What Economics Teaches About Life Choices: Three Stories from Prof. Li Daokui

First story: Eliminate choices

Li recalls a childhood incident where his pants were pulled down in school, leaving him humiliated but also forced to act on his own. By setting a personal boundary, running away from danger, and learning from peers, he eventually stood up, earned respect, and realized that when choices are limited, personal energy and ingenuity emerge.

Second story: Invest in your true goal

After earning his Ph.D., Li received offers from NYU (high salary, finance focus) and the University of Michigan (lower pay, economics focus). He chose Michigan because it aligned with his passion for Chinese economic issues, viewing himself as the CEO of his own “human capital” stock, where today’s decisions shape future happiness.

Third story: Networks boost success

He tells of a friend who, despite a modest background, repeatedly traveled to Boston, collected contact information from financial firms, and leveraged those connections to secure an internship, later rising to a senior role in a major investment bank and eventually founding a private equity fund. The story illustrates externalities: being in the right circle amplifies individual effort.

Li concludes that young people should quickly identify a broad direction, discard overwhelming options, commit wholeheartedly, and seek the right network, because focused effort combined with supportive circles leads to sustained upward progress.