Catching up on reading from last week, I came across an article in the FT by Izabella Kaminska, who takes issue with economic impatience.
“While there is little doubt that too much short-termism has negative effects, one should not assume that it follows that extreme long-termism is always for the best. The latter can be dangerous when long-term thinkers fall for fanciful narratives or investor cults.“
She goes on to say:
“Nowhere is this mindset more clearly displayed today than in the realm of cryptocurrencies, where narrative trumps reality on a daily basis. “
To claim that happens daily is a stretch. But overall, maybe she’s right – the cryptocurrency space is full of hype and idealism, which doesn’t last long when the window of righteousness is opened and the obstacles of modern life rush in.
Although, the claim doesn’t make sense. The problem is with the definition of “reality”. No-one seems to have a clear idea of what it is anymore.
I’m not even sure if that is possible – because isn’t reality what we say it is? And these days, with so many channels of communication available to us, to import and export, reality is a mish-mash of interpretations, theories and facts distorted by bias.
We all have our own version of reality. My reality is not the same as a Texan truckdriver, Syrian teenager, or Nepalese grandmother. Nor can it ever be. So if “narrative trumps reality”, which reality are we talking about?
What’s more, as Yuval Noah Harari points out in his seminal work Sapiens, narrative is not only the unifying force of societies – it also creates its own reality. The forging of common myths bound groups together in imagination and tradition, giving us the internal organization necessary to conquer and invent. Objective reality is the ground we stand on, the bricks that house us and the food that nourishes. Subjective reality is our interpretation of their meaning, our understanding of our purpose and our determination of “obvious truths”. Narrative breeds subjective reality.
“Large numbers of strangers can cooperate successfully by believing in common myths. Any large-scale human cooperation – whether a modern state, a medieval church, an ancient city or an archaic tribe – is rooted in common myths that exist only in people’s collective imagination.”
So, “narrative trumping reality”? It’s a great soundbite. But is isn’t true. Narrative creates reality.