What economists and Mormons have in common | Gary Stevenson and Abby Innes

Quick Overview

Economists and Mormons share a common trait: they both tend to believe in what they're told, even if it's not entirely true, leading to a self-perpetuating cycle of belief and behavior. Gary Stevenson, a former trader and anti-inequality activist, argues that this "herd mentality" is evident in both financial markets and religious communities, where individuals often follow established narratives or groupthink rather than critical analysis.

Key Points: Economists and Mormons are both characterized by a tendency to believe what they are told, creating a self-perpetuating cycle of belief, according to Gary Stevenson. Stevenson likens this phenomenon to "herd mentality," observed in both financial markets and religious communities, where individuals often follow established narratives over critical thought. He suggests that people in elite spaces, like economists or those raised in strict religious environments, may be conditioned to accept certain beliefs without questioning them. The "effective markets hypothesis" in economics, which posits that markets are efficient and prices reflect all available information, is presented as an example of a widely accepted belief that may not always hold true. Stevenson draws a parallel to religious dogma, suggesting that unquestioning faith can lead to similar outcomes where accepted narratives are maintained despite evidence to the contrary. He implies that this tendency to 'believe what you're told' can lead to individuals not fully understanding the systems they are part of, whether financial or social.

Context: Gary Stevenson, an anti-inequality activist and former trader, discusses his observations on the similarities between economists and Mormons in their shared tendency towards belief in established narratives. He posits that this phenomenon, which he terms "herd mentality," influences decision-making and behavior in both financial markets and religious communities, leading individuals to accept prevailing beliefs without critical examination. The discussion touches upon the economic concept of efficient markets and draws parallels to the unwavering faith often found in religious upbringings.