Why The "Rich Mind" Philosophy Is Perverse

On many occasions we hear people who attribute their economic status to their “rich mentality”. This ambiguous concept is usually identified with personality variables, such as perseverance, willpower or self-sufficiency, and with intellectual capacity.

However, and although there are psychological studies that confirm that personality and intelligence have a certain weight in professional success, the truth is the philosophy of the “rich man's mind” is fallacious because the level of income depends to a greater extent on external factors that are beyond the control of the individual.

How is intelligence measured?

The most common way to measure cognitive abilities is by using Inteligence test, what they value the performance of the person who answers the test in global skills such as verbal or abstract reasoning.

Intelligence tests frequently measure "intelligence quotient" (IQ). IQ is calculated by comparing a person's scores with those previously obtained by others his or her age; If the score is 100, the subject will have an average IQ, while the further away from this number the greater the distance from it with the average.

The well-known tests that consist of choosing which figure among four options is the most appropriate to complete a series are good examples of IQ tests.

Aptitude tests are another way to measure intelligence, although they include more aspects. These tests measure different abilities such as reasoning, calculation, verbal skills, or mechanics. Unlike the IQ tests, the aptitude tests do not only measure intellectual abilities and are used mainly in job orientation and in personnel selection.

How does intelligence influence the economic level?

Low IQ is associated with lower abilities, especially at the verbal level and in relation to abstract reasoning. This can make it difficult for people with intellectual disabilities to access certain activities and professions.

IQ has little direct influence on professional status, and therefore income; However, intelligence has an impact on the educational level and this on the professional, so that there is a relevant indirect influence.

The scientific literature suggests that, although a very low intelligence makes it difficult to achieve a high economic status, having a high IQ only explains the income level by 1 or 2%. Aptitude tests predict wealth better than IQ tests, since they are related to more concrete and relevant skills for certain professional roles.

In addition, although intelligence explained the economic success of people, IQ is largely inherited from the parents and mothers. That is, it does not have much to do with willpower, and from puberty the results in intelligence tests applied to a person become very predictable.

In any case, if we talk about the influence of psychology on the economic level, personality seems to have a more relevant role than intelligence.

• You may be interested: "Theories of human intelligence"

The 5 great personality factors

The most popular personality model nowadays is what we know as the "model of the five large factors ”or“ OCEAN model ”, for the acronym in English of the personality variables that make up.

According to the model, these five great personality factors are manifested in each person at a point on a continuum with two poles: Extraversion-Introversion, Neuroticism-Emotional stability, Responsibility-Neglect, Kindness-Antagonism and Openness to experience-Conventionalism.

Each of these factors comprises a series of personality subfactors. For example, the Responsibility factor includes the need for achievement and self-discipline, and shyness and impulsivity are included in Neuroticism.

• Related article: "The 5 great personality traits: sociability, responsibility, openness, kindness and neuroticism"

Personality and wealth

The influence of personality on the economic level it has been analyzed using the big five factor model. A study by Borghans and his collaborators affirms that the Responsibility factor is the one that explains the most financial success.

The construct "Responsibility" includes persistence, self-discipline, and industriousness, among other characteristics. Borghans' team affirms that, as with IQ, these variables increase academic performance and later work performance. Other personality factors are also important. Openness to experience increases performanceWhile an excess of introversion or neuroticism can make it much worse.

Unlike the IC, these personality attributes are more modifiableTherefore, people who promote the development of a "rich man's mentality" (as happens in some pages and Internet businesses) tend to give them more weight. We are also less likely to get rich if our social skills are poor.

On the other hand, scientific research also places more importance on personality than on intelligence. Even so, globally other non-modifiable variables have a much more relevant role than the psychological ones.

Income level is inherited

The two factors that most influence the economic level of any person are your country of birth and your parents' income level. According to studies, these variables explain approximately 80% of economic status, while it could hardly be attributed more than 5% to psychological variables.

The economic level of the parents influences that of the children in many ways. Perhaps the clearest effect is the improvement in access to academic training opportunities, especially in countries where there is no equal public education.

These differences are especially notable in societies where socioeconomic mobility is very low, such as those that are organized through a caste system.

• You may be interested: "Poverty affects children's brain development"

The concentration of money explains the inequalities

According to the economist Thomas Piketty, known for his historical analyzes of the evolution of the economy in various countries, in societies where inheritance is not very important, work has a much greater weight in the enrichment.

Conversely, the more wealth is concentrated in a small number of people it is more difficult to get rich through your own effort. The population stagnation currently taking place in most of the world further increases this accumulation of wealth.

In addition, having savings and property is as a rule much more profitable than obtaining money from work, especially if you start "from scratch", as is the case with working-class people.

In this way, the current economic trend around the world promotes that wealth depends more on the economic level of the parents than on the effortor. Of course, personality variables and intelligence also contribute to socioeconomic mobility, but they have a much lower weight, closer to that of luck.

Explanations that attribute wealth only to effort and ability ignore more important non-modifiable variables such as our family. Although effort or luck are essential to get rich, we must not forget that the best way to earn money is to be born having it.

Bibliographic references:

• Borghans, L., Golsteyn, B. H. H., Heckman, J. J. & Humphries J. AND. (2016). What grades and achievement tests measure. Proceedings of the National Academy of Sciences of the United States of America, 113 (47), 13354-59.

• Piketty, T. (2014). Capital in the 21st century. Barcelona: RBA Books.