Friday, March 18, 2005
Socionomics Part II
About a month ago I wrote this post on socionomics. After that I was contacted by Gordon Graham who is the director of the Socionomics Institute. Mr. Graham politely pointed out some mistakes and mischaracterizations I had made concerning this new field. He offered to correct my effort and the result is below. I thought it would be a great disservice to my readers to not offer the best explanation and reading Mr. Graham's revision I can see that I did not do a very good job. Please note that Mr. Graham was extremely kind and I am flattered that he would consider our blog worth his time. IMHO, this reflects his desire to give the public a better understanding of a new approach to economics, sociology, finance, etc. from which the world will greatly benefit.
Socionomics is a new theory of social causality that offers fresh insights into collective human behavior. Its primary hypothesis is that humans unconscious and pre-rational impulses to herd lead to the emergence of social mood trends, which in turn shape the tone and character of all social action, including economics and finance. In general terms, social mood motivates social action and not the other way around as is commonly assumed.
Below are a few examples of the difference in causal perspective between socionomics and conventional theories:
Recession causes businessmen to be cautious.
Talented leaders make the population happy.
A rising stock market makes people increasingly optimistic.
Scandals make people outraged.
Happy music makes people smile.
Cautious businessmen cause recession.
A happy populationi makes leaders appear talented.
Increasingly optimistic people make the stock market rise.
Outraged people seek out scandals.
People who want to smile choose happy music.