Wall Street Punishment: The Insatiable Urge To Find Accountability
The public urge for punishment that helped delay the passage of Washington's economic rescue plan is more than a simple case of Wall Street loathing, according to scientists who study the psychology of forgiveness and retaliation. The fury is based in instincts that have had a protective and often stabilizing effect on communities throughout human history. Small, integrated groups in particular often contain members who will stand up and -- often at significant risk to themselves -- punish cheaters, liars and freeloaders.
Scientists debate how common these citizen enforcers are, and whether an urge to punish infractions amounts to an overall gain or loss, given that it is costly for both parties. But recent research suggests that in individuals, the fairness instinct is a highly variable psychological impulse, rising and falling in response to what is happening in the world. And there is strong evidence that it hardens in times of crisis and uncertainty, like the current one.
The catch in this highly sensitive system, most researchers agree, is that it most likely evolved to inoculate small groups against invasive rogues, and not to set right the excesses of a vast and wildly diverse community like the American economy. Some experts believe that Japan's disastrous delay in bailing out its banks in the early 1990s was caused in part by a collective urge to punish corrupt bankers, and they fear a similar outcome today.
-OR-
For more thoughts on Wall Street and psychology:
::New York Psychiatrist Uses Verbal Abuse On Wall Street Clients
Loading comments…
First Posted: 10- 7-08 07:59 AM | Updated: 11- 7-08 05:12 AM