Surely it’s no surprise that we’re not perfect rational beings. And yet, that’s economists tend to treat us. As it turns out, though, not only are people not rational, but the very concept of money can change how you think. For instance, there’s a definite change in how people act when confronted with “social norms” as opposed to “market norms.”
I’d read some of this before, but there’s a good summary of recent research into human economic behaviour over at New Scientist. They’ve pegged it to the “credit crunch” which seems like a really quaint way of talking about the “global economic downtown.” Ah, how quickly language changes.
Check it out, it’s worth the read:
“Money seems to have symbolic power as a social resource,” says Vohs. “It enables people to manipulate the social system to give them what they want, regardless of whether they are liked.” Put bluntly, it looks as if money is acting as a surrogate friend. Could that explain why some people focus on extrinsic aspirations at the expense of real social relationships?
Grant Hamilton
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