I think what was meant was more along the lines of "if people knew they couldn't incur severe permanent damage..." The problem seems to be that if you fall off

I think what was meant was more along the lines of "if people knew they couldn't incur severe permanent damage..." The problem seems to be that if you fall off the "middle-class bandwagon" in the US, it's very difficult to get back on. Since medical emergencies or the like can easily do this to you, people who might be willing to take a reasonable risk become more focused on minimizing the risk of a really bad outcome than on maximizing expected outcome.