The myth of the rational investor

Unjustifiable behaviour and why some people try to remain children forever. Avoiding responsibility and what the role of "adults" should be. Written by Theodore Krintas.

Because I studied quite a few psychology topics during my studies, much more than the average economist, I gained a better understanding of how it affects our lives.

The science of psychology deals with the study of human behaviour, thoughts, and emotions. Issues that deeply concern us, such as relationships, self-awareness, stress management, and personal development, pass through the filters we collectively call psychology. My contact with the subject has made me sufficiently familiar with many of the various cognitive errors we all excel at, as well as why there is no point in looking for the so-called "rational investor." They simply do not exist...

After this introduction, and with all due respect to the experts, who I hope will correct and supplement me, I will attempt to prove the accuracy of this article's title below.

Unjustifiable behaviour

Every day we observe or even participate in actions that are in no way justified. Dangerous driving, indecency and inappropriate behaviour, rudeness and egotism, indifference in varying degrees, lack of patience, seeking "protection" and "facilitation," easy solutions, nepotism, favouritism, etc.

Of course, due to my own scientific bias, I recently made an estimate of the cost, in terms of GDP, of the average "pointless" disruption to professional life in the centre of the capital due to a strike by one or more sectors of workers. My estimate is that the cost to the economy exceeds €40 million for each such day. With 20 working days per year, this could amount to 0.5% of the country's GDP!

Most of these behaviours are in "doses" that can easily be classified as misdemeanors, while a few can easily be considered felonies, at least based on the relevant code as understood by the "non-legal" mind. One might reasonably wonder if we have collectively lost our sense of proportion when it comes to the law.

For a long time, I believed that this was exactly what was happening. I was even certain that strict enforcement of the law would bring results. However, after a few discussions with the relevant officials, lawyers, police officers, judges, etc., my understanding broadened, although no "immediate" solution was found.

Inevitably, the first alternative was sought in the field of economics and, as I am a behavioural economist, in our behaviour. By identifying all those behaviours that are inconsistent with our age, social status, education, and so much more, we can easily see that it is not possible to classify people based on obvious criteria. If we do not want to "buy" my flawed approach to a state of "lawlessness," we must understand the deeper reason for these behaviours.

Regardless of age

Childishness is a behaviour or, rather, an attitude characterised by a person's tendency to behave or think like a child, regardless of their age. Psychology explains that it can manifest itself in various ways, such as avoiding responsibility, a lack of seriousness, or an inability to deal with (normal) adult tasks and other obligations.

On a psychological level, childishness can represent a way of coping with reality and a stressful environment. Depending on how it is treated and interpreted by each individual and their environment, it can be simply an expression of childish energy and creativity or it can be a way of avoiding the problems faced by adults.

From a psychosocial point of view, childishness involves avoiding the daily struggle of life, but also the highest ideal of easy and effortless consumption. In essence, through this behaviour, on the one hand, we are the absolute victims and we absolve ourselves of guilt, but at the same time it makes things easier for us. For some of us who face financial difficulties, the desire to remain children is combined with a feeling of resignation from the responsibilities of adulthood to organise a better and sometimes simply sustainable life.

Introverted alienation

Adults who, in their own way, usually painful, "refuse to grow up" and face the real difficulties of the world without losing their sensitivity, appear at first very cautious about the world of work.

In any case, the models of previous generations of workers do not appeal at all to those who remain childlike. They therefore invoke idealised images of a carefree and playful childhood, which correspond to the stereotypical representations of children in affluent, Western, urban society in the last decades of the 20th century.

By acting like children, we psychologically enter a state of introverted alienation, far from the difficulties of "adult society." We create an imaginary condition of "childhood innocence" and protected immaturity, ideologically endowed with many supposedly natural rights and individual freedoms that real childhood did not have at all.

This imaginary condition creates a strong barrier to maturity, politeness, recognition of objective difficulties, socialisation, and ultimately acceptance of institutions. In some cases, it also manifests itself in "somewhat spoiled" ways of speaking, in corresponding facial expressions, movements and gestures, behavioural choices, etc.

We recognise this demand for tolerance of all the peculiarities and whims of childhood in simplistic explanations of behaviour and in the complete absence of serious arguments. In a way, therefore, the reminder of childhood irresponsibility goes hand in hand with the obsessive idea of "childhood innocence."

We must find a way to grow up and mature quickly as a society. "Eternal children" end up adopting controversial moral attitudes and patterns of reasoning to justify their actions, such as that one cannot be held responsible for choices and actions whose consequences one cannot fully understand, especially if they are immature or unaware of them (a classic excuse for financial matters).

On the other hand, how can we condemn behaviour that takes place in a world as complex and uncertain as today's? Our relationship with the state is somewhat reminiscent of our relationship with our family. Parents are to blame for everything until they reach old age... If we seek a protected life with the familiar ideology of "We always stay young," then we may quickly arrive at the fantasy of "We always stay children." But why stay there? "Always babies" would perhaps be even better—and why not "always infants" or "always fetuses"! A protected life full of sleep, food, and play.

The role of adults

From the adults' point of view, unlimited tolerance of childish behavior is not consistent with either "understanding young people" or providing minors with the parental care they deserve. On the contrary, it goes hand in hand with the abandonment of the basic duties of adults to prepare minors for complete independence and, by extension, with indifference and disregard for the educational role which is, by definition, incumbent upon all members of any society worthy of the name.

I would like to focus on this last point. Our responsibility is enormous. We must stop producing "always young" people, we must overturn the philosophy of "retirement first, work later" and ensure that we prepare the young adults and minors of this country for adulthood.

If you vote from the age of seventeen, you should be ready to judge how you choose what to vote for. Gambling is allowed from the age of twenty-one onwards. Coincidence?