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Some unrefined thoughts on why rationalists don't win + a good story.
Why don't rationalists win?
1) As far as being happy goes, the determinants of that are things like optimism, genetics, good relationships, sense of fulfillment etc. All things you could easily get without being rational, and that rationality doesn't seem too correlated with (there's probably even a weak-moderate negative correlation).
2) As far as being right goes (epistemic rationality), well people usually are wrong a lot. But people have an incredible ability to compartmentalize, and people often exhibit a surprising degree of rationality in their domain of expertise. And also, you could often do a solid job of being right without much rationality - heuristics go a long way.
Story:
So then - why rationality?