ABSTRACT
Chapter five explores the social psychology of modern political economies. The mass psychology of the nineteenth century tended to be stoical and epicurean in nature. In the twentieth century anxiety and depression became more common. This prompted demands for increased government control of economies. Intervention and regulation were hailed. But this control did not prevent cyclical downturns, large or small. The mix of a social belief in economic management combined with the periodic failures of this management exacerbated social anxieties. These anxieties generated demands for bigger government that generated in turn further failures, more anxieties, and increased demands that governments intervene in economic and social processes.
