Group items tagged

The two are independent, entirely different variables, meaning you can have one without the other. For example, maybe you know someone who is a complete navel-gazer with a high level of internal self-awareness. Yet you and everyone else think this person is a selfish jerk, but because he never receives external feedback, he has no idea. Conversely, someone could have a high level of external self-awareness, a clear understanding of how they fit in with the rest of the world, without knowing what they want and what makes them happy. To be truly, fully self-aware, though, you need both components — a feat that’s difficult to pull off for pretty much anyone. But, it’s worth noting, not impossible.

Modern life makes it easy to become a part of what Eurich calls the “cult of self”: social media, for example, acts as a microphone-slash-spotlight we never have to turn off, while the concept of “personal branding” turns careful image curation into a professional skill.

In that last sentence, Kahneman is alluding to the “bias blind spot,” our tendency to recognize cognitive biases in others without noticing them in ourselves.

Without self-acceptance, self-awareness becomes an unpleasant process, which in turn keeps us from embracing it.

Your approach matters, too. When introspecting, it’s common for people to ask “why.” Why didn’t I get that promotion? Why do I keep fighting with my spouse? “Research has shown there are two problems with this,” Eurich said. “The question ‘why’ sucks us into an unproductive, paralyzed state. It gets us into this victim mentality.” Second, no matter how confident we are about the answer to “why,” we’re almost always wrong.

For the sake of everyone who stands to gain from a better knowledge of politics, economics and society, the social sciences need to overcome their inferiority complex, reject hypothetico-deductivism and embrace the fact that they are mature disciplines with no need to emulate other sciences.

Or consider the famous “impossibility theorem,” developed by the economist Kenneth Arrow, which shows that no single voting system can simultaneously satisfy several important principles of fairness. There is no need to test this model with data — in fact, there is no way to test it — and yet the result offers policy makers a powerful lesson: there are unavoidable trade-offs in the design of voting systems.

Unfortunately, the belief that every theory must have its empirical support (and vice versa) now constrains the kinds of social science projects that are undertaken, alters the trajectory of academic careers and drives graduate training. Rather than attempt to imitate the hard sciences, social scientists would be better off doing what they do best: thinking deeply about what prompts human beings to behave the way they do.

theoretical models can be of great value even if they are never supported by empirical testing. In the 1950s, for instance, the economist Anthony Downs offered an elegant explanation for why rival political parties might adopt identical platforms during an election campaign. His model relied on the same strategic logic that explains why two competing gas stations or fast-food restaurants locate across the street from each other — if you don’t move to a central location but your opponent does, your opponent will nab those voters (customers). The best move is for competitors to mimic each other. This framework has proven useful to generations of political scientists even though Mr. Downs did not empirically test it and despite the fact that its main prediction, that candidates will take identical positions in elections, is clearly false. The model offered insight into why candidates move toward the center in competitive elections

Likewise, the analysis of empirical data can be valuable even in the absence of a grand theoretical model. Did the welfare reform championed by Bill Clinton in the 1990s reduce poverty? Are teenage employees adversely affected by increases in the minimum wage?

Answering such questions about the effects of public policies does not require sweeping theoretical claims, just careful attention to the data.

theories are like maps: the test of a map lies not in arbitrarily checking random points but in whether people find it useful to get somewhere.

Economists, political scientists and sociologists have long suffered from an academic inferiority complex: physics envy. They often feel that their disciplines should be on a par with the “real” sciences and self-consciously model their work on them, using language (“theory,” “experiment,” “law”) evocative of physics and chemistry.

The ideal of hypothetico-deductivism is flawed for many reasons. For one thing,

Smith had a particular example in mind when he talked about market integration between continents: Europe and America.

Kevin O’Rourke and Jeffrey Williamson argued in a 2002 paper that globalisation only really began in the nineteenth century when a sudden drop in transport costs allowed the prices of commodities in Europe and Asia to converge

But there is one important market that Mssrs O’Rourke and Williamson ignore in their analysis: that for silver. As European currencies were generally based on the value of silver, any change in its value would have had big effects on the European price level.

The impact of what historians have called the resulting “price revolution” dramatically changed the face of Europe. Historians attribute everything from the dominance of the Spanish Empire in Europe to the sudden increase in witch hunts around the sixteenth century to the destabilising effects of inflation on European society. And if it were not for the sudden increase of silver imports from Europe to China and India during this period, European inflation would have been much worse than it was. Price rises only stopped in about 1650 when the price of silver coinage in Europe fell to such a low level that it was no longer profitable to import it from the Americas.

The German historical economist, Andre Gunder Frank, has argued that the start of globalisation can be traced back to the growth of trade and market integration between the Sumer and Indus civilisations of the third millennium BC. Trade links between China and Europe first grew during the Hellenistic Age, with further increases in global market convergence occuring when transport costs dropped in the sixteenth century and more rapidly in the modern era of globalisation, which Mssrs O’Rourke and Williamson describe as after 1750.

it is clear that globalisation is not simply a process that started in the last two decades or even the last two centuries. It has a history that stretches thousands of years, starting with Smith’s primitive hunter-gatherers trading with the next village, and eventually developing into the globally interconnected societies of today. Whether you think globalisation is a “good thing” or not, it appears to be an essential element of the economic history of mankind.