CUMULATIVE VS. CYCLICAL KNOWLEDGE

Summary from the TLDR Founders newsletter

In the late 19th century, many doctors dismissed germ theory, leading to inadequate medical practices that contributed to President James Garfield's death from infection after an assassination attempt. This historical example contrasts with the field of finance, where fundamental issues like debt and greed have persisted over time, highlighting how knowledge in some areas, like medicine, is cumulative and universally accepted, while in others, like finance, it is cyclical and influenced by human behavior. This cyclical nature of financial knowledge implies that society must accept a degree of volatility and repeated mistakes, as these issues are not easily resolved by scientific truths.