12 October 2018

The good are not rich

Scientists have found out why there are no "good guys" in business

RIA News

Kind and decent people are extremely rare among successful businessmen for the reason that they often become bankrupt and value money much less than more cynical entrepreneurs. This conclusion was reached by economists and sociologists who published an article in the Journal of Personality and Social Psychology (Nice guys finish last: When and why agreeableness is associated with economic hardship – VM).

"We wanted to understand how complaisant nature and failures in financial matters are related. In the past, our colleagues have already shown that good people usually have lower salaries and receive less significant loans than other people. We checked whether this is the case in other areas of finance," says Sandra Matz from Columbia Business School in New York (in a press release Nice People Finish Last When It Comes To Money – VM).

It is believed that most mammals, except humans and some higher primates, are not inclined to help their fellow tribesmen and do not maintain friendly ties outside their pack. In recent years, scientists have conducted many "altruism tests" involving chimpanzees, some other monkeys, as well as infants and children.

The tendency to altruism and mutual assistance, as evolutionists believe today, was one of the main reasons for the success and survival of mankind in the past. On the other hand, success in a capitalist economy is achieved in exactly the opposite way. Here, as Matz puts it, "the good are beaten", and the most cynical and inhumane business practices that serve as the foundation of modern multinational mega-corporations win. 

Matz and her colleagues decided to check whether this proverb is true, and if so, to understand what is the reason for the lack of success of compliant people in business and finance. To do this, scientists analyzed data from several large-scale social surveys, in which about 10 thousand people participated, as well as a database of bank accounts, which included information on bankruptcies and the financial situation of about 2.5 million British citizens.

Comparing and combining these data, scientists found that the level of complaisance of a particular Briton was indeed associated with a number of economic and financial problems in his life. For example, such people had fewer savings, were more likely to become bankrupt at the personal or corporate level, and had a more modest profit and revenue than typical businessmen. 

All these problems, as the analysis of the data of opinion polls showed, were related to the fact that kind and accommodating people value money noticeably less than other categories of citizens, and consider various social and psychological factors, such as justice or mutual trust, a more significant value.  "We have shown that kindness and trust are very expensive for their connoisseurs in the modern world. They do not always have savings and other financial resources in order not to suffer from such traits of their personality," Matz concludes.

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