Robert Prechter is best known for reviving the work of Ralph Nelson Elliott, discoverer of what has come to be called the Elliott Wave Principle. But years ago, Prechter made a theoretical discovery of his own regarding social causality. His discovery turns traditional socio-economic theory on its ear.
Where most people are prone to believe that events determine the mood of society, that is wars make people fearful, peace makes them calm, a rising economy makes them happier, etc., Prechter sees the causalities as exactly the opposite, i.e., waves of endogenous social mood make people act in a way that causes collective social behavior. In other words, when people are happy they are less inclined to wage war, they write happier songs, they dress more colorfully, etc. When they are depressed they are more likely to wage war, they write bitter or angry songs, they dress more drably -- not the opposite.
Robert Prechter is best known for reviving the work of Ralph Nelson Elliott, discoverer of what has come to be called the Elliott Wave Principle. But years ago, Prechter made a theoretical discovery of his own regarding social causality. His discovery turns traditional socio-economic theory on its ear.
Where most people are prone to believe that events determine the mood of society, that is wars make people fearful, peace makes them calm, a rising economy makes them happier, etc., Prechter sees the causalities as exactly the opposite, i.e., waves of endogenous social mood make people act in a way that causes collective social behavior. In other words, when people are happy they are less inclined to wage war, they write happier songs, they dress more colorfully, etc. When they are depressed they are more likely to wage war, they write bitter or angry songs, they dress more drably -- not the opposite.
http://www.globaldeflationnews.com/robert-prechter-on-hedge-funds-and-herding-a-video-from-the-socionomics-institute/