At the end of the rainbow
Political correctness, polarization and economic decision-making behavior
Political correctness is an integral part of social and media discourse. But what happens when the range of opinions is altered and possibly economic decisions influenced?
Proponents argue that politically correct language does justice to all segments of the population and leads to more constructive and respectful interactions. Critics, on the other hand, speak of ideological stubbornness. They argue that insisting on politically correct language that is fair to every demographic group, polarizes society, stifles free speech, and hinders efforts to reach consensus on pressing social and economic issues.
In this at times heated discourse, one effect of political correctness has been overlooked, with potentially far-reaching consequences: the people's decision-making behavior. If the range of opinions is altered by political correctness, this could have a impact on people's willingness to take risks, but also on their general willingness to cooperate. It could also influence the decisions of C-level managers, thus either leading to economic properity or possibly leading to business paralysis. Yet risk taking and cooperation are essential for social cohesion and a prosperous economy. Together with his team, Matthias Sutter wants to use empirical data to help steer the public discussion about the effects, risks and side effects of political correctness in a more objective direction.
The project will be carried out at the Max Planck Institute for the Study of Collective Goods. It will investigate how exposure to politically correct language over a longer period of time affects people's economic decision-making, social norms, and willingness to express their own opinions.
Economist Matthias Sutter will conduct a field experiment with 3,000 participants from all walks of life. Over a defined period of time, the participants will consume political and economic news via a specially developed app. Random assignment to an intervention condition (with politically correct language) and a control condition (with neutral language) will allow causal inference about the effects of politically correct language. The results of the study will be published by the Institute.