
Liu Run's "Underlying Logic": Five Systems for Mastering Business and Life
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9-18David: We often think of right and wrong as a simple, black-and-white issue. But what if there isn't one single standard? In his book The Underlying Logic, author Liu Run completely dismantles this idea. He suggests that depending on whether you're a lawyer, an economist, or a businessperson, your definition of right can be completely different.
Mia: That's right. It’s such a fundamental shift in perspective. It forces you to ask, before making any judgment, what framework are we even using? A lawyer cares about evidence and procedure. An economist is trying to minimize the total cost to society.
David: And the businessperson's view is the most surprising. They focus on their own loss. Whoever loses the most is the one who's wrong, which fosters this intense mindset of self-reliance. So, Mia, why do you think these different views of right and wrong even exist? What's the core driver behind it all?
Mia: Well, the core driver is really interest. Whose interest is being served? The law serves the collective interest of society by creating a stable framework. Economics aims to optimize for the overall societal benefit. And a businessperson's perspective is, ultimately, about maximizing their own individual or corporate interest. It reminds us that morality itself is essentially an anti-human nature contract that groups create to prosper. When we talk about right and wrong, we have to ask: for whom?
David: That makes so much sense. Clarifying whose right and wrong is key to making decisions. So, with all this complex information out there, how do we even begin to think clearly? That brings us to the next piece of underlying logic.
David: Next, we dive into the logic of how to think. Liu Run stresses the importance of first distinguishing between facts and opinions. And he gives a great warning: be cautious of sentences that start with Why followed by an opinion, because they can be a form of injected brainwashing. He also argues that to understand complex issues, we need systems thinking—analyzing elements, connections, and causal chains—and to master mathematical concepts like probability and calculus.
Mia: That point about injected brainwashing is so critical. You see it everywhere in media and marketing. A question like, Why is our product so much better than the competition? doesn't invite you to question the premise that it *is* better. It just skips right to asking you for the reasons, assuming the conclusion is already a fact.
David: Right, having that clear, logical framework helps us see through the fog. So, on the path of personal growth, how do we apply these underlying principles to evolve ourselves?
David: When it comes to personal evolution, Liu Run offers a very practical formula: Ability × Efficiency × Leverage. He explains that the core ability is the ability to acquire abilities, which grows through diligent, compounding effort. Efficiency comes from making the right choices and using the right methods. And leverage can come from a team, a product, capital, or influence. He also redefines networking as being about value exchange and talks about managing time by breaking it down into smaller units.
Mia: I love that formula. It's like the three-horse chariot for creating personal value. The leverage part is what most people miss. It’s the key to shifting from linear to exponential growth. And his take on networking is spot-on. The essence of connection isn't who can help me? but who can I help? It completely changes your approach.
David: Exactly. Once we've mastered the methodology for personal evolution, we can be more effective. But we don't exist in a vacuum. Understanding others and social collaboration is another essential piece of the puzzle.
David: Let's talk about the underlying logic of understanding others. Liu Run points to three key elements in communication: the What, the Why, and the How. He stresses that you must first address the other person's Why to give the What any meaning. He also analyzes the nature of humor—saying it comes from a sense of superiority, surprise, or relief—and highlights the importance of boundaries, which means respecting each other's ownership, whether it's physical, cognitive, or emotional.
Mia: The Why is the soul of communication. If the other person doesn't understand why they should do something, giving them the What and the How is almost useless. You won't get genuine buy-in or effective execution. It's about aligning motives before you talk about actions.
David: That's a great point. Understanding communication and boundaries helps us integrate better into society. So, on a broader level, how should we understand the underlying logic of social collaboration?
David: Finally, we look at the logic of social collaboration. Liu Run summarizes three laws that govern the world: the law of nature (survival of the fittest), the law of the tribe (driven by common goals), and the universal law (cross-group consensus, like integrity). He also states that the fundamental source of business profit is creating value for users. And he emphasizes the importance of building ecosystems and adapting through change.
Mia: That idea—that all profit comes from creating value for the user—is the bedrock of business success. It's also the engine that makes social collaboration sustainable. A collaboration can only last if it brings real value to everyone involved.
David: Thanks for these fantastic insights, Mia. By breaking down these five areas of underlying logic, Liu Run gives us a powerful toolkit to see through the surface and get to the essence of things. To wrap up, could you summarize the key takeaways for us?
Mia: Of course. First, right and wrong has multiple perspectives driven by interests, so we must clarify the standard of measurement. Second, learn to distinguish facts from opinions, be wary of Why + opinion phrases, and use systems and mathematical thinking. Third, personal growth follows the formula: Ability × Efficiency × Leverage, and the essence of networking is value exchange. Fourth, in communication, always address the Why, and respect personal boundaries. And finally, remember that business profit comes from creating user value, and successful social collaboration relies on following key principles and building ecosystems.