The mathematical case against blaming people for their misfortune.

The problem is that much of economic and social life in affluent countries is structured to require individuals to commit most of their resources towards one strategy for pursuing a flourishing life. Taking out a student loan or mortgage, or buying a taxi medallion, are all strategies that require a large, if not total, commitment of a person’s financial resources. Here, real hedging would require us to start from a place of considerable wealth, and so it isn’t a viable strategy for many.