Sunday, December 7, 2025

On the Use and Misuse of Principles, Theorems and Concepts

When financial commentators compile lists of "potential black swans," they misunderstand the concept. As explained by Taleb Nasim, a “black swan event” is an extremely rare, unpredictable occurrence that has a massive, widespread impact and is often rationalized as being preventable only in hindsight. 


The theory was popularized by author, statistician, and former Wall Street trader Nassim Nicholas Taleb in his 2007 book, The Black Swan.


The key concept is “unpredictable.” But in cautioning about potential black swan events, commentators are essentially saying "here are the things we can't anticipate that we're now anticipating."


A true black swan isn't just unlikely. It is outside our prevailing model of reality. 


This suggests the concept has been domesticated into meaning merely "really bad thing we hope won't happen." 


And yet this “domestication” of ideas, theories or principles happens all the time. By definition, we can’t "warn" about black swans because they are, by definition, unforeseeable. 


But the watering down or domestication of any principle, theorem or idea seems to be irresistible. 


Original Concept

Original Meaning

How It Gets Misapplied

Occam's Razor

Among competing hypotheses with equal explanatory power, prefer the one with fewer

assumptions

Used to dismiss complex

explanations simply because they're complex, or to justify intellectual

laziness ("the simplest answer is

usually right")

Gaslighting

A systematic psychological manipulation tactic to make

someone doubt their own sanity

and perception of reality

Now applied to any disagreement, misremembering, or different

perspective ("You're gaslighting me

by saying that didn't happen!")

Kafka-esque

The nightmarish absurdity of faceless bureaucracy stripping individuals of agency and

meaning

Used to describe any mildly frustrating paperwork or

administrative delay

Orwellian

Totalitarian manipulation of

language and reality to control thought itself

Applied to any government action someone dislikes, any surveillance,

or even just opposing political views

Strawman Fallacy

Misrepresenting someone's actual argument to make it easier to attack

Now weaponized to shut down any paraphrasing or summary ("That's a strawman!") even when it accurately

captures the position

Cognitive Dissonance

The psychological discomfort of holding contradictory beliefs simultaneously, which motivates

attitude change

Used as a gotcha accusation meaning "you're being hypocritical" without

the internal discomfort component

Dunning-Kruger Effect

The least competent people lack the metacognitive ability to

recognize their incompetence

Simplified to "stupid people think

they're smart" and used as a general- purpose insult, often by people demonstrating the effect themselves

Narcissism/Narcissistic Personality Disorder

A specific clinical personality disorder involving grandiosity, lack of empathy, and fragile self-

esteem

Applied casually to anyone who seems selfish, takes selfies, or

displays confidence

Correlation vs. Causation

Statistical correlation between variables doesn't prove one

causes the other

Used reflexively to dismiss any suggested causal relationship, even well-supported ones, as if correlation

can never suggest causation

Schrödinger's Cat

A thought experiment about quantum superposition and measurement problems in

quantum mechanics

Misused to mean "we don't know the answer until we check" about any unknown situation

The Butterfly Effect

Sensitive dependence on initial conditions in chaotic systems

Watered down to "everything affects everything" or used to justify magical thinking about tiny actions having massive predetermined

effects

Stockholm Syndrome

Psychological response where hostages develop positive

feelings toward captors as a

survival mechanism

Applied to any situation where

someone defends an institution or person that others think is harming them

Heisenberg's Uncertainty Principle

Fundamental quantum limitation on simultaneously measuring position and momentum

Misapplied to mean "observing something changes it" in any context, or that all knowledge is inherently

uncertain

Gaslighting (worth repeating)

Deliberate, systematic psychological abuse to make

victims question reality

Reduced to mean "lying,"

"disagreeing," or "remembering differently"

Devil's Advocate

Formally arguing against a position to test its strength, even if you agree with it

Now means "let me say something offensive without consequences" or "I'm about to be contrarian for

attention"

Virtue Signaling

Publicly expressing opinions to demonstrate moral superiority

without genuine commitment

Extended to dismiss any public expression of values, making

authentic moral discourse impossible

Paradigm Shift (Kuhn)

Fundamental transformation in scientific worldview that makes old and new frameworks

incommensurable

Applied to any minor change in approach or trending topic ("a paradigm shift in coffee brewing")

Thought Experiment

Rigorous hypothetical scenarios designed to isolate variables and

test philosophical principles

Used for any random "what if" speculation without intellectual rigor

Echo Chamber

Self-reinforcing information environments that completely exclude contrary views

Applied to any community of people who largely agree, even ones that regularly engage with outside

perspectives

Moving the Goalposts

Changing standards of evidence

after they've been met to avoid conceding a point

Invoked whenever someone refines

or adds nuance to an argument during discussion

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On the Use and Misuse of Principles, Theorems and Concepts

When financial commentators compile lists of "potential black swans," they misunderstand the concept. As explained by Taleb Nasim ...