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The Fifth Risk

The Fifth Risk

Undoing Democracy
by Michael Lewis 2018 255 pages
4.09
45k+ ratings
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Key Takeaways

1. The U.S. government's transition process is crucial but often neglected

"People don't understand that a bungled transition becomes a bungled presidency."

Importance of transition: The presidential transition is a critical period for ensuring the continuity of government operations and national security. However, it is often overlooked or mishandled. The book describes how the Trump transition team initially dismissed the importance of preparation, with Trump himself questioning the need for a transition team.

Consequences of poor transitions: A poorly executed transition can lead to:

  • Inadequate understanding of complex government operations
  • Delays in filling key positions
  • Increased vulnerability to national security risks
  • Missed opportunities for policy implementation

The author emphasizes that the transition process is not just about political appointments but about understanding the intricate workings of government agencies and their crucial roles in maintaining public safety, economic stability, and national security.

2. Departments like Energy and Agriculture are misunderstood yet vital

"If you talk to women scientists of my age, almost all of them have a story similar to mine."

Misconceptions about government agencies: Many people, including some politicians, have little understanding of what certain government departments actually do. The Department of Energy, for example, is largely responsible for managing the nuclear arsenal and conducting critical scientific research, rather than just dealing with energy policy.

Hidden importance: These departments play crucial roles in:

  • National security (e.g., DOE's management of nuclear weapons)
  • Scientific research and innovation
  • Public health and safety (e.g., USDA's food safety programs)
  • Economic stability (e.g., USDA's support for rural communities)

The book highlights how the lack of understanding about these departments' functions can lead to poor policy decisions and potentially dangerous situations when leadership positions are filled by individuals without relevant expertise or appreciation for the departments' missions.

3. Government data is a treasure trove for innovation and public good

"We're going to open all the data and go to every economics department and say, 'Hey, you want a PhD?'"

Value of government data: The U.S. government collects vast amounts of data across various domains, from weather patterns to economic indicators. This data, when made accessible, can drive innovation, improve public services, and inform policy decisions.

Examples of data-driven innovations:

  • Improved weather forecasting and disaster preparedness
  • Agricultural innovations and risk management for farmers
  • Public health interventions and epidemic predictions
  • Economic research on social mobility and inequality

The book emphasizes the importance of making government data open and accessible, highlighting initiatives like the appointment of the first U.S. Chief Data Scientist and efforts to encourage data-driven problem-solving across various sectors.

4. Weather prediction has improved dramatically, benefiting society

"It was unheard-of. When I started in the 1970s, the idea of predicting extreme events was almost forbidden. How can you see a storm before the storm can be seen?"

Advancements in meteorology: Weather forecasting has made significant strides in recent decades, evolving from educated guesswork to highly accurate predictive models. This improvement is due to advances in technology, data collection, and scientific understanding.

Impacts of better forecasting:

  • Improved public safety through earlier storm warnings
  • Economic benefits for industries dependent on weather (agriculture, transportation, etc.)
  • Enhanced disaster preparedness and response
  • More efficient resource allocation for governments and businesses

The book details how these improvements have saved countless lives and billions of dollars, while also highlighting the ongoing challenges in communicating weather risks effectively to the public.

5. The struggle between public service and private profit in government

"There is a rift in American life that was now coursing through American government. It wasn't between Democrats and Republicans. It was between the people who were in it for the mission, and the people who were in it for the money."

Conflict of interests: The book explores the tension between public servants motivated by a sense of mission and those driven by personal or corporate profit. This conflict is exemplified in various scenarios, such as the privatization of weather data and services.

Consequences of prioritizing profit:

  • Reduced access to vital public services and information
  • Potential compromises in public safety and well-being
  • Erosion of trust in government institutions
  • Misalignment of government priorities with public needs

The author argues that this shift towards a profit-driven model in government agencies can undermine their core missions and the public good they are meant to serve.

6. Rural America's dependence on and distrust of federal programs

"We'd give forty thousand dollars for a health clinic and the whole time you're like, Shit, this makes a difference."

Paradoxical relationship: Many rural Americans rely heavily on federal programs for economic support, infrastructure, and essential services. However, there's often a disconnect between this dependence and political attitudes that are skeptical or hostile towards government involvement.

Key federal supports for rural areas:

  • Agricultural subsidies and crop insurance
  • Rural development grants and loans
  • Healthcare facilities and services
  • Infrastructure projects (roads, broadband, etc.)

The book illustrates this paradox through stories of rural communities benefiting from government programs while simultaneously expressing anti-government sentiments, highlighting the complex political and cultural dynamics at play in rural America.

7. The importance of social science in public safety and risk communication

"You don't particularly care what the wind speed at five hundred millibars is. You want to know: What's it going to do to my house?"

Beyond hard science: The book emphasizes that effective public safety measures, particularly in areas like weather forecasting and disaster preparedness, require more than just accurate scientific data. Understanding human behavior and risk perception is crucial for communicating threats and motivating appropriate responses.

Integrating social science:

  • Studying how people interpret and respond to warnings
  • Developing more effective risk communication strategies
  • Tailoring messages to different communities and demographics
  • Addressing psychological factors that influence decision-making during crises

The author describes efforts within agencies like NOAA to incorporate social science research into their operations, recognizing that saving lives depends not just on predicting threats but on effectively communicating them to the public.

8. Trump administration's approach to data and science raises concerns

"They are going to politicize the science. My biggest concern is the misuse of science to support policies."

Shift in approach: The book details concerns about the Trump administration's handling of scientific data and expertise across various government agencies. This includes removing or suppressing certain data sets, appointing leaders skeptical of established science, and potentially prioritizing political or commercial interests over scientific consensus.

Potential consequences:

  • Reduced public access to important information
  • Undermining of evidence-based policymaking
  • Erosion of scientific integrity in government agencies
  • Long-term impacts on research funding and priorities

The author argues that these changes could have far-reaching effects on public health, environmental protection, and the overall role of science in government decision-making.

Last updated:

Review Summary

4.09 out of 5
Average of 45k+ ratings from Goodreads and Amazon.

The Fifth Risk explores the Trump administration's mishandling of government agencies and the potential consequences. Reviewers praise Lewis's storytelling and insights into often-overlooked government functions, but some criticize bias and lack of sourcing. The book highlights dedicated civil servants and the risks of ignorance in governance. Many readers found it eye-opening and relevant, especially in light of recent events. While some felt it was not Lewis's best work, most agreed it was an important read that exposed critical issues in the current administration.

Your rating:

About the Author

Michael Monroe Lewis is an American author and financial journalist known for his nonfiction work on business, finance, and economics. Born in New Orleans, he graduated from Princeton University and worked on Wall Street before becoming a writer. Lewis has authored several bestselling books, including Liar's Poker, Moneyball, and The Big Short, many of which have been adapted into films. His work often investigates financial crises and behavioral finance. Lewis's books have won multiple awards and frequently top the New York Times Bestsellers Lists. He has been a contributing editor to Vanity Fair since 2009 and continues to write on various topics related to finance and society.

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