During a discussion with LinkedIn Editor-in-Chief Daniel Roth, Ray Dalio shared his insights into the changing workplace and gave advice on surviving economic difficulty.
- As a prominent investor and billionaire, Dalio shared his insights with Roth on the changing workplace and how managers and employees can navigate new developments.
- Dalio often emphasizes the importance of looking back at history to determine how to move forward, and his advice in this interview was no different.
- Understanding the cause and effect of current events, Dalio explains, is the key to learning how to survive present-day struggles.
- The current challenge, Dalio shares, is that Americans are currently facing difficulties they haven’t experienced before.
- Dalio says they must search even further in history to learn how to navigate this.
Why it’s news
Though many Americans face economic uncertainty, Dalio emphasizes that anyone can learn from the past to address the future.
“Everything happens because of causes that make it happen. Step back and look at the patterns of things happening,” he says.
Dalio compares this method to a doctor with years of experience. By learning from what came before, a doctor can more quickly diagnose and understand what he is looking at. In the same way, Dalio explains that individuals can navigate economic uncertainty.
This method is made a little more complicated, Dalio admits, by the fact that current difficulties arising haven’t been experienced during the current generation’s lifetime.
“There are three big things happening now that never happened in my lifetime before,” Dalio says. “Those three things are an enormous amount of debt production … large internal conflicts … brought about by the largest wealth gaps and values gaps that we’ve had since the 1900s … and … the greatest amount of external conflict due to the first time in our lifetimes a rising power becoming comparable to the United States.”
To survive these conflicts, Dalio says he studied back in history 500 years in order to understand how previous generations navigated these difficulties. The key, he says, is understanding the cause-and-effect relationships that have led to the current economic situation.