Zero sum bias is an extremely important issue. I think it is the dominant issue adversely affecting economic growth.
During evolutionary time there were many, many things that were all zero-sum. It is hard to think of any that were not. You have to remember that over evolutionary time, the average number of children that each person had was 2. The average woman had 2 children, the average man had 2 children. We know the average was 2 because if the number was different than 2, then over 1,000 generations humans would have expanded to levels we know did not happen, or humans would have gone extinct. (1.025^1,000 = 5e10).
Territory is zero-sum. That is, there is only so much territory and if one person has it, another person doesn't.
The number of fertile mates per generation is fixed, and so is subject to zero-sum allocation.
Social status is also zero-sum. There are a fixed number of individuals. In the social hierarchy, you are either above someone or below them. If one person moves up, other people have to move down. There is no “absolute” social status, social status is only relative. Social status is only zero-sum.
The dominant mindset in a zero-sum system is to generate a monopoly of a necessity, then use that monopoly in one zero-sum system to get things that are in another zero-sum system. To the extent that zero-sum things are fungible, one zero-sum thing can be traded for another. Money can be used to get mates, territory, social status, food, etc. But only when money is zero-sum (short term limit), when there is hyperinflation, money is not zero-sum and it doesn't work.
This strategy only works when there are multiple systems that truly are zero-sum. If a system is not zero-sum, then supplies of it are not as limited and so it is of much less value in trading for things that are limited.
This is the mindset of those who are trying to acquire power in a top-down social hierarchy; to compel things to exist only in zero-sum systems where another zero-sum system (money) must be used to exchange for other things (health care, food, living space, internet access, education).
This is why the concept of “free” is so anathema to those who are trying to acquire power in a top-down social hierarchy. If people can get what they want/need for free, then zero-sum property/systems have no special value and in the limit have no value.
This relates to a recent blog, where I discuss my ideas of what causes xenophobia.
http://daedalus2u.blogspot.com/2010/03/physiology-behind-xenophobia.html
I see xenophobia as the feeling that someone is at the bottom of the social power hierarchy, below the cut-off where someone is sufficiently like you to be considered to be “human-enough” to treat well and with respect. Moving people down the hierarchy causes you to move up.
This is the mindset of many conservatives, to compel things to exist only in a zero-sum system where another zero-sum system (money) must be used to exchange for other things (health care, food, living space, internet access, education).
This is why the concept of “free” is so anathema to conservatives. If people can get what they want/need for free, then zero-sum property/systems have no special value and in the limit have no value.
Please, let's avoid polarizing this site, especially with vague negative comments about Those Hated Greenists like that. I ...
This is the first part of a mini-sequence of posts on zero-sum bias and the role that it plays in our world today.
One of the most pernicious of all human biases is zero-sum bias. A situation involving a collection of entities is zero-sum if one entity's gain is another's loss, whereas a situation is positive-sum if the entities involved can each achieve the best possible outcome by cooperating with one another. Zero-sum bias is the tendency to systematically assume that positive-sum situations are zero-sum situations. This bias is arguably the major obstacle to a Pareto-efficient society. As such, it's very important that we work to overcome this bias (both in ourselves and in broader society).
Here I'll place this bias in context and speculate on its origin.
Where this bias comes from
It's always a little risky to engage in speculation about human evolution. We know so little about our ancestral environment that our mental images of it might be totally wrong. Nevertheless, the predictions of evolutionary speculation sometimes agree with empirical results, so it's not to be dismissed entirely. Also, the human mind has an easier time comprehending and remembering information when the information is embedded in a narrative, so that speculative stories can play a useful cognitive role even when wrong.
Anatomically modern humans appear to have emerged 200,000 years ago. In the context of human history, economic growth is a relatively recent discovery, only beginning in earnest several thousand years ago. The idea that it was possible to create wealth was probably foreign to our ancestors. In The Bottom Billion, former director of Development Research at the World bank speculates on the motivation of rebels in the poorest and slowest growing countries in the world who start civil wars (despite the fact that there's a high chance of being killed as a rebel and the fact that civil wars are usually damaging to the countries involved)
Neither the developed world nor the countries that Collier has in mind are genuinely good proxies to our ancestral environment, but like the people in the countries that Collier has in mind, our ancestors lived in contexts in which growth of resources was not happening. In such a context, the way that people acquire more resources for themselves is by taking other people's resources away. The ancient humans who survived and reproduced most successfully were those who had an intuitive sense that one entity's gain of resources can only come at the price of another entity's loss of resources. Iterate this story over thousands of generations of humans and you get modern humans with genetic disposition toward zero-sum thinking. This is where we come from.
For nearly all modern humans, the utility of zero-sum bias has lapsed. We now have very abundant evidence that the pie can grow bigger and that win-win opportunities abound. Both as individuals and as representatives of groups, modern humans have a tendency to fight over existing resources when they could be doing just as well or better by creating new resources that benefit others. Modern humans have an unprecedented opportunity to create a world of lasting prosperity. We should do our best to make the most of this opportunity by overcoming zero-sum bias.