Elizabeth Holmes: The psychology of a liar

This excellent video, from the Nudge Podcast channel on YouTube, tells the story of Elizabeth Holmes, the founder of Theranos, as a case study in extreme dishonesty. While it begins with her infamous rise and fall—becoming a billionaire based on fraudulent claims—the core focus quickly shifts to psychological and behavioral science to understand why people lie. It explores Holmes's motivations, such as a childhood fixation on wealth, family history of lost fortune, ego preservation, and the compounding effect of small lies that escalate over time. Scientific studies on dishonesty, such as Dan Ariely's matrix experiments and research on ego motivation, suggest that most people lie when it benefits them and when they can rationalize the behavior. The video proposes that Holmes, like many, likely began with small “white lies” but was reinforced by praise and perceived success, spiraling into full-scale fraud.

Beyond Holmes, the video addresses the broader human tendency to lie, revealing that dishonesty is surprisingly common. Experiments consistently show that people cheat more when they’re tired, emotionally depleted, or if they see others getting away with it—especially within tight social groups. Group dynamics, isolation of oversight, and conflicting incentives all contribute to environments where lying can flourish, as they did within Theranos. Importantly, the video also notes that pathological liars may have neurological differences—more white matter in the brain—enabling them to lie with ease and consistency. This evidence positions Holmes not just as an outlier but as an extreme reflection of very human patterns of deception.