An interesting result from behavioral/experimental economics is that bubbles can happen even with smart people who should know better. But once those people go through a bubble, they do a better job of avoiding bubbles in the future.
I think this result has major implications for society more broadly and I think we’re seeing it play out in the news. In the ’70s people learned a lot of hard lessons about things like stagflation (and racism–but ask a sociologist about that) that made the following decades easier. But those people gradually retired and were replaced with people who weren’t inoculated to certain ideas (like the idea of inflating your way out of a supply-side recession).
We’re now living in a world where the median voter and her elected representatives have unlearned those hard lessons. And so we’re going to live through the 1970’s again. Hopefully. If we’re not so lucky we might live through the 1930’s again.