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Risk is full of paradoxes: we take too much, in the sense that casinos and zero-days-to-expiration options are both thriving businesses, and we take too little, in the sense that insurance, too, is a huge business. More money than is optimal gets deposited in FDIC-insured savings accounts (instead of put to more useful work), and, among those with who invest, more money than is optimal gets invested in a) equities in general, and b) specific high-risk cult stocks.
More prosocially, many people who could have better risk-adjusted returns working at a big company choose to quit and start their own thing; many investors who could just buy QQQ with a little leverage instead go through the arduous process of making early-stage, high-risk investments instead.
So the world exists in a muddle of risk, at every conceivable level, from people biking without helmets while wearing masks to nation-states fixating on one set of existential risks while ignoring or worsening others.