Workout of the Day

Heed the Moral Hazard


The concept of moral hazard originates in economics. It goes something like this: when you feel more protected against risks, you are more likely to make riskier choices. Financially, consider an investor who is insured against loss. They are more likely to make a risky financial choice, as the fiscal consequences do not fall directly or as significantly on them. More broadly, we are exposed to this moral hazard phenomenon all the time. Our cars have seat belts and airbags, and so we are more likely to drive faster, for example.

While I would venture to guess that seatbelts and airbags have saved more lives than they’ve taken, even in light of increased risky driving behaviors, sometimes the protection/risk trade-off doesn’t act so favorably. Modern medicine has advanced to the point that people care less for their health and fitness with the assumption that advanced medicine can care for them when things start to go south. Beach goers may swim out farther than their swimming skills should allow because a lifeguard is on duty.

The protections and comforts afforded to us today have, no doubt, improved the quality of life in our western world astronomically. We are living like kings compared to the kings of a few hundred years ago. But the value of risk is worth considering. If you coat yourself in bubble wrap, you’re going to become very accustomed to bumping into things. Taking all of the risk out of the equation might be the riskiest thing you could do.

- PS


  • Back squat - 3,3,3


  • 2 rounds

  • 1 minute per station

    • Calorie bike

    • K2E

    • Dumbbell squat clean (40/25)

    • KBS (53/35)

  • 1 min rest