Group items tagged

"I. MISTAKING BEAUTY FOR TRUTH It's hard to believe now, but not long ago economists were congratulating themselves over the success of their field. Those successes - or so they believed - were both theoretical and practical, leading to a golden era for the profession. On the theoretical side, they thought that they had resolved their internal disputes. Thus, in a 2008 paper titled "The State of Macro" (that is, macroeconomics, the study of big-picture issues like recessions), Olivier Blanchard of M.I.T., now the chief economist at the International Monetary Fund, declared that "the state of macro is good." The battles of yesteryear, he said, were over, and there had been a "broad convergence of vision." And in the real world, economists believed they had things under control: the "central problem of depression-prevention has been solved," declared Robert Lucas of the University of Chicago in his 2003 presidential address to the American Economic Association. In 2004, Ben Bernanke, a former Princeton professor who is now the chairman of the Federal Reserve Board, celebrated the Great Moderation in economic performance over the previous two decades, which he attributed in part to improved economic policy making. Last year, everything came apart. Few economists saw our current crisis coming, but this predictive failure was the least of the field's problems. More important was the profession's blindness to the very possibility of catastrophic failures in a market economy. During the golden years, financial economists came to believe that markets were inherently stable - indeed, that stocks and other assets were always priced just right. There was nothing in the prevailing models suggesting the possibility of the kind of collapse that happened last year. Meanwhile, macroeconomists were divided in their views. But the main division was between those who insisted that free-market economies never go astray and those who believed that economie

"Professor Barry Smith, director of the Institute of Philosophy at the University of London explores what happens inside our heads when we recognise a friend or reach for a cup of coffee."

"God is dead in a very particular sense. He no longer plays his traditional social role of organizing us around a commitment to a single right way to live. "

"They and others had been searching for answers and grappling with their implications since Sunday, when Weight Watchers began unveiling its first major overhaul to its cultlike points system, prompting the 750,000 members who attend weekly meetings across the United States - and some one million online adherents - to rethink how they shop, cook and eat. The new plan, company officials say, is based on scientific findings about how the body processes different foods. The biggest change: All fruits and most vegetables are point-free (or free of PointsPlus, as the new program is called). Processed foods, meanwhile, generally have higher point values, which roughly translates to: should be eaten less. "

"Why do people see faces in nature, interpret window stains as human figures, hear voices in random sounds generated by electronic devices or find conspiracies in the daily news? A proximate cause is the priming effect, in which our brain and senses are prepared to interpret stimuli according to an expected model. UFOlogists see a face on Mars. Religionists see the Virgin Mary on the side of a building. Paranormalists hear dead people speaking to them through a radio receiver.\n1\nConspiracy theorists think 9/11 was an inside job by the Bush administration. Is there a deeper ultimate cause for why people believe such weird things? There is. I call it "patternicity," or the tendency to find meaningful patterns in meaningless noise."

"I've come to believe that these failures spring from a single failure: reliance on an overly simplistic view of human nature. We have a prevailing view in our society - not only in the policy world, but in many spheres - that we are divided creatures. Reason, which is trustworthy, is separate from the emotions, which are suspect. Society progresses to the extent that reason can suppress the passions. This has created a distortion in our culture. We emphasize things that are rational and conscious and are inarticulate about the processes down below. We are really good at talking about material things but bad at talking about emotion. When we raise our kids, we focus on the traits measured by grades and SAT scores. But when it comes to the most important things like character and how to build relationships, we often have nothing to say. Many of our public policies are proposed by experts who are comfortable only with correlations that can be measured, appropriated and quantified, and ignore everything else. Yet while we are trapped within this amputated view of human nature, a richer and deeper view is coming back into view. It is being brought to us by researchers across an array of diverse fields: neuroscience, psychology, sociology, behavioral economics and so on. "