an accurate picture of your own flaws and the risks involved in most endeavors will not help you to perform better than having a slight overconfidence. We tends to overemphasize risks if we are made persistently aware of them. In every dynamic performance based activity, this tendency needs to be counterbalanced by a degree of irrational confidence. It's a feature, not a bug.

There are times when it is also harmful, but things like actually being able to talk to that girl, ask for that raise, close that sale, take down that oppressor...these things benefit tremendously from irrational confidence.

Removing all overconfidence would be the end of the human race.

Wow, I'm really sorry to have to do this after your wrote such a detailed comic, but it is clear you don't have even the most basic understanding of what money is. You commit the most elementary fallacy out there, and worse, it is central to your whole argument. Worse still, you continually harp on "basic errors" and the difference between good and bad economists, while being a quintessential example of a bad economist who makes basic errors.

The most egregious, obvious, and deep-cutting error is that you equate money with wealth, which is made obvious when you contrast "investing in the economy" with "just sitting on the money" as if these were two different things. Money is not goods and services; money is a claim on goods and services. Therefore, hoarding or "just sitting on" money is not hoarding goods and services, but closer to the opposite. It is deliberately not commanding the goods and services one's money could command, freeing up those goods and services to be used by others. Hoarding money is a kind of anti-hoarding of resources; it's exactly equivalent to investing in an index fund over the entire economy.

For his reason, your whole argument is confused. Please consider the nature of money more carefully and stop misleading people.

Note: I'm opposed to the TPP, but most certainly not because it promotes "free trade."