I recently read a funny story about social proof and its influence on us.
A bank in Singapore had a case of a bank run for one of the most bizarre reasons ever.
Due to a bus strike one morning, a hefty crowd gathered around a bank's entrance close to a bus stop, waiting for a bus to arrive.
The queue was long, and people passing by the area mistook that long queue outside the bank for the bank's poor financial health.
A long queue outside the bank indicated that people were withdrawing money from the bank in a panic, which influenced many others to join the queue and withdraw their money before the bank became insolvent.
But here's the thing:
The bank was in solid financial health, with no signs of insolvency. It was simply a case of "following the herd" that went wrong.
This makes me question the amount of influence other people have on us.
What if instead of following the herd when we don't understand something, we make the time and effort to evaluate the situation first?
This will help us rely less on others to make good choices and instead on our general experience and logical thinking to make sound decisions.
Follow your logic and instincts, not the herd.
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