Sociologists have often wondered about financial collapses, like those of the 1930s, in which rumors of insolvency, when believed by enough depositors, resulted in bank failures. What sociological concept describes this phenomenon?
A) expressions given off
B) the Thomas theorem
C) dramaturgy
D) the generalized other
E) the dual nature of the self

Question

Quizplus · Accepted Answer

The Thomas theorem states that "If men define situations as real, they are real in their consequences." In the case of financial collapses, rumors of insolvency can cause enough depositors to believe that their bank will fail, leading to a run on the bank and potential bankruptcy. The belief in the rumor becomes a self-fulfilling prophecy.

Sociologists Have Often Wondered About Financial Collapses, Like Those of the 1930s