Some of the Greek PM’s statements about the Greek economy and Greece in general have been a little shocking, to say the least. After coming to power he has said things such as Greece possibly going into bankruptcy and Greece losing part of her sovereignty as a result of the austerity measures effectively being imposed on Athens by the EU.
Today we read that that the Greek Finance Minister commented on the Greek economic situation by saying that “we are trying to change the course of the Titanic. This cannot be done in one day”.
To all the members of the Greek cabinet: please read the following carefully:
“A self-fulfilling prophecy is a prediction that directly or indirectly causes itself to become true, by the very terms of the prophecy itself, due to positive feedback between belief and behavior. Although examples of such prophecies can be found in literature as far back as ancient Greece and ancient India, it is 20th-century sociologist Robert K. Merton who is credited with coining the expression "self-fulfilling prophecy" and formalizing its structure and consequences. In his book Social Theory and Social Structure, Merton gives as a feature of the self-fulfilling prophecy: Ie: when Roxanna falsely believes that her marriage will fail and fears such failure will occur that it actually causes the marriage to fail.
The self-fulfilling prophecy is, in the beginning, a false definition of the situation evoking a new behaviour which makes the original false conception come 'true'. This specious validity of the self-fulfilling prophecy perpetuates a reign of error. For the prophet will cite the actual course of events as proof that he was right from the very beginning.
In other words, a prophecy declared as truth when it is actually false may sufficiently influence people, either through fear or logical confusion, so that their reactions ultimately fulfill the once-false prophecy.
History of the concept
Robert K. Merton's concept of the self-fulfilling prophecy stems from the Thomas theorem, which states that "If men define situations as real, they are real in their consequences." According to Thomas, people react not only to the situations they are in, but also, and often primarily, to the way they perceive the situations and to the meaning they assign to these perceptions. Therefore, their behavior is determined in part by their perception and the meaning they ascribe to the situations they are in, rather than by the situations themselves. Once people convince themselves that a situation really has a certain meaning, regardless of whether it actually does, they will take very real actions in consequence.
Merton took the concept a step further and applied it to recent social phenomena. In his book Social Theory and Social Structure, he conceives of a bank run at the fictional bank of Cartwright Millingville. It is a typical bank, and Millingville has run it honestly and quite properly. As a result, like all banks, it has some liquid assets (cash), but most of its assets are invested in various ventures. Then one day, a large number of customers come to the bank at once—the exact reason is never made clear. Customers, seeing so many others at the bank, begin to worry. False rumors spread that something is wrong with the bank and more customers rush to the bank to try to get some of their money out while they still can. The number of customers at the bank increases, as does their annoyance and excitement, which in turn fuels the false rumors of the bank's insolvency and upcoming bankruptcy, causing more customers to come and try to withdraw their money. At the beginning of the day—the last one for Millingville's bank—the bank was not insolvent. But the rumor of insolvency caused a sudden demand of withdrawal of too many customers, which could not be answered, causing the bank to become insolvent and declare bankruptcy. Merton concludes this example with the following analysis:
“The parable tells us that public definitions of a situation (prophecies or predictions) become an integral part of the situation and thus affect subsequent developments, This is peculiar to human affairs. It is not found in the world of nature, untouched by human hands. Predictions of the return of Halley’s comet do not influence its orbit. But the rumored insolvency of Millingville’s bank did affect the actual outcome. The prophecy of collapse led to its own fulfillment.”
Merton concluded that the only way to break the cycle of self-fulfilling prophecy is by redefining the propositions on which its false assumptions are originally based.”
Read more about the concept here.