What would be better, that people build big houses thinking that they'll make capital gains or that they send their children to medical school and they do research on curing diseases? When you put it that way, it seems obvious. There has developed a sense of personal worth that's tied to one's house.

Robert J. Shiller’s quote critiques the societal emphasis on wealth accumulation through property ownership, specifically capital gains from real estate. He contrasts this with the value of investing in education and medical research, particularly in fields like disease prevention and cure. Shiller uses this comparison to underscore how society often prioritizes material success, such as owning large homes, over investments in long-term social goods, like advancing healthcare. By phrasing it as a choice between building big houses or sending children to medical school, he highlights a misalignment in how we measure personal worth and societal value.

Shiller suggests that society has developed a sense of personal worth based largely on material possessions, especially homes. This shift in values implies that individuals are increasingly judged by the size and value of their property rather than their contributions to society, such as work in medicine or research. In making this comparison, Shiller calls attention to the broader societal trend where wealth is often measured in physical assets rather than intellectual or humanitarian contributions that can improve the world in more lasting ways.

The deeper implication in Shiller's statement is that the focus on capitalism and the pursuit of wealth can overshadow more meaningful pursuits, such as contributing to society through innovation and scientific discovery. The desire for big houses or property as a form of status symbol can detract from the collective responsibility we have to tackle global issues, like disease and healthcare. Shiller’s quote is a call to reflect on how personal values and societal priorities have shifted toward materialism at the expense of more altruistic and impactful goals.

This quote likely originates from Shiller’s extensive work as an economist and his focus on behavioral economics. As a Nobel laureate, Shiller has written about the psychological aspects of economic behavior and how public perceptions of wealth and success influence decision-making. His work often addresses how financial markets and societal trends shape our understanding of capitalism and investment, and this quote reflects his concerns about how these forces can distort personal values and priorities.