Any political movement that fails to understand two basic psychological traits will, before long, fizzle out. The first is shifting baseline syndrome. Coined by the biologist Daniel Pauly, it originally described our relationship to ecosystems, but it's just as relevant to politics. We perceive the circumstances of our youth as normal and unexceptional, however sparse or cruel they may be. By this means, over generations we adjust to almost any degree of deprivation or oppression, imagining it to be natural and immutable.

The second is the values ratchet (also known as policy feedback). If, for example, your country has a public health system that ensures that everyone who needs treatment receives it, without payment, it helps instil the belief that it is normal to care for strangers, and abnormal and wrong to neglect them. If you live in a country where people are left to die, this embeds the idea that you have no responsibility towards the poor and weak. The existence of these traits is supported by a vast body of experimental and observational research, of which Labour and the US Democrats appear determined to know nothing.

We are not born with our core values: they are strongly shaped by our social environment. These values can be placed on a spectrum between extrinsic and intrinsic. People towards the intrinsic end have high levels of self-acceptance, strong bonds of intimacy and a powerful desire to help others. People at the other end are drawn to external signifiers, such as fame, financial success and attractiveness. They seek praise and rewards from others.

Research across 70 countries suggests that intrinsic values are strongly associated with an understanding of others, tolerance, appreciation, cooperation and empathy. Those with strong extrinsic values tend to have lower empathy, a stronger attraction towards power, hierarchy and inequality, greater prejudice towards outsiders, and less concern for global justice and the natural world. These clusters exist in opposition to each other: as one set of values strengthens, the other weakens.

They tend to report higher levels of stress, anxiety, anger, envy, dissatisfaction and depression than those at the intrinsic end. Societies in which extrinsic goals are widely adopted are more unequal and uncooperative than those with deep intrinsic values. In one experiment, people with strong extrinsic values who were given a resource to share soon exhausted it (unlike a group with strong intrinsic values), as they all sought to take more than their due.

As extrinsic values are strongly associated with conservative politics, it's in the interests of conservative parties and conservative media to cultivate these values. There are three basic methods. The first is to generate a sense of threat. Experiments reported in the journal Motivation and Emotion suggest that when people feel threatened or insecure, they gravitate towards extrinsic goals. Perceived dangers – such as the threat of crime, terrorism, deficits, inflation or immigration – trigger a short-term survival response, in which you protect your own interests and forget other people's.

Second is the creation of new frames, structures of thought through which we perceive the world. For example, if tax is repeatedly cast as a burden, and less tax is described as relief, people come to see taxation as a bad thing that must be remedied. The third method is to invoke the values ratchet: when you change the way society works, our values shift in response. Privatisation, marketisation, austerity for the poor, inequality: they all shift baselines, alter the social cues we receive and generate insecurity and a sense of threat.

Margaret Thatcher's political genius arose from her instinctive understanding of these traits, long before they were described by psychologists and cognitive linguists: "Economics are the method; the object is to change the heart and soul." But Labour and the US Democrats no longer have objects, only methods. Their political philosophy is simply stated: if at first you don't succeed, flinch, flinch and flinch again. They seem to believe that if they simply fall into line with prevailing values, people will vote for them by default. But those values and baselines keep shifting, and what seemed intolerable before becomes unremarkable today. Instead of challenging the new values, these parties adjusting. This is why they always look like their opponents, with a five-year lag.

There is no better political passion killer than Labour's Zero-Based Review. Its cover is Tory blue. So are the contents. It promises to sustain the coalition's programme of cuts and even threatens to apply them to the health service. But, though it treats the deficit as a threat that must be countered at any cost, it says not a word about plugging the gap with innovative measures such as a Robin Hood tax on financial transactions, a land value tax, a progressively banded council tax or a windfall tax on extreme wealth. Nor does it mention tax avoidance and evasion. The poor must bear the pain through spending cuts, sustaining a cruel and wildly unequal social settlement.

Last month Chris Leslie, Labour's shadow chief secretary to the Treasury, promised, like George Osborne, that the cuts would be sustained for "decades ahead". He asserted that Labour's purpose in government would be to "finish that task on which [the chancellor] has failed": namely "to eradicate the deficit". The following day the shadow business secretary, Chuka Umunna, sought to explain why Labour had joined the political arms race on immigration. In doing so, he revealed that his party will be "radical in reforming our economy" in support of "a determinedly pro-business agenda". They appear to believe that success depends on becoming indistinguishable from their opponents.

It's not quite as mad as the old tactic among some Marxist groups of promoting inequality and injustice in the hope that popular fury would lead to revolution, but it's not far off. Quite aside from the obvious flaw (what's the sodding point of voting for a party that offers no substantial change in policy?), it evinces a near-perfect psychological illiteracy. When a party reinforces conservative values and conservative ideas, when it fails clearly to expound any countervailing values, when it refuses to reverse the direction of the values ratchet, what outcome does it expect, other than a shift towards conservatism?

Twitter: @georgemonbiot. A fully referenced version of this article can be found at Monbiot.com