"Extreme Wealth Is Bad for Everyone—Especially the Wealthy", review of Billionaires: Reflections on the Upper Crust by Darrell M. West:
In yet another study, the Berkeley researchers invited a cross section of the population into their lab and marched them through a series of tasks. Upon leaving the laboratory testing room the subjects passed a big jar of candy. The richer the person, the more likely he was to reach in and take candy from the jar—and ignore the big sign on the jar that said the candy was for the children who passed through the department. Maybe my favorite study done by the Berkeley team rigged a game with cash prizes in favor of one of the players, and then showed how that person, as he grows richer, becomes more likely to cheat...A team of researchers at the New York State Psychiatric Institute surveyed 43,000 Americans and found that, by some wide margin, the rich were more likely to shoplift than the poor. Another study, by a coalition of nonprofits called the Independent Sector, revealed that people with incomes below twenty-five grand give away, on average, 4.2 percent of their income, while those earning more than 150 grand a year give away only 2.7 percent. A UCLA neuroscientist named Keely Muscatell has published an interesting paper showing that wealth quiets the nerves in the brain associated with empathy: if you show rich people and poor people pictures of kids with cancer, the poor people’s brains exhibit a great deal more activity than the rich people’s. (An inability to empathize with others has just got to be a disadvantage for any rich person seeking political office, at least outside of New York City.) “As you move up the class ladder,” says Keltner, “you are more likely to violate the rules of the road, to lie, to cheat, to take candy from kids, to shoplift, and to be tightfisted in giving to others. Straightforward economic analyses have trouble making sense of this pattern of results.”...Not long ago an enterprising professor at the Harvard Business School named Mike Norton persuaded a big investment bank to let him survey the bank’s rich clients. (The poor people in the survey were millionaires.) In a forthcoming paper, Norton and his colleagues track the effects of getting money on the happiness of people who already have a lot of it: a rich person getting even richer experiences zero gain in happiness. That’s not all that surprising; it’s what Norton asked next that led to an interesting insight. He asked these rich people how happy they were at any given moment. Then he asked them how much money they would need to be even happier. “All of them said they needed two to three times more than they had to feel happier,” says Norton.
Luke/SI asked me to look into what the academic literature might have to say about people in positions of power. This is a summary of some of the recent psychology results.
The powerful or elite are: fast-planning abstract thinkers who take action (1) in order to pursue single/minimal objectives, are in favor of strict rules for their stereotyped out-group underlings (2) but are rationalizing (3) & hypocritical when it serves their interests (4), especially when they feel secure in their power. They break social norms (5, 6) or ignore context (1) which turns out to be worsened by disclosure of conflicts of interest (7), and lie fluently without mental or physiological stress (6).
What are powerful members good for? They can help in shifting among equilibria: solving coordination problems or inducing contributions towards public goods (8), and their abstracted Far perspective can be better than the concrete Near of the weak (9).
These benefits may not exceed the costs (is inducing contributions all that useful with improved market mechanisms like assurance contracts - made increasingly famous thanks to Kickstarter?) Now, to forestall objections from someone like Robin Hanson that these traits - if negative - can be ameliorated by improved technology and organizations and the rest just represents our egalitarian forager prejudice against the elites and corporations who gave us the wealthy modern world, I would point out that these traits look like they would be quite effective at maximizing utility and some selected for in future settings…
(Additional cautions include that, in order to control for all sorts of confounds, these are generally small WEIRD samples in laboratory or university settings involving small-scale power shifts, priming, or other cues; as such, all the usual criticisms apply.)
1 Notes
2 References
“Power increases hypocrisy: Moralizing in reasoning, immorality in behavior”, Lammers et al 2010; warning, Stapel! But Lammers says committee cleared this paper.
“Moral Hypocrisy, Power and Social Preferences”, Rustichini & Villeval 2012:
“Breaking the Rules to Rise to Power: How Norm Violators Gain Power in the Eyes of Others”, Kleef et al 2011:
“Morality and Psychological Distance: A Construal Level Theory Perspective”, Eyal & Liberman:
“People with Power are Better Liars”, Carney et al 2010:
“Psychological perspectives on the fiduciary business”, Donald C. Langevoort
“The Dirt on Coming Clean: Perverse Effects of Disclosing Conflicts of Interest”, Cain et al 2005
“When Sunlight Fails to Disinfect: Understanding the Perverse Effects of Disclosing Conflicts of Interest”, Cain et al 2011
“Power Posing: Brief Nonverbal Displays Affect Neuroendocrine Levels and Risk Tolerance” Carney et al 2010
“Reality at Odds With Perceptions: Narcissistic Leaders and Group Performance”, Nevicka et al 2011:
“How quickly can you detect it? Power facilitates attentional orienting”, Slabu et al
“You focus on the forest when you’re in charge of the trees: Power priming and abstract information processing”, Smith& Trope 2006
“Powerful People Make Good Decisions Even When They Consciously Think”, Smith et al 2008
“Cooperation and Status in Organizations”, Eckel et al 2010
Another good set of studies focusing on rich/powerful behavior.
2 of the primary researchers write in a 2012 NYT op-ed “Greed Prevents Good”
Relevant studies:
Kraus & Keltner 2009, “Signs of socioeconomic status: a thin-slicing approach”:
Consistent with the previously cited studies about how acting rude or defecting is perceived as power.Kraus et al 2010 “Social Class, Contextualism, and Empathic Accuracy”:
See the previous discussions of blame, self-centeredness, lack of empathy, and rule-breaking; related: fundamental attribution bias.Stellar et al 2012, “Class and compassion: socioeconomic factors predict responses to suffering”:
Piff et al 2012, “Higher social class predicts increased unethical behavior”: