Lower expectations and nostalgia for the past

In this podcast episode, Morgan Housel discusses why people often have a romanticized view of the past, specifically the 1950s. He explains that nostalgia for that era stems from lower expectations due to the economic hardships experienced during the Great Depression and World War II. Housel argues that people in the 1950s had just emerged from these traumatic events, so even small improvements in their lives felt significant. Additionally, he highlights that the smaller wealth gap during that time made it easier for individuals to keep up with their peers, leading to a sense of contentment. In contrast, today's constant exposure to social media and the ability to compare ourselves to everyone has inflated our expectations and can leave us feeling dissatisfied.