Science relies on rational communication between people who disagree, because we can fool ourselves, and we can fool our in-group. The narrative fallacy doesn't just affect weak minds; by yourself, you won't outsmart your own filters.
To learn about the world, you have to accept the world, and some things about the world are hard to accept as bare facts. Donald Trump was elected president. Can you accept that as a bare fact? Probably not if you've fought with people about it. There's a drag show in town. Can you accept that as a bare fact? ... IQ tests have a history of racial disparity. ... The earth is round and orbits the sun. ...
A lot of rational minded people tend to disparage emotional intelligence, but I feel that rational communication across strong moral feelings requires a lot of emotional work and trust, and it's really hard to trust while you are fighting.
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I feel like 'virtue signaling' is poorly named. I think 'Comfort Signaling' and 'Loyalty Signaling' are easier to talk and reason about.
* I am flying this flag because I want my people to be comfortable with me.
* I am flying this flag because I want my people to know that I am loyal to them, and I don't care about what other people think. (Or, I'm fine with the other people hating me because of this flag)