Date Approved

2026

Degree Type

Open Access Senior Honors Thesis

Department or School

Economics

First Advisor

Christopher J. Elias, Ph.D.

Second Advisor

Amanda C. Stype, Ph.D.

Third Advisor

Barbara Patrick, Ph.D.

Comments

This thesis addresses the systemic issue where those in influential positions in business, politics, and elsewhere consistently favor short-term gains over long-term progress. While we are taught to believe we are rational "Econs," we are actually "Humans" driven by emotions, limited willpower, and psychological faults that are frequently weaponized against us. The central argument of this research is that perception is a measurable and potent economic force that defines how we value all market structures. Key findings reveal that human flaws like boredom, once an evolutionary survival mechanism to stop wasting energy on failing strategies, have mutated into financial liabilities. On a national scale, ‘Conspicuous Consumption’ drives individuals to turn their pockets inside out for a glimpse of status, signaling to others that they aren't "missing out". This research further explores how nations engage in National ‘Conspicuous Consumption’, enacting protectionist policies like tariffs that act as "Patriotism in policy form" rather than rational logical calculations. This results in an "idea deficit" that stifles global productivity. The paper concludes by analyzing how the Federal reserve uses credibility and expectations as a tool rather than a variable they exclude. It goes on to break down how institutional credibility is a nation’s most valuable asset and to achieve forward progress, we must build systems around our nature, no matter how illogical, rather than against it or ignoring it.

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