New book explains the roles ‘economyths’ play in Americans’ financial, political choices

Humans have relied on myths since the dawn of time to make sense of the world and explain the unexplainable. Even the most savvy among us will consider their guidance in life choices, experts say.

Arizona State University faculty members Elisa Bienenstock and Skaidra Smith-Heisters’ new book, “Economyths of Work, Value and Success in America” (Edward Elgar Publishing), demonstrates how mythology is central to many Americans’ beliefs about how the nation’s economy works, even to the point of motivating economic behaviors and political decisions.

From origin stories to tales of heroism, Bienenstock said, “economyths” can reveal quite a bit about people, their times and their culture.

“The United States, when it was conceived, needed to differentiate itself from Europe. There are stories that are uniquely American, and a lot of those stories relate to economic ideas,” said Bienenstock, a research professor in the School of Public Affairs.

Some are rags-to-riches stories, she said, like those from Benjamin Franklin in “Poor Richard’s Almanack” in the 18^th century and Horatio Alger in the 19^th century, intending to promote virtues of hard work and perseverance as leading to successful lives. Both are discussed in the book, which was published in February.

While it’s possible to rise to wealth and comfort from humble origins, Bienenstock said, only a few do so.

“A lot of American identity is related to economics. What’s interesting is that our economyths influence our identity, but also our choices regarding politics and priorities. It’s very powerful.” Bienenstock said. “Myths are very persuasive and very emotive.”

Also, when people think they are making political decisions about economics, they might not know much about economics itself, such as the difference between monetary and fiscal policy, but they are familiar with the historical or cultural practices that have been passed down through generations, she said.

When we face complicated choices, it is easy to fall back on heuristics, or decision-making shortcuts, Bienenstock said.

“What’s really going on is the activation of economyth, not economics,” she said. “Not math, but stories that create images in people’s minds.”

Other economyths are time-honored explanations for how Americans tackle challenges, including notions about rugged individualism and self-determination, Bienenstock said.

Smith-Heisters, a senior research analyst and fellow at the School of Public Affairs’ Center for Organization Research and Design, said the book attempts to illuminate the “buttons in hot-button issues, the underlying narratives that make something sound true,” something comedian Stephen Colbert has called “truthiness.”

“Any narrative that plays into these myths is going to sound true and is going to give you insight into American culture,” Smith-Heisters said.

The book isn’t a myth-buster, she said, but a conversation starter that attempts to promote understanding about myths and how they provide America with its identity as a nation.

“Economyths… are hypothetically the things that unite us,” she said, offering the time-honored belief in winner-take-all competition, which implies that anyone who gets ahead necessarily leaves someone else behind, as an example. This belief both rallies Americans behind a merit-based idea of what it takes to “win,” and is wielded by politicians to stir up fear about being left behind economically, Smith-Heisters said.

“Either way, such myths aren’t untestable, just-so stories or outright lies,” she said. “It’s not to say, here’s a myth and what to watch out for, but here’s a myth, where it shows up and bring data and logic to it.” The book introduces tools and approaches aimed at facilitating open inquiry and debate.

Another economyth, about rugged individuals who overcome obstacles with their wits and abilities rather than relying on outside help, is illustrated in L. Frank Baum’s Wizard of Oz stories, Bienenstock said.

“The moral is the lion had courage all along, and just had to utilize it, while the scarecrow always had a brain and Dorothy always had the ability and power to go home or anywhere she wanted,” she said. “There is this image in people’s minds that relates to this agency Americans have that is American.”

Bienenstock said the rugged individual was popularized in Western films and immortalized in stories about such innovations as the Pony Express, which revolutionized transcontinental communication in the mid-19^th century.

“There is no such thing as an individual who made it by themselves. Those ‘rugged individuals’ were acting in defense of or were working with others,” she said. “The Pony Express rider didn’t ride alone, but they had, every several miles, a station to change horses. And then several more to change riders, providing food, warmth and entertainment This network made the Pony Express successful.”

We all share the myths, she said, but how we share them is where we are divided.

Smith-Heisters said economyths aren’t bad ideals, as she and Bienenstock, both children of immigrants, have benefited from them. Identifying them, however, can help lead to more fruitful conversations about current issues and problems.

“We have two chapters on the myth of opportunity and the myth of self-determination. I’m not saying we should give those up. The U.S. should be a land of opportunity,” she said. “But it means looking objectively at the factors involved in success and economic policies.”