Ashley Hodgson: "The New Enlightenment and Behavioral Economics”
Feb 14, 2024
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Nate Haganz interviews Ashley Hodgson, a professor in behavioral economics, discussing 'The New Enlightenment' and how to align systems with sustainable goals. They explore the integration of psychology into economic models, the benefits of cooperation and consuming less, the concept of systems depreciation, intergenerational dynamics, redirecting resources towards positive institutions, and the importance of exploring and testing different ideas for new systems.
Behavioral economics can provide insights into addressing power imbalances and rethinking incentive structures.
Integrating diverse fields and fostering trust-based relationships are crucial for challenging systemic problems.
Recognizing power inequalities and promoting collective action are essential in creating more equitable systems.
Deep dives
The Importance of Behavioral Economics in the Systemic Predicament
In this podcast episode, Nate Haganz and Ashley Hodgson discuss the systemic predicament from the perspective of behavioral economics. They explore how behavioral economics, which combines psychology and economic models, can be applied to understand and address our current cultural transition known as the great simplification. They emphasize the need to re-jigger the incentive structures and flow of resources and information in the superorganism. They discuss the relevance of game theory in understanding collective action and the challenges of individual behavior versus human aggregate behavior. They also touch upon the increasing acceptance of behavioral economics in the field of economics and the potential of blockchain and digital algorithms in shaping a new system.
The Role of Knowledge Systems and the New Enlightenment
Ashley Hodgson highlights the need to rethink knowledge systems as a foundation for the great simplification. She emphasizes the importance of integrating insights from diverse fields and developing trust and relationships between different idea bubbles. By fostering communities and trust-based relationships, Hodgson believes that new avenues can be built to challenge power imbalances and address systemic problems. She also discusses the significance of recognizing the limitations of current debates on topics like socialism versus capitalism and the need for broader thinking and exploration of unviable ideas.
Understanding the Matthew Principle and Concentration of Wealth
Nate Haganz and Ashley Hodgson delve into the concentration of wealth and power in society, drawing upon concepts like the Matthew principle and elite overproduction. They discuss how power inequalities lead to the accumulation of resources and influence, and how this has been amplified in the digital age. They also explore the potential of blockchain and digital tools to create more equitable systems. They emphasize the importance of recognizing the interconnectedness of various institutions and the need for collective action to address power imbalances.
Navigating Ideological Bubbles and Building Trust
Hodgson stresses the need for individuals to venture out of their ideological bubbles and foster strong relationships and communities. She encourages developing skills to communicate and understand different perspectives, while also acknowledging the risks involved. Hodgson emphasizes the importance of recognizing each bubble's unique perspective on societal problems and finding common ground to address interconnected challenges. She highlights the significance of in-person skills and fostering relationships separate from the influence of social media.
Advice for Contributors to the Positive Future
Hodgson advises individuals to approach discussions and problem-solving with open minds and a willingness to learn from different communities and perspectives. She emphasizes the importance of finding one's place in the world and actively participating in shaping a new system. Hodgson also encourages cultivating curiosity and recognizing the value of unviable ideas as they contribute to the collective search for solutions. She stresses the significance of developing trust and relationships across different spheres as key to unlocking positive change.
On this episode, Nate is joined by Ashley Hodgson, a professor in behavioral economics, where she offers a perspective on the superorganism and what she calls ‘The New Enlightenment’. By taking a wide-lens look at the way our human systems work, we can see the incentives and structures that push power towards consumptive, short-sighted, and destructive pathways. How could we ‘rejigger’ these systems to be more aligned with values and goals conducive to supporting humans long into the future? What are the natural laws that inherently depreciate systems - and how might we think about counteracting them? As we enter a world where the perpetual growth we’ve come to expect is no longer possible, how can we lean into the creativity and ingenuity required when thinking about new economic paradigms?
About Ashley Hodgson
Ashley Hodgson is an Associate Professor of Economics and a YouTuber. She teaches Behavioral Economics, Digital Industries, Health Care Economics, and Blockchain Economics. Her YouTube channel, The New Enlightenment, explores topics related to economics, governance, and epistemics – that is, the determination of truth and validity – in a world of social media and increasing power concentration.
