It is rational for individuals to maximize their income, and make as much money as possible. But when everyone tries to make money at once, rationality is displaced by irrationality. How does one make any sense of this. You cannot, not at least using any traditionally understood regimes of counterproductive arrogance, despotism, and neocolonialism bigotry.
I have said before. And I will say it again in the future. Dual standards, hypocrisy and convenient “selectivity,” are all mechanisms by which a particular interest is transformed from the confused to the real. Theory is exceptional but reality bites.
We hear of market fundamentals and it scares us. To deviate from the norm, the mean or converge and diverge, all at the same time, is a frightening proposition that only a warm bottle of milk, a pacifier and our favourite uncle will be able to solve. Rubber ducks aside, consider this.
The mania in Tulipmania was never really there. Thank Kruger for that, but if you were reading Kindlebergher, or other i’m-here-to-compete-and-jump-the-gun-because-i’m-just-so-pathologically-brilliant academics, you would have simply turned the page and ended up with a now abundant resource(s): ignorance, complacency, obnoxious pompousness. And a whole bunch of patronizing love affairs, but add those later for effect.
Examples are plentiful but none are as effective as our proverbial yelling of the word ‘fire’ in a ‘crowded theatre.’ Replace ‘fire’ with rational actor and replace ‘crowded theatre’ with irrational mice. You may laugh, but I do so with premeditated intent. The irrational need to be controlled, or guided into the realm of the ‘rational’ so as to become controllable. Irrationals are mice, lesser-humans; but then who is to say that mice are irrational or imbecilic. Quite the opposite.
I can continue but it would serve no purpose. What is and isn’t rational depends on who selects the criteria. Those who select the criteria are often themselves personally invested, either for pecuniary gain or political hegemony. Vanity.
Actually, I’ll make this a part of a longer love affair. Spin. Before I do that, remember that a collective action problem is NOT a pathology of social existence: if you fancy being lied to, and do I ever know individuals who do, including academics, feel free to entertain it at your own peril. Sophists.