The rise of anxiety and burnout in developed countries is often related not to childhood traumas, but to the design of the economic system. If capitalism shapes behavior and perception, then an investor may be less rational than they think.

Capitalist syndromes: when the economy becomes toxic

Karim Bettash, a scholar from the Chinese University of Hong Kong, in his recent work '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 reflecting phenomena of our psyche. But it not only reflects but literally shapes us, creating specific 'capitalist syndromes' that in the long term become a threat to the psyche. We become vulnerable when making decisions, and this leads us to deep personal crises.

Bettash identifies three key patterns that he calls 'capitalist syndromes'. They work together, forming what we are used to calling 'individualism'.

Gain Primacy Syndrome

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 an end, often the only life orientation. We start to evaluate life through the lens of ROI — return on investment. Thus, education is an investment in human capital, friendship is networking, and rest is a way to increase productivity.

For the investor, this can be dangerous in that the self-worth of a person is equated with the sum of assets in the portfolio. When the market falls, the investor feels not just a financial loss, but their own collapse or a blow to their identity.

Zero-Sum Rivalry Syndrome

Market competition penetrates the social fabric, making us see those around us not so much as allies but as rivals — competitors for limited resources. This leads to the erosion of social ties, and even trust becomes a financial asset. As a result, the psyche, deprived of deep communal connections, shifts into a mode of chronic alertness, and for the investor, this can turn into a feeling of isolation: the fear of missing out on profits and constant comparisons of oneself with more successful colleagues or investment pillars, like Warren Buffett, create a toxic background in which making informed decisions is nearly impossible.

Ownership Syndrome

Here it is about the fact that a person’s identity is formed through ownership. We are what we own. In capitalism, the right to own becomes the core of our 'I'. This also generates anxiety: what constitutes the basis of your identity can be lost, stolen, or depreciated by the market. Life boils down to protection — maintaining your assets.

How much is this within the 'norm'

For a long time, it was believed that stress, depression, and anxiety are individual problems, a biological malfunction, or a consequence of childhood trauma. This was actively disputed in the 1980s, proposing social factors as key causes of mental health issues. Now Bettash goes a bit further: many mental sufferings are a reaction to the structural dysfunction of the economic system. In this, the English philosopher Mark Fisher (author of 'Capitalist Realism') goes even further: he claims 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.

This is confirmed by statistics: in the most developed capitalist countries, the level of anxiety disorders consistently exceeds that in societies with less pronounced orientation towards individual success and accumulation.

According to the World Mental Health Survey, the prevalence of anxiety disorders in high-income countries — the USA and Western Europe — is significantly higher 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 health issues. They showed that in 12 developed countries there is a strong linear relationship between the level of income inequality and the prevalence of any mental disorders. The USA and the UK — countries with the most developed capitalist model — lead this list.

Investments in the mind: strategies for mitigation

Capitalism is already an objective reality, however pathogenic it may be for the soul. This means it makes sense to adapt to it. Here’s how an investor can protect their psyche.

'Unpacking' the personality. It is important to consciously separate your Net Worth (the net value of assets) and Self-Worth (self-esteem), that is, to maintain a clear belief that our personality is not about achieving success, it is not an asset. For this, it may be helpful to regularly engage in activities that fundamentally cannot be monetized. This includes hobbies, meetings with friends, family, and traveling.

Restoring horizontal connections. The investment community may not always be friendly — enter any chat on Telegram or a forum, and you will see disputes, squabbles, and even insults. To compensate for this phenomenon, support groups can be created where communication is built around your human experience. Vulnerability and honest storytelling are the best antidote to the zero-sum game syndrome.

Audit of meanings. 'What will remain of my 'I' if all my assets are wiped out tomorrow?' — such a question is reasonable to ask yourself to assess your true psychological capital. The more non-material assets (skills, relationships, values) it contains, the more resilient you are to market upheavals.

Transition to 'impact investments'. One way to cope with the ownership syndrome is to look at it differently or change its essence. When you invest not just for large sums, but to solve specific problems, that is, engage in philanthropy, you reclaim your subjectivity. Money stops being 'numbers' and becomes a tool for connecting with the world and having an impact on it. An example is businessman and politician Ruben Vardanyan.

What to do?

The invisible hand of the market sometimes reaches for our throat and tries to squeeze it. Acknowledging this is the first step to distancing oneself from this hand. It means changing thought patterns, using terms from cognitive-behavioral psychology: finances without psychological hygiene in the 21st century are incomplete; they can even be dangerous. The true success of an investor is measured not just by annual returns but by the ability to remain a person in a system that tries to make you a function. Thus, investing in oneself is something that will definitely pay off.

#MarketTurbulence , #GlobalEconomicNews , #AreWeFree

A group for those who like to stay updated on the changes in the news agenda of the financial world, cryptocurrencies, commodities, and technological changes in the markets.

🤫

And besides everything else, sometimes in this group we will publish quite curious stories ...

🙄

Welcome to the club! Our doors are open to subscribers!

😉