We live in a market economy. We are frequently exposed to reminders of money. Does living under capitalism change our behavior? In a classic paper, social psychologists Margaret Clark and Judson Mills distinguished between communal relationships such as those that exist between family members and friends, and exchange relationships such as those that occur in business. Different norms apply to these two types of relationships. For example, people in an exchange relationship keep track of each other’s inputs into a joint task, while people in a communal relationship keep track of each other’s needs.
Several studies suggest that leading participants to think about money changes their behavior in predictable ways. These studies use cognitive priming to create subtle reminders of money. For example, participants may be asked to unscramble words into meaningful sentences. In one condition, all the sentences just happen to be about money, while in another condition they are about something else. In general, thinking about money increases achievement on difficult tasks, but decreases altruism or helping behavior.
In the latest contribution to this research, Agata Gaslorowska and her colleagues report four experiments done with Polish children aged 3 to 6. The priming manipulation was a sorting task. The children in the money condition were asked to sort 25 coins into three different denominations. Those in the control group sorted nonmonetary objects, such as buttons or hard candies.
Two of the experiments involved motivation and performance. In one of them, children who had handled money were more likely to complete a difficult labyrinth puzzle than those in the control group. In the second, those in the money condition spent a longer time working at what was essentially an insoluble task, a jigsaw puzzle intended for older children.
The other two studies involved willingness to help another child. In the third experiment, children were given an opportunity to help by bringing the child red crayons from across the room. Those who had sorted money brought fewer crayons than those in the control group. The final study measured self-interested behavior as well as altruism. As a reward for being in the study, the children were allowed to choose up to six stickers for themselves. Those who had handled money took more stickers. Then the children were asked if they would donate some of their stickers to another child who had not participated in the study. Those in the money condition donated fewer of their stickers. The results are shown below.
For each percentage of stickers donated, the graph shows the percentage of children in that condition who donated at least that percentage of their stickers. It should be noted that sorting candies put the children in a better mood than sorting buttons or coins, but mood was unrelated to helping in this experiment.
These experiments show that thinking about money affects the behavior of 3 to 6-year-old children in ways that are similar to its effects on adults. These kids had only a limited understanding of money. For example, they were unable to identify, at better than chance, which coin would buy the most candy. Nevertheless, they were aware enough of the function of money for it to change their behavior.
One of the authors of the study, Kathleen Vohs, proposes that the unifying thread in all these money studies is that thinking about money causes people to place a greater value on self-sufficiency. In another of her studies, adults primed with thoughts of money were more likely to choose to work alone rather than with another participant. If it’s good to be self-sufficient, this could explain why people in need are seen as less deserving of help.
Sociologist Robert Putnam, in his book Bowling Alone, presents data suggesting that over the last 50 years, Americans have engaged in fewer group and community activities and more solitary ones, with the result that we are less cooperative and trusting. Ironically, Putnam uses a market metaphor to summarize his theory. He says the disintegration of communal relationships reduces social capital, giving society fewer resources that can be used for the public good in times of need.
Michael Sandel, a political philosopher, argues that we have gone from having a market economy to being a market society. Public goods are increasingly privatized and virtually everything is for sale if the price is right. He summarizes his critique in this TED talk.
Since most of us have never lived under any other economic system, we are largely unaware of how capitalism affects our behavior. However, some of us spend more time handling and thinking about money than others. In one study, college students majoring in economics behaved less cooperatively in a bargaining game than students majoring in other fields. Studies consistently show that poor people are more generous and helpful than rich people.
These studies have something to appeal to people of all political persuasions. Conservatives will no doubt be pleased to learn that thinking about money encourages hard work and achievement. On the other hand, the finding that the market society replaces helpfulness with selfishness confirms an important part of the liberal critique of capitalism.
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