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Just as a robust economic system is one that encourages early failures (the concepts of "fail small" and "fail fast"), the U.S. government should stop supporting dictatorial regimes for the sake of pseudostability and instead allow political noise to rise to the surface. Making an economy robust in the face of business swings requires allowing risk to be visible; the same is true in politics.

Both the recent financial crisis and the current political crisis in the Middle East are grounded in the rise of complexity, interdependence, and unpredictability. Policymakers in the United Kingdom and the United States have long promoted policies aimed at eliminating fluctuation -- no more booms and busts in the economy, no more "Iranian surprises" in foreign policy. These policies have almost always produced undesirable outcomes. For example, the U.S. banking system became very fragile following a succession of progressively larger bailouts and government interventions, particularly after the 1983 rescue of major banks (ironically, by the same Reagan administration that trumpeted free markets). In the United States, promoting these bad policies has been a bipartisan effort throughout. Republicans have been good at fragilizing large corporations through bailouts, and Democrats have been good at fragilizing the government. At the same time, the financial system as a whole exhibited little volatility; it kept getting weaker while providing policymakers with the illusion of stability, illustrated most notably when Ben Bernanke, who was then a member of the Board of Governors of the U.S. Federal Reserve, declared the era of "the great moderation" in 2004.

Washington stabilized the market with bailouts and by allowing certain companies to grow "too big to fail." Because policymakers believed it was better to do something than to do nothing, they felt obligated to heal the economy rather than wait and see if it healed on its own.

The foreign policy equivalent is to support the incumbent no matter what. And just as banks took wild risks thanks to Greenspan's implicit insurance policy, client governments such as Hosni Mubarak's in Egypt for years engaged in overt plunder thanks to similarly reliable U.S. support.

Those who seek to prevent volatility on the grounds that any and all bumps in the road must be avoided paradoxically increase the probability that a tail risk will cause a major explosion.

In the realm of economics, price controls are designed to constrain volatility on the grounds that stable prices are a good thing. But although these controls might work in some rare situations, the long-term effect of any such system is an eventual and extremely costly blowup whose cleanup costs can far exceed the benefits accrued. The risks of a dictatorship, no matter how seemingly stable, are no different, in the long run, from those of an artificially controlled price.

Such attempts to institutionally engineer the world come in two types: those that conform to the world as it is and those that attempt to reform the world. The nature of humans, quite reasonably, is to intervene in an effort to alter their world and the outcomes it produces. But government interventions are laden with unintended -- and unforeseen -- consequences, particularly in complex systems, so humans must work with nature by tolerating systems that absorb human imperfections rather than seek to change them.

What is needed is a system that can prevent the harm done to citizens by the dishonesty of business elites; the limited competence of forecasters, economists, and statisticians; and the imperfections of regulation, not one that aims to eliminate these flaws. Humans must try to resist the illusion of control: just as foreign policy should be intelligence-proof (it should minimize its reliance on the competence of information-gathering organizations and the predictions of "experts" in what are inherently unpredictable domains), the economy should be regulator-proof, given that some regulations simply make the system itself more fragile. Due to the complexity of markets, intricate regulations simply serve to generate fees for lawyers and profits for sophisticated derivatives traders who can build complicated financial products that skirt those regulations.

The life of a turkey before Thanksgiving is illustrative: the turkey is fed for 1,000 days and every day seems to confirm that the farmer cares for it -- until the last day, when confidence is maximal. The "turkey problem" occurs when a naive analysis of stability is derived from the absence of past variations. Likewise, confidence in stability was maximal at the onset of the financial crisis in 2007.

The turkey problem for humans is the result of mistaking one environment for another. Humans simultaneously inhabit two systems: the linear and the complex. The linear domain is characterized by its predictability and the low degree of interaction among its components, which allows the use of mathematical methods that make forecasts reliable. In complex systems, there is an absence of visible causal links between the elements, masking a high degree of interdependence and extremely low predictability. Nonlinear elements are also present, such as those commonly known, and generally misunderstood, as "tipping points." Imagine someone who keeps adding sand to a sand pile without any visible consequence, until suddenly the entire pile crumbles. It would be foolish to blame the collapse on the last grain of sand rather than the structure of the pile, but that is what people do consistently, and that is the policy error.

Engineering, architecture, astronomy, most of physics, and much of common science are linear domains. The complex domain is the realm of the social world, epidemics, and economics. Crucially, the linear domain delivers mild variations without large shocks, whereas the complex domain delivers massive jumps and gaps. Complex systems are misunderstood, mostly because humans' sophistication, obtained over the history of human knowledge in the linear domain, does not transfer properly to the complex domain. Humans can predict a solar eclipse and the trajectory of a space vessel, but not the stock market or Egyptian political events. All man-made complex systems have commonalities and even universalities. Sadly, deceptive calm (followed by Black Swan surprises) seems to be one of those properties.

The system is responsible, not the components. But after the financial crisis of 2007-8, many people thought that predicting the subprime meltdown would have helped. It would not have, since it was a symptom of the crisis, not its underlying cause. Likewise, Obama's blaming "bad intelligence" for his administration's failure to predict the crisis in Egypt is symptomatic of both the misunderstanding of complex systems and the bad policies involved.

Obama's mistake illustrates the illusion of local causal chains -- that is, confusing catalysts for causes and assuming that one can know which catalyst will produce which effect. The final episode of the upheaval in Egypt was unpredictable for all observers, especially those involved. As such, blaming the CIA is as foolish as funding it to forecast such events. Governments are wasting billions of dollars on attempting to predict events that are produced by interdependent systems and are therefore not statistically understandable at the individual level.

Political and economic "tail events" are unpredictable, and their probabilities are not scientifically measurable. No matter how many dollars are spent on research, predicting revolutions is not the same as counting cards; humans will never be able to turn politics into the tractable randomness of blackjack.

Most explanations being offered for the current turmoil in the Middle East follow the "catalysts as causes" confusion. The riots in Tunisia and Egypt were initially attributed to rising commodity prices, not to stifling and unpopular dictatorships. But Bahrain and Libya are countries with high gdps that can afford to import grain and other commodities. Again, the focus is wrong even if the logic is comforting. It is the system and its fragility, not events, that must be studied -- what physicists call "percolation theory," in which the properties of the terrain are studied rather than those of a single element of the terrain.

When dealing with a system that is inherently unpredictable, what should be done? Differentiating between two types of countries is useful. In the first, changes in government do not lead to meaningful differences in political outcomes (since political tensions are out in the open). In the second type, changes in government lead to both drastic and deeply unpredictable changes.

Humans fear randomness -- a healthy ancestral trait inherited from a different environment. Whereas in the past, which was a more linear world, this trait enhanced fitness and increased chances of survival, it can have the reverse effect in today's complex world, making volatility take the shape of nasty Black Swans hiding behind deceptive periods of "great moderation." This is not to say that any and all volatility should be embraced. Insurance should not be banned, for example.

But alongside the "catalysts as causes" confusion sit two mental biases: the illusion of control and the action bias (the illusion that doing something is always better than doing nothing). This leads to the desire to impose man-made solutions

Variation is information. When there is no variation, there is no information. This explains the CIA's failure to predict the Egyptian revolution and, a generation before, the Iranian Revolution -- in both cases, the revolutionaries themselves did not have a clear idea of their relative strength with respect to the regime they were hoping to topple. So rather than subsidize and praise as a "force for stability" every tin-pot potentate on the planet, the U.S. government should encourage countries to let information flow upward through the transparency that comes with political agitation. It should not fear fluctuations per se, since allowing them to be in the open, as Italy and Lebanon both show in different ways, creates the stability of small jumps.

As Seneca wrote in De clementia, "Repeated punishment, while it crushes the hatred of a few, stirs the hatred of all . . . just as trees that have been trimmed throw out again countless branches." The imposition of peace through repeated punishment lies at the heart of many seemingly intractable conflicts, including the Israeli-Palestinian stalemate. Furthermore, dealing with seemingly reliable high-level officials rather than the people themselves prevents any peace treaty signed from being robust. The Romans were wise enough to know that only a free man under Roman law could be trusted to engage in a contract; by extension, only a free people can be trusted to abide by a treaty. Treaties that are negotiated with the consent of a broad swath of the populations on both sides of a conflict tend to survive. Just as no central bank is powerful enough to dictate stability, no superpower can be powerful enough to guarantee solid peace alone.

As Jean-Jacques Rousseau put it, "A little bit of agitation gives motivation to the soul, and what really makes the species prosper is not peace so much as freedom." With freedom comes some unpredictable fluctuation. This is one of life's packages: there is no freedom without noise -- and no stability without volatility.∂

As a teacher at the City University of New York, I am constantly aware of the possibility that my students might cheat on their tests. I do take some elementary precautionary steps

Still, my job is not that of the policeman. My students are adults who theoretically are there to learn. If they don’t value that learning and prefer to pay someone else to fake it, so be it, ultimately it is they who lose in the most fundamental sense of the term. Just like drug addicts, to return to my earlier metaphor. And just as in that other case, it is enablers like Mr. Dante who simply can’t duck the moral blame.

n open letter to the president of SUNY-Albany, penned by molecular biologist Gregory Petsko. The SUNY-Albany president has recently announced the closing — for budgetary reasons — of the departments of French, Italian, Classics, Russian and Theater Arts at his university.

Petsko begins by taking on one of the alleged reasons why SUNY-Albany is slashing the humanities: low enrollment. He correctly points out that the problem can be solved overnight at the stroke of a pen: stop abdicating your responsibilities as educators and actually put constraints on what your students have to take in order to graduate. Make courses in English literature, foreign languages, philosophy and critical thinking, the arts and so on, mandatory or one of a small number of options that the students must consider in order to graduate.

But, you might say, that’s cheating the market! Students clearly don’t want to take those courses, and a business should cater to its customers. That type of reasoning is among the most pernicious and idiotic I’ve ever heard. Students are not clients (if anything, their parents, who usually pay the tuition, are), they are not shopping for a new bag or pair of shoes. They do not know what is best for them educationally, that’s why they go to college to begin with. If you are not convinced about how absurd the students-as-clients argument is, consider an analogy: does anyone with functioning brain cells argue that since patients in a hospital pay a bill, they should be dictating how the brain surgeon operates? I didn’t think so.

Petsko then tackles the second lame excuse given by the president of SUNY-Albany (and common among the upper administration of plenty of public universities): I can’t do otherwise because of the legislature’s draconian cuts. Except that university budgets are simply too complicated for there not to be any other option. I know this first hand, I’m on a special committee at my own college looking at how to creatively deal with budget cuts handed down to us from the very same (admittedly small minded and dysfunctional) New York state legislature that has prompted SUNY-Albany’s action. As Petsko points out, the president there didn’t even think of involving the faculty and staff in a broad discussion of how to deal with the crisis, he simply announced the cuts on a Friday afternoon and then ran for cover. An example of very poor leadership to say the least, and downright hypocrisy considering all the talk that the same administrator has been dishing out about the university “community.”

Finally, there is the argument that the humanities don’t pay for their own way, unlike (some of) the sciences (some of the time). That is indubitably true, but irrelevant. Universities are not businesses, they are places of higher learning. Yes, of course they need to deal with budgets, fund raising and all the rest. But the financial and administrative side has one goal and one goal only: to provide the best education to the students who attend that university.

That education simply must include the sciences, philosophy, literature, and the arts, as well as more technical or pragmatic offerings such as medicine, business and law. Why? Because that’s the kind of liberal education that makes for an informed and intelligent citizenry, without which our democracy is but empty talk, and our lives nothing but slavery to the marketplace.

Maybe this is not how education works in the US. I thought that general (or compulsory) education (ie. up to high school) is designed to make sure that citizens in a democratic country can perform their civil duties. A balanced and well-rounded education, which includes a healthy mixture of science and humanities, is indeed very important for this purpose. However, college-level education is for personal growth and therefore the person must have a large say about what kind of classes he or she chooses to take. I am disturbed by Massimo's hospital analogy. Students are not ill. They don't go to college to be cured, or to be good citizens. They go to college to learn things that *they* want to learn. Patients are passive. Students are not.I agree that students typically do not know what kind of education is good for them. But who does?

students do have a saying in their education. They pick their major, and there are electives. But I object to the idea that they can customize their major any way they want. That assumes they know what the best education for them is, they don't. That's the point of education.

The students are in your class to get a good grade, any learning that takes place is purely incidental. Those good grades will look good on their transcript and might convince a future employer that they are smart and thus are worth paying more.

Just how many of your students do you think will remember the extensive complex jargon of philosophy more than a couple of months after they leave your classroom?

and our lives nothing but slavery to the marketplace.We are there. Welcome. Where have you been all this time? In a capitalistic/plutocratic society money is power (and free speech too according to the supreme court). Money means a larger/better house/car/clothing/vacation than your neighbor and consequently better mating opportunities. You can mostly blame the women for that one I think just like the peacock's tail.

If a student of surgery fails to learn they might maim, kill or cripple someone. If an engineer of airplanes fails to learn they might design a faulty aircraft that fails and kills people. If a student of chemistry fails to learn they might design a faulty drug with unintended and unfortunate side effects, but what exactly would be the harm if a student of philosophy fails to learn Aristotle had to say about elements or Plato had to say about perfect forms? These things are so divorced from people's everyday activities as to be rendered all but meaningless.

human knowledge grows by leaps and bounds every day, but human brain capacity does not, so the portion of human knowledge you can personally hold gets smaller by the minute. Learn (and remember) as much as you can as fast as you can and you will still lose ground. You certainly have your work cut out for you emphasizing the importance of Thales in the Age of Twitter and whatever follows it next year.

Complex systems that have artificially suppressed volatility tend to become extremely fragile, while at the same time exhibiting no visible risks. In fact, they tend to be too calm and exhibit minimal variability as silent risks accumulate beneath the surface. Although the stated intention of political leaders and economic policymakers is to stabilize the system by inhibiting fluctuations, the result tends to be the opposite. These artificially constrained systems become prone to "Black Swans" -- that is, they become extremely vulnerable to large-scale events that lie far from the statistical norm and were largely unpredictable to a given set of observers. Such environments eventually experience massive blowups, catching everyone off-guard and undoing years of stability or, in some cases, ending up far worse than they were in their initial volatile state. Indeed, the longer it takes for the blowup to occur, the worse the resulting harm in both economic and political systems.

If a society provides a basic measure of health and economic security for its citizens, its citizens will be more tolerant of a little volatility/risk/ambition in its social and economic policy.

This gets at why I think its extremely difficult to reconcile modern-day conservatism and serious efforts to address climate change (and future resource shortages, and other various other sources of long-term risk). The U.S. conservative politic program is devoted to increasing economic and social insecurity for average people and decreasing it for wealthy business owners. That is roughly the opposite of the approach you'd want to take if you want to increase society's resilience to the dangers approaching.

Trade in humans and their bodies is not a new phenomenon, but today’s businesses are historically unique, because they require advanced biomedicine, as well as ideas and values that enhance the trade in organs. Western medicine starts from the view that human illness and death are failures to be combated. It is within this conceptual climate – the dream of the regenerative body – that transplantation technology develops and demand for biological replacement parts grows.

In an era of transplants on demand, there is no way around this dilemma. The biological imperatives that guide the priority system of transplant waiting lists are easily transformed into economic values. As always where demand exceeds supply, people may not accept waiting their turn – and other countries and other peoples’ bodies give them the alternative they seek.