Capitalism, values, and mass flourishing. Jonathan Haidt New York University Stern School of Business
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1 Capitalism, values, and mass flourishing Jonathan Haidt New York University Stern School of Business
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6 How can we increase the total tonnage of happiness? --Seligman, 2002
7 2004 We show that economic indicators have many shortcomings, and that measures of well-being point to important conclusions that are not apparent from economic indicators alone.
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11 The most transformative force since domestication of fire Japan Western Europe USA Western Europe Eastern Europe China India Africa Source: Derek Thompson (2012) based on Angus Maddison data
12 95% in % in 2010
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16 USA is a rotten imperialist country and the camp of such people around the world Courtesy of Propaganda Poster Arts Center, Shanghai
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20 Market Based Reforms Great Leap Forward Cultural Revolution
21 Communism d > 10 p < Capitalism
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23 Wealthy, Free, Rule of Law, Good Safety Net
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25 How can we increase the total tonnage of happiness? --Seligman, 2002 More container ships, commerce, capitalism?
26 Why are we so polarized in USA? Liberal Democrats Capitalism(Pos/neg) 46/47 66/29 Conservative Republicans Socialism (Pos/Neg) 59/33 6/90 Source: Pew Research Center, data from Dec. 2011
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36 What now? Do we need a 3 rd story about capitalism? Or a positive psychology of capitalism?
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38 1) Ethics and Non-Zero-Sumness David Schmidtz: At its best, a free market society is a game that you can only win by making other people better off.
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41 Ethics Pays
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43 Leadership
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45 Ethical Leadership 1) You must be a role model (talk is cheap) 2) Hire for ethics (see our personnel page) 3) Reward and promote for ethics, not just for results 4) Encourage and protect internal reporting (see our whistleblowing page)
46 Partnering with pos psych consultants to do ethical systems design
47 2) Yin-Yang, non-partisan
48 2) Yin-Yang, non-partisan Left stands for Decency Right stands for Dynamism
49 3) Answer the 100 Trillion Dollar Question
50 Gross World Product: Fast approaching 100 Trillion Dollars
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54 [GDP] measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country, it measures everything in short, except that which makes life worthwhile. Robert F. Kennedy
55 The Hundred Trillion Dollar Question: What is a Flourishing Capitalist Society in the 21 st Century? Where do you want your country to go? But: Values are in rapid flux around the world, BECAUSE of capitalism!
56 --Giant values survey, hundreds of questions on values, democracy, gender, religion, globalization, diversity, family --Carried out in 1981, 1991, 1997, 2001, 2007, Now up to 95 countries; truly global since 2001
57 Secular- Rational Traditional Survival Emancipative
58 Secular- Rational Traditional Survival Emancipative
59 Secular- Rational All rich Sweden All poor Traditional Zimbabwe Survival Emancipative
60 Secular- Rational Transition from industry to service economy (post materialist values) Transition from agriculture to industry (materialist values) Traditional Survival Emancipative
61 Prosperity + security Emancipatory values
62 Prosperity + security Emancipatory values Fading existential pressures open people s minds, making them prioritize freedom over security, autonomy over authority, diversity over uniformity, and creativity over discipline. (Welzel, 2010) Also; happier and more trusting
63 Secular- Rational? Traditional Survival Emancipative
64 Now Playing all across Asia: The Biggest Generation Gap in History
65 Korean Econ Professor (age 48) There are 3 generations of students I have taught: Those born in the 1970s, still influenced by the struggle against the authoritarian regime. Those born in the 1980s, no more existential pressures, seeking more freedom. Those born in the 1990s, I have not figured them out yet. They are not Koreans.
66 Korean Woman (24) in finance Most of the older people don t want change, they want to keep things as they are, they have a fear of change. My generation, they want to make change, make a new kind of society.
67 The most transformative force since domestication of fire Japan Western Europe USA Western Europe Eastern Europe China India Africa Source: Derek Thompson (2012) based on Angus Maddison data
68 Rising prosperity brings --rising security, which causes --changing values, which causes --rising education (esp. for women), which causes --demographic transition, which causes --shrinking population (eventually), which brings --relief for the environment
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71 The Positive Psychology of Capitalism 1) Focus on ethics and Non-Zero-Sumness 2) Yin-yang, non-partisan, dynamism and decency 3) Will help each country answer the hundred trillion dollar question for itself while understanding how it is changing
72 How can we increase the total tonnage of happiness? --Seligman, 2002
73 Capitalism, values, and mass flourishing Jonathan Haidt New York University Stern School of Business
74 Mitigate its worst effects A) Exploitation of the vulnerable, esp. --workers (esp. children, and migrants) --animals B) Rising inequality C) Corruption of the political system D) Externalities (environment, dangerous products) E) Marketization of all spheres of life (Barry Schwartz)
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76 Take home message: --Capitalism has changed the world, made it wealthier and happier --Many forms, many decisions to make; we are hampered by partisanship & wickedness --Need to balance dynamism & decency --Post materialist countries need pos psych the most. Asia is the gigantic growth market.
77 Implications: Even if you have concerns about materialism, greed, resource depletion, consumption The most promising way out of global poverty, overpopulation, and environmental depletion is to get through the demographic transition quickly.
78 You must start with the liberation story which enables constant innovation, including new forms of
79 Stakeholder Theory Employees Shareholders Firm Customers Suppliers Community
80 Shareholder Primacy Employees Shareholders Versus Firm Customers Suppliers Community
81 Bureaucratic solutions decimate dynamism; often fail to advance decency
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