The rule of law, the value of diamonds, the... - Deepstash
The Psychology of Money

Learn more about psychology with this collection

How to develop a healthy relationship with money

How to create a budget

The impact of emotions on financial decisions

The Psychology of Money

Discover 52 similar ideas in

It takes just

7 mins to read

The rule of law, the value of diamonds, the existence of the economy—when we all agree to believe certain things, those things become real. Take paper money—it’s just paper, but as long as we all agree to believe in it together, it has value. It takes on the weight of reality.

32

192 reads

MORE IDEAS ON THIS

5. Nothing is entirely real.

If a whole civilization believes certain objects have power or value, and everyone behaves accordingly, then for all intents and purposes, they do possess that value or power. It may be a lie, but a quality counterfeit object still works precisely the same way the real object would—for exactly as...

33

184 reads

There are other exploitable neurological loopholes as well—for example, there’s the mirroring effect. Mirroring is when specialized cells in your brain called “mirror neurons” cause you to imitate the gesture, posture, or subtle movements of whomever you’re interacting with. Someone smiles, you s...

33

209 reads

Your visual cortex—the part of the brain that processes electrical signals from the retina and turns them into images in your mind—functions with a 0.1-second delay. So you can’t believe your eyes, because while your eyes may work, your brain is processing everything your eyes pick up about one-t...

33

222 reads

Jefferson Randolph Smith was a con man who set up the first telegraph office out of Skagway, Alaska. For the price of five dollars, settlers, frontiersmen, and prospectors could send a telegraph message to anyone in the United States. Unsurprisingly, there were lines around the building every day...

34

356 reads

People lined up and paid for over a year to send important messages that went as far as the wall of Smith’s office. So why were people so ready to believe that Smith could send out telegrams just because he said so?

33

347 reads

In the absence of evidence, humans tend to believe that whatever we’re presented with is true—be it someone’s name, a random fact, a complex explanation, even something as obvious as the presence of a physical object we see Neurologists refer to this tendency as the “honesty bias,” and it’s how w...

37

303 reads

It’s also the single adaptation that has allowed humans to develop speech, literacy, history, science, and civilization itself. You don’t have to discover, confirm, or even understand every fact or idea you learn, because you are biased to just accept them as true and keep climbing. This is the m...

35

267 reads

So in the long run, we benefit more from the honesty bias than we risk in being overly trusting. Our honesty bias may be exploitable, but it’s also indispensable.

33

268 reads

As Rutgers Professor of Anthropology and Biological Sciences Robert Trivers put it, “Our most prized possession, language, not only strengthens our ability to lie, but greatly extends its range.” Consider that when you lie with your scent, your pattern, or your petals, you can only lie about what...

37

407 reads

Your brain also doesn’t have the bandwidth to process everything you see, so it fills in most of what’s around you with what it expects to be around you. It’s only when something changes radically that your brain notices, and loops back around to see what’s going on.

32

218 reads

4. What matters is not if something is true, but if it is believed.

In 1898, four Denver reporters from different newspapers went to a bar, got really drunk, and made up a story. They all claimed in their separate papers to have met a team of four American engineers on their way to China. The engineers, they said, told them that they’d been hired to destroy the G...

33

212 reads

The point of this story is not that a single fake news story may have radically altered the course of 20th-century Chinese history—though it did—it’s that the Boxer Rebellion occurred just as it would have had the news been real. The cause may have been fictitious, but it had the same effect as i...

32

188 reads

1. You’re a natural-born liar.

We all lie, all the time—including you. Human deception is no different from its animal equivalent of camouflage, spots, and stripes. Charm is our very own version of frilly fins and peacock feathers. Like a stick insect adapted to hide among twigs, the effort to deceive, from camouflage to creat...

35

673 reads

It was a multi-person hoax, and unfortunately, other newspapers picked up the story, and it went viral. Within weeks, a major east coast newspaper did an entire special Sunday spread about the fake destruction of the Great Wall, including elaborate illustrations and further exposition about the C...

32

201 reads

3. Lies take advantage of the way we perceive—and construct—reality.

Seeing may be believing, but it really shouldn’t be. Your brain doesn’t actually have the processing power to deal with all of the sensory data available at every second—so, like all gamblers, it cheats. As a result, we often end up seeing what we expect to see.

Take shell games; everybody ...

33

235 reads

5 key insights from the new book, The Truth About Lies: The Illusion of Honesty and the Evolution of Deceit

34

640 reads

Because this was a respected newspaper, the story quickly spread to Europe, then to Asia, and finally to China, where political tempers were already running high. In fact, this fiction allegedly contributed to the Boxer Rebellion, a destabilizing and violent disaster that hastened the decline of ...

32

197 reads

Why we lie and how we believe are so inextricably intertwined that there can be no faith without fraud, no truth without lies, no civilization without cons. Whether they’re the lies we tell each other, or the subtler and more complicated lies we tell ourselves, deceit and belief are two halves of...

34

201 reads

Trickery is fundamental to interaction, and the instinct to misrepresent objective reality to suit our needs is fundamental to communication. In the evolution of deceit, language only came about quite recently, billions of years after more basic and more effective tools of the con. In fact, human...

34

502 reads

Reality, in other words, is circumstantial. In the greater scheme of things, it matters less whether or not a thing is actually true, but rather whether or not it is believed to be so.

33

187 reads

CURATED FROM

CURATED BY

tomjoad

Introverted Extravert

The Truth About Lies: The Illusion of Honesty and the Evolution of Deceit

Related collections

More like this

Gold, psychology, and society

If the modern paper-money economy were to collapse, we would fall back to gold.

  • People need to find ways of working together, which leads us to find ways of exchanging goods and services.
  • Gold is the logical choice of this exchange as it is one of the only substances on eart...

Emotional weight

There are certain foods that, when we eat too much of it, will bring health consequences. Similar to how eating certain foods can affect our physical wellness, thinking in specific ways can also have long-term effects on our emotional wellness. We could gain emotional weight, and it can becom...

The 5-Hour Rule

The most successful, busy people in the world dedicate at least 5 hours a week to deliberate learning.

The 5-Hour Rule is the most critical practice we can all adopt for long-term career success. However, almost no-one takes it as seriously as they should.

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving & library

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Personalized recommendations

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates