THE LAW OF IRRATIONALITY

 INTRO

We always struggle to complete a project we started. We have great dreams that stays as a dream. We say to ourselves, “this time it’s different” but are doomed to repeat the same mistakes forever. It seems like a curse that we can’t escape from, always doing the same mistakes, always getting caught in the same type of problems. We're bombarded by notifications, seduced by instant gratification, and pulled in a million different directions. We think that, the 21st century has changed our primal behaviors. Is that the case? Are we really Rational?

THE STORY

The year was 432 BC, and Athens and Sparta stood as rival superpowers in the Mediterranean. The tension between the two cities reached a boiling point when Sparta presented new peace terms to Athens. The Athenian Assembly convened to debate the Spartan ultimatum, with Hawks advocating for war and Doves favoring peace.

As dusk settled, the crowd fell silent, anticipating the arrival of Pericles, the revered elder statesman. Pericles, unlike previous leaders, championed the lower and middle classes, transforming Athens into a prosperous city known for its arts and sciences.

Pericles proposed a unique strategy to confront Sparta. Instead of risking a suicidal land battle, Athens would bring its people within the city walls and launch naval raids on Sparta's coastal towns. The plan aimed to force Sparta into peaceful terms while minimizing loss of life and resources for Athens.

However, the events unfolded differently than Pericles had envisioned. Sparta and its allies remained undeterred, while Athenians became disheartened witnessing their lands destroyed without fighting back. To make matters worse, a powerful plague struck Athens, killing a third of the population and weakening the army. Pericles himself fell victim to the disease, witnessing his efforts crumble.

Amidst the chaos, the war faction gained prominence, blaming Pericles for the ineffective strategy. The Hawks promised an offensive approach, and Athens eventually regained strength, pressing their advantage against Sparta. The war continued for years, with Athens committing atrocities such as the massacre of men on the island of Melos and enslaving women and children.

In 415 BC, Athens planned an attack on Syracuse, a crucial Spartan ally. Nicias, one of the commanders, expressed doubts about the feasibility of the plan, but his objections only led to a larger force being sent. Months passed without news, fueling anxiety in Athens.

Finally, a rumor reached the port town of Piraeus that the entire Athenian expedition had been annihilated. The rumor spread and was confirmed—every ship and almost every man lost in battle. Athens, depleted of resources and soldiers, continued to resist but ultimately succumbed to Sparta's harsh terms of peace in 405 BC.

The absence of Pericles, the wise leader who had tempered their dangerous emotions, left Athens vulnerable. His wisdom and guidance were forgotten, leading to the downfall of the city-state.

THE INTERPRETATION

Pericles, a keen observer of Athenian politics, recognized the flaws in the system. Leaders were driven by personal gain and power, often blaming others or even the gods when their plans failed. Athens suffered from a fragile democracy and rampant corruption due to irrational decision-making fueled by emotions.

Seeking a solution, Pericles realized that people needed something to worship and direct their attention towards. For him, it was the concept of "nous," represented by the goddess Athena. Athena embodied rationality and guided heroes towards victory and success.

To cultivate his inner Athena, Pericles mastered his emotions. He refused to make decisions under their influence, taking time to analyze his feelings and distancing himself from heated situations. He focused on what served the greater good of Athens, aiming to unify its citizens and improve their lives.

Pericles embraced diverse ideas, even those from his opponents, to make informed choices. His strategies transformed Athens, leading it to a golden age of prosperity. However, without Pericles' influence, Athens fell victim to politically motivated decisions during its war with Sparta.

The story of Pericles carries suspense as he wrestles with the flawed nature of Athenian politics. His pursuit of rationality and unity builds anticipation for the outcomes of his decisions. The absence of his guiding influence heightens the tension, leaving Athens vulnerable to the consequences of emotionally driven choices.

THE CYCLE OF LIFE

In times of difficulty, we often seek external explanations for our failures, blaming others or larger forces beyond our control. These vague explanations only reinforce our sense of helplessness and intensify negative emotions like anger, frustration, and depression. It's a deeply ingrained human reaction, observed throughout history under different names, from ancient beliefs in gods and evil spirits to modern-day attributions.

However, the truth is different. While external factors may influence us, the root cause of our missteps lies within our own deep-seated "irrationality." Let's examine this through the lens of the 2008 financial crash.

During the 2000s, the internet boom made the dream of homeownership accessible to many. Investing in real estate became a nationwide craze, as people grew wealthier and the housing market flourished. But in 2008, the market took a sharp downturn. Various explanations emerged in the media, such as trade imbalances, cheap credit, insider manipulation, and lack of oversight. However, these explanations mask a crucial reality.

At each stage of the investment process, individuals made deliberate decisions. They had ample opportunities to step back from risky investments but chose not to. Warning signs of an impending bubble were abundant, as evidenced by the crash of the hedge fund Long-Term Capital Management a few years prior. Even the average potential homeowner could understand the risks associated with no-money-down mortgages and loans with rapidly rising interest rates.

Despite these warnings, people disregarded them, lured by the promise of easy money and convincing themselves that "this time it's different." Similar explanations had been offered after previous crashes in 1987, 1929, and even the South Sea Bubble of 1720. Bubbles occur because they exert an intense emotional pull, overriding rational thinking and appealing to our innate desires for quick gains and easy success. Unless we confront the true source of the problem, history will inevitably repeat itself.

It is essential to recognize and address our own deep-rooted irrationality. By understanding the patterns of human behavior and the role emotions play in decision-making, we can navigate through financial challenges with greater clarity and foresight. Let's break free from the cycle of repeating mistakes and embrace a more rational approach to achieve long-term stability and success.

EVOLUTION

For millions of years, animals relied on instinct to survive, with no separation between impulse and action. Slowly, fear developed as a critical form of communication, alerting them to danger. Social animals, like primates, further evolved complex emotions like anger, envy, and vengeance.

Neuroscientists suggest the mammalian brain consists of three parts: the reptilian brain for automatic responses, the limbic brain for emotions, and the neocortex for cognition and language. Emotions arise as chemical reactions and physical arousal, but when we try to articulate them, problems arise. Often, the true source of emotions is hidden below our conscious awareness.

We lack conscious access to the origins of our emotions, interpreting them based on simplistic and self-serving narratives. This makes it challenging to learn from them and break free from compulsive behavior. Our communication of emotions can be misunderstood, leading to conflict and personal attacks.

Unlike animals, humans constantly translate between emotions and cognition, creating a conflict within us. Our technological revolution may have changed the forms of our emotions, but it hasn't tamed our irrationalities. The constant presence of social media leaves little mental space for calm reflection, keeping us besieged by emotions and needless drama.

As the story unfolds, the question remains: Can rationality prevail over our deep-rooted irrationality? Can we find a way to step back, think, and rise above the emotional turmoil that continues to shape our human nature?

The answer lies on the horizon, as the battle between rationality and irrationality reaches its climax.

RATIONAL VS IRRATIONAL

In a world divided by opinions, the label of "irrational" is often thrown around to discredit those who disagree. But what does it truly mean to be rational or irrational? Emotions constantly sway our thinking, leading us down paths that soothe our egos and align with our desires. It's impossible to be devoid of inclinations and feelings.

Yet, rational individuals are aware of this inherent bias. Through introspection and effort, they strive to subtract emotions from their thinking, even if only to some extent. On the other hand, irrational people lack this self-awareness. They rush into actions without considering the consequences, their decisions driven solely by unchecked emotions.

Over time, rational individuals demonstrate their ability to finish projects, achieve their goals, and build something enduring. They learn from their mistakes, adjusting their approach and finding success. However, irrational people continually repeat the same errors, their dreams and desires never manifesting in concrete actions.

Consider the hiring process as an example. Rational people evaluate candidates based on qualifications, seeking the most suitable fit. Conversely, irrational people make decisions based on personal opinions and emotions, often leading to detrimental outcomes. Rational individuals can acknowledge their own irrationalities, humbly accepting their flaws and striving to grow. In contrast, the irrational become increasingly defensive, unable to engage in introspection and learning.

As the story unfolds, a sense of suspense lingers. Will the rational prevail, overcoming their biases and building a better future? Or will the grip of irrationality tighten its hold, perpetuating the cycle of mistakes and missed opportunities? The answer lies in the choices we make and the paths we choose to follow.

But amidst the clash between rationality and irrationality, a burning question remains: What are the steps one can take to cultivate and strengthen rationality? The answer holds the key to unlocking a world where sound decisions and true progress thrive. Stay tuned to uncover the transformative journey that leads to a higher plane of rationality, where the fog of emotions dissipates, and clarity reigns supreme in the next part.

Rationality is a power that doesn’t come naturally. It is a power we must cultivate, but in doing so we realize our greatest potential.