Learned Helplessness

I stumbled upon this interesting little video. It links to many others on the same topic, which I found surprisingly interesting, and would like to discuss. What is it that makes one lose confidence when they see others succeed at the tasks they fail, to the point of being unable to preform tasks that they otherwise should know how to do? Could it be that this phenomenon holds parts of the key to failure rates throughout the education systems worldwide, as well as other self-destructive, irrational reaction-to-failure phenomena throughout one’s life?

BTW, maybe we should be able to post Youtube videos on-page?