Chapter five of Stiglitz book expands more into why the 99 percent have so little political influence versus the one percent. Politics as shown in past chapters, as well as in coming chapters, has been the largest influence on the growing divided among the top and bottom percentages. He talks about how politics is a battleground of which the one percent is winning. In order to know why this is so, the author talks about factors of “shaping individuals’ perceptions—so that the ninety-nine percent adopt the interests of the one percent as their own” and “the economics and politics of voting itself” (Stiglitz, 2013, p. 150). In regards to shaping perception, he talks about voting behaviors with two terms; those terms are voting paradox and
…show more content…
Like the rest of this chapter, he examines how economics and psychology, or how people view what is versus what really is, and how the top percentage manipulates this. First is the connection between psychology and economics. In this section he goes over several terms used; they are framing, equilibrium fictions, behavioral economics, and modern marketing. Framing is simple; it basically means how something is defined. Equilibrium is “beliefs that are maintained strongly because of the evidence that people see—as they perceive and process it—is fully consistent with those beliefs” (Stiglitz, 2013, p. 188). Behavioral economics and modern marketing go hand in hand; this is how companies determine what people want and how they can use various forms of campaigning. Following the basics of the connection between psychology and economics, there are various tactics used by companies to take advantage of people’s limited understanding. The first is the tools and triggers used. In many cases, it is how certain things are worded. As we all have heard the pen is mightier than the sword, and in the policy world, it is much more so. The perception of the public is key to winning any battle; just as Stiglitz (2013) says at the end of chapter 6, “In politics, perceptions are crucial” (p. 232). If one has the public, then one has one the battle. The next few chapters focus on three central battlefields that strive for
Like the rest of this chapter, he examines how economics and psychology, or how people view what is versus what really is, and how the top percentage manipulates this. First is the connection between psychology and economics. In this section he goes over several terms used; they are framing, equilibrium fictions, behavioral economics, and modern marketing. Framing is simple; it basically means how something is defined. Equilibrium is “beliefs that are maintained strongly because of the evidence that people see—as they perceive and process it—is fully consistent with those beliefs” (Stiglitz, 2013, p. 188). Behavioral economics and modern marketing go hand in hand; this is how companies determine what people want and how they can use various forms of campaigning. Following the basics of the connection between psychology and economics, there are various tactics used by companies to take advantage of people’s limited understanding. The first is the tools and triggers used. In many cases, it is how certain things are worded. As we all have heard the pen is mightier than the sword, and in the policy world, it is much more so. The perception of the public is key to winning any battle; just as Stiglitz (2013) says at the end of chapter 6, “In politics, perceptions are crucial” (p. 232). If one has the public, then one has one the battle. The next few chapters focus on three central battlefields that strive for