Defense Mechanisms

In the high-stakes corporate world, a "sunk cost" is any investment, time, money, or energy that has already been spent and cannot be recovered. All great CEOs and leaders know that these costs should have zero impact on future decision-making. Yet, in our personal lives and political landscape, we see the opposite: the more we have lost, the harder we 'double down.' This is called the Sunk Cost Fallacy.

In our current hyper-polarized US climate, politics has moved from "what I think" to "who I am." We are witnessing identity fusion, a psychological phenomenon called identity fusion, where the boundary between the personal self and the group self is obliterated. The problem here is that when "we" becomes "me," individual logic dies.

Why do people dig into their strongly held beliefs, even in the face of overwhelming evidence and proof that they are wrong? Learn more about the impact of cognitive dissonance and how to work through it.