"Animal spirits are what make people spend a little more, invest a little more and take a bit more risk, because they believe in the future and – as they say in sport – they back themselves.
Why do people begin to back themselves? People back themselves because other people back themselves.
What I mean by this is that we are social animals and we are profoundly influenced by the group dynamics all around us. We are easily and quite irrationally influenced by the actions of others. We behave as a herd rather than as sovereign individuals. We do things because other people do things.
This means that we are programmed to get giddy when everyone else is giddy, and also we get depressed when others get depressed. We are creatures not so much of habit but of other people’s habits."
This means that we are programmed to get giddy when everyone else is giddy, and also we get depressed when others get depressed. We are creatures not so much of habit but of other people’s habits."
David McWilliams (Economist, broadcaster and writer)
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