Why smart people sometimes make very stupid choices (And how you can prevent it)
Today we are going to talk about a topic that has fascinated me for some time. You know them: those people who on paper have everything going for them. They've studied, they have a fat job, or they run a multi-million dollar company. They are extremely smart. And yet ... yet sometimes they make choices that make you think, "How on earth is it possible?"
We will dive into the psychology behind the "smart failure hare." Why do intelligent people sometimes make such capital blunders? I can tell you one thing in advance: it has everything to do with your unconscious automatic programs.
The illusion of universal cleverness: The god complex
Let’s get right to the point. When you’re really good at something, a dangerous phenomenon creeps into your system. We see this very often with successful entrepreneurs. They’ve built one company from the ground up—maybe even two. Everything they touch seems to turn to gold.
We also call this the god complex.
At some point, you think you're like King Midas. Because you are successful in marketing or construction, you suddenly think you also know all about investing, relationships, or world politics. But beware, ladies and gentlemen: cleverness in one area absolutely does not mean cleverness in other areas.
The brain is a fascinating thing, but it’s also lazy. Once it’s labeled itself “I am successful,” it often stops thinking critically. Your subconscious program says, “I know how it works; I’m always right.” And that’s exactly when you make the biggest mistakes of your life.
The master defender: Why we believe our own nonsense
What smart people are extremely good at (and this is their pitfall) is defending their own bad choices. Have you ever watched a political debate? I won't name names, because you can fill in which politicians I'm talking about, but you see it there constantly.
Some people are so damn handy with words. They have a point that really doesn't make sense. A point that is just objectively bad. But because they are so "clever" at having a discussion, they can color that bad point so nicely that it almost starts to sound good.
"They could still defend that eating poop is good for health. They slather such a wonderful scientific or rhetorical sauce over it that you almost think, 'Well, maybe there's something in it...'"
That’s the difference between being smart and being intelligent. Those people are smart at defending their position, but they aren’t intelligent enough to ask themselves, “Is this actually a valid point?” They don’t use their brainpower to find the truth, but to prove themselves right[1]. And believe me, that’s a recipe for disaster.
The Dunning-Kruger effect and the overestimation of knowledge
Then we have another beautiful psychological thingy: the overestimation of one's own cleverness. You see this everywhere these days, especially on social media. People read two pieces of research, watch a five-minute YouTube video and think, "Well, I know everything. I'm an expert."
This tends to be the Dunning-Kruger effect. People with just a little knowledge vastly overestimate their own abilities[2]. And because they label themselves as “smart,” they stop examining their own biases[3].
True intelligence lies in self-reflection. The ability to say to yourself: “Hey Edwin, you may have a brain that works well, but that doesn’t mean you don’t have blind spots.” Everyone has them. Me too, ladies and gentlemen. Including yours truly. The trick is to recognize those blind spots before you run right into them.
Smart versus Intelligent: The difference between reason and self-reflection
I prefer to think of it this way: you have people who are smart (high IQ, quick-witted) and people who are intelligent (wisdom, self-insight). There are plenty of smart people who are not intelligent at all. And believe it or not, there are also people who may not have the highest education, but who are incredibly intelligent and wise.
Intelligence means that you listen. That you understand you don’t have a monopoly on wisdom. Smart people who don’t listen… that gets annoying. Especially when they’re in positions of power.
Look at the world around us. People in high positions are often charismatic. They’re certainly articulate. They have a huge following that dutifully votes for them. But are they also intelligent? Do they have the self-reflection to see what their decisions are actually causing?
Sometimes I see people in the House of Representatives or in government who I think, "You're very smart, but the intelligence is way off." They have trouble with authority from others and only listen to their own echo. And who pays the bill? Right, us. You stand there at the gas pump and think, "Great, another 'smart' decision by someone up there."
The bottom line: Emotion rules, reason justifies
Now comes the most important point of this whole story. Why do we make these bad choices?
Because every choice we make is based on emotion, not reason.
This is where most smart people go wrong. They think they are rational beings who make decisions based on facts and data. But neuroscience is very clear about it: you make a decision in your emotional brain, and then your ratio (your smart part) goes to work to rationalize that decision[4].
In retrospect, we think of reasons why it was a "good" decision.
The story of the teddy bear chair
I’ll give you a personal example—including myself, of course. I wouldn’t necessarily call myself “smart,” but I’m damn good at rationalizing my purchases. You probably are, too. You buy something, and within five seconds you’ve got five reasons ready as to why you really needed it. Handy for yourself, but especially handy to tell your partner , right?
The other day I saw a chair. And not just any chair. It was a chair made of teddy bear fabric. I stroked that chair and I got such a wonderful feeling inside. It was as if that chair was saying to me, "Edwin, come sit with me."
Let's face it: that chair really didn't cost much. Did I need it? Absolutely not. I already have enough chairs. But the feeling that chair gave me.... ladies and gentlemen, this may sound a little crazy, but when I sit in it in my underpants.... oh, that's almost an orgasmic feeling. So soft, so nice.
Now I could have said to my partner, "Yes, but honey, this chair is ergonomically very sound for my workplace and it fits perfectly into the lines of the room in terms of aesthetics." That's what smart people do: they make up an expensive story for an emotional boost.
Fortunately, I have known my partner for 25 years. She looked at me and said, "Just buy that chair, because it just gets you excited." And that's the truth! I bought it for that good feeling.
When does an emotional choice become a bad choice?
It's fine to buy things for the good feeling. We all do. Whether it's a purse for status, a new gadget for excitement, or a teddy bear chair for comfort.
A choice only gets really bad when you forget two things:
- Can You Afford It (Financial Intelligence).
- Does it really benefit you, or is it just sitting around gathering dust?
I could afford that chair. And yes, I use it every day. So in my world, it’s a good choice. But many smart people go too far. They let themselves be guided by an emotion (fear, the need to prove themselves, greed) and then use their intelligence to justify that destructive choice. They don’t listen to those around them, they don’t look in the mirror, and they just keep barreling ahead.
Stay Intelligent
Ladies and gentlemen, don't just be smart. Be intelligent.
- Have the self-reflection to see your own blind spots.
- Dare to listen to the people around you who say, "Would you?"
- Acknowledge that you make decisions based on emotion. That’s human nature. But be honest with yourself about which emotion is in control. Is it passion, or is it your ego?
Keep reflecting, keep growing, and enjoy your own "teddy bear moments," as long as you know why you're doing it!
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