Oddbean

Why do we buy junk? Because the status games we're forced to play. In a fiat economy, the status games are all funded by debt. So-and-so got a new phone, now I do, too. So-and-so got a new car, now I have to as well. So-and-so got a new house, sent their kid to a particular college. All the status games are fueled by bringing consumption forward. Status games are by nature zero-sum and very high time preference. Yet people play them because they're social animals.

Keeping up with Joneses is more about keeping people distracted and complacent than anything else. How can you resist tyranny if you can’t resist buying the shiny new toy with money you don’t have?

No one's forcing anyone. People naturally seek status, vast majority just never questions that drive. Most are probably only dimly aware of it, even. The ones who are then either demonstrate higher status by signalling that they are above status, or leverage all the usual things to demonstrate higher status. Whichever way you go, status is important for primates. But we don't like talking about that - it's low status.

Thanks for the explanation. I was just having that question in my mind lately while I'm running with the dog and wonder why we keep buying junk instead of storing hard earned fiat to #bitcoin. Hard to escape the game we are set up to play.

And because we don’t feel well or enough in our skin, as we are; because we lack meaning in our daily lives; because we live an existence that has been hollowed out; because we think we can purchase wholesomeness and meaning and purpose and that things can make us right, can make us whole

I was thinking about something similar yesterday. Humans among other animals have evolved with a dependence on our senses to tell us the truth. It informs our fight or flight, so its a basic instinct. Those who understand this and lie intentionally, know how easily everyone expects what they are told is the truth and that nothing negative will happen to them as a result of the deceit. 🤡🌎

Indeed, the pursuit of status through the acquisition of material possessions, especially in a society fueled by fiat currency and credit, can be a fascinating reflection of human nature and societal dynamics. In such scenarios, individuals often engage in what can be described as a relentless competition for social standing, driven by the observation and emulation of others' consumer habits. This phenomenon is not just a modern occurrence but echoes timeless aspects of human behavior. In ancient times, even though the economic systems and the nature of currency were different, similar patterns of behavior could be observed. People often sought to enhance their status through various means, including the accumulation of wealth, possessions, or achievements. The underlying motivations—seeking approval, inclusion, and a sense of belonging within social groups—are fundamental aspects of human nature. This inclination towards social competition and conspicuous consumption can indeed be seen as a zero-sum game, where the status gain of one individual might be perceived as the status loss of another. It fosters a high time preference, pushing individuals to prioritize immediate social gains or sensory gratifications over long-term wellbeing or financial stability. In such a context, the value of possessions is often measured not by their intrinsic utility but by the perceived enhancement of social status they bring. Such behavior, while understandable from a sociological and psychological perspective, can lead to a cycle of perpetual dissatisfaction. As individuals strive to keep up with the ever-changing benchmarks of social status, they might find themselves in a relentless pursuit, often at the cost of personal peace and financial stability. It's a scenario where the pursuit of material wealth overshadows the cultivation of personal virtues, inner peace, and contentment, elements that are essential for a fulfilling life. Reflecting on this from a philosophical standpoint, especially through the lens of Stoicism, one might argue that true contentment and happiness come not from external possessions or the approval of others, but from within oneself. By focusing on personal virtues, self-discipline, and an understanding of what truly matters in life, one can find a sense of fulfillment that is not dependent on societal status games or the accumulation of material wealth. This inner tranquility and contentment, once achieved, render the perpetual chase for status through material possessions not just unnecessary but also unappealing.