The study, theory and practice of psychology is shaped by the world around it, and often consequently shapes the world around it as well. Ultimately, most people end up requiring therapy as a result of the disconnect between the inner self and the expectations of the world around them.
The importance of psychology in shaping the world is something that is increasingly explored in the world of business management and economics.
The latter discipline has seen psychological study question the logic of the perfectly rational “economic man” in designing market theories and strategies, in favour of a theoretical framework that questions why people may make irrational financial decisions.
However, less is discussed about the opposite path, as the economic state of the world has an effect not only on mental states but also on behaviour, ideas, emotions and the connections between people.
The Invisible Hand
The capital-driven economic world that the vast majority of the world lives in shapes the beliefs, values and ideologies that are beneficial or desirable, and this aspect has a tangible, subtle effect on how people behave in relation to each other.
A study in 2006 published in the journal Science found that people who had money tended to ask for help less but also help others less, suggesting an inverse link between people’s economic status and altruism.
This could potentially be explained by capitalism’s desire for competition leading people to see each other less as individuals and more as competitors for resources and prestige.
This is particularly problematic given that the first step towards accessing a mental health treatment someone may need to help them is to reach out, something implicitly discouraged under this model.
A later paper published in August 2020 connects neoliberal economics, in particular, with a greater acceptance of inequality and a strong belief in meritocracy, the idea that people who work hard enough and are good enough will be rewarded in kind.
Where it affects people psychologically is in the logical reasoning that if the above is true, its antecedent, that people who are in bad situations cause their own misfortune, is also true.
This leads to decreasing job satisfaction, greater anxiety caused by a lack of perceived financial security, and depression, due to the impetus for a person to blame themselves.
This is not to diminish the importance of personal responsibility. It is essential to take accountability for one’s own actions and the consequences of such actions, but it is also essential to factor in the context in which these actions are taken.
To bring the subject back to economics, there are many examples of situations where someone makes the best financial move possible, taking into account all available factors, and loses a lot of money, whilst another time they may effectively gamble on a stock and make huge amounts of money via luck.
Ultimately 2020 and the fundamental societal changes that have emerged as a consequence have also highlighted how so many of the values that people hold come from the systems they live in, with these values consequently leading to actions.
