Graham lost over $10,000 on some bad investments in the stock market. Consequently he had to trade the Cadillac he had been leasing for a smaller, more economical car. He has been telling all his coworkers that he made the switch to do his part to stop pollution. According to Freud, Graham may be unconsciously dealing with his guilt and anxiety over his stock market losses using the defense mechanism of

Question

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Graham is rationalizing his decision to trade in his Cadillac for a more economical car as a way to mask his guilt and anxiety over his financial losses. Rationalization is a defense mechanism in which a person justifies their actions or failures by providing logical explanations or excuses that are not necessarily true or accurate. In this case, Graham is rationalizing his decision to trade in his car as a way to tell others that he is doing it for the environment, when in reality, it was a financial necessity.

Graham Lost Over $10,000 on Some Bad Investments in the Stock