Reflections on Guilt, Shame, and Neurosis

This morning I listened to the ever-delightful Econ Talk podcast, this time featuring Mike Munger speaking with Russ Roberts on Econ Talk.

I commend the entire episode to you, as it’s a delightful little romp on the topic of how economists view morality. (Okay okay fine, I’ll give you the quick version: economists view morality as a simple set of fixed preferences. Roberts and Munger argue that we can change our preferences, and in fact, have an obligation to. In short, we have an obligation to become better people who do not merely “respond to incentives” but rather “create their own objective functions.” [That’s fancy econ-speak for “choose to desire better things.”])

Anyway, in the discussion, Munger mentioned something that caught my attention, and I think is worth repeating and elaborating on.

Munger gives two examples.
• Imagine you do something wrong. You feel bad about this.
• Imagine you do something wrong and someone finds out. You feel bad that someone found out.
Munger then calls the first guilt, and the second shame.
The conversation quickly moved on, but I kept thinking about it.

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