Editor's note: This column is part of 'Why Do We?' — a weekly video series hosted by culture expert Martin Lindstrom that untangles unique quirks of human behavior. Click here for the full series page.
It's not every day I get the chance to sit down with a Nobel laureate, but the challenging question raised by Newsweek left me no choice. Why do we procrastinate on taxes?
Whether we like to admit it, we've all been there. Breaking up, fixing that dripping tap, learning that new skill — the list goes on. A friend of mine recently procrastinated on his health check, likely suspecting that the message he would receive wouldn't be rosy. According to a recent study, 20 to 25 percent of the adult population procrastinates regularly, while a staggering 70 to 95 percent of all students report procrastinating on academic tasks.
And then there's that dreaded tax return hanging over our heads.
So I sat down with economist Richard Thaler — recipient of the 2017 Nobel Prize for his pioneering contributions to behavioral economics and best-selling author of the book, Nudge. Thaler's work fundamentally challenged the traditional economic assumption that individuals always act rationally, laying the groundwork for the concept of "nudge theory." Since procrastination is itself irrational, Thaler seemed the perfect choice to help me get to the bottom of my quandary.
From the onset, Thaler wasn't anything like what I was expecting from a Nobel laureate. Despite the seriousness of his work, I found Thaler fun and approachable. When I asked him about the Prize, he merely laughed and told me that he assumed the Nobel committee in Stockholm probably couldn't get hold of their first choice, so he got the call as a last minute stand-in. Despite his self-deprecatory nature, it didn't take more than a few minutes with Thaler to see his brilliant mind at work.
But back to taxes.
Did you know that if you just inform the tax authorities that you'll be filing late, in most instances nothing will happen? But we choose instead to procrastinate, incurring penalties which could just as easily have been cleared up with a dose of candor and honesty!
Join my conversation with Richard Thaler where we cover everything from urinals, Richard's love affair with a sound button, and of course his take on why we procrastinate.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
About the writer
Martin Lindstrom is the author of several New York Times best-selling books, including "Buyology," "Small Data," "Brandwashed," and "The Ministry ... Read more
