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Is there a historical example or does anyone have an anecdote of some crunch time where the CEO blowing hot air was the best thing for morale? Compared to what I might think a lot of us would prefer in many cases, which might be an honest assessment & making us part of the journey to overcome whatever adversity.
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"an honest assessment & making us part of the journey to overcome whatever adversity"

I suspect that most people just aren't wired up that way - we have a natural tendency to want to follow leaders and what we seem to want most from leaders is certainty and confidence. Does it matter what leaders are certain and confident about - not really.

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It is hard to argue with a vague statement like "most people" without a proper scientific study. But I disagree: following the scientific principle, and being willing to change opinion in the face of new evidence increases my trust in someone. Someone who is certain and confident without showing their work / sources make me suspicious. And critical thinking is (pardon the pun) a critical skill.
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If you actually think and act that way, so much the better. I don't even particularly disbelieve you. But can you really look at the mass of humanity around you and believe they think the same way? Even if they claim to value critical thinking, watch what they do, what they buy, how they vote.

You've most likely trained yourself to value critical thinking in your leaders, most likely from an early enough age that you don't remember what it was like without it. Lots of people don't get this training or don't apply it in a fully general way.

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Hm, having a journalist and an academic (with a heavy focus on applied rigorous statistics) as parents probably helped there, you are right. But school is supposed to teach this, at least here in Sweden it is a part of the curriculum. But indeed, that doesn't seem to help, and the US it is especially bad (not saying the situation is good here either though).

There are other things I do remember having to train myself to do though, such as not make value judgments based on the language skill level of others. Rationally I have never cared where someone is from and if they are a native speaker or not, but emotionally that required some effort.

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I'm not convinced it's actually possible to teach critical thinking to someone who doesn't care, but I'm glad your schools are trying harder.

But even when people are trained in critical thinking, the part at the end of my comment about applying it in full generality is also critical. You have to be emotionally ready to apply it in cases where it produces unpleasant conclusions, not just for your job or when it helps dunk on your political opponents. Also difficult to impossible to teach at scale.

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Not exactly?

Let's say there are a thousand people there at the town hall. You don't want any of them to leave upset, or even concerned. But they each have different things that will make them concerned and upset. So there are maybe 10,000 tripwires out there, and you don't want to trip any of them.

So you're not being dishonest, exactly. You're being nonspecific. You don't want to get down in the weeds and nail down the answer too tightly, because you may trip someone's tripwire. (And also because it would take to long.) So you say something true but not very specific.

(I mean, there can be dishonesty, too, but that's a different thing. Smooth vagueness can still be honest, just unsatisfyingly vague.)

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"Smooth vagueness" to me comes off as tautologies. If you cannot say anything specific it means either you don't know, or don't want others to know. So it is a lie about ones' competency, or a lie by omission.

It's all dishonesty at the end of the day.

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