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<seo title="Popular Delusions and the Madness of Crowds" metakeywords="popular mass delusions, famous delusions, common delusions, popular delusions of crowds" metadescription="What are the most common delusions and why delusions happen"/> | <seo title="Popular Delusions and the Madness of Crowds" metakeywords="popular mass delusions, famous delusions, common delusions, popular delusions of crowds" metadescription="What are the most common delusions and why delusions happen"/>[[File:Common delusions.png|alt=Popular fallacies|center|Popular delusions]][[File:Popular Delusions Hype.png|alt=Popular Delusions Hype|thumb|'''Figure 1'''. Popular Delusions Gartner Hype Cycle|220x220px]]'''A delusion is a common false fixed belief that is not amenable to change in light of conflicting evidence.''' '''They exhibit in society as ideas or cultural fads that become transiently popular'''<ref>'''The Effects of Twitter Sentiment on Stock Price Returns''' Gabriele Ranco,Darko Aleksovski ,Guido Caldarelli,Miha Grčar,Igor Mozetič Published: September 21, 2015 https://doi.org/10.1371/journal.pone.0138441</ref>. Historically, they follow a [[Hype cycles|hype cycle]] (see '''Figure 1'''), starting with a trigger then moving rapidly into a hype phase at which point they cause frantic activity of crowds such as the [[wikipedia:South_Sea_Company|South Sea Bubble]] (see '''Figure 2'''), [[wikipedia:Tulip_mania|Tulip Mania]] or [[wikipedia:Witch-hunt|Witch Mania]]. Today popular delusions have become ever more transmissible via memes and the [[Advertising|advertising industry]]. <div class="res-img"></div>[[File:South Sea Macro Delusion.jpg|alt=South Sea Macro Delusion|thumb|'''Figure 2'''. [[Night Wind Hawkers]] sold stock on the streets during the South Sea Bubble. (The Great Picture of Folly, 1720)]]Popular delusions can have significant impacts on society and individuals. They can lead to irrational behaviors, poor decision-making, and in some cases, can result in harm or injustice. Understanding and recognizing these delusions can help individuals and societies make more informed and rational decisions. | ||
[[File:Popular Delusions Hype.png|alt=Popular Delusions Hype|thumb|'''Figure 1'''. Popular Delusions Gartner Hype Cycle|220x220px]] | |||
''' | |||
Popular delusions can have significant impacts on society and individuals. They can lead to irrational behaviors, poor decision-making, and in some cases, can result in harm or injustice. Understanding and recognizing these delusions can help individuals and societies make more informed and rational decisions. | |||
It's important to note that what may be considered a "''delusion''" can be subjective and may vary across different cultures and societies. What one group considers a delusion, another group may consider a deeply held belief or tradition. Therefore, the term should be used with caution and understanding of its potential cultural implications. | It's important to note that what may be considered a "''delusion''" can be subjective and may vary across different cultures and societies. What one group considers a delusion, another group may consider a deeply held belief or tradition. Therefore, the term should be used with caution and understanding of its potential cultural implications. | ||
== History == | |||
=== 1637 - Tulip Mania === | |||
* In the Netherlands, tulip bulbs became a luxury item and status symbol, leading to wildly speculative and ultimately unsustainable market prices. | |||
=== 1719-1720 - The Mississippi Bubble === | |||
* In France, John Law's Mississippi Company tied to colonial trade became the center of a speculative bubble, which burst and ruined many investors. | |||
=== 1720 - The South Sea Bubble === | |||
* In England, the South Sea Company's promise of trade with South America led to a frenzy of investment and speculation, ending in financial disaster. | |||
=== 1840s - The Railway Mania === | |||
* In Britain, excessive speculation in rail transport led to a bubble that saw massive investments in railways, many of which were neither needed nor completed. | |||
=== 1920s - Florida Real Estate Bubble === | |||
* Intense speculation in Florida land during the 1920s, partly due to the burgeoning automobile's influence on tourism and mobility, led to a bubble that burst devastatingly in 1926. | |||
=== 1929 - Stock Market Crash === | |||
* Over-speculation and leverage in the stock market led to a dramatic crash in 1929, contributing to the Great Depression. | |||
=== 1980s - Japanese Asset Price Bubble === | |||
* Excessive speculation in real estate and stock prices in Japan during the late 1980s led to a bubble that burst in the early 1990s, leading to a long period of economic stagnation. | |||
=== 1990s - Dot-com Bubble === | |||
* Exuberance over internet-related businesses led to inflated stock prices and a bubble that burst around 2000, causing significant financial losses. | |||
=== 2007-2008 - Global Financial Crisis === | |||
* Subprime mortgage lending and complex financial products created a housing bubble that burst, leading to a severe international banking crisis and recession. | |||
'''References'''<references /> |