Deception is Expected

Robin Hanson and Kevin Simler consider it normal and expected that humans are deceptive creatures. We evolved, according to the authors, to be deceptive so that we could get a little bit more for ourselves and have a slightly better chance of reproducing and keeping our genes in the mix. We don’t boldly take things and openly cheat to get what we want (most of the time), but instead we do our best to be a team player, with some marginal cheating and stealing under the table. As they put it,

 

“Deception is simply part of human nature‚Äďa fact that makes perfect sense in light of the competitive (selfish) logic of evolution. Deception allows us to reap certain benefits without paying the full costs. And yes, all societies have norms against lying, but that just means we have to work a little harder not to get caught. Instead of telling bald-faced lies, maybe we spin or cherry-pick the truth.”

 

This leaves us in an interesting position as we think about how we should act at an individual level and how societies should organize themselves at a larger level. We want to have norms in place that deter cheating and lying to help protect people’s property, to prevent fraud, and to create a system where people can meaningfully engage with one another and trust their institutions. But at the same time, we recognize that there is going to be a substantial amount of deception and a natural urge to be deceptive in order to obtain a little more benefit with a little less cost. Individuals will behave this way, and so will the families, social groups, communities, states, and nations that individuals create.

 

A solution that I would explore would be to accept Simler and Hanson’s views openly, and then begin looking closely at externalities. Externalities (usually discussed in the negative sense) are the additional things that stem from the original action. Deceptive behavior can have negative externalities, such as wastes of money when we buy sports cars to show off rather than using our money for more productive and charitable uses. At the same time, deceptive behavior can have positive externalities, such as the benefits of charity when we donate large amounts of money, again to show off.

 

If we accept this is happening, then in our own lives and in our societies we can try to add additional costs (such as taxes) on deceptive behaviors with negative externalities, and we can do more to encourage deceptive behaviors that produce largely positive externalities. We don’t have to abandon our human nature, but we can collectively decide to shape the consequences we might face for being deceptive in certain situations. This can help bring our behaviors and actions in line with the outcomes we want, but it does require that we accept what is taking place inside our brains and accept that we are not always as wonderful as we would like to appear.

A Critique of Our Current Markets

A lot of people today feel that capitalism is failing them. They feel left behind and they believe that the system is rigged against them. This will undoubtedly be a major driving factor in the next presidential election and there will be many candidates who offer their own diagnosis as to why people feel the way they do. A key reason, I believe, as to why people feel the system is failing them is highlighted by Colin Wright in his book Becoming Who We Need to Be. Wright addresses the way that many people seem to be creating businesses, making money, and becoming successful through trickery and rent-seeking behavior. He writes, “…this means that if we can find a clever way to extract money from the system, even if we don’t create anything of value, or we sap value from society in the process, we’re still doing it right.”

In a recent podcast episode for his show Against The Rules, Michael Lewis described the way that many financial companies exist not to serve customers better, but to operate in a way that makes money seemingly by fooling customers into making decisions that benefit the company without benefiting the consumer. I’m sure that for many of us, our healthcare or health insurance has felt that way. Also for a lot of us, we probably felt that we got a little ripped off on one of the first times we tried to purchase something on Ebay, and ended up not quite getting what we expected.

A lot of aspects within our economic system at the moment seem to reward people even if they don’t give us what we expected. There are incentives to create systems and products that sound clear, but end up being hard to access and ultimately don’t seem to make us or anyone except the seller any better off.

On our own, we all want to get the most money and reward from doing the least amount of work. At times it is true that we all want to bust our bums and do great work, but if we could just set something up where we made money no matter what and didn’t have to do any real work, on some level we would be happy. On an individual level this is not a big deal, but when it is combined, multiplied, and turned into a corporation it can become a problem for society, and that is what we are seeing in the national mood today. People sense that the system is not fair and doesn’t produce fair outcomes. The individual instance of being ripped off might not be the thing that makes them the most angry, but rather the fact that the system allows for people to pull out money and become successful without creating value makes people lose faith in institutions. At a certain level, no matter what our individual incentives are, we should recognize and accept that this is a bad way to operate long term, and we would be better off within a society that seemed to operate more fairly because it would create less anger and more stability on a societal level.