Given this sheer volume of choice, how do we ensure we’re making the right decisions, day in and day out, without becoming exhausted? Using insights from investor and thought leader Sahil Bloom, this graphic shares 10 cognitive razors, or rules of thumb, that can help you simplify your decision-making. We’ve organized Bloom’s favorite cognitive razors into three overarching categories, which we dive into in further detail below.
Location, Location, Location
The first theme is location, and the importance of being at the right place at the right time. The Luck Razor falls into this category because it highlights the importance of putting yourself out there. According to the Luck Razor, when choosing between two paths, pick the one with the largest “luck surface area,” or the path that offers you the most opportunity to get lucky. This is because when you’re networking, meeting people, and building new relationships, you’re much more likely to stumble upon an opportunity than if you were sitting on your couch, not taking action. The Rooms Razor follows a similar theme because it emphasizes the importance of your surroundings. It stresses that, if you have a choice between two rooms to walk into, choose the one where you’re most likely to be the dumbest person in the room. While it’s a bit of an uncomfortable situation, it provides a greater opportunity for growth, as long as you check your ego at the door and listen to what others have to say. Lastly, the Arena Razor reminds us that when we want something, we need to take the necessary steps to make it happen. For instance, if you want to become a social media influencer, you need to start creating content and posting it online. It’s not easy to put yourself out there and take action, but if you want to play the game, you need to be in the arena.
The Power of Positive Thinking
The next theme is the power of mindset and positive thinking. This relates to how you view your life, the people you choose to surround yourself with, and how you interpret the actions and opinions of others. According to the Gratitude Razor, when in doubt, don’t hesitate to show your gratitude to people who have supported you, or given you advice or opportunities. Research studies have shown that expressing gratitude and giving thanks can be correlated with greater happiness, improved health, and stronger more meaningful relationships. So make sure to say thank you regularly, and tell your loved ones how much you appreciate their support. It’s not just your mindset that’s important, though. The Optimist Razor recommends surrounding yourself with optimists, rather than pessimists. Pessimists may point out everything that could go wrong in a scenario, which might discourage you to break out of your comfort zone. Optimism, on the other hand, will emphasize everything that could go right—and may even help you problem solve if you encounter problems along the way.
Keep Decision-Making Simple, Silly
The last one is quite simple, really: don’t overcomplicate things. Occam’s Razor, which is named after the 14th-century scholar Franciscan friar William of Ockham, is generally interpreted as the following: when faced with a decision between two competing theories that generate the same outcome, the simplest theory is often the best one. As Bloom says in this blog post, “simple assumptions [over] complex assumptions. If you have to believe a complex, intertwined series of assumptions in order to reach one specific conclusion, always ask whether there is a simple alternative assumption that fits.” The ability to make things simple is also a good indicator of how deeply you understand something. According to the Feynman Razor, if you can’t explain a concept simply, then you don’t really understand it. So, if someone uses a ton of jargon or complexity to explain something, they could be masking a lack of deeper knowledge on the topic. Editor’s note: For more information on cognitive razors and simplifying your decision-making, check out Sahil Bloom’s newsletter, or listen to his podcast episode where he talks about the most powerful razors he’s discovered so far in life. on Even while political regimes across these countries have changed over time, they’ve largely followed a few different types of governance. Today, every country can ultimately be classified into just nine broad forms of government systems. This map by Truman Du uses information from Wikipedia to map the government systems that rule the world today.
Countries By Type of Government
It’s important to note that this map charts government systems according to each country’s legal framework. Many countries have constitutions stating their de jure or legally recognized system of government, but their de facto or realized form of governance may be quite different. Here is a list of the stated government system of UN member states and observers as of January 2023: Let’s take a closer look at some of these systems.
Monarchies
Brought back into the spotlight after the death of Queen Elizabeth II of England in September 2022, this form of government has a single ruler. They carry titles from king and queen to sultan or emperor, and their government systems can be further divided into three modern types: constitutional, semi-constitutional, and absolute. A constitutional monarchy sees the monarch act as head of state within the parameters of a constitution, giving them little to no real power. For example, King Charles III is the head of 15 Commonwealth nations including Canada and Australia. However, each has their own head of government. On the other hand, a semi-constitutional monarchy lets the monarch or ruling royal family retain substantial political powers, as is the case in Jordan and Morocco. However, their monarchs still rule the country according to a democratic constitution and in concert with other institutions. Finally, an absolute monarchy is most like the monarchies of old, where the ruler has full power over governance, with modern examples including Saudi Arabia and Vatican City.
Republics
Unlike monarchies, the people hold the power in a republic government system, directly electing representatives to form government. Again, there are multiple types of modern republic governments: presidential, semi-presidential, and parliamentary. The presidential republic could be considered a direct progression from monarchies. This system has a strong and independent chief executive with extensive powers when it comes to domestic affairs and foreign policy. An example of this is the United States, where the President is both the head of state and the head of government. In a semi-presidential republic, the president is the head of state and has some executive powers that are independent of the legislature. However, the prime minister (or chancellor or equivalent title) is the head of government, responsible to the legislature along with the cabinet. Russia is a classic example of this type of government. The last type of republic system is parliamentary. In this system, the president is a figurehead, while the head of government holds real power and is validated by and accountable to the parliament. This type of system can be seen in Germany, Italy, and India and is akin to constitutional monarchies. It’s also important to point out that some parliamentary republic systems operate slightly differently. For example in South Africa, the president is both the head of state and government, but is elected directly by the legislature. This leaves them (and their ministries) potentially subject to parliamentary confidence.
One-Party State
Many of the systems above involve multiple political parties vying to rule and govern their respective countries. In a one-party state, also called a single-party state or single-party system, only one political party has the right to form government. All other political parties are either outlawed or only allowed limited participation in elections. In this system, a country’s head of state and head of government can be executive or ceremonial but political power is constitutionally linked to a single political movement. China is the most well-known example of this government system, with the General Secretary of the Communist Party of China ruling as the de facto leader since 1989.
Provisional
The final form of government is a provisional government formed as an interim or transitional government. In this system, an emergency governmental body is created to manage political transitions after the collapse of a government, or when a new state is formed. Often these evolve into fully constitutionalized systems, but sometimes they hold power for longer than expected. Some examples of countries that are considered provisional include Libya, Burkina Faso, and Chad.
