494. The Limits of Liberal Rationalism feat. William Davies
Dec 23, 2024
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William Davies, a Professor of Politics at Goldsmiths University of London, dives into the interplay of data-driven decision-making and its implications for democracy. He discusses the erosion of public trust in elites, fueled by past crises and the rise of conspiracy theories. The conversation also addresses how advancements in behavioral economics are reshaping our understanding of happiness and prosperity, highlighting the paradox of economic growth alongside increasing dissatisfaction. Ultimately, Davies advocates for genuine well-being over superficial solutions.
The disconnect between elites and everyday experiences has fueled skepticism about expert authority and institutional trustworthiness.
Behavioral economics provides insights into human decision-making but risks becoming a means of control rather than understanding complexity.
Social media fosters a culture of comparison, exacerbating feelings of inadequacy and political susceptibility despite material prosperity.
Deep dives
The Crisis of Elite Understanding
There is an ongoing crisis characterized by the inability of elites, particularly in the realms of science and economics, to grasp essential human behavior and societal trends. This disconnect raises questions about the reliability of frameworks and models that these elites rely upon, as evidenced by the global financial crisis of 2008, where flawed economic predictions led to widespread consequences. The podcast discusses how social sciences, initially intended to illuminate human behavior, have become rigid disciplines that often fail to recognize their interconnectedness. This fragmentation, coupled with the hubris of some economists believing they could single-handedly solve complex social issues, contributes to the current skepticism about expert authority in society.
The Role of Behavioral Economics
Behavioral economics has emerged in response to traditional economic theories that inadequately depict human decision-making. By incorporating psychological insights, it offers a more nuanced understanding of why individuals act against their own best interests, such as not investing in retirement savings despite clear benefits. However, this approach also risks becoming a tool for control, as it often seeks to predict and manipulate behavior rather than genuinely exploring the complexities of human experience. This shift coincides with the rise of platform capitalism, suggesting that as technology advances, the scope of behavioral analysis has expanded, reinforcing the cycle of surveillance and data-driven economic practices.
The Impact of Social Comparison
Social media has exacerbated feelings of unhappiness by fostering a culture of constant comparison among individuals. The podcast discusses how observing others' curated lives can lead to feelings of inadequacy, despite overall prosperity, thereby creating a paradox where people feel worse in the midst of material success. This phenomenon is tied to political psychology, which indicates that those experiencing feelings of relative decline—often exacerbated by social media—become more susceptible to populist sentiments. Consequently, traditional economic measures of well-being fail to account for the relational aspects of happiness and discontent in today's society.
Surveillance and Trust in Society
A deterioration of trust in institutions has emerged as a significant issue, with public faith in experts, politicians, and traditional institutions waning. This skepticism can be partly attributed to the contrasting nature of modern transparency, where revelations about policies and practices can emerge suddenly and scandalously, undermining trust. Events such as the Iraq War and the financial crisis have fueled disillusionment with elites who have been perceived as corrupt or incompetent. The podcast highlights this ongoing crisis of legitimacy, emphasizing that a disconnect now exists between the decisions of elites and the lived experiences of ordinary citizens, further complicating the trust deficit.
Reimagining the Happiness Industry
The contemporary wellness movement, while well-intentioned, often serves as a superficial remedy for deeper societal issues rather than addressing their root causes. The podcast critiques the notion that providing wellness programs can compensate for overwhelming stressors in the workplace, arguing for the need to focus on fundamental changes in work-life balance and social structures. A more effective approach would emphasize empowerment and the acknowledgment of societal inequalities that contribute to unhappiness. By prioritizing genuine well-being over mere symptom relief, the happiness industry can potentially foster more sustainable and meaningful improvements in quality of life.
With more and more data available about each of us all the time, what are the consequences of rapid data-driven decision making by organizations, and what are the implications of it for democracy and social well being?
William Davies teaches Politics at Goldsmiths University of London and is the author of several books, including Nervous States: Democracy and the Decline of Reason.
Greg and William discuss how the ongoing crises are misunderstood by elites, and reasons behind the decline in public trust toward experts. William goes over the impact of advancements in behavioral economics, and how modern political and economic phenomena are influenced by historical and sociological contexts.
True happiness lies in quality time, not more work or consumption
53:18: This science of happiness proves, not that surprisingly, that actually spending time doing things that we consider to be intrinsically worthwhile, like hanging out with our families or pursuing activities in the outdoors that we enjoy doing, is more likely to make us happy than simply working more and consuming more. This is not a mystery. Most people intuitively understand this, but that would then point towards a set of policy goals regarding work-life balance and the rights to log off and to not always be at the beck and call of your manager, and that thing. So, those are more about empowering people than just fixing them the whole time.
How social media weaponizes our comparisons to others
30:35: I think one of the things that a lot of political psychology and economic psychology demonstrate quite convincingly, and I think that this is something that social media platforms weaponize, is that, when we compare ourselves to others, it makes us far more unhappy than economics.
Why culture mass surveillance aligns with conspiracy theory
46:35: [The] culture of mass surveillance goes hand in hand with a mentality of conspiracy theory because a conspiracy theorist believes, in some ways, quite correctly, that there's all this other stuff going on; you don't yet know about it, but someone else knows about it, and they're right! And that, in a way, has always been a feature of conspiracy theory, of social life. There's always been more to political institutions than meets the eye, but what there wasn't in the past was this capacity for vast quantities of data to suddenly come spewing out and often discrediting quite famous and quite powerful people.
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