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So, I've been reflecting on this for a couple of days. My introspection has let me to a few things.

I agree with you that the toilet paper on shoe scenario is a scenario where even I might describe it as "I was embarrassed". In terms of my earlier breakdown of felt emotions though- What I feel in those situations is what I call shame. What my earlier breakdown was referring to as embarrassment is more- the glowy feeling of a cute person flirting with you, or of being seen and safe and vulnerable. But I think we can set this valence aside. It seems to be a separate emotion. I suspect these are fully different occasionally correlated things both called 'embarrassment', and only the one you are describing is really relevant to our discussion of the merits of shame in society.

Looking back on times when embarrassing (in your sense) things have happened to me... they were rather devastating. They felt like being stabbed. And- I find that these experiences have often wound up swept into my shadow. For much of my life I didn't have the emotional management tech to emotionally defuse those memories. I recall a rather materially trivial event, where during some social banter I mixed up the words 'quirky' and 'kinky'. Materially, it was laughed off by the group within seconds, but it stuck disproportionately in my psyche as a painful event that I couldn't think about.

This conversation with you has allowed me to access some other similar memories and defuse the strength of their valence. So thank you.

So- having considered this these last days- I don't necessarily think shame is bad, but I do think that in order for shame to do the work we want it to in society, the subjects of that shame need to know what to do with it. In so-called shame cultures, I expect there's a much better scaffolding for making sure people know what to do with this stabbing feeling, how to regulate it to a useful magnitude, and how to respond to it optimally. And even then... Japan still produces a stream of NEETs, many of which seem to be suffering this over-sensitivity to shame. In America- shame seems like even more of a crapshoot...

I conjecture that any "just add more shame" solution is an oversimplification. A society also needs a refined zeitgeist around how to use shame in order for the effects of adding more to be positive.

As for whether I would ruin the vibe of the classroom in my hypothetical, I might if this were my first rodeo. I don't think Shame is necessary for me to learn from my mistakes there though. The things that I labeled 'compassion' and 'regret' can serve a similar purpose. (though, perhaps they are related to the weaker forms of shame that you posit). Part of the reason that the idea of shouting at the class is funny is because it is unexpected for my mind to output it as an option. My subconscious has already learned structures and biases towards certain classes of thoughts, and this 'yell in lecture' thought is out of distribution and somewhat absurd. But- it's not shame that stops me from thinking it (at least in the present. perhaps it's meaningful to posit a form of 'shadow' or 'dark' shame in the negative space where my mind doesn't go). And- if I were bored I have other tools for that. I can just hallucinate pleasure. I suspect that I can hallucinate emotions more wholly than most people in general... and that this is responsible both for my ability to wirehead just by imagining pleasure- and my ability to have traumatic emotional flashbacks to trivial situations.

In terms of weighing the costs and benefits in every social situation- I think you are correct. Many of my social algorithms do slow down my ability to respond in social situations. But in our current environment that is merited. Taking 10 seconds to respond to a situation really isn't a problem except in a high speed competitive environment. And neither high trust socializing nor deciding when to speak out in a lecture are high speed competitive environments. It's good to play war games sometimes to stay sharp. But outside of that it seems better to take one's time.