Psychology in Times of Crisis: An economic psychological analysis of the coronavirus pandemic (essentials) 3658385472, 9783658385477

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Erich Kirchler · Julia Pitters · Barbara Kastlunger

Psychology in Times of Crisis An economic psychological analysis of the coronavirus pandemic

essentials

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Erich Kirchler · Julia Pitters · Barbara Kastlunger

Psychology in Times of Crisis An economic psychological analysis of the coronavirus pandemic

Erich Kirchler Fakultät für Psychologie (Wirtschaftspsychologie) Universität Wien Vienna, Austria

Julia Pitters Wirtschaftspsychologie IU Internationale Hochschule Bad Reichenhall, Germany

Barbara Kastlunger Digital Marketing & Communication Management, DBU Digital Business University of Applied Sciences Berlin, Germany

ISSN 2197-6708 ISSN 2197-6716  (electronic) essentials ISSN 2731-3107 ISSN 2731-3115  (electronic) Springer essentials ISBN 978-3-658-38547-7 ISBN 978-3-658-38548-4  (eBook) https://doi.org/10.1007/978-3-658-38548-4 This book is a translation of the original German edition „Psychologie in Zeiten der Krise“ by Kirchler, Erich, published by Springer Fachmedien Wiesbaden GmbH in 2020. The translation was done with the help of artificial intelligence (machine translation by the service DeepL.com). A subsequent human revision was done primarily in terms of content, so that the book will read stylistically differently from a conventional translation. Springer Nature works continuously to further the development of tools for the production of books and on the related technologies to support the authors. © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2022 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors, and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Responsible Editor: Marion Kraemer This Springer imprint is published by the registered company Springer Fachmedien Wiesbaden GmbH, part of Springer Nature. The registered company address is: Abraham-Lincoln-Str. 46, 65189 Wiesbaden, Germany

What You Can Find in This essential

• Explanation of the coronavirus crisis using a clear space by time analysis • Infoboxes on relevant economic psychological theories • Description of the experience and behavior at the beginning and during the crisis • Outlook on societal and economic consequences of the pandemic

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Preface

When we began writing about the crisis and economic psychological explanations of behavior in May 2020, less than half a year had passed since reading in the media about a mysterious lung disease in China. Data and information did not impress us much in Europe at that time. But when the SARS-CoV-2 virus reached Europe three months ago, we started to panick. Life was reduced to the bare necessities in many countries. Meanwhile, the measures that challenge democracy and plunge society into an unprecedented state of emergency are being relaxed in some countries. Gigantic changes through the crisis are predicted and no return to the familiar normality. The crisis occupies the sciences – medicine and biology, philosophy, legal and political sciences, sociology, economics, educational sciences, psychology ... We attempt to describe and understand the experience and behavior of people at the beginning and during the crisis from an economic-psychological perspective and venture a look into the future after the lockdown, when the economic damage will not be repaired for a long time. Our goal is to understand the events using theories that economic psychology offers. We strive to provide analyses and explanations that do not follow any political ideology. This attempt may have failed sometimes because it is hardly possible to see the world without “glasses”. We would like to thank our colleagues with whom we were able to exchange ideas in interesting discussions and we would also like to thank Mona Hahn, Ulrich Rasche, Pia and Erwin Kirchler, for their suggestions. We are especially

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Preface

grateful to Gisela Kirchler-Lidy for her critical reading and numerous suggestions for improvement and to Elisabeth Dorfinger for correcting the manuscript. Vienna 11. June 2020

Erich Kirchler Julia Pitters Barbara Kastlunger

Contents

1 Chronology of Events. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 No Reason to Worry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Unprepared in Danger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 Development of the Crisis on Social Levels . . . . . . . . . . . . . . . . . . .

1 1 2 4

2 Start of the Crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1 Beginning of the Crisis at the Micro Level . . . . . . . . . . . . . . . . . . . . 2.1.1 Anxiety. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1.2 Social Representations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1.3 Decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2 Beginning of the Crisis at the Meso Level. . . . . . . . . . . . . . . . . . . . . 2.2.1 Coping Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.2 Morality and Free-riding . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 Beginning of the Crisis at the Macro Level. . . . . . . . . . . . . . . . . . . . 2.3.1 We-feeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.2 Acceptance of Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 7 7 9 10 12 13 14 15 16 18

3 Life in Times of Crisis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1 Micro-Level Behavior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.1 Social Habits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.2 Adaptation Strategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.1.3 Social Comparisons and Norms. . . . . . . . . . . . . . . . . . . . . . . 3.2 Dynamics at the Meso Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.1 Work and Consumption. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2.2 Justice. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

21 21 21 22 23 24 24 25

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Contents

3.3 Interaction on Macro Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.1 Motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.2 Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.3.3 Trust and Tax Honesty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28 28 28 30

4 Repair, Review and Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Blaming and Conspiracy Theories. . . . . . . . . . . . . . . . . . . . . . . . . . . 4.2 Assessment and Review. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3 Health Protection as a Prerequisite for the Economy. . . . . . . . . . . . . 4.4 Clear Rules or Libertarian Paternalism . . . . . . . . . . . . . . . . . . . . . . . 4.5 Global Crises – Global Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.6 Crisis as an Opportunity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.7 A New Beginning towards a Better World?. . . . . . . . . . . . . . . . . . . .

35 35 37 39 40 41 41 42

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

1

Chronology of Events

At the beginning was the fear. No, at the beginning was the ignorance! Then the crisis took its course. In times of extreme uncertainty, we long for explanation, truth and order. That the desire for clarity will soon be fulfilled is unlikely because SARS-CoV-2 is complex, there is uncertainty about when and in what form Covid-19 manifests itself as a disease, and there is no consensus about how the health of the population can be sustainably protected without incurring enormous economic costs, which in turn threaten the health of those affected. “There has never been so much knowledge about our ignorance and the need to act and live under uncertainty,” emphasizes Jürgen Habermas (2020). Nevertheless, we attempt to view the crisis, the countermeasures and the effects on the experience and behavior of people from an economic psychology perspective, to understand the events on the basis of theories and to place them in a framework that focuses on the chronology of the crisis and the societal levels of crisis management.

1.1 No Reason to Worry Between 2019 and 2020, the world was in its familiar state of disorder: Climate change, the refugee problem, the wide open gap between rich and poor fueled hot social debates. However, these did not lead to any generally accepted solutions. What completely threw the world off its axis a few weeks after the beginning of 2020 was a mysterious lung disease that was diagnosed in a few dozen patients in China at the end of 2019 and reported to the World Health Organization (WHO 26.03.2020-a) at the end of the year. At that time, we in Europe paid little attention to the events in China, but welcomed the new year with high expectations. © The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2022 E. Kirchler et al., Psychology in Times of Crisis, Springer essentials, https://doi.org/10.1007/978-3-658-38548-4_1

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1  Chronology of Events

The reports from China were becoming more frequent. The pictures from the streets of Wuhan, the capital of the Chinese province of Hubei, caused irritation. In Wuhan, the first people had become infected with the coronavirus SARSCoV-2 and had fallen ill from it. The virus spread quickly and the number of cases of Covid-19 increased sharply. Already in the second half of January, the city was placed under quarantine: airports and railway stations were closed, curfews were imposed and residents were forbidden to leave their city. But the previously unknown disease was rampant in the distance and the new virus did not pose a concretely perceptible danger to the West. Isolated warnings about the rapid spread of infections hardly touched us, after all the geographical distance to China is great. Reports from a distant country are at most interesting. The perceived low relevance was supported by media reports, such as the article in “Die Presse” of 4 March 2020: “Why Europeans are less affected” (Baltaci 04.03.2020). The reasons given for the allegedly low incidence were genetics, the factor of time, environmental pollution and the differently well-developed health systems. At that time, 90,000 people had already become infected with the coronavirus worldwide; almost 90% of them in China. The Asian population—as the article went on to read—apparently seems to be more vulnerable to the coronavirus SARS-CoV-2 than the European, both in terms of the risk of infection and the severity of the disease course. At that time, the first cases of infection were already known in Germany, in France, also in Austria and above all in Northern Italy. But the speed of spread, which increases exponentially, was underestimated. Geographical distance, questionable explanations and the insufficient understanding of exponential growth were decisive in dispel concerns about the danger.

BOX: Linear Versus Exponential Growth In linear growth, the same amount is added in each time period, while in exponential growth, a stock size is multiplied by the same factor in each time period.

1.2 Unprepared in Danger Suddenly nothing was like before. Only a few weeks after the first cases of illness in Northern Italy and in other European countries, the state of emergency was proclaimed in many places and the shutdown of everyday life became reality.

1.2  Unprepared in Danger

3

Social life was put on standby: locals had to close, shops, sports and playgrounds were closed and theaters, opera houses, concert halls and cinemas, as well as schools and universities, were closed; airplanes remained on the ground, trains in the depots. Major events such as the European Football Championship, festivals and cultural events were canceled or postponed to next year. Many countries imposed partial restrictions on movement, some even curfew. Now everyone was directly confronted with the crisis and the associated drastic changes in life, which affected individual freedom of movement, child care, education and teaching, jobs, shopping, leisure and vacation planning. In hospitals, the treatment of patients with severe courses of illness and the prognoses that the limit of medical care would soon be reached became a sad reality in some countries. “The Corona virus is able to jump with the stock market. And it is classless. It does not distinguish between skin color, gender, age or origin …”, write Ferdinand von Schirach and Alexander Kluge (2020, p. 11 ff.) In their “dialogue book”, shortly after the outbreak of the crisis. At that time, the level of knowledge in science about the new virus was meager. Virologists and researchers from other medical fields did not even have time to conduct scientific studies and provide empirical, well-founded findings that could serve as a basis for decision-making by politicians. Political decisions were made partly out of insecurity and partly out of ignorance; short-term and constantly adapted to new findings and simulation results. There was no blueprint for measures and no formula for what to do. The apocalyptic images from northern Italy, where the health system collapsed, were clearly visible. Discussions about triage, the decision to only treat patients who have better survival chances than others, dramatically exacerbated the chronic stress on hospital staff. The leadership bodies quickly agreed on the goal of measures: the protection of the health of the population comes first, even at the expense of the economy. To rely on herd immunity was risky and where the population was infected as a strategy for immunization, it quickly became clear that the chosen path was irresponsible. Sweden, however, continued to experiment in this direction and complains of comparatively high death rates.

BOX: Decisions Under Certainty, Uncertainty and Ignorance Decisions are made under certainty when complete information about the alternatives available and certainty about their consequences is given. Often, with regard to the consequences of decision alternatives, there is uncertainty because the consequences only occur with more or less known

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1  Chronology of Events

probabilities. Decisions under ignorance are then given when information is lacking, as when the SARS-CoV-2 virus began to spread.

1.3 Development of the Crisis on Social Levels The crisis began with ignorance, the denial of the impending change; followed by fear and panic. Later came anger, anger over the restrictions and the attempt to regain the lost freedom. Many people experienced a feeling of helplessness, sometimes resignation and fatalism set in. Over time, adaptation and normal operation will probably follow, but normal operation is likely to be different from before. Reactions to a crisis are not to be understood punctually. They change over time. Similar to how Zunin and Myers (2000) and Elizabeth Kübler-Ross described reactions to major life events in 1969, we initially did not want to acknowledge the crisis, then we were seized by fear and panic, and finally reacted with anger and resistance. Kübler-Ross describes additional stages as phases of negotiation, depression, and finally acceptance. It is important to consider the chronology of events and reactions to them in order to understand attitudes towards the major crisis event and the behavior of people. The concern and the practical consequences of the measures have not only changed over time for the individual, but also show different effects on different social levels. In order to understand the respective effects and the behavior of people, individual reactions that concern the immediate social environment, such as partnership and family, i.e. the microsystem, must be analyzed. Furthermore, it is about consequences that affect the workplace and new ways of working, i.e. the mesosystem. Finally, interventions by politics and their influence on society, on life in general, work, consumption and leisure, i.e. on the macrosystem, take effect. In the following sections, we will first deal with the perception of the crisis over time and then with reactions at the micro-, meso- and macro level. For the time of the beginning of the crisis and during the crisis, economic psychological explanations are available at each of the three system levels. In the last chapter, we speculate about possible consequences of the crisis without differentiating between the three levels (Fig. 1.1). A detailed social psychological analysis of the crisis is offered by Van Bavel et al. (2020).

Chronology

Ignorance: Not-true want4

Fear

Shock: Fear and Panic

Rebellion: anger and wrath

Social scripts

Reactance

Repairing the crisis

Depression: Helplessness

Profit ≠ loss

and review

Acceptance:

Jerking error1

Status quo bias

Blame

Solidarity

Nudging

Prospect theory

Stress management

Trust

Living in the crisis

Running boards Social norms

3

Beginning of the crisis

2

Fig. 1.1   Chronology of the crisis at the micro-, meso- and macro level and psychological theories to explain the experience and behavior

1. Hindsight bias 2. Overconfidence 3. Free-riding 4. denial

Phases of the crisis

Micro level: individuals, Households/partnerships with and without children

Meso level: farms,

Macro level: labour market, economy, state and Community of states

Social levels

1.3  Development of the Crisis on Social Levels 5

2

Start of the Crisis

The threat of an invisible “enemy” that gradually approaches from afar and eventually envelops and paralyzes the whole world evokes fear, insecurity and a sense of loss of control. The impending loss of control leads to protective and defensive reactions that are not well thought out because the danger is immediate. Spontaneous, barely reflexive reactions often seem irrational in retrospect, especially when there is little knowledge about who and what the “enemy” is and how it can be “fought” effectively.

2.1 Beginning of the Crisis at the Micro Level 2.1.1 Anxiety The threat of something unknown, intangible, uncontrollable or barely governable evokes fear. Fear is a diffuse feeling, while terror refers to an object. Acting from a state of fear often means that we fight against feared consequences without taking into account the probability of these consequences.

BOX: Anxiety and Fear Anxiety is distinguished from fear in that anxiety is usually an undirected emotional state, while fear refers to a real threat.

In order to be able to react appropriately to a threat, we must also perceive it as such. But the threat must not overwhelm us to the point that we react spontane© The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2022 E. Kirchler et al., Psychology in Times of Crisis, Springer essentials, https://doi.org/10.1007/978-3-658-38548-4_2

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ously with flight, so that we are able to deal with the danger cognitively and eventually act accordingly. Human information processing proceeds differently depending on the situation: If we are exposed to a danger and have to react quickly to escape it, we make quick, intuitive decisions. According to Daniel Kahneman (2012), System 1 is used, which is evolutionarily older and allows for quick, holistic information processing. The decision is made intuitively and often emotionally without weighing information and alternatives against each other for a long time. When danger threatens, flight is close. We use our “autopilot” and don’t think for long, but act. In the case of the Corona crisis, many observed behaviors give rise to the assumption that decisions were made according to the information processing System 1. Decisions according to System 2 require significantly more cognitive effort than decisions according to System 1. For example, System 2 is used to carry out complex calculations, weigh the advantages and disadvantages of different options and compare them with each other. The information processing takes place mainly objectively and not mainly emotionally. Since people generally do not want to strain themselves mentally more than necessary (social psychologists therefore also call us “cognitive misers”), there must be a strong motivation to deal with a topic in more detail than to decide intuitively.

BOX: Decisions According to System 1 and System 2 System 1 is always active and processes information quickly, automatically and unconsciously, while System 2 is rarely active and analyzes information slowly, calculating, logical and conscious.

Because fear can lead to unreflective actions to escape a danger as quickly as possible, people stormed supermarkets at the beginning of the shutdown to stock up on non-perishable goods. Despite the assurance that everyday necessities would continue to be delivered, shelves were empty in many places and supermarkets could hardly keep up with supplying non-perishable food. Cash withdrawals also reached a record level (Schnauder 15.03.2020). The phenomenon of “herding” or social contagion offers an explanation for the widespread hoarding of hamsters (Orlean 1992; Temzelides 1997). In situations of ignorance, people often do not behave rationally. We act spontaneously and “follow the crowd”. If others are observed to be quickly acquiring supplies,

2.1  Beginning of the Crisis at the Micro Level

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this behaviour is imitated without long reflecting on whether the goods are actually needed in the hoarded amount. Back then, at the beginning of the crisis, fear gathered people together, triggered by terrible images from hospitals, especially from northern Italy, and no less alarming warnings from political representatives. The desire for behaviour guidelines grew and strong leaders who communicated authentically and clearly rose in popularity. The subservience to authority grew and the obedience of citizens seemed unobjectionable. We tried to loosen the blockade of fear through intensive exchange with others, solidarity and soon with black humour and often daring jokes about Corona. Humour is a defence mechanism, as psychoanalysis teaches, which helps in times of stress and strengthens the bond with others. Many found coping strategies and were able to make “the best” out of the changed everyday life. Fewer people were jogging, reading, crafting, cooking and baking than in the first weeks after the outbreak of the crisis. But soon resistance also developed against the restrictions. People who are restricted in their personal freedom usually try to restore their lost or threatened freedom. They react with reactance (Brehm and Brehm 2013). So “now-evenmore-reactions” were tried to regain the former freedom space. Despite the calls to stay at home, a lot of time was spent outside, things were hoarded that were not necessary, or distance rules were ignored; even private “Corona parties” were held. If the restriction of freedom lasts a long time, reactance develops into helplessness, lethargy, passivity and even depression.

BOX: Reactance Psychological reactance is a defense reaction that occurs when people are restricted in their personal freedom.

2.1.2 Social Representations In a short period of time, the SARS-CoV-2 virus managed to leave little room for other topics in the media. This dominance established the virus in our heads as particularly threatening. After all areas of society were quite unprepared for the health crisis, the unknown phenomenon was experienced as a danger, but there was great ignorance. At first it was about exchanging with others, informing oneself through media—serious and less serious—to get an idea, to understand. People were constantly looking for information, were almost addicted to it. We talked

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constantly about the threatening unknown in order to finally understand it, that is, to make it “tangible”. We were determined to develop a “social representation”, a socially shared idea of the new phenomenon, the invisible enemy, in order to be able to act, to plan and to protect ourselves in the process. Social representations stand for comprise systems of values, ideas and practices of a society or of groups in societies (Jacob 2004; Moscovici 1984, 2000). They serve on the one hand to understand relevant phenomena and to orient oneself in the material and social world and on the other hand to communicate with others. They are related to concepts such as belief system, world view or ideology. Laymen and experts develop shared representations of social and economic phenomena (Gangl et al. 2012). In an interview in “Die Zeit”, Assheuer (25.03.2020) describes how well the Corona crisis is suited to creating metaphors, myths and legends about the virus. Government leaders also contributed to the formation of metaphors. The crisis was represented as a war situation, for example by talking about an “invisible enemy” or the “greatest threat since the Second World War”. Natural disasters were also used for comparison. There was talk of the “calm before the storm” or a “tsunami”. Austrian government members tried to make Easter 2020 a vivid comparison of the shutdown; there was talk of “death and resurrection”, of efforts to “prevent the greatest human catastrophe” and verbal images of “telephone farewells to relatives” became a vivid symbol of human tragedy.

BOX: Social Representations Social representations are not images of facts, but metaphorical images, ideas that are based on facts and fakes, empirically documented information and speculative conspiracy theories, which are often pictorial-symbolic. They are linguistically formulated and combine cognitive, affective, evaluative and conative aspects.

2.1.3 Decisions Even if the media reported on the crisis daily from the beginning of 2020, many people initially dismissed the danger as scaremongering. How threatening sources of danger are assessed and corresponding decisions are made and actions are taken depends on the availability of information. It is not essential whether information is generally available, but how mentally present it is. Often, information that dominates the media is easily available. On the other hand, the perceived

2.1  Beginning of the Crisis at the Micro Level

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distance to events also plays a decisive role in decisions. The closer (in time or space) an event is perceived, the more relevant it is considered. People are not always able to make rational judgments about an event, even if they try. There is a lot of information available about the Corona crisis, including conflicting information, and the data situation is uncertain overall. The information about causes and possible effects is complex, too complex to be processed objectively and rationally in order to make decisions and take action without hesitation and fear. In addition, time is pressing, so we hardly have the opportunity to think long and hard about a problem at work and make a decision based on the rules of logic. In order to still be able to cope with the complexity of tasks and especially crisis-related changes, to make decisions and take action, we rely on decision-making aids, so-called “decision heuristics”. These are mental shortcuts that help us to make judgments quickly and without much cognitive effort according to a given scheme. However, decisions based on this can also be error-prone (Tversky and Kahneman 1974). A well-known rule of thumb is the availability heuristic (Tversky and Kahneman 1974; Kahneman 2012). According to this, we take the currently available information more or less consciously as a basis for making an assessment of a situation, judging or acting spontaneously. If a certain topic dominates the media, we judge it to be more important than others that are not in the headlines. It is also easier to recall currently dominant topics than information that has to be remembered with high cognitive effort, and the ease or difficulty of remembering information also plays a significant role in decision-making (Schwarz et al. 1991).

BOX: Decision Heuristics Decision heuristics are mental shortcuts that help people make decisions quickly and based on outstanding information.

The availability heuristic can explain why the risk of the Corona virus was at it’s beginning in early 2020 underestimated by health systems. The topic did not dominate the front pages of the media. However, the availability heuristic does not only make use of the mere availability of information, but also of how close or how far away an event is perceived. When the infections and illnesses were mainly reported from China, the relevance for Europe was considered to be low. The same applies to the assessment of other crises, such as the refugee crisis: As long as the refugee dramas do not take place

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in front of one’s own borders, they are mostly only peripherally perceived. As soon as there are cases “in one’s own ranks”, the risk is—in accordance with the availability heuristic—rated as disproportionately high. The availability heuristic is also related to the mental difficulty of imagining an event and developments. Exponential growth often exceeds our imagination. We carelessly assume that other people will become infected with SARS-CoV-2, but the increase is linear. If the spread of SARS-CoV-2 infections is exponential and exponential growth is understood, then it is also clear that decisions must be made quickly and drastic measures taken in order to contain the spread, if it is to be prevented that health systems reach their capacity limits and collapse in a short period of time. Exponential growth is impressive when asked how high a sheet of paper (strength = 0.01 mm) would be if it were folded 103 times. Most people imagine the first few folds and come up with a few centimeters in height. However, it is actually an exponential function with the formula 0.01 mm × 2103. With the 42nd fold, the folded paper would already touch the moon and after 103 folds the limits of the universe would have been reached.

2.2 Beginning of the Crisis at the Meso Level The crisis has not only shaken the private lives of people in relationships with or without children in densely populated urban and rural areas, but also work, leisure, culture and mobility. Quick adaptation to unusual measures was required in the job market, in companies and institutions. The entire labor market was affected. The routine of small and large businesses was put to the test. Above all, in the health sector, the familiar everyday life gave way to the hustle and bustle of preparing for and taking protective measures against the impending danger. Urgently needed goods were lacking, others could not be produced due to interrupted supply chains. The service sector collapsed and hordes of working people were laid off or put on short-time work. Whether and how companies can survive the almost total shutdown of the state remains a frightening question. How companies can get back on their feet, how the labor market can recover, which measures are effective against the exploding unemployment figures and the threatening long-term unemployment, remain controversial questions.

2.2  Beginning of the Crisis at the Meso Level

13

2.2.1 Coping Strategies The crisis completely overwhelmed many companies. The drastically changed situation required reorientation and targeted measures. The stress level rose enormously among employers and employees. In the first phase of crisis management, only system-maintaining companies—such as supermarkets, pharmacies or gas stations—were allowed to keep their stores open. Other businesses, clothing stores, restaurants and bars as well as public institutions such as schools, universities, authorities or museums and theaters remained closed. Institutions and sectors such as gastronomy, hotel industry, event organizers or leisure and travel providers were particularly hard hit. Other companies could “flee” into the digital space and offer home office. That wasn’t easy either. Above all, educational institutions were faced with the challenge of equipping students with digital tools and switching to distance learning and teaching.

BOX: Stress Stress refers to a subjective state of high tension and strain caused by external or internal fears and/or threats.

The regulations and recommendations of the government confronted companies with the dilemma of protecting the health of their employees as best as possible on the one hand and maintaining operations and jobs on the other. Disregarding the regulations and recommendations would have entailed the risk of infection and illness and also a considerable loss of image. Therefore, cooperation and solidarity were initially considered binding social norms. Governments immediately offered measures to protect jobs, such as short-time work programs. Nevertheless, unemployment rose sharply in many countries, causing a break in the professional careers of those affected, in life planning and, not least, alarming existential worries. The devastating effects of unemployment on individuals and society, especially if it persists, are well known from studies of the 1930s and 1980s (Kirchler and Hoelzl 2018). The corona crisis will also plunge hordes of people into absolute poverty. The economic shock will hit poorer countries particularly hard and at least 60 million people will live in poverty, writes Donata Riedl in the Handelsblatt on 2 June 2020 (Riedl 02.06.2020). The mechanisms for coping with stress at the meso level were similar to those at the micro level: coping strategies were used, such as the use of digital work alternatives, and restructuring, such as the production range in companies. When

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the mask requirement was introduced and a shortage of masks was inevitable, some companies switched to the production of masks or disinfectants. Also, restaurants that were allowed to prepare food for pick-up after a short time developed concepts to serve their guests in the best possible way, taking into account the regulations. Also, creative business ideas were realized. Under the label “united we stream”, artists joined forces in response to the closure of clubs and streamed live music over TV channels. In Berlin, teledisks were held that allowed partygoers to dance to their favorite song in an isolated telephone booth by coin insertion (Teledisko 03.06.2020).

BOX: Emotional Coping Strategies Measures to cope with stress, including relaxation methods, distraction, and redefinition of a stress reaction, are referred to as emotional coping strategies.

2.2.2 Morality and Free-riding Crises offer the opportunity to behave cooperatively or uncooperatively in society. Even though many people adhere to rules and laws, the measures taken by the government to protect jobs and bridge liquidity gaps offer many companies the opportunity to profit from these measures in an unjustified manner. Those who use the crisis as an opportunity for layoffs or take advantage of the state’s short-time work arrangement while continuing to demand full work performance from their employees, those who, despite high profits in the past, suspend their rent payments or continue to operate their businesses despite a ban because they are thinking first and foremost of their own returns and those of their shareholders, are behaving selfishly and unsolidarily. They are thus taking more from the already—to use a metaphor—bleeding community than is due to them and thereby damaging everyone. Just as in the social dilemma, where contributions to the common good are not made due to selfish motives to the detriment (Messick and Brewer 1983), the one who is only interested in his own benefit like in the Tragedy of the Commons ignores the common good but in the end harms himself.

BOX: Tragedy of the Commons The Tragedy of the Commons refers to a situation in which freely available but limited resources are threatened by overuse. Anyone who uses more of

2.3  Beginning of the Crisis at the Macro Level

15

the limited resources than intended harms the community and ultimately himself.

Whether actors behave cooperatively at the meso level depends on personal moral values and the trust of society in political actors as well as on their power to control and sanction free riders. Targeted control by authorities is effective. In addition, the attitude of society towards uncooperative behaviour is relevant. If there is a danger that society will protest against damaging behaviour and companies will be boycotted accordingly, then the probability that even those who tend to maximise profits selfishly will cooperate increases (Kirchler and Hoelzl 2018). Social ostracism can be an effective regulatory measure against uncooperative behaviour. When it became legal in Germany to defer rent payments in order to bridge the worst of the crisis, an internationally renowned sports goods manufacturer announced that it would no longer pay the rent for its business premises. This triggered a “shitstorm” that quickly made the company understand that not everything that is legal is also socially acceptable. In addition, behaviour is decisively regulated by social norms. Companies that behaved exemplary, for example by protecting their employees in contact rooms with customers from infection with Plexiglas panels, set standards that other companies followed. A strategy to get the population to wear mouth-nose protection was the free distribution and the obligation to wear masks in supermarkets in Austria. The free distribution of protective masks meant a financial burden for supermarkets, but companies that charged a fee for masks were criticised for this at least at first.

2.3 Beginning of the Crisis at the Macro Level The political upheavals were no less violent than at micro and meso level. Although the Covid-19 pandemic is not being portrayed as an unpredictable “black swan”, the consequences are often cited that extend to the worldwide shutdown. In many countries, the usual party bickering gave way to the urgent need to plan and implement efficient strategies against the virus and its effects. An unusual shoulder-to-shoulder between the ruling political parties and interest groups was the result and much was done well. Generalizing from trauma research (Hobfoll et al. 2007), the feeling must be strengthened to be safe, calming and

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2  Start of the Crisis

not excitement is important, self-efficacy and collective effectiveness must be promoted, social cohesion should be intensified and not least it is important to give people hope. Expert opinions from science were urgently needed as a necessary basis for political decision-making. “Driving on sight” was not interpreted as political decision-making weakness, but underlined the credibility of the actors and strengthened the confidence of the population in their political representatives. According to a study of more than 1000 New Zealanders, trust in science, politics and police increased significantly within the period before and 18 days after the lockdown (Sibley et al. 2020). Nevertheless: We will probably have to live with a built-in “stutter brake” (von Schirach and Kluge 2020) for a long time and be very patient.

BOX: Trust Trust is the expectation that one can rely on a person or system unreservedly.

2.3.1 We-feeling The acceptance and compliance with state regulations were essential for containment of the crisis. How could the population be brought so quickly to comply with the measures? When it comes to uniting the population behind a common goal, values are often emphasized in order to create a strong sense of “we” within the population. The sense of “we” is also strengthened when one’s own group is distinguished from others. At the beginning of the crisis, the nation was emphasized; Italians, French, Germans, Austrians were spoken of; but not Europeans. The European Union was also rarely mentioned. Comparisons and distinctions were made between different countries as if the people in different countries were assigned to different social categories. The daily infection rates were separated for the states, delivered in clear tables, constantly updated and compared with each other. The fitness of national health systems and measures were compared with their own and evaluated. The measures taken by the governments and the relatively mild development of Covid-19 cases in Germany and Austria in contrast to other countries often resulted in the feeling of living in a “better” country. In Austria, the “unofficial national anthem” was heard from balconies and even from police cars: “I am from Austria”.

2.3  Beginning of the Crisis at the Macro Level

17

The theories of “social categorization” and “social identity” offer an explanation for the apparent paradox of, although it is a pandemic, coming together more closely within the country, looking for solutions to one’s own problems, shutting oneself off from others and closing borders. We belong to different social categories, the employed, the Austrians, etc., and to other categories we do not belong. The membership in groups or categories and the distinction from others is effective because we generate our social identity and our social self-image and define our self-worth in this way. We strive for positive social identity and high selfworth by upgrading the group we belong to on relevant dimensions and by tending to devalue and discriminate against foreign groups (Tajfel and Turner 1986). Jetten et al. (2020) offer a comprehensive social psychological analysis of the crisis and the social identity dynamics.

BOX: Social Categorization and Identity Denotes the mechanism of classifying oneself and other people into groups and categories. This has an ordering and meaningful function and at the same time influences how we define, perceive and evaluate ourselves.

In her 12-min television address on the shutdown on March 18, 2020, the Chancellor of Germany used the word “we” 31 times. And from the very beginning, the Austrian government has also called for a strong sense of togetherness for the “Team Austria”. The closure of one’s own borders and the comparison with other countries that failed to recognize the danger in time or reacted too late, or whose health care system was not well prepared, created an in-group bias, that is, the conviction of being better than the others. If it is possible to create a strong in-group feeling and to strengthen belonging, then protective measures can also be implemented more easily. However, the cooperation between politics, business and population in one’s own country can easily lead to isolation from the outside. Not infrequently, the strong identification with one’s own group, such as one’s own nation, leads to the devaluation of others. Thus, at the beginning of March, the delivery of urgently needed medical products to Italy was blocked in Germany and help did not come from Europe, but from China. The danger of a sharpening of social tensions through the accentuation of the in-group while at the same time devaluing the out-group can be the result (Reicher and Stott 2020).

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2.3.2 Acceptance of Measures Another, widely studied mechanism helped to motivate the population to persevere: the striving for consistency. According to Festinger’s theory of cognitive dissonance (Festinger 2012), the experience of inconsistency, of dissonance, between individual attitude and one’s own behavior is often experienced as unpleasant. People then tend to either adjust their attitude to the behavior or the behavior to their attitude. If it is possible to generate positive attitudes towards prescribed measures, then the probability is also high that people will behave in an attitude-consistent manner.

BOX: Cognitive Dissonance Cognitive dissonance refers to a state of mind that is experienced as unpleasant because cognitions, for example, are not in line with one’s own behavior or emotions.

The urge to behave consistently should not be underestimated. At the beginning of the crisis, the population was first brought to comply with the restrictions and lockdown for a short period of time. No specific timeframe was known, it was said to be a week, and only after acceptance of this time span, the restriction gradually was extended. The so-called “foot-in-the door” technique works similarly: If someone is first asked for a small favor, this person already commits to the desire to comply. In a next step, the probability of further accommodation increases in order to behave consistently. Cialdini (2017) describes the commitment and consistency techniques as efficient, for example, to convince buyers to invest in products, services or projects they normally wouldn’t to the same extent. Governments tried to enforce acceptable restrictions at the beginning of the crisis, such as staying at home or as leave one’s apartment only in an emergency for a short period of time. Once that was achieved, it was easy, in terms of reducing cognitive dissonance and striving for consistency, to demand further restrictions and extensions of the measures.

2.3  Beginning of the Crisis at the Macro Level

19

BOX: Commitment and Consistency Commitment and consistency describe the tendency to continue to defend a once-established opinion or choice, as switching to other opinions or options would be associated with too high cognitive effort.

Another explanation for why the population accepted freedom-restricting measures is provided by a finding from prospect theory (Kahneman and Tversky 1979): people assess an event, an option, or any value in comparison to other values. The reference value is variable and can quickly adapt to the current situation. Accordingly, with the gradual restrictions, the reference point was repeatedly shifted and new measures were assessed as small changes compared to the existing situation. Media-reported conditions in other countries also served as a reference point, so that the restrictions in one’s own country did not appear dramatic compared to those in other countries. The first restrictions were compared to the “normal state”. After the first school was closed, a great outcry went through the crowd. The closure of universities and secondary schools, and subsequently of lower secondary schools, primary schools and kindergartens, was eventually accepted as consistent. Prospect theory also provides another finding: losses are usually experienced more intensely than equal gains (Kahneman and Tversky 1979). Reporting on the number of deaths from Covid-19 and the number of people affected was more impressive than the number of people who recovered. People react more strongly to negative messages than to positive news. In order to justify and implement drastic measures, directing attention to dangers can be an effective strategy. In the later course of the crisis, this was criticized as manipulative “scaremongering”.

BOX: Prospect Theory Prospect theory or “new expectation theory” is a function in which gains and losses are not valued absolutely, but relatively to a reference point. Losses are weighted more heavily than gains. In addition, reference is made to differences between objective probabilities of gains and losses and subjectively weighted probabilities.

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Life in Times of Crisis

3.1 Micro-Level Behavior After the crisis persisted for a long time and lockdown measures were imposed in many countries for months, the “initial magic” of solidarity faded. At the beginning, almost addicted and often with a craving for new news and superlatives, but then the longing for a return to familiar normality quickly rose.

3.1.1 Social Habits The behavior rules introduced out of necessity were in contradiction to culturally traditional, established social customs. The prescribed behavior rules were not yet rehearsed and long-practiced and automated social scripts were difficult to suppress. The “new closeness” meant keeping a distance, usual greeting rituals should be omitted. In line with the “status quo bias” (Samuelson and Zeckhauser 1988), people tend to maintain the behavior they are used to and show less willingness to change. In crisis situations, this tendency can be amplified. When familiar structures break down, uncertainty and the desire to create security arise. Maslow (1943) already saw this need of security and stability as elementary.

BOX: Status quo Bias People tend to maintain the current status quo in decision-making situations.

© The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2022 E. Kirchler et al., Psychology in Times of Crisis, Springer essentials, https://doi.org/10.1007/978-3-658-38548-4_3

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The emergency initially caused overwhelming solidarity, considerable trust in authority and obedience in the country. That physical distancing is necessary to protect the population’s health and that the stay in public space must be so sparing that work must be done from home and mouth-nose masks contribute to infection control was recognized across the board. Even population groups whose risk of illness was considered low seemed to accept the restrictions without objection to protect the vulnerable. Those who could not do without sports in the open air and a walk in the park, food in restaurants and entertainment in bars, or even parties with friends, had to expect to be reported to the police by their neighbors. The endangerment of the health of others by a few unenlightened “corona breakers” was socially punished.

BOX: Social Scripts Social scripts are—similar to a screenplay—plans for sequences of actions and events. They describe socially recognized and shared behaviors in certain situations.

But the prescribed physical distance also felt strange. The distance to other people not only appeared as an unfriendly gesture, but especially among older people it increased the feeling of loneliness, which in turn increases the risk of mental illness and rising mortality. UN Secretary-General Guterres therefore warned of a widespread outbreak of mental disorders (Kurier 14.05.2020). According to the Red Cross, social isolation can increase the risk of death by 25% (Scherndl 09.04.2020).

3.1.2 Adaptation Strategies At first, “every day was Sunday”. Then reality caught up with us. Working from home meant a huge adjustment for many. In private life, adaptation strategies were required. Housework, professional work, supervising the children and teaching at home had to be brought “under one roof” despite often cramped living conditions. Those who managed to bring a clear structure into their everyday life had done a great deal to adapt; but not everyone managed to do so. The cramped conditions at home and the need to simultaneously complete different tasks became

3.1  Micro-Level Behavior

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significant stress factors. It is not surprising that people’s irritability and aggression increase in multi-person households if the relationship quality is not harmonious, just as the realization that people who live alone are at risk of loneliness. According to WHO, in April, an increase in calls to women’s helplines due to violence by the partner was recorded in various countries by 60% (Gaigg and Müller 18.03.2020; WHO 26.03.2020-b). Soon one day resembled another. People, and especially children, have an amazing ability to adapt to new circumstances. If a situation persists for a long time, many people get used to it and “settle in”. At first, the sight of people wearing masks caused discomfort; by now we have got used to the sight, and even to wear them.

3.1.3 Social Comparisons and Norms People compare their behavior with that of other people (Festinger 2012). Social comparisons can help deal with change. The behavior of others in comparable situations provides learning and orientation opportunities and condenses into a social norm. Learning in conversations and through the media how others shape their everyday lives and get by, promotes the ability to develop one’s own coping strategies. The observation of how others behave in public space is indicative of how to behave oneself. After the belief in authority had grown immensely and behavioral rules, such as hand washing, social distancing, wearing masks and staying at home, were accepted by many and some recommendations were understood as obligations by some in anticipation of obedience, many people behaved even more submissively than was foreseen in the guidelines. This social norm was quickly established and only a few were rebellious and thus risked social ostracism.

BOX: Social Comparison Observation and orientation to the behavior of other people who are close to one self or that are in similar situations.

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3.2 Dynamics at the Meso Level 3.2.1 Work and Consumption While many companies in the past only hesitantly allowed their employees to work from home, entire corporate headquarters were closed and employees were sent home with laptops and headsets within a few days. Long-held concerns seemed to dissolve. Working from home has become one of the key images of work during the crisis. Home office, remote and smart working were often mastered after a few adjustment problems. Previously applicable social rules of the world of work seemed to be relaxed. That family members walked through the virtual meeting room or that a child loudly complained in the background that one of the parents could not play with him at the moment was rated as authenticity and not as a faux pas. According to a survey by ECUSA (27.05.2020), many people in Austria reported at the end of May 2020 that they can cope with the home office situation quite well and can work concentrated. However, the missing social contacts could not replace digital communication. In fact, there are no opportunities for informal exchange in virtual rooms. The “lost steps in the aisle” are important because social contacts can be maintained, uncertainties can be clarified in informal post-meetings and unconventional ideas can be developed that enable creative solutions to tasks. The behavior of consumers also changed during the crisis. After many shops had been closed, consumption was necessarily dispensed with or purchased online. Many consumers are also likely to have questioned what they really need. Whether the clothing industry and the shops in the cities can make up for the losses from the spring seemed to be doubtful; the food trade and online trade boomed. Just as the big American tech companies benefited from the pandemic. During the lockdown, more and more attention was paid to “risk-free” products and high-quality products were in greater demand (Leggett 05.03.2020). Will the changed consumption habits also continue after the lockdown? Several scenarios can be reflected: a) Echo effect of consumption restrictions during restrictions with reduced consumption after reopening: Consumers were “forced” to change their behavior during the weeks of the exit restrictions. For example, more cooking and baking was done at home. Consumption out of boredom was not possible. Online retailers recorded strong sales growth, but overall consumption (except for

3.2  Dynamics at the Meso Level

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food) was lower than before the exit restrictions. Figures from the catering and retail sectors point in this direction. The echo effect occurs when the change in behavior during the crisis leads to a change in attitude and longer-lasting behavior. Perhaps many consumers will also remember after the crisis that they do not need much. b) Recovery effect: After the crisis, a rapid return to the habits before the crisis might be apparent. If the restrictions are of short duration, the change in behavior will remain superficial and short-term and will not be accompanied by a change in attitude. A return to previous behavior then appears to be likely. c) Bounce effect: Consumption behavior could increase shortly after the crisis and then decrease again in the following months. The externally imposed forced break has restricted purchasing and consumption habits. This can be experienced as a restriction of freedom and trigger reactance, which is discharged immediately after the stores open and leads to increased consumption behavior. As consumers get used to the “normality” again, the initially increased consumption behavior will flatten out again. In addition to the duration and extent of the restrictions on consumption, another factor affects consumption behavior, the general consumer mood, that is, the subjective assessment of the individual and overall economic financial and economic as well as political development. A pessimistic consumer mood has a negative effect on consumption, while an optimistic mood leads to higher consumption. The consumer mood has declined sharply in the EU on average in April and May (OENB 09.06.2020).

BOX: Consumer Mood Consumer mood refers to the optimism of consumers with regard to the state and economic development. The consumer confidence index is used to predict future consumption behavior.

3.2.2 Justice The health policy measures have caused massive economic costs and pushed self-employed people and companies, entertainment and culture facilities to the brink of ruin. While the workload has increased enormously in some industries, others have sent people into short-time work in large numbers or they have lost their job. The labor market partially collapsed. Cooperation and solidarity are at

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the order of the day! Health and the preservation of jobs have been declared the top priorities. “Whatever it takes” was the motto; for many who saw their business or their job at risk, the comforting slogan. While the switch to short-time work worked smoothly in many areas, others waited impatiently for state support. Acceptance and outrage at different eligibility requirements for support, bureaucratic hurdles in applying and duration until aid flowed, were about even in the population. The acceptability of state aid, the focus and the procedures for obtaining it, are key factors in the perceived fairness of the measures. People also compare their claims with those of others and judge whether they are designed fairly or not. Finally, it is also observed whether others receive support although it is not due to them. Justice is a subjective construct. Often a distinction is made between distributive, i.e. distributive justice, and procedural justice. Retributive, i.e. punishment justice, is often treated separately (Lind and Tyler 1988). Wenzel (2003) subdivides procedural justice into interactional, process-related and informational justice, as well as into appropriate process control.

BOX: Distributive Justice Distributive justice refers to the subjective feeling that goods are divided up fairly. Different distribution rules can be seen as fair: need, equality or contribution rules.

The distribution of support money and the entitlement to support programs for different industries and businesses is particularly relevant to the distribution of support money. People do not judge the amount of support absolutely, but in relation to what they have contributed to the collective budget and in comparison to what others receive. If contributions to the state and support from the state are in balance, the distribution is perceived as unbiased. In this case, often referred to as fairness. If your own contributions and the support you receive match the contributions and support that others have to pay or can claim, the distribution of the burden and credit in the population is perceived as fair. In this case, horizontal distribution is referred to as fairness. The urgency to offer support measures and short-time work programs and to process the relevant applications posed the difficult challenge for state institutions to decide how to distribute the state-financed aid measures fairly among the many affected people. Ministries, social partners and the Employment Service were entrusted with the responsible task of reviewing and deciding on applications for

3.2  Dynamics at the Meso Level

27

short-time work, financial support and more, taking into account data protection measures. Banks were asked to provide bridging loans quickly. Time became the decisive factor in saving the economy. Complex decisions under time pressure are prone to error. The implementation of the aid programs did not go smoothly and some of the gaps in the hastily passed laws and ordinances were quickly apparent. The media as the “fourth power in the state” fulfilled their task of informing and educating the public and provided the basis for increasing criticism from the population. At the same time, opportunists saw the opportunity to selfishly use the system. Even if the time pressure is accepted as justification for errors and misunderstandings and attempts are made to close gaps in the regulatory framework, the fairness of the distribution is called into question. The procedural justice was also criticized in many ways. The complexity of the application and the duration of the processing were criticized as procedural defects. Lack of transparency, arbitrariness and neglect of important sectors, such as culture and leisure facilities, were denounced. It was not argued in a way that was comprehensible to everyone to determine which sector may open its business again at what time and whether schools should open their doors before or after businesses. Arbitrariness—this was the accusation—was the leitmotif in the determination of the square meterage of businesses that could open earlier or later. Finally, decisions on border openings in early June 2020 between countries such as Austria, Germany and Switzerland, but not to Italy, were criticized as being incomprehensible (ORF 29.05.2020).

BOX: Procedural Justice Procedural justice refers to the application of rules and laws that are to be applied equally to all. Rules should also be transparent and comprehensible. In addition, mutual respect and truthful information are often cited as criteria for procedural justice.

Justice also refers to the behavior of other people and companies. If a system allows free riding, it is not fair if some people comply with the laws and others ruthlessly exploit opportunities. Self-interest to the detriment of the public must be punished: alone on Easter weekend, 2000 reports and 380 organizational penalty notices were received by the police in Austria (Der Standard 29.05.2020). Social control of behavior is effective, but it must also be ensured by the authorities that citizens cooperate for the benefit of all.

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3.3 Interaction on Macro Level 3.3.1 Motivation How do we get out of the crisis again? While the shutdown worked quite well, restarting social life and the economy turned out to be more difficult. A too quick return to the desired normality could mean the risk of a new wave of infection and the good results of the many efforts would be undone. The federal government tried to motivate with slogans of perseverance. It has been known since the 1950s from behavioral psychology that the confirmation of desired behavior (for example, through praise or recognition) reinforces this behavior. Positive psychology builds on this knowledge (Seligman 1990) and focuses on the “bright side of life”, that is, strengths and talents, not weaknesses and negative deviations from the norm. So the politicians seemed not to be tired of thanking their citizens in this time, in particular the many people who make a system-relevant contribution, such as doctors, nursing staff, security forces and food or energy suppliers, but also the rest of the population, which by maintaining physical distance and wearing mouth-nose protection “saves lives”. Prominent testimonials campaigned in the media for patience and encouraging music from police cars spread the spirit of the “common cause”.

BOX: Positive Psychology Positive psychology analyzes and studies structures that contribute to a higher quality of life and focus on strenghts and positive aspects.

3.3.2 Cooperation How can it be ensured that citizens cooperate for the benefit of the community? In the context of the psychology of tax behaviour, a concept has been created, the slippery-slope frame model (Kirchler et al. 2008; Fig. 3.1), according to which the willingness of the population to cooperate with the state increases if the authorities have the power to enforce cooperation and trust in them is high. Efficient controls and sanctions in the event of illegal action and measures to build trust are decisive. Voluntary cooperation depends on trust in the state and in the authorities and on the knowledge that the authorities want and can protect coop-

3.3  Interaction on Macro Level

29

Voluntary cooperation

Forced cooperation

Maximum

Maximum

Cooperation

Minimum

Minimum

Maximum

Maximum

The power of the authorities

Reliance on authority Minimum

Minimum

Fig. 3.1   Cooperation depending on the power of the authorities and trust in the authorities

erative citizens from exploitation by free riders. If trust in the government is high, compliance with the measures can be expected on a voluntary basis. If trust is low, only efficient controls and tough penalties can force cooperation. Penalties in the sense of procedural justice can strengthen the trust of those who cooperate willingly in the authority of the authorities. However, controls must be targeted at free riders and not carried out at random. If controls are not targeted, they signal to all citizens mistrust on the part of the authorities, which in turn leads to mistrust on the part of citizens in the state. There is therefore a good balance between controls and penalties and the creation of trust in order to maintain the willingness to cooperate on the part of the population.

BOX: Slippery-Slope framework Framework model for cooperation in communities depending on the relationship between state and citizen. The relationship is described using the dimensions “power” and “trust”.

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3.3.3 Trust and Tax Honesty What is important to strengthen trust and the willingness of citizens to cooperate during and after the crisis? Gärling et al. (2010) list seven criteria that underlie trust in institutions: • The competence of the actors is relevant. Authorities must act in a fair manner, professionally and objectively. • Integrity means that all citizens are treated according to ethical principles, are not generally considered lawbreakers until the contrary has been established, and that the actors behave authentically. • Transparency also means that rules and procedures are communicated and that it is ensured that they are also understood correctly by the recipients. • Goodwill on the part of the authority means that the perspective of the citizens is taken and their interests are taken into account. • Value congruence refers to value orientations of the interacting parties. Norms and values should be congruent. Congruence is a prerequisite for the identification of citizens with the state. • The stability of state institutions is essential. It must be ensured that state authorities can provide their services to citizens in the long term. • Finally, the positive image of the authorities is important. Reputation, positive attitudes towards the authorities are decisive for the formation and maintenance of trust. Studies on state control and trust in state authorities and observations on the behavior of authorities and citizens during the crisis allow for some conclusions to be drawn about how willingness to cooperate could be maintained during and after the crisis. In terms of power, it is important that the authorities are ready and able to efficiently and effectively investigate rule-breakers, and that fines are appropriate in the case of circumventing or abusing public funds. Most importantly, power measures must be seen as legitimate and that force is accepted as being necessary. However, coercive measures to enforce the rules must be targeted at free riders. In times of crisis, authorities must not stop communicating, offering services and reinforcing the social norm of cooperation; they must also not laxly control

3.3  Interaction on Macro Level

31

whether the system is being exploited selfishly by a few. The following considerations appear to be relevant1: a) Communication: The first rule of crisis management is communication. It is important to provide the population with clear information about support measures, access to support and to justify the measures and their (intended) effects as well as rights and obligations. Misinformation and disinformation must be quickly and consistently corrected. b) Simplicity: The hurdles to cooperation must be kept as low as possible. This applies both to the implementation of protective measures and to the bureaucratic hurdles in terms of financial support. Simple rules reinforce the impression that the authorities have acted benevolently, sensitively and to the benefit of the individual and society. This increases procedural justice, which forms the basis of trust. c) Services are important and must be offered in the required quantity and above all in high quality. Professional service requires that the employees of the public administration are clearly informed about the applicable regulations and their application. In general, no rule can be applied sensibly in all cases. The staff must be trained efficiently so that they have expertise in legal matters and the citizens are informed according to their motivation and understanding. d) Cooperation as a socially binding norm: The announcement that the majority is ready to cooperate and that support services (short-time work, application for tax relief and public benefits) are not abused is effective because cooperation is established as a social norm that serves as a guideline for people’s behavior. In addition to setting and conveying social norms for cooperative behavior, measures must be taken to strengthen the identification of citizens and residents with society. e) Controls and sanctions: The crisis has brought many self-employed and companies into economic difficulties and caused many financial losses. Financial losses weigh heavily and motivate people to repair actions and increased risk-taking. In addition, the perception of lack of justice could lead to increased tax evasion. If the neighbor evades the payment of his taxes or avoids taxes, this encourages others to follow this behavior. In order to pre-

1 The

considerations stem from discussions on future tax compliance with Kay Blaufus of the University of Hanover, Martin Fochmann of the Free University of Vienna and Nina Olson of the Center of Taxpayer Rights, Washington-DC.

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vent this undesirable behavior from becoming the norm, controls must be announced and carried out specifically. The state authorities must not risk losing their authority in order to ensure compliance with the law. f) Targeting: While the perceived legitimate power (examinations and sanctions in the event of illegal action) strengthens the trust in the authority, compulsion can be a double-edged sword. If the tax authorities take coercive measures that are specifically aimed at free riders who exploit the society, the cooperative majority will see itself protected from damage by free riders. However, if coercive measures are perceived to be arbitrary by everyone, they act as a signal of general suspicion. Also disproportionate punishments reduce the trust in the authorities and, as a result, the voluntary cooperation of citizens. g) Framing: Finally, it must be considered how measures and support as well as tax claims can be communicated and implemented. The temporary reduction in value-added tax and corresponding price adjustments can entail high costs for companies that cannot be borne by all in the short term. If smaller companies cannot adjust prices and consumers compare prices between different providers, competitive disadvantages are the result—perhaps at the expense of those who have already been driven into a corner by the crisis. On the consumer side, it must be noted that losses weigh more than gains. This should be taken into account when communicating that measures are being introduced or lifted again. For example, if the value-added tax rate is temporarily lowered to stimulate consumption, this may make sense from an economic point of view. But how complex is the implementation in trade and—if the reduction is passed on to consumers—do end consumers also perceive the scheduled reduction in the tax rate and find it fair? In order to be effective, a change must lie above the perception threshold. If, for example, the value-added tax in a country is 20%, then a halving of the tax rate would certainly be experienced as a reduction in the price of goods. But would consumers also perceive a reduction from 20 to 18%? Perhaps people from poorerLayers experience a relief; but who is wealthy might not notice the price change at all. The effect would then fizzle out. Also to be considered is what can happen if the reduction is taken back. The reduction from 20 to 15% would probably be experienced by many as a gain and be positively received, having a consumption effect. But after some time, the tax rate of 15% would be the new reference point. If now—as announced—the value-added tax is raised again to the former 20%, it appears as a loss. Goods are experienced as more expensive than before, also because losses have a stronger effect than gains. The former state

3.3  Interaction on Macro Level

33

is thus not achieved. If the tax of 20% is not lowered to 15%, but remains at 20% and a bonus of 5% is offered (i.e. 20% − 5% = 15%), this results in a reduction to 15% mathematically. If the value-added tax remains at 20% and the bonus is later withdrawn, everything remains the same mathematically, but from an economic psychological point of view, the increase from 15 to 20% is a clear loss, while the withdrawal of the bonus is a less painful loss of a gain.2 h) Plans for the future: The shock to the economy, the extensive economic stimulus packages, state guarantees and lower tax revenue cause enormous budget deficits. In addition, the future development of the health crisis is uncertain and further lockdowns cannot be ruled out. In the coming years, governments will have to deal with uncertainty and financial risks. Surprises must not happen! Therefore, all possible developments must be considered and appropriate strategies planned. Possible future scenarios and action plans must not only be anticipated, but also communicated to the public in such a way that flexibility is interpreted as a strength and not as indecision. i) Looking back and judging: The economic distress will continue and challenge the state institutions. Looking back, we vaguely remember the goals of putting health above all and taking enormous economic costs into account. Memories are constructed on the basis of current experiences and motives. We will then find the necessary austerity measures to be excessively high, complain about insolvent companies and the lack of work, and hold the governments responsible for higher taxes and fees. In order to secure the acceptance of future financial austerity measures and solidarity in society, it is not only important to plan and communicate government interventions—confirmed by parliament—but also to prevent distorted judgments: Measures, programs and justifications that were made during the crisis, when uncertainty was at its highest level, must be recorded in order to avoid memory errors when looking back.

2 Germany

decided to lower the value-added tax rates from 19 to 16% and from 7 to 5% as of July 1, 2020 until December 31, 2020 (Handelsblatt, 04.06.2020).

4

Repair, Review and Outlook

Even though Covid-19 cases were declining in most European countries after the first peak in May 2020 and the necessary efforts to ensure a functioning healthcare system have been successful in many cases, the economic and social challenges have not yet been overcome. The health risks are also not over. Although futurist Matthias Horx made optimistic predictions in his “Regnose” in March 2020 for a soon-to-be available vaccine, the dissolution of extreme political groups, and the victory of solidarity (Horx 05.06.2020), the development of a reliable vaccine took time and the initial solidarity already appears to be fragile in many places in social reality. While at the beginning of the crisis, fear and security needs were activated and then declined after adaptation to the new situation, since the end of April there has been a counter-mobilization. The following excerpt from the Erfurt University Cosmo study shows these partly opposing developments based on a representative survey of German people (Fig. 4.1).

4.1 Blaming and Conspiracy Theories The search for the scapegoats of the crisis and its effects has begun! Who caused the disaster? René Girard, a French religious philosopher, anthropologist and literary scholar, describes in his “mimetic theory” that a spiral of violence is interrupted by the sacrifice of a scapegoat and a disaster by the persecution of a “guilty” (Girard 1988; see Palaver 2008). Through the sacrifice, purification is achieved. Although the scapegoats are interchangeable, their persecution always

© The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2022 E. Kirchler et al., Psychology in Times of Crisis, Springer essentials, https://doi.org/10.1007/978-3-658-38548-4_4

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4  Repair, Review and Outlook

Acceptance of severely restrictive measures (mean values)

Restricting civil liberties Leave house only for urgent reasons Declare a state of emergency Demonstrations allowed again

Fig. 4.1   Results of the Cosmo study—acceptance of measures (COSMO 14.06.2020)

serves the same purpose for society, namely the restoration of unanimity and peace.1 Today, the archaic ritual patterns seem to repeat themselves. At the time of the Black Death in the fourteenth century, the Jews were persecuted as the alleged perpetrators. In “The Earthquake in Chile2” Heinrich von Kleist has the cantor warn that the disaster is the punishment of God for the sinful life of the citizens and that more disaster will come if the citizens do not return to the laws of the church. Then the mass of the wickedness of a couple who had conceived an illegitimate child is enraged and kills the “sinners”. Our search for scapegoats in the Corona crisis led us first and foremost to China. There are enough indications in the form of hints about the lifestyle and hygiene conditions there, about failures to immediately report the first Covid-19

1 We

would like to thank Mona Hahn from the Academy of Fine Arts, Vienna, for pointing out the theory of René Girard and Ulrich Rasche for his remarks on the “earthquake in Chile” during his preparations for the performance at the Residenztheater Munich. 2 Heinrich von Kleist (1807/2020). The Marquise von O …/The Earthquake in Chile. Stuttgart: Reclam.

4.2  Assessment and Review

37

cases to the WHO, or about the suspicion of reckless experiments in the research laboratories there! Others accuse Bill Gates as the secret leader who is said to have warned US President Donald Trump as early as the end of 2016 about pandemics and urged him to finance the healthcare system better. Or was it George Soros? In social media and in dubious publications, conspiracy theories flourish. Meanwhile, the question of whether the protection of the elderly was not taken seriously enough and whether it was worth ruining the economy to protect a generation that is only going to live for a short time anyway, no longer seems to be taboo. “We may be saving people who would be dead in six months anyway,” the “Welt” wrote on April 28, 2020. At that time, the mayor of Tübingen still received a lot of criticism for his loud thoughts (Palmer 02.06.2020). Alternative explanation models are used when the “official” version is not sufficiently satisfied and fears and anxieties are not sufficiently reduced. It is impressive how stubbornly scapegoat and conspiracy theories persist, how difficult they are to refute with factual information and how stubbornly their believers cling to them despite better knowledge. Archaic rituals seem to have lost none of their necessity and effectiveness. In the meantime, the usual quarrel between the parties has also come to life again—cynically viewed, a first step back into the familiar normality. Demonstrations against the measures taken by the government leave no doubt about the increasing dissatisfaction in the population. The overwhelming solidarity in the population at the beginning of the crisis subsided. Opinions differ, society splits and polarization is used by extremist right- or left-wing groups, vaccination opponents and constitutional guardians for their ideas.

4.2 Assessment and Review We will soon forget how unanimously we were for measures to protect the health of the population. The collateral damage will occupy us for a long time and in retrospect we will see the past through the lens of the present. Psychology knows the phenomenon of so-called hindsight bias and is aware of the weaknesses and tricks of memory (Fishhoff and Beyth 1975; Kahneman and Riepe 1998). Experiences fade, memories are reconstructed in retrospect, with the reconstruction of the past being subject to current motives. This can lead to significant distortions of memories of past events.

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4  Repair, Review and Outlook

BOX: Hindsight Bias The tendency to not correctly remember previous predictions and to believe that estimates have been made in the direction of actual developments is referred to as hindsight bias.

In retrospect—if we have got away with it again—we could perceive the savings measures that are necessary to finance the “whatever it takes” doctrine as oppressive, complain about the lack of work and assess the economic sacrifices made as inappropriate. The material losses will be painful and the “reconstruction” will take longer than our patience will last. What seemed to us to be necessary measures to protect people will in retrospect always appear to be excessive. We will look for culprits and find them among the politicians whose strategies we initially agreed with. In retrospect, we always knew what was sensible and what was nonsense. The economic losses will affect some people more than others. If the economic situation continues to be difficult, our patience will be put to the test. Will we then base our decisions on factual considerations and make decisions that slowly lead us back to prosperity as a community? Or will we look for quick solutions, simple answers to complex tasks, following the motto “every man for himself”? Will we divide ourselves into winners and losers and abandon the losers to their fate? Someone who is unemployed for a long time and has to live on the edge of subsistence will eventually give up after unsuccessful job search. If a difficult material situation persists and political and economic measures do not work, it must not be assumed that people with low incomes tend to violence and radicalization. However, studies suggest that increasing unemployment was associated with an increase in the proportion of votes for the NSDAP in the 1930s, and analyses of the German Federal Criminal Police Office’s crime statistics from the 1990s show that unemployment rates correlate with crimes committed by right-wing extremists. High unemployment rates seem to be associated with increasing xenophobia in the country and with right-wing extremist attitudes. The social exclusion of people, emotional instability and disorientation make people “a reservoir for political movements that seek authoritarian solutions” (Wacker 1983, p. 102). Then “messiahs” are in high demand who claim to know the way out of the crisis. Then—if nothing seems to work to improve the situation sustainably—we clutch at a staw. As we all know, populist leaders make us believe that they know our problems, take them seriously, take care of our problems and free us from our difficult situation. Often an external enemy is also named, we are

4.3  Health Protection as a Prerequisite for the Economy

39

told that the others are hostile to us, communication with them is not productive; social boundaries between “us” and “the others” are drawn (Kirchler and Hoelzl 2018). How can we keep the memory of the original concerns and solidarity goals alive so that we do not split up socially as a result of the crisis, its follow-up costs and the efforts to cope with it, devalue others and ultimately fall back into nationalism that was previously thought to be overcome?

4.3 Health Protection as a Prerequisite for the Economy As evidence that the economy was “shut down” without any factual basis, it is pointed out in Germany and Austria that the relatively low number of deaths, the lack of exponential spread of the first virus variant in the population and the fact that most of the victims would have been those who died due to their illness and age in a few months anyway. However, it is forgotten that the exponential spread of the infection and death rates predicted by virologists and statisticians did not occur precisely because the package of measures was successful, that is, it was urgently needed after all. Since the fight against Corona is not an experiment with a control group, the comparison can only be made with theoretical assumptions about what would have happened without a lockdown. The apparent opposites “health or economy” are played off against each other, but neither the economy nor work and consumption can function if people do not feel health-threatening. The argumentation should therefore be that the measures to protect health were essential for the economy, as the Israeli sociologist Eva Illouz (24.03.2020) confirmed in an interview. For example, it is inconceivable that many people would visit restaurants if they felt health-threatening or go to concerts and theaters if they had to fear infecting themselves with the virus in the masses of people. Consumption will only increase again if optimism and confidence in the future are present. Politics, science and serious media must solve the paradox “health or economy” that dominates in people’s opinions. It is doubtful whether the communication will succeed so that the information that containment of the virus is the prerequisite for a functioning economy is also understood and accepted by the population.

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4.4 Clear Rules or Libertarian Paternalism Were the strict instructions and penalties for contravening necessary or would gentle nudges (Thaler and Sunstein 2008) have motivated us to the desired behavior? We were and are in a “social dilemma”. This means that we are in a situation in which the individual may see an advantage in taking his freedom, not to act according to the rules, that is, not to cooperate. If the majority of the population complies with the recommendations, the one who does not cooperate has an advantage. If many act according to the maxim of egoistic utility maximization, then everyone suffers damage. Non-cooperative behavior of individuals would demotivate cooperative people and quickly find imitators. Those who act egoistically would not only endanger themselves, but also many others. The enormous social costs would not be borne by those who rely on their right to freedom of movement, but by the whole society. That is why clear measures and the control of compliance were necessary. While nudges at the beginning of the crisis, when quick action was needed, may have failed, they could be promising after the first measures. It is known from economic psychology and behavioral economics that we are often too optimistic in risk situations (optimism bias). People tend to overestimate their invulnerability (overestimation bias). They also tend to maintain the status quo and resist change when it interferes with our habits. We are reluctant to be diverted from familiar behavior patterns and react reluctantly to measures that restrict our freedom. That is why nudges can be more effective than more laws and bans. Tips for starting the desired behavior in the sense of nudging could be “designed” in such a way that the desired behavior is made simple and attractive, that it is seen as a social norm and that the time of information is favorable. Medially visible people, idols and so-called influencers could show the desired behavior openly, that is, become a role model. The affect heuristic teaches that emotionally charged communication is often much more effective than factual information. Therefore, desired behaviors should be conveyed in such a way that they are considered responsible and cause pride in those who behave accordingly. Simple nudges are also given when the situation architecture is planned strategically so that the desired behavior is easy, for example by making masks available in localities, disinfection is easy and distancing is simple due to architectural measures.

4.6  Crisis as an Opportunity

41

BOX: Nudging Application of findings on psychological behavior and decision systematics to design decision architectures that are intended to lead people to make decisions that are useful to them and/or society.

4.5 Global Crises – Global Action The SARS-CoV-2 pandemic is no more a national crisis than climate change. The fear of the threat has strengthened the sense of community in one’s own country, but not international cooperation. How terribly the virus has shown us our reality on the way to a “better world”! European or international proposals for coping have been and are still pending. Competition between countries intensified instead of coming together: According to the motto: “Who offers the most”, one snatched protective clothing from the other in the initial stages of extradition in a robber-knightly manner or confiscated deliveries to the neighbor in order to keep the urgently needed goods in one’s own country. Even if the theory of social identity plausibly explains the dynamics of the us-them differentiation and discrimination tendencies, international cooperation must not be given up in favor of coming together at the national level and shielding others, because the big problems of our time are global challenges and do not stop at state borders. The UN, the EU and their member states must now stand up for solidarity and cooperation and find a way out of the exhausting disputes. Catchphrases and expressions of interest with the aim of maximizing one’s own benefit and ignoring the common good are exhausting for a long time.

4.6 Crisis as an Opportunity So far, representatives of turbo capitalism have placed unlimited trust in the power of the free market and preached and defended the benefits of tough competition. This has not only promoted the exploitation of state and people, but also led to significant income and wealth inequality in many countries. The increase in profits was the measure of success. However, in the current situation, the creed of profit orientation does not offer a usable answer to the global crisis. We were warned of global crises, we also watched the outbreak of COVID-19 in China

42

4  Repair, Review and Outlook

from a safe distance, but all too often we went ahead and did everything we could to increase returns. The Tyrolean tourist resort of Ischgl has become notorious. Surprisingly positive was that it was possible for politics—if not for the nation-states, then at least within the nation-states—to put the health before the economic profit over the parties. Responsibility for the common good, solidarity and cooperation were possible. Long before the global shutdown, we should have demanded from the corporations the voluntary compliance with the solidarity social contract, which assumes responsibility for the whole society and does not propagate profit hunting. The unity and cooperation between parties and interest groups was intense during the time of great fear, but did not last long. The democratic form of state was put to a hard test. The German Federal Chancellor even described the crisis as “a challenge for democracy.” The tension between the inviolability of the individual’s basic rights and the general welfare of society has put us to the test and it is often agreed that we have passed the test well. Crisis managers have experienced a high level of trust from the population because the winners of the crisis were not, as so often happens, the parties or corporations, lobbyists and individual interest groups, but society as a whole and above all those who are particularly at risk from an infection. However, the economic damage now seems to be affecting the socially and economically weaker population groups much more than the well-situated ones. This applies to both educational opportunities and employment and income opportunities. Paradoxically, while the crisis engine was solidarity, the consequences of the crisis could further widen the gap between rich and poor. How can we use the crisis as an opportunity for solidarity in society in a sustainable way?

4.7 A New Beginning towards a Better World? The Corona crisis is exerting massive disruptive power. This power could be used for measures against climate collapse and for lasting solidarity in the labour market, but also for education and digitalisation. The fact that it was possible to shut down life and work overnight is largely due to the digital alternatives to communicate, work, consume and continue training. It would have been almost unimaginable for a time of shutdown in which at least digital communication was not possible. In many cases, what started as a necessity has become a virtue, with new webshops being created, digital education tools being expanded, administrative procedures and prescription ordering being possible digitally, or various cultural events being conveyed to households

4.7  A New Beginning towards a Better World?

43

in a creative way. But: “Culture from a can” sounds quite “tinny” and foreign. Nevertheless, many innovations could be the starting point for sustainable change. The closure of factories and the reduced traffic volume during the crisis led to an immediate improvement in air quality in many metropolitan regions. It was registered worldwide that climate protection measures are possible and effective. However, the crisis could have different effects with regard to further climate protection measures: On the one hand, crisis-stricken states may now no longer have a budget to also take care of climate protection measures during economic reconstruction. On the other hand, the willingness to invest in combating economic damage has shown what is possible and that it is possible. The non-financing of climate protection can no longer be considered a serious argument. “Something new arises from the plague,” says Alexander Kluge (von Schirach and Kluge 2020, p. 44). But what? If every crisis offers opportunities, will we use them? Probably we will spend more time in the virtual world in the future and become more familiar with digitization in all areas of life. Maybe we will learn to live with uncertainty and deal with it. Will we appreciate the value of public goods and contribute to the benefit of all, or will we put our individual benefit above everything and trust the free market game? Will we solve the problems that were already apparent before the crisis and are now more visible: lack of solidarity between people in the country and between countries, drastic unequal distribution of wealth and between income groups, between employees and unemployed, unequal opportunities between genders, between people of different skin colors and origins and much more? Will we raise cooperation to the maxim or draw boundaries and follow promising populists with national pride?

What You Can Learn from This essential

• The coronavirus pandemic presents a situation of uncertainty and ignorance for decision-makers, in which there is no silver bullet for targeted action. • Experiences and behaviors during the pandemic have changed over time. • Measures to contain the crisis and its consequences must be considered at the micro-, meso- and macro-levels. • From the perspective of economic psychology, even irrational human behaviors during the crisis can be explained. • The crisis will have a sustainable impact on the economy and society.

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Fachmedien Wiesbaden GmbH, part of Springer Nature 2022 E. Kirchler et al., Psychology in Times of Crisis, Springer essentials, https://doi.org/10.1007/978-3-658-38548-4

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