I recently had a conversation with one of my clients about the fact that her family members bought a house they couldn’t afford. They acted on their unrealistic assumption that it was an investment and it will pay for itself through rentals. Even though the house is in a remote location and they have no experience in real estate! Sounds familiar?
The reason I’m writing about it is because all of the decisions economists make about our economy are based on the belief that markets are rational. They believe that people make decisions rationally, after they had weighed all the pros and cons. It makes me want to say: What planet are you from? Most people make decisions emotionally, not rationally. All marketers know that. That’s why they appeal to your imagination, to see yourself with that new car, new house, new refrigerator and so on, so you can FEEL good about yourself, LOOK GOOD to your neighbors etc.. These are all emotions, aren’t they? Our economy will never be right until the economists change their models and start including the emotional factors!
I teach more about emotions and their effect on every area of our lives in my classes, Your Amazing Whole Brain and Developing The Emotional Brain. You can find out more about them at www.brainupgrade.biz.