Suboptimal Economic Thinking

Nobel Laureate and behavioral economist Daniel Kahneman explains “narrow framing”.

Says Professor Kahneman, “People frame things narrowly in the sense that they save and borrow at the same time instead of somehow treating their whole portfolio as one thing.”

Professor Kahneman is 1 minute into the video.
Personal finance: How to save, spend, and think rationally about money

The Vicki Robin stuff in the video is a little touchy-feely for me, but Daniel Kahneman is right on.