Thomas Schelling Quotes
There is a tendency in our planning to confuse the unfamiliar with the improbable.
Schelling, Thomas C. Foreword. Pearl Harbor: Warning and Decision, by Roberta Wohlstetter, Stanford UP, 1962, p. vii.
Technically, the probability has never changed. However, most probabilities are in relation to a specific event or time. A levee may have only a 1% probably of failing in a hurricane but if there are 10 hurricanes a year, the probability that the levee will fail at least once in 30 years is about 50%.
He is absolutely right, but unfortunately made this statement several years after he served as the Fed Chairman. He never made a statement like this when he and his colleagues made their policies based on their economic forecasting. Central bankers have generally felt that one of their jobs was to give the people confidence in the nation’s banking system and economy and the admission that much policy making was based on “coin toss” forecasting.
He was otimsitic about the French providing military and financial Aid in the American Revolution.
Thomas Crombie Schelling was an American economist and professor of foreign policy, national security, nuclear strategy, and arms control at the School of Public Policy at University of Maryland, College Park. He was also co-faculty at the New England Complex Systems Institute. He was awarded the 2005 Nobel Memorial Prize in Economic Sciences (shared with Robert Aumann) for "having enhanced our understanding of conflict and cooperation through game-theory analysis."
