No skin in the game is an immutable principle of the Universe, but we must translate it so that we can understand it and use it effectively. The key sub-text of this phrase is: Do not trust anyone who does not have skin in the game. Such a restriction or constraint applies to many aspects of our lives, but especially in business, personal relationships, and politics.

The Relevance of the Maxim

This maxim—No Skin In The Game—is especially relevant to our relationship with the political class because we are not directly connected to them as we are with business associates and friends. Moreover, we have immediate feedback and oversight with both of the latter. On the other hand, we are disconnected from politicians, personally and geographically. Yet, politicians have the most consequential effect on us, and we have no control over them, except to vote them out of office at election time.  This action requires the cooperation and consent of many other voters, who have different incentives and mindsets.  Consensus is difficult to achieve because of political loyalties and ideologies.

Politicians Rarely Have Skin In The Game

Politicians rarely have skin in the game. They pass laws willy nilly and enable legislation that is not in our best interests. Moreover, politicians usually exempt themselves from their own legislation; this alone is a moral hazard they cannot defend on any level or from any perspective. The most egregious example of this lack of skin in the game is The Patient Protection and Affordable Care Act (informally known as Obamacare).  The members of the House and Senate provided themselves with special healthcare insurance that far surpassed the provisions of Obamacare.

I see these political exemptions as red flags of warning.  All concerned citizens should push back against these actions and we should begin to vote all incumbents out of office.  Turnabout is fair play, especially in the political realm.

Links

External:  https://en.wikipedia.org/wiki/Nassim_Nicholas_Taleb

Internal:  https://whitebeardwisdom.com/the-right-political-strategy-for-the-21st-century/

_______

Notes:  *I borrowed this phrase from the book title, “Skin in the Game,” written by Nassim Nicholas Taleb.