Privatizing stress: how capitalism affects the psyche

The rise in anxiety and burnout in developed countries is often linked not to childhood trauma, but to the structure of the economic system. If capitalism shapes behavior and perception, the investor may be less rational than he or she thinks.

Karim Bettash, a scholar from the Chinese University of Hong Kong, in his recent paper "The crisis we are not naming: The psychology of capitalism" argues that the economic system is not just a way of exchanging goods, but a powerful mechanism that reflects the phenomena of our psyche. But it not only reflects, it literally shapes us, creating specific "capitalist syndromes" that in the long run become a threat to the psyche. We become vulnerable in our decision-making, and it also leads us to deep personal crises.

Bettasch identifies three key patterns, which he calls "capitalist syndromes". They work together to form what we used to call "individualism".

This syndrome is formed from the very essence of capitalism - the desire to multiply capital. At some point, accumulation ceases to be a means and becomes a goal, often the only orientation in life. We begin to evaluate life through the prism of ROI - return on investment. Thus, education is an investment in human capital, friendship is networking, and leisure is a way to increase productivity.

For the investor, this can be dangerous because the self worth of the individual is equated with the amount of assets in the portfolio. If the market falls, the investor feels not just a financial loss, but his own collapse or a blow to his own identity.

Market competition penetrates the social fabric, making us see others not so much as allies but as rivals - competitors for limited resources. This leads to an erosion of social ties, and even trust becomes a financial asset. This causes the psyche, deprived of deep community ties, to go into chronic wariness mode, and for the investor, this can lead to a sense of isolation: fear of missing out on gains and constant comparison of oneself to more successful peers or investment pillars like Warren Buffett create a toxic backdrop in which informed decision-making is almost impossible.

The point here is that human identity is formed through possession. Ma is what we own. Under capitalism, ownership becomes the core of our self. This too generates anxiety: what is at the core of your identity can be lost, stolen or devalued by the market. Life comes down to protection - holding on to your assets.

For a long time it was believed that stress, depression and anxiety were human problems, a biological failure or a consequence of childhood trauma. This was vigorously disputed in the 1980s, suggesting social factors as key causes of mental health problems. Now Bettasch goes a little further: much mental suffering is a reaction to structural dysfunction in the economic system. In this, the English philosopher Mark Fisher (author of Capitalist Realism) goes even further: he argues that we are in a period of "privatization of stress." If trust is an asset, then stress is also an asset, but a toxic one.

When the system forces competition where biologically we need cooperation, it provokes burnout.

According to the World Mental Health Survey, the prevalence of anxiety disorders is significantly higher in high-income countries - the United States and Western Europe - than in low- and middle-income countries - Africa and the Eastern Mediterranean.

But British psychologists have found that it is not capitalism itself, but the level of economic inequality within it that is the main indicator and predictor of mental illness. They showed that in 12 developed countries there is a strong linear relationship between the level of income inequality of the population and the prevalence of any mental illness. The US and the UK, the countries with the most developed capitalist model, lead the list.

Capitalism is already an objective reality, however pathogenic it may be for the soul. This means that it makes sense to adapt to it. This is how an investor protects his psyche.

"Dissecting" identity. It is important to consciously separate your Net Worth from your Self-Worth, i.e. to maintain a clear conviction that our identity is not an accomplishment, it is not an asset. To do this, it can be helpful to regularly engage in things that fundamentally cannot be monetized. These are hobbies, meetings with friends, family, traveling.

Restoring horizontal ties. The investment community may not always be friendly - go to any Telegram chat room or forum and you will see arguments, picking and even insults. To compensate for this phenomenon, you can create support groups where communication is built around exactly your human experience. Vulnerability and honest storytelling are the best antidote to zero-sum game syndrome.

Audit of Meanings. "What would be left of my "I" if tomorrow all my assets were to go to zero?", - this is a reasonable question to ask yourself in order to assess your true psychological capital. The more intangible assets (skills, attitudes, values) you have in it, the more resistant you are to market cataclysms.

Moving to "impact investing". One way to deal with the ownership syndrome is to look at it differently or change its essence. When you invest not just for the sake of large sums of money, but for the sake of solving specific problems, i.e. philanthropy, you regain your subjectivity. Money ceases to be "numbers" and becomes an instrument of communication with the world and an opportunity to influence it. An example is businessman and politician Ruben Vardanian.

The invisible hand of the market sometimes reaches out and tries to squeeze our throat. Recognizing this is the first step in distancing ourselves from that hand. This means a change of thinking patterns, to put it in terms of cognitive-behavioral psychology: finance without psychological hygiene in the 21st century is incomplete, it can even be dangerous. The real success of an investor is measured not only by annual returns, but also by the ability to remain an individual in a system that is trying to make a function out of you. Thus, investing in yourself is something that will definitely pay off.

This article was AI-translated and verified by a human editor