Humans are an existential species. We need to believe that our lives have meaning. Currently, young people too often receive cultural messages that undermine meaning. They are told that they have little control over their lives, that they are products of history, genetics, and luck, not free agents able to make the world a better place for themselves and others. Paradoxically, it is often at institutions of higher education, the places that should be allies in the pursuit of meaning, where these messages are sent. It is there where arguably the most privileged humans in history are encouraged to indulge feelings of helplessness and victimhood, to reject, instead of improve, the civic, religious, and economic institutions that helped past generations build a better world, and to view their society as inherently oppressive and evil.
This cultural nihilism won’t help us solve the problems of our time. It won’t reduce poverty or help individuals and families build wealth. It won’t make communities safer, more just, or more prosperous. It won’t cure diseases or combat climate change. And it won’t help us recover economically from the COVID-19 pandemic. It won’t do any of these things because by undermining meaning, it undermines the human agency that is necessary for individual and societal well-being. If we want current and future generations of Americans to thrive psychologically, socially, and economically, we need to promote cultural messages and public policy that focus on the human need for meaning in life.
A large and growing body of research shows that meaning in life is critical to human flourishing. Individuals who view their lives as lacking meaning, compared to those who have a strong sense of meaning, are more likely to be depressed, anxious, and suicidal. They are more likely to abuse drugs and alcohol and exercise poor self-control more broadly. People who view their life as full of meaning and purpose are not only less vulnerable to these problems, they are better able to cope with stress and tragedy, and they generally live longer, healthier lives.
Meaning isn’t just a protective factor against poor mental and physical health outcomes. It is a critical psychological resource for achieving long-term goals. This is because meaning in life gives people confidence and hope for the future. And it inspires individuals to look beyond immediate self-gratification toward longer-term and more self-transcendent aspirations. People who view their lives as meaningful are those who are inspired to make the world a better place — not just for themselves, but for others. In other words, meaning has great self-regulatory and motivational power.
When we consider all the ways that meaning helps individuals thrive, it is easy to understand that meaning also has important economic implications. In fact, perceptions of purpose in life have been found to predict future income and net worth. But does meaning in life influence individuals’ views about the economic freedom and entrepreneurial spirit that have helped our nation prosper and that have attracted people from all over the world who long to pursue their own American dream?
As part of a new institute at North Dakota State University, the Sheila and Robert Challey Institute for Global Innovation and Growth, we recently conducted a survey to explore this question. Our sample consisted of more than 1,200 adults living in the United States, ranging in age from 18 to 88 (average age was 45). Participants completed questionnaires assessing psychological characteristics, including questions about meaning in life. We were particularly interested in people’s belief that they have the ability to pursue and achieve a meaningful and purposeful life, what we refer to as “existential agency,” and thus asked specific questions measuring this motivational dimension of meaning. After answering these questions, participants responded to items regarding their general views on economic freedom and questions about the extent to which they believe capitalism can help solve major challenges such as climate change, automation, and poverty. They also responded to items assessing how much they believe entrepreneurship benefits society, as well as their own motivation to become entrepreneurs.
Concerning overall views of capitalism, 40% of respondents had a positive view, 46% a neutral view, and 14% a negative view. Consistent with past surveys, young adults had less positive views about capitalism than older adults. Democrats and Republicans, and liberals and conservatives, also differed in predictable ways. Existential agency, however, was also strongly related to beliefs about economic freedom. Individuals reporting a strong belief in their ability to live a meaningful life (high levels of existential agency) were the most likely to have a positive view of capitalism. Similarly, existential agency was a strong predictor of the belief that capitalism can help solve major societal challenges. We also observed the same pattern when looking at attitudes about the importance of entrepreneurship in our society.
How do we know that it is existential agency that influences views about capitalism and entrepreneurship and that we’re not picking up the influences of other relevant variables such as political ideology, age, and income? We also measured these variables and found that even when accounting for them, the effects of existential agency remain statistically significant and strong. Existential agency has a unique and influential relationship with views about capitalism and entrepreneurship.
When it came to individuals’ own entrepreneurial ambitions, almost a quarter of respondents indicated they plan to start a business in the future. Among this group of potential entrepreneurs, existential agency is a unique and strong predictor of how motivated they are to pursue their business goals. These results are consistent with experimental laboratory research showing that when people are prompted to focus on what gives their lives meaning, they are more confident in their own abilities, more driven to pursue their most important goals, and more optimistic about the future.
As our nation continues to grapple with the COVID-19 pandemic and the economic damage it is causing, as well as growing social and political unrest, it is especially critical to emphasize the importance of existential agency. In order for our nation to overcome the challenges of our time and build a better future for all, we must maintain our belief in people’s ability to find meaning and purpose and learn to better cultivate it.
All around us, we can see examples of what happens when people believe they have the ability to play meaningful roles in addressing pressing challenges. As the coronavirus pandemic drags on, businesses in the U.S. and around the world are making major contributions to combating the disease, meeting the needs of people experiencing extreme hardship, and finding new ways to deliver and produce goods within the limits of social distancing. For example, healthcare companies are developing faster tests, vaccines, and experimental treatments for the coronavirus; automobile companies are producing ventilators; distilleries are producing hand sanitizer; clothing companies are producing medical gowns and protective face masks; and restaurants are collaborating with local homeless shelters and food banks to provide meals to the needy. Moreover, in the face of this pandemic, many businesses are forgoing profits and incurring risks in order to make bold contributions to society.
Eventually, when the threat of community spread of the coronavirus has diminished, an economic recovery will depend on confidence in capitalism and on the innovation and entrepreneurial solutions that only the private sector can provide. As people continue, at least in the short term, to reduce their travel, limit their retail shopping and dining out, avoid attending large events and meetings, and maintain other social distancing behaviors, businesses will need to find new ways of delivering and producing goods and services. New opportunities will arise for those who are able to innovate in this environment. In addition, for businesses to prosper, individuals will need to support them. All of this requires existential agency. People won’t be inspired to innovate, take necessary business risks, and persevere in the face of uncertainty if they don’t believe in their own ability to find meaning or effect change in the world around them.
This also has important policy implications. Policies that send direct or indirect messages that people are unable to contribute to society or that they need to rely on the state to improve their situation in life are likely to undermine the meaning and existential agency that allow individuals and society to thrive. Ironically, policies aimed at helping people by extending government support beyond those who are truly in need are likely to make individuals and society worse off due to the negative effects they have on people’s beliefs about their value to society.
As an example, consider universal basic income. Some advocates of UBI argue that many jobs don’t give people meaning because they are routine or uninteresting. But it isn’t so much that a specific job feels meaningful as much as a job promotes meaning and existential agency by giving people the ability to support themselves and their families, and to play a role in society. Moreover, policies that undermine the institutions upon which many people rely for meaning, such as religion, family, and charitable organizations, are not only likely to diminish meaning, but also likely to diminish the belief in community, economic freedom and capitalism, and the entrepreneurial spirit that has allowed our nation to flourish.
Clay Routledge is a professor of psychology at North Dakota State University and faculty fellow at the Sheila and Robert Challey Institute for Global Innovation and Growth. John Bitzan is a professor of management at North Dakota State University and director of the Sheila and Robert Challey Institute for Global Innovation and Growth.
