Why are emotions as smart as reason?
Most of our thinking occurs below the awareness level. It can happen as in Egypt, with the emotional contagions there, and in another way, when the entire global financial industry begins to misprice risk in the same way at the same time.
How does this happen on a global scale?
Even with a diverse set of perceptions and cultures, people get caught up in mental information loops that feed each other in ways they don't understand. Then the bubble happens, and suddenly it all looks absurd.
Group rewards are most powerful, you say. Why?
We overplay our individualistic ethos. Even the settling of the West was about building communities. Cities still exist because people who live in densely populated areas benefit from contact with others. Productivity levels are higher.
What’s the relevance to Wisconsin, let’s say?
One of my rules for fiscal policy is that everyone should have to suffer a little. I understand why Walker is so intent on cutting, but you have to do it in a way where it feels like you’re creating a community. Otherwise you have backlash and division.
This is happening in many states now.
Right, and the things we think are soft and squishy are often the most practical and important – like early childhood education and art and music classes. Unfortunately in a lot of municipalities and states, that's what’s being cut. It's counterproductive.