Many times we feel that the world is highly irational and suboptimal (i.e. things can be done is a much better way). This is sometimes the case, but maybe less than as it seems. Our eyes are very misleading about it.
The reason is because the hypothetical reality (that is before any decision has been made) contains a hugte space of possibilities. The decision and actions people take are usually relatively good among the overal space of possibilities.
But the decisions people take may not be the absolute optimum. That is they are not the very best set of decisions. But they are still very good.
After the fact thinking will start off with what decisions already made, and try to look for alternatives based on this optimized decision. Insofar that the decision was not the absolute optimal it will look like there are better decisions and the decision maker was a fool.
Suppose there are a billion possible compositions one can lead to by various combinations of decisions. Suppose further that we sort them throught a single measure. If the actual decision ranked 100th, it should be a great decision, but starting from there one will see that it is the worst out of hundred possibilities.
This mistake has various kinds.:
Ignoring the fact that there were a lot of worse decisions.
Perceiving the "better" decisions as many and forgetting that among the original set of possibilities these super optimal decisions were a tiny unseen minority.
Forgetting possible drawbacks of the super-optimal decisions that just seem irelevant from a current point of view.
Intuitively it feels that there is a deeper side to it. Focusing on theis ex-post space seriousely distorts the whole situation.