No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Saturday, September 20, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Economy

Preference Falsification, Marginal Cost, and Cancel Culture

by TheAdviserMagazine
3 days ago
in Economy
Reading Time: 4 mins read
A A
Preference Falsification, Marginal Cost, and Cancel Culture
Share on FacebookShare on TwitterShare on LInkedIn


In my earlier post on preference falsification, I argued that a culture of free speech and open debate is a necessary factor for the benefits of free speech to be fully realized. This post expands on that, examining a common fable involving preference falsification, how the dynamics of preference falsification are different in reality than the fable, and how what is commonly called “cancel culture” is a factor that undermines free speech culture and keeps preference falsification in place.

The fable, as you might have already guessed, is The Emperor’s New Clothes. In that fable, people privately hold the belief that the Emperor is naked, but publicly they express the belief that the Emperor is adorned in splendid garments, because they worry that expressing their private belief will make them appear like fools. However, a child eventually breaks this spell by loudly declaring the Emperor is naked. As soon as he does, the rest of the townspeople join in, and everyone realizes the Emperor is in fact truly naked.

In reality, however, a single person accurately declaring their private belief publicly is not sufficient to break the spell of preference falsification. People feel compelled to falsify their beliefs when they think the views they express are widespread — not universal. Take any proposition you care to imagine — call it p. Suppose 90% of people privately don’t accept p. However, people also think that 90% of people do accept p. To the extent that p has been moralized or politicized, there is a strong reason for those who reject p privately to affirm p publicly. A single person here and there who openly rejects p will simply seem like someone in the (assumed) 10% that rejects p.

This is where marginal cost comes in. In the fable, the first person who accurately declares his public belief faces no sanction of any kind — and everyone immediately becomes willing to publicly admit that they, too, believe the Emperor is naked. In a more realistic scenario, as soon as someone says “the Emperor has no clothes!”, the rest of the crowd would still be strongly inclined to openly shun and mock the person who said it. After all, according to what everyone believed, only the foolish would be unable to see the Emperor’s new clothes — and certainly some foolish people exist. So obviously some people would see the Emperor as naked.

A single person declaring the Emperor has no clothes may be nothing more than a fool exposing his own foolishness. Do you immediately join him and risk making yourself look like another fool in the crowd? What if, as soon as that first person declares the Emperor is naked, the crowd immediately mocks them as an unenlightened rube who can’t see the obviously splendid garb adorning the Emperor? Most people, I suspect, would feel the urge to pretend they could see the Emperor’s clothes an join in on the mockery. The marginal cost of being the first person to declare the Emperor naked would be very high.

One of the arguments Musa al-Gharbi makes in his book We Have Never Been Woke is that each “Awokening” is strikingly parallel to the Awokenings that came before. Cancel culture, he points out, was a common feature of the second Great Awokening, although at the time it was described as “trashing.” He quotes from a magazine published in the 1970s describing the practice:

Trashing has reached epidemic proportions…What is “trashing,” this colloquial term that expresses so much, yet explains so little?…It is not done to expose disagreements or resolve disputes. It is done to disparage and destroy. The means vary…Whatever methods are used, trashing involves a violation of one’s integrity, a declaration of one’s worthlessness, and an impugning of one’s motives. In effect, what is attacked is not one’s ideas, but one’s self. This attack is accomplished by making you feel that your very existence is inimical to the Movement and that nothing can change this short of ceasing to exist. These feelings are reinforced when you are isolated from your friends as they become convinced that their association with you is similarly inimical to the Movement and to themselves. Any support of you will taint them. Eventually all your colleagues join in a chorus of condemnation which cannot be silenced, and you are reduced to a mere parody of yourself.

Whether it’s being mocked by the crowd watching the Emperor’s parade, or being trashed, or being canceled, the cost of accurately revealing one’s private beliefs can be very high, even when that private belief is actually widely held. In my previous post, I mentioned how nearly 90% of students feel pressured to present themselves are more left-wing than they actually are because they believe their social and academic success depends on it.

But while costly, this is also a diminishing marginal cost. As the person most willing to defy the crowd makes their private beliefs publicly known, they make others slightly more willing to do so themselves, because those others feel slightly less alone in their beliefs. This can make someone who was slightly less willing to defy the crowd now willing to do so as well — and so on. Eventually, there is some tipping point where what was hidden private knowledge can all come cascading out as public knowledge, and everyone in the crowed becomes willing to admit that they, too, see the Emperor as naked.

In the absence of a free speech culture, however, this tipping point may never be reached. Suppose there were 1,000 people in the crowd, and the tipping point would come at the 150th person. Once the 150th person says they, too, see the Emperor is naked, suddenly everyone’s true opinion comes out as well. If cancel culture, or trashing, or whatever you prefer to call it, keeps the cost of revealing one’s private preference so high that it remains above the marginal cost that 150th person is willing to pay, the Emperor will remain naked and the majority of the crowd will still continue to falsify their beliefs.

 

As an Amazon Associate, Econlib earns from qualifying purchases.



Source link

Tags: CancelCostcultureFalsificationmarginalPreference
ShareTweetShare
Previous Post

Glilot Capital raises $500m for VC funds

Next Post

Metal Raises $5M to Build the Operating System for Private Equity Diligence – AlleyWatch

Related Posts

edit post
The Juridical Model of Justice

The Juridical Model of Justice

by TheAdviserMagazine
September 20, 2025
0

In Shakespeare’s Henry VI, a rebel alarmingly named Dick the Butcher says: “The first thing we do, let’s kill all...

edit post
Market Talk – September 19, 2025

Market Talk – September 19, 2025

by TheAdviserMagazine
September 19, 2025
0

ASIA: The major Asian stock markets had a mixed day today: • NIKKEI 225 decreased 257.62 points or -0.57% to...

edit post
Steve Bannon floats idea of Bessent running both Treasury and the Fed

Steve Bannon floats idea of Bessent running both Treasury and the Fed

by TheAdviserMagazine
September 19, 2025
0

U.S. Treasury Secretary Scott Bessent speaks to the press, on the day of U.S.-China talks on trade, economic and national...

edit post
Coffee Break: The Next Surgeon General, Gene Therapy, Ozone Hole Closes, Daylight Saving Time, and American Socialism

Coffee Break: The Next Surgeon General, Gene Therapy, Ozone Hole Closes, Daylight Saving Time, and American Socialism

by TheAdviserMagazine
September 19, 2025
0

Part the First: The Next Surgeon General Prepares for her Closeup.  In a surprise to absolutely no one, Casey Means...

edit post
The 1990s: A Pivotal Foreign Policy Decade

The 1990s: A Pivotal Foreign Policy Decade

by TheAdviserMagazine
September 19, 2025
0

“In the weeks immediately after the bombing , I believed the last thing that we should do was turn tail...

edit post
Michael Hudson: Trump’s Destruction of US Economy, Starting with Agriculture

Michael Hudson: Trump’s Destruction of US Economy, Starting with Agriculture

by TheAdviserMagazine
September 19, 2025
0

Yves here. Michael Hudson makes a short but devastating indictment of the destruction Trump policies are inflicting on the agriculture...

Next Post
edit post
Metal Raises M to Build the Operating System for Private Equity Diligence – AlleyWatch

Metal Raises $5M to Build the Operating System for Private Equity Diligence – AlleyWatch

edit post
EU recommends suspending Israel free trade agreement

EU recommends suspending Israel free trade agreement

  • Trending
  • Comments
  • Latest
edit post
What Happens If a Spouse Dies Without a Will in North Carolina?

What Happens If a Spouse Dies Without a Will in North Carolina?

September 14, 2025
edit post
California May Reimplement Mask Mandates

California May Reimplement Mask Mandates

September 5, 2025
edit post
Who Needs a Trust Instead of a Will in North Carolina?

Who Needs a Trust Instead of a Will in North Carolina?

September 1, 2025
edit post
Does a Will Need to Be Notarized in North Carolina?

Does a Will Need to Be Notarized in North Carolina?

September 8, 2025
edit post
DACA recipients no longer eligible for Marketplace health insurance and subsidies

DACA recipients no longer eligible for Marketplace health insurance and subsidies

September 11, 2025
edit post
Big Dave’s Cheesesteaks CEO grew up in ‘survival mode’ selling newspapers and bean pies—now his chain sells a  cheesesteak every 58 seconds

Big Dave’s Cheesesteaks CEO grew up in ‘survival mode’ selling newspapers and bean pies—now his chain sells a $12 cheesesteak every 58 seconds

August 30, 2025
edit post
Miran says he doesn’t see tariffs causing inflation, putting him in minority on Fed committee

Miran says he doesn’t see tariffs causing inflation, putting him in minority on Fed committee

0
edit post
Saylor crypto imitators are now under pressure as doubts grow about their business model

Saylor crypto imitators are now under pressure as doubts grow about their business model

0
edit post
Preference Falsification, Marginal Cost, and Cancel Culture

Preference Falsification, Marginal Cost, and Cancel Culture

0
edit post
Solana Co-Founder Warns on Quantum Threat to Bitcoin, Sees Stablecoins Driving US Treasury Shift

Solana Co-Founder Warns on Quantum Threat to Bitcoin, Sees Stablecoins Driving US Treasury Shift

0
edit post
Premier Banking at Wells Fargo Promises VIP Treatment—But Who Really Wins?

Premier Banking at Wells Fargo Promises VIP Treatment—But Who Really Wins?

0
edit post
F&O Talk | Nifty heading towards 26k? Crucial breakout may boost sentiment: Sudeep Shah

F&O Talk | Nifty heading towards 26k? Crucial breakout may boost sentiment: Sudeep Shah

0
edit post
Saylor crypto imitators are now under pressure as doubts grow about their business model

Saylor crypto imitators are now under pressure as doubts grow about their business model

September 20, 2025
edit post
Premier Banking at Wells Fargo Promises VIP Treatment—But Who Really Wins?

Premier Banking at Wells Fargo Promises VIP Treatment—But Who Really Wins?

September 20, 2025
edit post
Millennial managers have seen enough. They’re taking ‘sanity days,’ joking about who’ll be laid off next and trying to stay out of the ER from stress

Millennial managers have seen enough. They’re taking ‘sanity days,’ joking about who’ll be laid off next and trying to stay out of the ER from stress

September 20, 2025
edit post
The Juridical Model of Justice

The Juridical Model of Justice

September 20, 2025
edit post
F&O Talk | Nifty heading towards 26k? Crucial breakout may boost sentiment: Sudeep Shah

F&O Talk | Nifty heading towards 26k? Crucial breakout may boost sentiment: Sudeep Shah

September 20, 2025
edit post
Bitmine’s Ethereum Appetite Grows With Fresh  Million Buy

Bitmine’s Ethereum Appetite Grows With Fresh $70 Million Buy

September 20, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Saylor crypto imitators are now under pressure as doubts grow about their business model
  • Premier Banking at Wells Fargo Promises VIP Treatment—But Who Really Wins?
  • Millennial managers have seen enough. They’re taking ‘sanity days,’ joking about who’ll be laid off next and trying to stay out of the ER from stress
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.