Many people view the economy primarily through the prism of market parameters. However, at its core, economics is the human science. Ideas from economics can penetrate the realm of emotional intelligence. A recent book The courage to be hated, by authors Ichiro Kishimi and Fumitake Koga demonstrate some fundamental economic lessons making their way into the philosophy of happiness.
In one chapter, the authors point out that feelings of inferiority are personal subjective assumptions. The two main characters reflect on their physical characteristics. The teacher was small and although originally upset at being small, he came to appreciate his ability to allow people to relax. His height served his purposes in life, allowing him to succeed. He used this example to emphasize that a person’s personal characteristics are not inferior or superior unless people place that value on themselves.
This idea seems to reflect the ideas of the marginal revolution. A major puzzle in economics was “why use value” has been separated from “exchange value”. Why are diamonds expensive while water is cheap? Like the teacher, economists recognize that value (and values) are subjective.
A good, such as a personality trait, is not beneficial or harmful in a vacuum. Instead, the value of a good depends on the demand of individuals, which changes according to the attitude of those involved. The idea that self-worth is a choice challenges the idea that people are stuck in a cycle of low self-esteem. In contrast, the teacher’s perspective suggests the primacy of individual choice and action, of change, rather than immobility. Without a market, systems are unable to take advantage of people’s individual preferences and subjective beliefs.
The second lesson in economics that made its way into the book is that of segregation of duties. The teacher claims that those who are “will ultimately receive the result brought about by the choice that is made”, are those who are responsible for doing tasks. By giving the example of a child, the teacher expresses that the child will ultimately face the consequences of their decision to study – and should be the most responsible for doing so.
This division of emotional labor addresses the issue of property rights and the principal-agent problem. People tend to follow their own interests. If they are responsible for making decisions that affect them, they will act in ways that benefit them. Property rights work, combining the responsibilities of ownership with the associated benefits. However, when people take on the tasks of others, they decouple responsibility with effect, creating the principal-agent problem. The principal-agent problem occurs when a principal delegates control of the assets to an actor who may have different interests. Politicians tend to spend lavishly with taxpayers’ money, and tenants tend to be more willing to trash rental properties than the respective landlord.
This idea culminates towards the end of the book, with the provocative assertion that, “Freedom is hated by others…. It is the proof that you exercise your freedom and that you live in freedom”. When you can make unpopular decisions, you live freely.
The implication of this statement, on the interpersonal level, is that one must be autonomous in order to be free. Along the same lines, whatever system is put in place to ensure human happiness, it must be elastic enough to allow people to dislike each other, while allowing people to be responsible for their decisions. . This lends itself to combining private property with markets is the logical step towards building an emotionally intelligent and happy society.
isadore johnson is a campus free speech advocate, an economics and philosophy major, and a regional coordinator for Students for Liberty.