Reasons why panicking is bad:
Panicking makes it take longer to solve problems. Solutions that arise from panic can only be used as temporary measures at best, and at worst, they exacerbate the situation, rather than relieve it. On a more personal level, panicking increases stress levels, which affects hormones and brain chemistry, lowers the immune system and generally causes the body's physical state to complement one's mental collapse.
Staying calm does not do any of these things. Although it may take longer to come up with a solution to a problem, the solution will be more effective and more stable than the panicked one. Also, it will create less stress.
Since it seems obvious that remaining calm is better than panicking, why is it instinctual for so many people to panic when problems come up? Life is better without panicking. Perhaps it is because of the feeling of immediacy that panicking brings. Even when generating endless amounts of worthless solutions, there is a general feeling of accomplishment, that the problem is being solved. The more time consuming process of coming up with reasonable solutions to problems does not feel as though the problem is actually being solved.
Fight against the instinct, don't panic.
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