In hard times, fear can impair decision-making | Hacker News Reader

In hard times, fear can impair decision-making

nytimes.com

12 pointsbootload6 comments

We go into a defensive state because we're all worried that we won't be able to correct mistakes made. For example: quit your job to try your hand at a start-up. In good times, it fails and you just grab yourself a job with some firm after it fails. In bad times, it fails and you don't get another job. Or at least that's the fear. We fear that we won't be able to correct things if something goes wrong.

Despite what society tells us, I think that fear is normal and totally acceptable. We know ourselves best. And sure, after the fact we can say things like "oh I should have", "I could have" or "if only I wasn't scared", but you know what, that's life. Hindsight is 20/20.

The key is looking back on the situation and spotting the signs that should have encouraged you rather than made you scared. And perhaps you can pass that knowledge to your future generation and hope that they put your experience to use.

We don't choose to fearful. But we do choose what information we expose ourselves to.

A surfeit of scary information can be harmful; it can make us more scared than we need to be. The author's research indicates this can lead to making bad decisions because we're expending our mental effort on being scared.

A surfeit of scary information can be harmful; it can make us more scared than we need to be

that works both ways. a surplus of naively optimistic information (you! can! flip! a! house! today!, no money down), encourages excess risk.

if anything though, the "fear" of negative consequences is nonsensical now because for many americans, avoiding disaster is not an option, disaster is already happening. positive thinking isn't going to unforeclose their home.

the fear is justified! the average american worker, right on up to six figure incomes, has been moving toward a paycheck-to-paycheck existence, hobbled by hopeless debts and mired in pointless consumerism. even living paycheck-to-paycheck, these people are measuring down to the last penny. one missed check and they are fucked. no savings. no 401k. lots of bills. no equity in anything. they're right to be afraid.

the way out of this fear isn't to have some anthony-robbins moment of self affirmation, its to get out of debt and start creating real nesteggs that preclude the fear. a minimal real nest egg, which everyone out of college and older should have - six months of real living expenses. don't cheap out either, measure what you really spend, including your idiotically expensive cell contract and your nightlife.

No, that's not true. The "average" american has had very little change. Sure there have been many losses for some people, but the average? Didn't change much.

I agree with the rest of what you wrote. But people have been living paycheck to paycheck before, and still are. That has hardly changed at all.

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