This is the 36th installment of my fortnightly poker column in the Economic Times, Range Rover.
A few days ago, I was shooting the breeze with a friend of mine when he told me about a couple of business ventures he was planning, and the investors he’d lined up for them. ‘You won’t believe how gullible they are,’ he said. ‘If there’s one thing I’ve learned from poker, it’s how to find fish and exploit them. And there are so many fish in the business world.’
It’s a good thing I was sipping lemonade at the time and not my usual hot Americano, or I’d have singed myself. Having recovered from the shock of his statement, I shook my head sadly. Poker is a beautiful game, and it can teach you a lot about life. But the lesson my friend had learned was entirely the wrong one.
Poker is a zero-sum game. (A negative-sum game, in fact, if you’re playing a raked game.) The only way you can win money is if someone else loses it. So it’s natural that the key skill in poker lies in exploiting the mistakes of others, sometimes after inducing those mistakes in the first place. It is a mathematical exercise that plays on the frailties of human nature. The game is played by consenting adults, and as your opponents are also trying to exploit you and take your money, they’re fair game. But the real world works differently.
Life is a positive-sum game. This is most eloquently illustrated by what the libertarian writer John Stossel once described, in an old column, as the Double Thank You Moment. When you buy a cup of coffee at a café, you say ‘thank you’ when you are handed the coffee, and the person behind the counter says ‘thank you’ on receiving your money. Both of you are better off. Indeed, the vast majority of human transaction, including all business transactions, are like this. Both people benefit – or they wouldn’t be transacting in the first place.
This amazing phenomenon, which we take for granted, is responsible for the remarkable economic and technological progress of the last three centuries. The economies of nations across the world have grown in consonance with the rise of free markets within them. Think about it: if every transaction leads to both parties benefiting, and a consequent increase of value in the world, then the more people are free to transact, in whatever form, the more we progress as an economy and a society. This is why libertarians such as myself consider it a crime to clamp down on any kind of freedom, be it economic or social.
The positive-sumness of things is unintuitive, and many people reflexively speak of the world in zero-sum terms. For example, socialists, with all their talk of ‘exploitation’, the rich getting richer at the expense of the poor and the need for redistribution. But that is not how the world works; it is not a game of poker. Just as in poker there is no possibility of a Double Thank You Moment, in life, we can all be sharks.
So much for learning the wrong lesson from poker. What does poker teach us about life that is useful to us? Well, the most important lesson I have learnt from poker is not to be results-oriented. Luck plays a huge role in the short term, you only get what you deserve in the long run, so just focus on doing the right thing and don’t worry about the fruits of your actions. The Bhagawad Gita teaches the exact same lesson. Lord Krishna would have crushed the games.