Virtue signaling is when people publicly share their views to show they’re good people or morally right. It’s not a problem if they actually live by these beliefs. For instance, I believe in supporting people with disabilities, so I talk about it and donate to related causes. But it becomes an issue when people act overly virtuous, making others feel morally inferior, or when their actions don’t match their beliefs.
Let’s look at some examples of this inconsistency:
- Politicians who advocate for public schools but send their kids to private ones.
- University administrators who claim to support diversity but keep class sizes small for exclusivity and use a scoring system that disadvantages certain races.
- Vegetarians who criticize meat-eaters but wear leather shoes.
- Building inspectors who penalize homeowners for remodeling without permits but accept bribes from developers.
- Wealthy individuals who complain about paying low taxes but don’t voluntarily pay more.
- People who want all online content to be free but don’t work for free themselves.
- Personal finance gurus who charge high prices for their courses.
- Supporters of more housing who oppose new developments in their own neighborhoods.
- Advocates for illegal immigrants who get upset when these immigrants come to their city.
- People who want to defund the police but expect immediate police assistance when they need help.
- Companies that hire diverse employees but lay them off first during a recession.
The list goes on. Virtue signaling is everywhere. Just don’t force your views on others while not following your own beliefs. If your actions align with your beliefs, you’re good. If not, it’s time to rethink.
Now, let’s talk about a positive example of virtue signaling. The parents of a murdered bakery owner asked for mercy for their daughter’s killer because she believed in restorative justice over punishment. This is a noble but risky stance, as the killer could harm others in the future.
Investor virtue signaling is another interesting phenomenon. It’s when an investor publicly criticizes a particular investment for ethical or moral reasons. This is fine, but it’s strange when an investor criticizes others for investing in the same things they do. For example, real estate investors who criticize other real estate investors.
Investing is all about supply and demand. The scarcer an asset, the more valuable it is. For instance, real estate in prime locations is more valuable than in areas with plenty of land. Public companies that rarely issue new shares are more valuable than those that constantly do. Unique art pieces are more valuable than mass-produced ones. Cryptocurrencies with a fixed supply are more valuable than those with an unlimited supply.
Let’s look at an example of investor virtue signaling. I’ve been investing in private real estate funds like Fundrise since 2016 to diversify my holdings and earn passive income. After interviewing Fundrise’s CEO, I received a comment criticizing this type of investing for financializing American real estate and limiting future generations’ chances of homeownership. I respect this viewpoint, but I found it surprising when the commenter revealed they work as a pharmaceutical consultant and invest mainly in real estate. This seemed inconsistent with their criticism of real estate investing.
In conclusion, it’s okay to express your views, but make sure your actions align with them. Virtue signaling about morally superior investments is unproductive when we all have investments. And remember, we’re free to do what we want within the law and can’t force others to do anything they don’t want to do. So, if you want to virtue signal, go ahead, but be consistent with your beliefs and actions.
