Learning To Be Rational, and Happy (his)

If we were completely rational beings we would be happier.  Our brains, however, are not built to be fully rational and therefore not designed to help us be happier.  If you’re looking to be happier you can’t always trust your brain.  If you question this premise you should learn more about Daniel Kahneman by reading his New York Times best-selling book, Thinking, Fast and Slow.

If you have followed our Twitter or Facebook posts you know that we’re fascinated by Daniel Kahneman.  He pops up often in our feeds and rightfully so.  He is a brilliant scientist and has turned his attention to the study of happiness.

I’m awestruck by Daniel Kahneman for the following 3 reasons:

1. He is a research psychologist who won the Nobel for economics in 2002.

In the 1970s Kahneman, along with his research partner Amos Tversky, began investigating the foundational assumption of economic theory – that people are rational economic thinkers.  Kahneman and Tversky’s “Prospect Theory” rebutted this basic premise by showing that people are not at all rational in their decision-making.  As one writer put it, “the human mind is so wedded to stereotypes and so distracted by vivid descriptions that it will seize upon them, even when they defy logic, rather than upon truly relevant facts.”*

I studied economics in college and again in my graduate program and was always troubled by the assumption that we’re all rational economic actors.  If this weren’t true then we should be skeptical of any economic theory based on it.  Through a series of experiments, Kahneman and Tversky showed that people are influenced by all kinds of factors that aren’t logical, reasonable or grounded in fact.  In uncertain circumstances our brains tend to grasp at information that’s readily available or easy to remember rather than true.  They called this “the availability heuristic” and as a result, Kahneman won the 2002 Nobel in economic science (Tversky would have been included but he died in 1996).

2. He is arguably the co-founder of the “Moneyball” movement in baseball.

Anyone who knows me knows I’m a big fan of the “Moneyball” movement in baseball.  This term was coined by Michael Lewis’s book Moneyball (recently made into a movie) that highlighted the shift in baseball from picking players based on a scout’s “gut” to more statistical analysis.  I love this movement because I believe we should make more of our decisions based on data and statistical analysis and less on our “gut”.  It’s also the reason for Hapacus.  Hapacus is a similar movement away from following our “gut” on what will make us happier and looking more towards the data of scientific research.

Now, let me connect the dots back to Kahneman.

Kahneman and Tversky’s debunking of the idea that we’re rational economic thinkers resulted in the rise of Behavioral Economics – what actually happens rather than what should.  Paul DePodesta, the assistant to Billy Beane, the GM of the Oakland A’s, and upon which the book Moneyball was based, studied Behavioral Economics at Harvard.  DePodesta (who was played by Jonah Hill in the movie) was hired by Beane because of his analytical data skills and interest in applying it to choosing the best players at the lowest price.  Therefore, Kahneman’s influence on DePodesta and all the other Behavior Economists and statisticians who now work in baseball’s front offices is significant.  Kahneman, however, can only be regarded as a co-founder because much of the credit for this movement is in the hands of Bill James, the father of baseball statistics.

3. He now focuses his research on happiness.

Daniel Kahneman

Rather than rest on his laurels, Kahneman, who is 77, continues to research and write about the frailties of our own minds, but in the context of how we pursue happiness.  Kahneman’s new book, Thinking, Fast and Slow helps us understand how our brains operate, why they can’t always be trusted, and what we can do to manage our minds so we do maximize our happiness.

The title and basis of his book come from the idea that our brains are made up of two systems – System 1:  our fast, automatic, intuitive and unconscious mind; and System 2:  our analytical, reasonable and conscious mind.  System 1 speeds along and takes care of many things on its own.  Unfortunately, System 2 is inherently lazy and not prone to check all the conclusions of System 1.  As a result, System 2 allows decisions based on faulty information to determine our actions.  Often there isn’t a problem either because the truth is close enough or the resulting action doesn’t do us much harm.  However, we make enough decisions about our life and our own happiness based on faulty assumptions coming from our System 1 that it’s important we work at engaging System 2 more actively and often.  But that takes work and we aren’t prone to such work.

True happiness takes work.  It takes a well refined System 2 to understand the happiness facts and constantly check the automatic workings of System 1.  Only by working on our System 2 can we maximize our happiness.  Daniel Kahneman teaches us that.
 

*Lewis, Michael, “The King of Human Error”, Vanity Fair, December, 2011, p. 145.

Our lives of extreme abundance (hers)

With Thanksgiving approaching, gratitude is on all of our minds.  Its physical health benefits, its mental health benefits, and the impact on our relationships will be echoed in the articles of thousands of newspaper and magazine articles this week.  Positive Psychology supports all of these findings, as we've discussed in numerous Facebook posts and past blog posts ("Why Hedonic Adaptation Undermines our Happiness" and "Sometimes it Pours").

Norman Rockwell, Freedom from Want, 1943

A more subtle but equally extraordinary outcome of gratitude is how it can change our outlook on life.  By outlook on life, I mean just how bountiful, beautiful, and blessed this life looks to us each and every day.

Bob and I call this the "abundance mentality," and it is one of the most important Positive Psychology takeaways, and part of the reason Thanksgiving is such a special holiday.

Understanding why we celebrate Thanksgiving helps us understand the abundance mentality.  We gather family and friends to celebrate a sharing of abundance in Plymouth colony hundreds of years ago.  In the midst of widespread starvation, dehydration, disease, and death in the Virginia colonies, an extraordinary group of pilgrims took the time to give thanks for their lives, their families, and their health.

For a moment, a group of people in horrible conditions felt blessed, content, and happy, all because they realized how much they truly had.

The "abundance mentality" is recognizing that our lives are a source of constant abundance, not scarcity.  This is inescapably true if only we change our outlook.  Thinking "big picture," as is often said in business, reminds us that we are surrounded by abundance, and the feeling that we are lacking is a consequence of narrow thinking.

You are living and breathing, you have food to eat and water to drink, your family is healthy, and you have a roof over your head.  America in the 21st century is cleaner, safer, and more secure than the majority of human societies that has ever walked the earth.  Your life is more comfortable than the majority of humans on the planet.  Only narrow thinking could convince us that we live in anything but extreme abundance.

Norman Rockwell, Thanksgiving: Girl Praying, 1943

And yet we invent that narrow thinking through the idea of scarcity.  We make believe that we are in need, and the human brain in all its power then makes us feel in need.  Like the survival instincts that make our bodies respond to stress at work like we're in mortal danger, we invent mental diseases that plague us for a lifetime.  The idea that we are lacking is one of those diseases.

The "abundance mentality" is the pill for the disease of scarcity.  The first step is being aware of this invention of scarcity.  Catch yourself the next time your partner wants something different than you for dinner.  The second step is investigating this feeling.  Am I really lacking because I'm eating salad and beef instead of noodles and fruit?  The third step is correcting it.  No, I'm not lacking, my life is overflowing with blessings, and I'm so grateful.

Of course, as with all of us, it is practicing this that is the difficult part.  This Thanksgiving, share with your friends or family the idea of the "abundance mentality," and in doing so, you'll have already accomplished 3 of the 4 steps of adult learning:  reading, discussing, and teaching.  All that's left is practicing, and once you're able to do that, you'll reap the benefits of living a life that always feels more than enough.

Gaining Momentum (his)

Sometimes you can tell if you're headed in the right direction by whether or not you're gaining momentum.  I've found there have been times in my life when I picked a path and it seemed at every turn I couldn’t catch a break and despite repeated efforts I got nowhere.  In those situations I would take it as a sign I’d picked the wrong path.  Hapacus has been just the opposite.

Someone recently asked me when I came up with the idea for Hapacus.  I can’t pick a date or identify a moment because it has been a very gradual progression.  Did it start when I first read Dr. Seligman’s book, “Authentic Happiness,” in 2002, or when I first thought of the idea of teaching a class on Positive Psychology in 2005, or when I finally came up with the name “Hapacus”, began organizing this blog, or put together a student curriculum in 2009?  Between 2002 and 2009 Positive Psychology was a hobby.  I read about it and applied its findings in my own life.  It wasn’t until late 2009 I started putting the pieces together in a way that could be considered a business.

Many times along that path I’ve had the thought, “oh, this isn’t going any further.”  And then something happens to push the idea, the structure and the business forward.  I don’t have those thoughts anymore because the momentum has reached a level that at the very least we will launch our commercial product in the spring of 2012 and I believe the momentum will carry us far beyond that.

Paradox of Choice (hers)

I doubt many Americans would have difficultly agreeing with the following three statements:

1.  Human freedom is good.
2.  Freedom means more choices.
3.  More choices means more well-being.

What if I were to tell you that many Positive Psychologists only agree with statement #1?

How can this be?  The belief that more choices lead to more happiness forms the foundation of not only our economic system but also our decision making.  We constantly seek more choices while continuing to fine-tune our ability to make the best decision.  100 kinds of TVs?  Good.  175 varieties of salad dressing?  Great.  The choice to work anywhere at any time?  Incredible.

Or is it?  Positive Psychologist Daniel Gilbert, author of Stumbling on Happiness, and psychologist Barry Schwartz, author of Paradox of Choice, say, "No, it isn't."  Through two TED Talks on the conundrum of choice, the finding that increased choice can lead to dissatisfaction and depression is brought to light.

Dr. Schwartz suggests that increased choice creates inaction and decreased satisfaction.  In a statistical analysis of voluntary retirement plan packages offered by a major bank, for every additional 10 options a company offers to its employees, employee enrollment decreases 2%.  As the decision becomes more complicated, we often choose not to choose.

Dr. Schwartz summarizes the four steps of decreased satisfaction brought about by more choices:

1.  Anxiety
After making a decision, we become anxious and second guess ourselves, wondering if we made the right choice.

2.  Loss

After making a decision and then second guessing it, we imagine the good aspects of the things we didn't choose.  Economists call this "opportunity costs," or the feeling of giving up what you didn't choose for what you did (see comic).

3.  Disappointment
After making a decision, second guessing it, and imagining what we could've chosen, we enlarge our expectations.  Perfection becomes our goal since there are so many choices, and if our choice isn't perfectly fulfilling, we're disappointed with it.

4.  Self-blame
After making a decision, second guessing it, imagining what we should've chosen, and believing we made the wrong one, we blame ourselves.  If you only had one choice and it didn't make you happy, you blamed your environment.  But with hundreds of options, who can we blame but ourselves? Dr. Schwartz believes this is at the core of increasing rates of depression in the United States.

So more is…worse?

Positive Psychologist Daniel Gilbert believes increased choice undermines our ability to "synthesize happiness," a fundamental component of human well-being.  "Synthesizing happiness" is what we do when we don't get what we want.  Didn't get the job you wanted?  "Ah, I'm better off without it."  Your really fun and attractive date never called you?  "We never would have made it."  Didn't take that big vacation?  "It would've made me even more stressed than I am now!"

That is called "synthesized happiness," and while most of us would silently mock these "synthesizers," studies show that they're just as effective as getting that job, going on that second date, or taking that vacation.  People are shown to be just as happy after synthesizing as they are after achieving what they wanted.

Increased choice, however, prevents synthesizing.  Instead of making the best of your new situation, you're stuck searching for a better situation from the always available pool of choices.  Choice, ironically, makes us even more stuck than we would've been with fewer choices.

Techniques we can use to prevent this dissatisfaction is limiting our exposure to additional choices.  Instead of viewing that additional page of movies on Netflix, choose the best from the small selection you have, and you'll be just as happy.

We can also stick with the choices we do make.  One of Bob's close friends used to say, "When you purchase something, stop shopping."  Purchase the non-refundable hotel dates, don't switch your selection mid-movie, and be happy with your order of spaghetti.

And in the end, you'll find that more freedom may be found in less choices.

TED Talk:  Paradox of Choice, by Barry Schwartz
TED Talk:  Why are we Happy?, by Daniel Gilbert