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Ferguson replied that their role in subprime mortgages was not very significant, and that in any case their behavior was not much different from that of other capitalist enterprises.

We get no inkling that Rajan's views on what made the world riskier, as set forth in his book, veer quite radically from those of Inside Job. They include, as he has written, "the political push for easy housing credit in the United States and the lax monetary policy [by the Federal Reserve] in the years 2003-2005."

Rajan, author of Fault Lines, a recent book on the debacle, speaks with special authority to fans of Inside Job. Not only is he in the movie—one of the talking heads speaking wisdom about what occurred—he is accurately presented as having anticipated the meltdown in a 2005 paper called "Has Financial Development Made the World Riskier?" But the things he is quoted as saying in the film are restricted to serving its themes.

Yet it's impossible to understand what happened without grasping the proactive role played by government. "The banking sector did not decide out of the goodness of its heart to extend mortgages to poor people," commented University of Chicago Booth School of Business Finance Professor Raghuram Rajan in a telephone interview last week. "Politicians did that, and they would have taken great umbrage if the regulator stood in the way of more housing credit."

THE STORY RECOUNTED in Inside Job is that principles like safety and soundness were flouted by greedy Wall Street capitalists who brought down the economy with the help of certain politicians, political appointees and corrupt academicians. Despite the attempts and desires of some, including Barney Frank, to regulate the mania, the juggernaut prevails to this day, under the presidency of Barack Obama.

This version of the story contains some elements of truth.

Text Size Regular Medium Large "A MASTERPIECE OF INVESTIGATIVE nonfiction moviemaking," wrote the film critic of the Boston Globe. "Rests its outrage on reason, research and careful argument," opined the New York Times. The "masterpiece" referred to was the recently released Inside Job, a documentary film that focuses on the causes of the 2008 financial crisis.

He tries to break free of narrow specialization and cross the boundaries between scientific disciplines. Expeditions beyond economics’ borders and its connection to history, philosophy, psychology, and ancient myths are not only refreshing, but necessary for understanding the world of the twenty-first century.

Reality is spun from stories, not from material. Zdeněk Neubauer

Before it was emancipated as a field, economics lived happily within subsets of philosophy—ethics, for example—miles away from today’s concept of economics as a mathematical-allocative science that views “soft sciences” with a scorn born from positivistic arrogance. But our thousand-year “education” is built on a deeper, broader, and oftentimes more solid base. It is worth knowing about.

The study of the history of a certain field is not, as is commonly held, a useless display of its blind alleys or a collection of the field’s trials and errors (until we got it right), but history is the fullest possible scope of study of a menu that the given field can offer.

History of thought helps us to get rid of the intellectual brainwashing of the age, to see through the intellectual fashion of the day, and to take a couple of steps back.

“The separation between the history of a science, its philosophy, and the science itself dissolves into thin air, and so does the separation between science and non-science; differences between the scientific and unscientific are vanishing.”

we seek to chart the development of the economic ethos. We ask questions that come before any economic thinking can begin—both philosophically and, to a degree, historically. The area here lies at the very borders of economics—and often beyond. We may refer to this as protoeconomics (to borrow a term from protosociology) or, perhaps more fittingly, metaeconomics (to borrow a term from metaphysics).

stories; Adam Smith believed. As he puts it in The Theory of Moral Sentiments, “the desire of being believed, or the desire of persuading, of leading and directing other people, seems to be one of the strongest of all our natural desires.”

“The human mind is built to think in terms of narratives … in turn, much of human motivation comes from living through a story of our lives, a story that we tell to ourselves and that creates a framework of our motivation. Life could be just ‘one damn thing after another’ if it weren’t for such stories. The same is true for confidence in a nation, a company, or an institution. Great leaders are foremost creators of stories.”

contrary to what our textbooks say, economics is predominantly a normative field. Economics not only describes the world but is frequently about how the world should be (it should be effective, we have an ideal of perfect competition, an ideal of high-GDP growth in low inflation, the effort to achieve high competitiveness …). To this end, we create models, modern parables,

I will try to show that mathematics, models, equations, and statistics are just the tip of the iceberg of economics; that the biggest part of the iceberg of economic knowledge consists of everything else; and that disputes in economics are rather a battle of stories and various metanarratives than anything else.

That is the reason for this book: to look for economic thought in ancient myths and, vice versa, to look for myths in today’s economics.

is a paradox that a field that primarily studies values wants to be value-free. One more paradox is this: A field that believes in the invisible hand of the market wants to be without mysteries.

The History of Animal Spirits: Dreams Never Sleep

The more important elements of a culture or field of inquiry such as economics are found in fundamental assumptions that adherents of all the various systems within the epoch unconsciously presuppose. Such assumptions appear so obvious that people do not know what they are assuming, because no other way of putting things has ever occurred to them, as the philosopher Alfred Whitehead notes in Adventures of Ideas.

I argue that economic questions were with mankind long before Adam Smith. I argue that the search for values in economics did not start with Adam Smith but culminated with him.

We should go beyond economics and study what beliefs are “behind the scenes,” ideas that have often become the dominant yet unspoken assumptions in our theories. Economics is surprisingly full of tautologies that economists are predominantly unaware of. I

argue that economics should seek, discover, and talk about its own values, although we have been taught that economics is a value-free science. I argue that none of this is true and that there is more religion, myth, and archetype in economics than there is mathematics.

In a way, this is a study of the evolution of both homo economicus and, more importantly, the history of the animal spirits within him. This book tries to study the evolution of the rational as well as the emotional and irrational side of human beings.

I argue that his most influential contribution to economics was ethical. His other thoughts had been clearly expressed long before him, whether on specialization, or on the principle of the invisible hand of the market. I try to show that the principle of the invisible hand of the market is much more ancient and developed long before Adam Smith. Traces of it appear even in the Epic of Gilgamesh, Hebrew thought, and in Christianity, and it is expressly stated by Aristophanes and Thomas Aquinas.

This is not a book on the thorough history of economic thought. The author aims instead to supplement certain chapters on the history of economic thought with a broader perspective and analysis of the influences that often escape the notice of economists and the wider public.

Progress (Naturalness and Civilization)

The Economy of Good and Evil

from his beginnings, man has been marked as a naturally unnatural creature, who for unique reasons surrounds himself with external possessions. Insatiability, both material and spiritual, are basic human metacharacteristics, which appear as early as the oldest myths and stories.

the Hebrews, with linear time, and later the Christians gave us the ideal (or amplified the Hebrew ideal) we now embrace. Then the classical economists secularized progress. How did we come to today’s progression of progress, and growth for growth’s sake?

The Need for Greed: The History of Consumption and Labor

Metamathematics From where did economics get the concept of numbers as the very foundation of the world?

mathematics at the core of economics, or is it just the icing of the cake, the tip of the iceberg of our field’s inquiry?

idea that we can manage to utilize our natural egoism, and that this evil is good for something, is an ancient philosophical and mythical concept. We will also look into the development of the ethos of homo economicus, the birth of “economic man.”

All of economics is, in the end, economics of good and evil. It is the telling of stories by people of people to people. Even the most sophisticated mathematical model is, de facto, a story, a parable, our effort to (rationally) grasp the world around us.

Masters of the Truth

Originally, truth was a domain of poems and stories, but today we perceive truth as something much more scientific, mathematical. Where does one go (to shop) for the truth? And who “has the truth” in our epoch?

Our animal spirits (something of a counterpart to rationality) are influenced by the archetype of the hero and our concept of what is good.

The entire history of ethics has been ruled by an effort to create a formula for the ethical rules of behavior. In the final chapter we will show the tautology of Max Utility, and we will discuss the concept of Max Good.

The History of the Invisible Hand of the Market and Homo Economicus

We understand “economics” to mean a broader field than just the production, distribution, and consumption of goods and services. We consider economics to be the study of human relations that are sometimes expressible in numbers, a study that deals with tradables, but one that also deals with nontradables (friendship, freedom, efficiency, growth).

When we mention economics in this book, we mean the mainstream perception of it, perhaps as best represented by Paul Samuelson.

By the term homo economicus, we mean the primary concept of economic anthropology. It comes from the concept of a rational individual, who, led by narrowly egotistical motives, sets out to maximize his benefit.

the Epic of Gilgamesh bears witness to the opposite—despite the fact that the first written clay fragments (such as notes and bookkeeping) of our ancestors may have been about business and war, the first written story is mainly about great friendship and adventure.

is a story of nature and civilization, of heroism, defiance, and the battle against the gods, and evil; an epic about wisdom, immortality, and also futility.

Even today we live in Gilgamesh’s vision that human relations—and therefore humanity itself—are a disturbance to work and efficiency; that people would perform better if they did not “waste” their time and energy on nonproductive things.

But it is in friendship where—often by-the-way, as a side product, an externality—ideas and deeds are frequently performed or created that together can altogether change the face of society.19 Friendship can go against an ingrained system in places where an individual does not have the courage to do so himself or herself.

started with Babylonians—rural nature becomes just a supplier of raw materials, resources (and humans the source of human resources). Nature is not the garden in which humans were created and placed, which they should care for and which they should reside in, but becomes a mere reservoir for natural (re)sources.

To be human seems to be somewhere in between, or both of these two. We

The entire history of culture is dominated by an effort to become as independent as possible from the whims of nature.39 The more developed a civilization is, the more an individual is protected from nature and natural influences and knows how to create around him a constant or controllable environment to his liking.

The epic captures one of the greatest leaps in the development of the division of labor. Uruk itself is one of the oldest cities of all, and in the epic it reflects a historic step forward in specialization—in the direction of a new social city arrangement. Because of the city wall, people in the city can devote themselves to things other than worrying about their own safety, and they can continue to specialize more deeply.

“The chief thing which the common-sense individual wants is not satisfactions for the wants he had, but more, and better wants.”47

If a consumer buys something, theoretically it should rid him of one of his needs—and the aggregate of things they need should be decreased by one item. In reality, though, the aggregate of “I want to have” expands together with the growing aggregate of “I have.”

the Old Testament, this relationship is perceived completely differently. Man (humanity) is created in nature, in a garden. Man was supposed to care for the Garden of Eden and live in harmony with nature and the animals. Soon after creation, man walks naked and is not ashamed, de facto the same as the animals. What is characteristic is that man dresses (the natural state of creation itself is not enough for him), and he (literally and figuratively) covers52 himself—in shame after the fall.53

Nature is where one goes to hunt, collect crops, or gather the harvest. It is perceived as the saturator of our needs and nothing more. One goes back to the city to sleep and be “human.” On the contrary, evil resides in nature. Humbaba lives in the cedar forest, which also happens to be the reason to completely eradicate it.

Symbolically, then, we can view the entire issue from the standpoint of the epic in the following way: Our nature is insufficient, bad, evil, and good (humane) occurs only after emancipation from nature (from naturalness), through culturing and education. Humanity is considered as being in civilization.

The city was frequently (at least in older Jewish writings) a symbol of sin, degeneration, and decadence—nonhumanity. The Hebrews were originally a nomadic nation, one that avoided cities. It is no accident that the first important city57 mentioned in the Bible is proud Babylon,58 which God later turns to dust.

is enough, for example, to read the Book of Revelation to see how the vision of paradise developed from the deep Old Testament period, when paradise was a garden. John describes his vision of heaven as a city—paradise is in New Jerusalem, a city where the dimensions of the walls(!) are described in detail, as are the golden streets and gates of pearl.

Hebrews later also chose a king (despite the unanimous opposition of God’s prophets) and settled in cities, where they eventually founded the Lord’s Tabernacle and built a temple for Him. The city of Jerusalem later gained an illustrious position in all of religion.

this time Christianity (as well as the influence of the Greeks) does not consider human naturalness to be an unambiguous good, and it does not have such an idyllic relationship to nature as the Old Testament prophets.

If a tendency toward good is not naturally endowed in people, it must be imputed from above through violence or at least the threat of violence.

If we were to look at human naturalness as a good, then collective social actions need a much weaker ruling hand. If people themselves have a natural tendency (propensity) toward good, this role does not have to be supplied by the state, ruler, or, if you wish, Leviathan.

How does this affect economics?

us return for the last time to the humanization of the wild Enkidu, which is a process we can perceive with a bit of imagination as the first seed of the principle of the market’s invisible hand, and therefore the parallels with one of the central schematics of economic thinking.

Sometimes it is better to “harness the devil to the plow” than to fight with him. Instead of summoning up enormous energy in the fight against evil, it is better to use its own energy to reach a goal we desire; setting up a mill on the turbulent river instead of futile efforts to remove the current. This is also how Saint Prokop approached it in one of the oldest Czech legends.

Enkidu caused damage and it was impossible to fight against him. But with the help of a trap, trick, this evil was transformed into something that greatly benefited civilization.

By culturing and “domesticating” Enkidu, humanity tamed the uncontrollable wild and chaotic evil

Enkidu devastated the doings (the external, outside-the-walls) of the city. But he was later harnessed and fights at the side of civilization against nature, naturalness, the natural state of things.

A similar story (reforming something animally wild and uncultivated in civilizational achievement) is used by Thomas Aquinas in his teachings. Several centuries later, this idea is fully emancipated in the hands of Bernard Mandeville and his Fable of the Bees: or, Private Vices, Publick Benefits. The economic and political aspects of this idea are—often incorrectly—ascribed to Adam Smith.

Here the individual does not try anymore to maximize his goods or profits, but what is important is writing his name in human memory in the form of heroic acts or deeds.

immortality, one connected with letters and the cult of the word: A name and especially a written name survives the body.”77

After this disappointment, he comes to the edge of the sea, where the innkeeper Siduri lives. As tonic for his sorrow, she offers him the garden of bliss, a sort of hedonistic fortress of carpe diem, where a person comes to terms with his mortality and at least in the course of the end of his life maximizes earthly pleasures, or earthly utility.

In the second stage, after finding his friend Enkidu, Gilgamesh abandons the wall and sets out beyond the city to maximalize heroism. “In his (…) search of immortal life, Gilgamesh

The hero refuses hedonism in the sense of maximizing terrestrial pleasure and throws himself into things that will exceed his life. In the blink of an eye, the epic turns on its head the entire utility maximization role that mainstream economics has tirelessly tried to sew on people as a part of their nature.81

today remember Gilgamesh for his story of heroic friendship with Enkidu, not for his wall, which no longer reaches monumental heights.

the eleventh and final tablet, Gilgamesh again loses what he sought. Like Sisyphus, he misses his goal just before the climax

The very existence of questions similar to today’s economic ones can be considered as the first observation. The first written considerations of the people of that time were not so different from those today. In other words: The epic is understandable for us, and we can identify with it.

We have also been witnesses to the very beginnings of man’s culturing—a great drama based on a liberation and then a distancing from the natural state.

Let us take this as a memento in the direction of our restlessness, our inherited dissatisfaction and the volatility connected to it. Considering that they have lasted five thousand years and to this day we find ourselves in harmony with a certain feeling of futility, perhaps these characteristics are inherent in man.

with the phenomenon of the creation of the city, we have seen how specialization and the accumulation of wealth was born, how holy nature was transformed into a secular supplier of resources, and also how humans’ individualistic ego was emancipated.

For small acts (hunting together, work in a factory), small love is enough: Camaraderie. For great acts, however, great love is necessary, real love: Friendship. Friendship that eludes the economic understanding of quid pro quo. Friendship gives. One friend gives (fully) for the other. That is friendship for life and death,

less a civilized, city person is dependent on nature, the more he or she is dependent on the rest of society. Like Enkidu, we have exchanged nature for society; harmony with (incalculable) nature for harmony with (incalculable) man.

human nature good or evil? To this day these questions are key for economic policy: If we believe that man is evil in his nature, therefore that a person himself is dog eat dog (animal), then the hard hand of a ruler is called for. If we believe that people in and of themselves, in their nature, gravitate toward good, then it is possible to loosen up the reins and live in a society that is more laissez-faire.

For a concept of historical progress, for the undeification of heroes, rulers, and nature, mankind had to wait for the Hebrews.

Because nature is not undeified, it is beyond consideration to explore it, let alone intervene in it (unless a person was a two-thirds god like Gilgamesh). It

As early as the “dark” ages, the Jews commonly used economic tools that were in many ways ahead of their time and that later became key elements of the modern economy:

Gilgamesh’s story ends where it began. There is a consistency in this with Greek myths and fables: At the end of the story, no progress occurs, no essential historic change; the story is set in indefinite time, something of a temporal limbo.

For a nation originally based on nomadism, where did this Jewish business ethos come from? And can the Hebrews truly be considered as the architects of the values that set the direction of our civilization’s economic thought?

PROGRESS: A SECULARIZED RELIGION One of the things the writers of the Old Testament gave to mankind is the idea and notion of progress. The Old Testament stories have their development; they change the history of the Jewish nation and tie in to each other. The Jewish understanding of time is linear—it has a beginning and an end.

The observance of God’s Commandments in Judaism leads not to some ethereal other world, but to an abundance of material goods (Genesis 49:25–26, Leviticus 26:3–13, Deuteronomy 28:1–13) (…) There are no accusing fingers pointed at

There are no echoes of asceticism nor for the cleansing and spiritual effect of poverty. It is fitting therefore, that the founders of Judaism, the Patriarchs Abraham, Isaac and Jacob, were all wealthy men.12

about due to a linear understanding of history. If history has a beginning as well as an end, and they are not the same point, then exploration suddenly makes sense in areas where the fruits are borne only in the next generation.

however, the idea of progress itself underwent major changes, and today we perceive it very differently. As opposed to the original spiritual conceptions, today we perceive progress almost exclusively in an economic or scientific-technological sense.

Because care for the soul has today been replaced by care for external things,

This is why we must constantly grow, because we (deep down and often implicitly) believe that we are headed toward an (economic) paradise on Earth.

Only since the period of scientific-technological revolution (and at a time when economics was born as an independent field) is material progress automatically assumed.

Jewish thought is the most grounded, most realistic school of thought of all those that have influenced our culture.17 An abstract world of ideas was unknown to the Jews. To this day it is still forbidden to even depict God, people, and animals in symbols, paintings, statues, and drawings.

economists have become key figures of great importance in our time (Kacířské eseje o filosofii dějin [Heretical Essays in the Philosophy of History]). They are expected to perform interpretations of reality, give prophetic services (macroeconomic forecasts), reshape reality (mitigate the impacts of the crisis, speed up growth), and, in the long run, provide leadership on the way to the Promised Land—paradise on Earth.

REALISM AND ANTIASCETICISM Aside from ideas of progress, the Hebrews brought another very fundamental contribution to our culture: The desacralization of heroes, nature, and rulers.

Voltaire writes: “It certain fact is, that in his public laws he [Moses] never so much as once made mention of a life to come, limiting all punishments and all rewards to the present life.”21

As opposed to Christianity, the concept of an extraterrestrial paradise or heaven was not developed much in Hebrew thought.19 The paradise of the Israelites—Eden—was originally placed on Earth at a given place in Mesopotamia20 and at a given time,

The Hebrews consider the world to be real—not just a shadow reflection of a better world somewhere in the cloud of ideas, something the usual interpretation of history ascribes to Plato. The soul does not struggle against the body and is not its prisoner, as Augustine would write later.

The land, the world, the body, and material reality are for Jews the paramount setting for divine history, the pinnacle of creation. This idea is the conditio sine qua non of the development of economics, something of an utterly earthly making,

The mythology of the hero-king was strongly developed in that period, which Claire Lalouette summarizes into these basic characteristics: Beauty (a perfect face, on which it is “pleasant to look upon,” but also “beauty,” expressed in the Egyptian word nefer, not only means aesthetics, but contains moral qualities as well),

THE HERO AND HIS UNDEIFICATION: THE DREAM NEVER SLEEPS The concept of the hero is more important than it might appear. It may be the remote origin of Keynes’s animal spirits, or the desire to follow a kind of internal archetype that a given individual accepts as his own and that society values.

This internal animator of ours, our internal mover, this dream, never sleeps and it influences our behavior—including economic behavior—more than we want to realize.

Anthropology knows several archetypes of heroes. The Polish-born American anthropologist Paul Radin examined the myths of North American Indians and, for example, in his most influential book, The Trickster, he describes their four basic archetypes of heroes.

The Torah’s heroes (if that term can be used at all) frequently make mistakes and their mistakes are carefully recorded in the Bible—maybe precisely so that none of them could be deified.32

the Hebrew heroes correspond most to the Tricksters, the Culture Bearers, and the Twins. The divine muscleman, that dominant symbol we think of when we say hero, is absent here.

Undeification, however, does not mean a call to pillage or desecration; man was put here to take care of nature (see the story of the Garden of Eden or the symbolism of the naming of the animals). This protection and care of nature is also related to the idea of progress

For the heroes who moved our civilization to where it is today, the heroic archetypes of the cunning trickster, culture bearer, and sufferer are rather more appropriate.

the Old Testament strongly emphasizes the undeification of nature.37 Nature is God’s creation, which speaks of divinity but is not the domain of moody gods

in an Old Testament context, the pharaoh was a mere man (whom one could disagree with, and who could be resisted!).

RULERS ARE MERE MEN In a similar historical context, the Old Testament teachings carried out a similar desacralization of rulers, the so-called bearers of economic policy.

Ultimately the entire idea of a political ruler stood against the Lord’s will, which is explicitly presented in the Torah. The Lord unequivocally preferred the judge as the highest form of rule—an

The needs of future generations will have to be considered; after all humankind are the guardians of God’s world. Waste of natural resources, whether privately owned or nationally owned is forbidden.”39

Politics lost its character of divine infallibility, and political issues were subject to questioning. Economic policy could become a subject of examination.

44 God first creates with the word and then on individual days He divides light from darkness, water from dry land, day from night, and so forth—and He gives order to things.45 The world is created orderly— it is wisely, reasonably put together. The way of the world is put together at least partially46 decipherably by any other wise and reasonable being who honors rational rules.

THE PRAISE OF ORDER AND WISDOM: MAN AS A PERFECTER OF CREATION The created world has an order of sorts, an order recognizable by us as people,

From the very beginning, when God distances Himself from the entire idea, there is an anticipation that there is nothing holy, let alone divine, in politics. Rulers make mistakes, and it is possible to subject them to tough criticism—which frequently occurs indiscriminately through the prophets in the Old Testament.

Hebrew culture laid the foundations for the scientific examination of the world.

Examining the world is therefore an absolutely legitimate activity, and one that is even requested by God—it is a kind of participation in the Creator’s work.51 Man is called on to understand himself and his surroundings and to use his knowledge for good.

The Book of Proverbs emphasizes specifically several times that it was wisdom that was present at the creation of the world. Wisdom personified calls out:

The last act, final stroke of the brush of creation, naming of the animals—this act is given to a human, it is not done by God, as one would expect. Man was given the task of completing the act of creation that the Lord began:

MAN AS A FINISHER OF CREATION The creation of the world, as it is explained in Jewish teachings, is described in the Book of Genesis. Here God (i) creates, (ii) separates, and (iii) names [my emphasis]:

Naming is a symbolic expression. In Jewish culture (and also in our culture to this day), the right to name meant sovereign rights and belonged, for example, to explorers (new places), inventors (new principles), or parents (children)—that is, to those who were there at the genesis, at the origin. This right was handed over by God to mankind.

The Naming itself (the capital N is appropriate) traditionally belongs to the crowning act of the Creator and represents a kind of grand finale of creation, the last move of the brush to complete the picture—a signature of the master.

Without naming, reality does not exist; it is created together with language. Wittgenstein tightly names this in his tractatus—the limits of our language are the limits of our world.53

Reality is not a given; it is not passive. Perceiving reality and “facts” requires man’s active participation. It is man who must take the last step, an act (and we

A real-ization act on our part represents the creation of a construct, the imputation of sense and order (which is beautifully expressed by the biblical act of naming, or categorization, sorting, ordering).

God connects man with the task of guarding and protecting the Garden of Eden, and thus man actually cocreates the cultural landscape. The Czech philosopher Zdeněk Neubauer also describes this: “Such is reality, and it is so deep that it willingly crystallizes into worlds. Therefore I profess that reality is a creation and not a place of occurrence for objectively given phenomena.”61

The Jews believed the exact opposite. The world is created by a good God, and evil appears in it as a result of immoral human acts. Evil, therefore, is induced by man.66 History unwinds according to the morality of human acts.

GOOD AND EVIL IN US: A MORAL EXPLANATION OF WELL-BEING We have seen that in the Epic of Gilgamesh, good and evil are not yet addressed systematically on a moral level.

the epic, good and evil are not envisaged morally—they are not the result of an (a)moral act. Evil was not associated with free moral action or individual will.

Hebrew thought, on the other hand, deals intensively with moral good and evil. A moral dimension touches the core of its stories.65

discrepancy between savings and investment, and others are convinced of the monetary essence

The entire history of the Jewish nation is interpreted and perceived in terms of morality. Morality has become, so to speak, a mover and shaker of Hebrew history.

sunspots. The Hebrews came up with the idea that morals were behind good and bad years, behind the economic cycle. But we would be getting ahead of ourselves. Pharaoh’s Dream: Joseph and the First Business Cycle To

It is the Pharaoh’s well-known dream of seven fat and seven lean cows, which he told to Joseph, the son of Jacob. Joseph interpreted the dream as a macroeconomic prediction of sorts: Seven years of abundance were to be followed by seven years of poverty, famine, and misery.

Self-Contradicting Prophecy Here, let’s make several observations on this: Through taxation74 on the level of one-fifth of a crop75 in good years to save the crop and then open granaries in bad years, the prophecy was de facto prevented (prosperous years were limited and hunger averted—through a predecessor of fiscal stabilization).

The Old Testament prophesies therefore were not any deterministic look into the future, but warnings and strategic variations of the possible, which demanded some kind of reaction. If the reaction was adequate, what was prophesied would frequently not occur at all.

If the threat is anticipated, it is possible to totally or at least partially avoid it. Neither Joseph nor the pharaoh had the power to avoid bounty or crop failure (in this the dream interpretation was true and the appearance of the future mystical), but they avoided the impacts and implications of the prophecy (in this the interpretation of the dream was “false”)—famine did not ultimately occur in Egypt, and this was due to the application of reasonable and very intuitive economic policy.

Let us further note that the first “macroeconomic forecast” appears in a dream.

back to Torah: Later in this story we will notice that there is no reason offered as to why the cycle occurs (that will come later). Fat years will simply come, and then lean years after them.

Moral Explanation of a Business Cycle That is fundamentally different from later Hebrew interpretations, when the Jewish nation tries to offer reasons why the nation fared well or poorly. And those reasons are moral.

Only in recent times have some currents of economics again become aware of the importance of morals and trust in the form of measuring the quality of institutions, the level of justice, business ethics, corruption, and so forth, and examining their influence on the economy,

it is not within the scope of this book to answer that question; justice has been done to the question if it manages to sketch out the main contours of possible searches for answers.

THE ECONOMICS OF GOOD AND EVIL: DOES GOOD PAY OFF? This is probably the most difficult moral problem we could ask.

Inquiring about the economics of good and evil, however, is not that easy. Where would Kant’s “moral dimension of ethics” go if ethics paid? If we do good for profit, the question of ethics becomes a mere question of rationality.

He remains righteous, even if his only reward is death. What economic advantage could he have from that?

morals cannot be considered in the economic dimension of productivity and calculus. The role of the Hebrews was to do good, whether it paid off or not. If good (outgoing) is rewarded by incoming goodness, it is a bonus,99 not a reason to do outgoing good. Good and reward do not correlate to each other.

This reasoning takes on a dimension of its own in the Old Testament. Good (incoming) has already happened to us. We must do good (outgoing) out of gratitude for the good (incoming) shown to us in the past.

So why do good? After all, suffering is the fate of many biblical figures. The answer can only be: For good itself. Good has the power to be its own reward. In this sense, goodness gets its reward, which may or may not take on a material dimension.

the Hebrews offered an interesting compromise between the teachings of the Stoics and Epicureans. We will go into it in detail later, so only briefly

constraint. It calls for bounded optimalization (with limits). A kind of symbiosis existed between the legitimate search for one’s own utility (or enjoyment of life) and maintaining rules, which are not negotiable and which are not subject to optimalization.

In other words, clear (exogenously given) rules exist that must be observed and cannot be contravened. But within these borders it is absolutely possible, and even recommended, to increase utility.

To Love the Law The Jews not only had to observe the law (perhaps the word covenant would be more appropriate), but they were to love it because it was good.

the principle of doing good (outgoing) on the basis of a priori demonstrated good (incoming) was also taken over by the New Testament. Atonement itself is based on an a priori principle; all our acts are preceded by good.

THE SHACKLES OF THE CITY Owing to the Hebrew’s liberation from Egyptian slavery, freedom and responsibility become the key values of Jewish thought.

Laws given by God are binding for Jews, and God is the absolute source of all values,

The Hebrew ideal is represented by the paradise of the Garden of Eden, not a city.116 The despised city civilization or the tendency to see in it a sinful and shackling way of life appears in glimpses and allusions in many places in the Old Testament.

The nomadic Jewish ethos is frequently derived from Abraham, who left the Chaldean city of Ur on the basis of a command:

This way of life had understandably immense economic impacts. First, such a society lived in much more connected relationships, where there was no doubt that everyone mutually depended on each other. Second, their frequent wanderings meant the inability to own more than they could carry; the gathering up of material assets did not have great weight—precisely because the physical weight (mass) of things was tied to one place.

One of Moses’s greatest deeds was that he managed to explain to his nation once and for all that it is better to remain hungry and liberated than to be a slave with food “at no cost.”

SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM

regulations is developed in the Old Testament, one we hardly find in any other nation of the time. In Hebrew teachings, aside from individual utility, indications of the concept of maximalizing utility societywide appear for the first time as embodied in the Talmudic principle of Kofin al midat S´dom, which can be translated as “one is compelled not to act in the manner of Sodom” and to take care of the weaker members of society.

In a jubilee year, debts were to be forgiven,125 and Israelites who fell into slavery due to their indebtedness were to be set free.126

Land at the time could be “sold,” and it was not sale, but rent. The price (rent) of real estate depended on how long there was until a forgiveness year. It was about the awareness that we may work the land, but in the last instance we are merely “aliens and strangers,” who have the land only rented to us for a fixed time. All land and riches came from the Lord.

These provisions express a conviction that freedom and inheritance should not be permanently taken away from any Israelite. Last but not least, this system reminds us that no ownership lasts forever and that the fields we plow are not ours but the Lord’s.

Glean Another social provision was the right to glean, which in Old Testament times ensured at least basic sustenance for the poorest. Anyone who owned a field had the responsibility not to harvest it to the last grain but to leave the remains in the field for the poor.

Tithes and Early Social Net Every Israelite also had the responsibility of levying a tithe from their entire crop. They had to be aware from whom all ownership comes and, by doing so, express their thanks.

“Since the community has an obligation to provide food, shelter, and basic economic goods for the needy, it has a moral right and duty to tax its members for this purpose. In line with this duty, it may have to regulate markets, prices and competition, to protect the interests of its weakest members.”135

In Judaism, charity is not perceived as a sign of goodness; it is more of a responsibility. Such a society then has the right to regulate its economy in such a way that the responsibility of charity is carried out to its satisfaction.

With a number of responsibilities, however, comes the difficulty of getting them into practice. Their fulfillment, then, in cases when it can be done, takes place gradually “in layers.” Charitable activities are classified in the Talmud according to several target groups with various priorities, classified according to, it could be said, rules of subsidiarity.

Do not mistreat an alien or oppress him, for you were aliens in Egypt.140 As one can see, aside from widows and orphans, the Old Testament also includes immigrants in its area of social protection.141 The Israelites had to have the same rules apply for them as for themselves—they could not discriminate on the basis of their origin.

ABSTRACT MONEY, FORBIDDEN INTEREST, AND OUR DEBT AGE If it appears to us that today’s era is based on money and debt, and our time will be written into history as the “Debt age,” then it will certainly be interesting to follow how this development occurred.

Money is a social abstractum. It is a social agreement, an unwritten contract.

The first money came in the form of clay tablets from Mesopotamia, on which debts were written. These debts were transferable, so the debts became currency. In the end, “It is no coincidence that in English the root of ‘credit’ is ‘credo,’ the Latin for ‘I believe.’”

To a certain extent it could be said that credit, or trust, was the first currency. It can materialize, it can be embodied in coins, but what is certain is that “money is not metal,” even the rarest metal, “it is trust inscribed,”

Inseparably, with the original credit (money) goes interest. For the Hebrews, the problem of interest was a social issue: “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest.”

there were also clearly set rules setting how far one could go in setting guarantees and the nonpayment of debts. No one should become indebted to the extent that they could lose the source of their livelihood:

In the end, the term “bank” comes from the Italian banci, or the benches that Jewish lenders sat on.157

Money is playing not only its classical roles (as a means of exchange, a holder of value, etc.) but also a much greater, stronger role: It can stimulate, drive (or slow down) the whole economy. Money plays a national economic role.

In the course of history, however, the role of loans changed, and the rich borrowed especially for investment purposes,

In such a case a ban on interest did not have great ethical significance. Thomas Aquinas, a medieval scholar (1225-1274), also considers similarly; in his time, the strict ban on lending with usurious interest was loosened, possibly due to him.

As a form of energy, money can travel in three dimensions, vertically (those who have capital lend to those who do not) and horizontally (speed and freedom in horizontal or geographic motion has become the by-product—or driving force?—of globalization). But money (as opposed to people) can also travel through time.

money is something like energy that can travel through time. And it is a very useful energy, but at the same time very dangerous as well. Wherever

Aristotle condemned interest162 not only from a moral standpoint, but also for metaphysical reasons. Thomas Aquinas shared the same fear of interest and he too argued that time does not belong to us, and that is why we must not require interest.

MONEY AS ENERGY: TIME TRAVEL AND GROSS DEBT PRODUCT (GDP)

Due to this characteristic, we can energy-strip the future to the benefit of the present. Debt can transfer energy from the future to the present.163 On the other hand, saving can accumulate energy from the past and send it to the present.

labor was not considered degrading in the Old Testament. On the contrary, the subjugation of nature is even a mission from God that originally belonged to man’s very first blessings.

LABOR AND REST: THE SABBATH ECONOMY

The Jews as well as Aristotle behaved very guardedly toward loans. The issue of interest/usury became one of the first economic debates. Without having an inkling of the future role of economic policy (fiscal and monetary), the ancient Hebrews may have unwittingly felt that they were discovering in interest a very powerful weapon, one that can be a good servant, but (literally) an enslaving master as well.

It’s something like a dam. When we build one, we are preventing periods of drought and flooding in the valley; we are limiting nature’s whims and, to a large extent, avoiding its incalculable cycles. Using dams, we can regulate the flow of water to nearly a constant. With it we tame the river (and we can also gain

But if we do not regulate the water wisely, it may happen that we would overfill the dam and it would break. For the cities lying in the valley, their end would be worse than if a dam were never there.

If man lived in harmony with nature before, now, after the fall, he must fight; nature stands against him and he against it and the animals. From the Garden we have moved unto a (battle)field.

Only after man’s fall does labor turn into a curse.168 It could even be said that this is actually the only curse, the curse of the unpleasantness of labor, that the Lord places on Adam.

Both Plato and Aristotle consider labor to be necessary for survival, but that only the lower classes should devote themselves to it so that the elites would not have to be bothered with it and so that they could devote themselves to “purely spiritual matters—art, philosophy, and politics.”

Work is also not only a source of pleasure but a social standing; It is considered an honor. “Do you see a man skilled in his work? He will serve before kings.”170 None of the surrounding cultures appreciate work as much. The idea of the dignity of labor is unique in the Hebrew tradition.

Hebrew thinking is characterized by a strict separation of the sacred from the profane. In life, there are simply areas that are holy, and in which it is not allowed to economize, rationalize, or maximize efficiency.

the message of the commandment on Saturday communicated that people were not primarily created for labor.

This dimension has disappeared from today’s economics. Economic effort has no goal at which it would be possible to rest. Today we only know growth for growth’s sake, and if our company or country prospers, that does not…

the purpose of creation was not just creating but that it had an end, a goal. The process was just a process, not a purpose. The whole of Being was created so…

ancient Greek economic ethos, we will examine two extreme approaches to laws and rules. While the Stoics considered laws to be absolutely valid, and utility had infinitesimal meaning in their philosophy, the Epicureans, at least in the usual historical explanation, placed utility and pleasure in first place—rules were to be made based on the principle of utility.

CONCLUSION: BETWEEN UTILITY AND PRINCIPLE The influence of Jewish thought on the development of market democracy cannot be overestimated. The key heritage for us was the lack of ascetic perception of the world, respect to law and private…

poets actually went even further, and with their speech they shaped and established reality and truth. Honor, adventure, great deeds, and the acclaim connected with them played an important role in the establishment of the true, the real.

those who are famous will be remembered by people. They become more real, part of the story, and they start to be “realized,” “made real” in the lives of other people. That which is stored in memory is real; that which is forgotten is as if it never existed.

“epic and tragic poets were widely assumed to be the central ethical thinkers and teachers of Greece; nobody thought of their work as less serious, less aimed at truth, than the speculative prose treatises of historians and philosophers.”5 Truth and reality were hidden in speech, stories, and narration.

general? In the end, poetry could be more sensitive to the truth than the philosophical method or, later, the scientific method. “Tragic poems, in virtue of their subject matter and their social function, are likely to confront and explore problems about human beings and luck that a philosophical text might be able to omit or avoid.”8

That doesn't even include non-hedge-fund and private-equity moves. Peter Orszag, who led President Obama's Office of Management and Budget, took a job with Citigroup when he left. The Obama administration had been closely involved with Citi in the aftermath of the financial collapse, and the bank received nearly $500 billion in bailouts. Orszag is not allowed to deal with the federal government directly, but as The Times noted, perhaps wryly, "Mr. Orszag’s actual duties are murky at best. He is expected to draw on his deep knowledge of public sector financial issues and his experience overseeing the federal budget to counsel Citi’s clients on various policy actions."

Perhaps what makes Bernanke's case so worrisome is that he has an almost universal reputation for probity. If the revolving-door system is so powerful that it can make even him look suspect, is it beyond redemption?

This is, of course, how systemic problems work—few individual cases are obviously unacceptable, but the whole is horrifying. In this case, it's the "revolving door" of movement between government positions and the financial sector—that is to say, from modestly paying positions in the public sector, overseeing financial firms, to higher-paying jobs in the private sector.

Sartre listened to his problem and said simply, ‘You are free, therefore choose — that is to say, invent.’ No signs are vouchsafed in this world, he said. None of the old authorities can relieve you of the burden of freedom. You can weigh up moral or practical considerations as carefully as you like, but ultimately you must take the plunge and do something, and it’s up to you what that something is.

Even if the situation is unbearable — perhaps you are facing execution, or sitting in a Gestapo prison, or about to fall off a cliff — you are still free to decide what to make of it in mind and deed. Starting from where you are now, you choose. And in choosing, you also choose who you will be.

The war had made people realise that they and their fellow humans were capable of departing entirely from civilised norms; no wonder the idea of a fixed human nature seemed questionable.

If this sounds difficult and unnerving, it’s because it is. Sartre does not deny that the need to keep making decisions brings constant anxiety. He heightens this anxiety by pointing out that what you do really matters. You should make your choices as though you were choosing on behalf of the whole of humanity, taking the entire burden of responsibility for how the human race behaves. If you avoid this responsibility by fooling yourself that you are the victim of circumstance or of someone else’s bad advice, you are failing to meet the demands of human life and choosing a fake existence, cut off from your own ‘authenticity’.

Along with the terrifying side of this comes a great promise: Sartre’s existentialism implies that it is possible to be authentic and free, as long as you keep up the effort.

almost all agreed that it was, as an article in Les nouvelles littéraires phrased it, a ‘sickening mixture of philosophic pretentiousness, equivocal dreams, physiological technicalities, morbid tastes and hesitant eroticism … an introspective embryo that one would take distinct pleasure in crushing’.

he offered a philosophy designed for a species that had just scared the hell out of itself, but that finally felt ready to grow up and take responsibility.

In this rebellious world, just as with the Parisian bohemians and Dadaists in earlier generations, everything that was dangerous and provocative was good, and everything that was nice or bourgeois was bad.

Such interweaving of ideas and life had a long pedigree, although the existentialists gave it a new twist. Stoic and Epicurean thinkers in the classical world had practised philosophy as a means of living well, rather than of seeking knowledge or wisdom for their own sake. By reflecting on life’s vagaries in philosophical ways, they believed they could become more resilient, more able to rise above circumstances, and better equipped to manage grief, fear, anger, disappointment or anxiety.

In the tradition they passed on, philosophy is neither a pure intellectual pursuit nor a collection of cheap self-help tricks, but a discipline for flourishing and living a fully human, responsible life.

For Kierkegaard, Descartes had things back to front. In his own view, human existence comes first: it is the starting point for everything we do, not the result of a logical deduction. My existence is active: I live it and choose it, and this precedes any statement I can make about myself.

Studying our own moral genealogy cannot help us to escape or transcend ourselves. But it can enable us to see our illusions more clearly and lead a more vital, assertive existence.

What was needed, he felt, was not high moral or theological ideals, but a deeply critical form of cultural history or ‘genealogy’ that would uncover the reasons why we humans are as we are, and how we came to be that way. For him, all philosophy could even be redefined as a form of psychology, or history.

For those oppressed on grounds of race or class, or for those fighting against colonialism, existentialism offered a change of perspective — literally, as Sartre proposed that all situations be judged according to how they appeared in the eyes of those most oppressed, or those whose suffering was greatest.

She observed that we need not expect moral philosophers to ‘live by’ their ideas in a simplistic way, as if they were following a set of rules. But we can expect them to show how their ideas are lived in. We should be able to look in through the windows of a philosophy, as it were, and see how people occupy it, how they move about and how they conduct themselves.

the existentialists inhabited their historical and personal world, as they inhabited their ideas. This notion of ‘inhabited philosophy’ is one I’ve borrowed from the English philosopher and novelist Iris Murdoch, who wrote the first full-length book on Sartre and was an early adopter of existentialism

What is existentialism anyway?

An existentialist who is also phenomenological provides no easy rules for dealing with this condition, but instead concentrates on describing lived experience as it presents itself. — By describing experience well, he or she hopes to understand this existence and awaken us to ways of living more authentic lives.

Existentialists concern themselves with individual, concrete human existence. — They consider human existence different from the kind of being other things have. Other entities are what they are, but as a human I am whatever I choose to make of myself at every moment. I am free — — and therefore I’m responsible for everything I do, a dizzying fact which causes — an anxiety inseparable from human existence itself.

On the other hand, I am only free within situations, which can include factors in my own biology and psychology as well as physical, historical and social variables of the world into which I have been thrown. — Despite the limitations, I always want more: I am passionately involved in personal projects of all kinds. — Human existence is thus ambiguous: at once boxed in by borders and yet transcendent and exhilarating. —

The first part of this is straightforward: a phenomenologist’s job is to describe. This is the activity that Husserl kept reminding his students to do. It meant stripping away distractions, habits, clichés of thought, presumptions and received ideas, in order to return our attention to what he called the ‘things themselves’. We must fix our beady gaze on them and capture them exactly as they appear, rather than as we think they are supposed to be.

Husserl therefore says that, to phenomenologically describe a cup of coffee, I should set aside both the abstract suppositions and any intrusive emotional associations. Then I can concentrate on the dark, fragrant, rich phenomenon in front of me now. This ‘setting aside’ or ‘bracketing out’ of speculative add-ons Husserl called epoché — a term borrowed from the ancient Sceptics,

The point about rigour is crucial; it brings us back to the first half of the command to describe phenomena. A phenomenologist cannot get away with listening to a piece of music and saying, ‘How lovely!’ He or she must ask: is it plaintive? is it dignified? is it colossal and sublime? The point is to keep coming back to the ‘things themselves’ — phenomena stripped of their conceptual baggage — so as to bail out weak or extraneous material and get to the heart of the experience.

Husserlian ‘bracketing out’ or epoché allows the phenomenologist to temporarily ignore the question ‘But is it real?’, in order to ask how a person experiences his or her world. Phenomenology gives a formal mode of access to human experience. It lets philosophers talk about life more or less as non-philosophers do, while still being able to tell themselves they are being methodical and rigorous.

Besides claiming to transform the way we think about reality, phenomenologists promised to change how we think about ourselves. They believed that we should not try to find out what the human mind is, as if it were some kind of substance. Instead, we should consider what it does, and how it grasps its experiences.

For Brentano, this reaching towards objects is what our minds do all the time. Our thoughts are invariably of or about something, he wrote: in love, something is loved, in hatred, something is hated, in judgement, something is affirmed or denied. Even when I imagine an object that isn’t there, my mental structure is still one of ‘about-ness’ or ‘of-ness’.

Except in deepest sleep, my mind is always engaged in this aboutness: it has ‘intentionality’. Having taken the germ of this from Brentano, Husserl made it central to his whole philosophy.

Husserl saw in the idea of intentionality a way to sidestep two great unsolved puzzles of philosophical history: the question of what objects ‘really’ are, and the question of what the mind ‘really’ is. By doing the epoché and bracketing out all consideration of reality from both topics, one is freed to concentrate on the relationship in the middle. One can apply one’s descriptive energies to the endless dance of intentionality that takes place in our lives: the whirl of our minds as they seize their intended phenomena one after the other and whisk them around the floor,

Understood in this way, the mind hardly is anything at all: it is its aboutness. This makes the human mind (and possibly some animal minds) different from any other naturally occurring entity. Nothing else can be as thoroughly about or of things as the mind is:

Some Eastern meditation techniques aim to still this scurrying creature, but the extreme difficulty of this shows how unnatural it is to be mentally inert. Left to itself, the mind reaches out in all directions as long as it is awake — and even carries on doing it in the dreaming phase of its sleep.

a mind that is experiencing nothing, imagining nothing, or speculating about nothing can hardly be said to be a mind at all.

Three simple ideas — description, phenomenon, intentionality — provided enough inspiration to keep roomfuls of Husserlian assistants busy in Freiburg for decades. With all of human existence awaiting their attention, how could they ever run out of things to do?

For Sartre, this gives the mind an immense freedom. If we are nothing but what we think about, then no predefined ‘inner nature’ can hold us back. We are protean.

way of this interpretation. Real, not real; inside, outside; what difference did it make? Reflecting on this, Husserl began turning his phenomenology into a branch of ‘idealism’ — the philosophical tradition which denied external reality and defined everything as a kind of private hallucination.

For Sartre, if we try to shut ourselves up inside our own minds, ‘in a nice warm room with the shutters closed’, we cease to exist. We have no cosy home: being out on the dusty road is the very definition of what we are.

One might think that, if Heidegger had anything worth saying, he could have communicated it in ordinary language. The fact is that he does not want to be ordinary, and he may not even want to communicate in the usual sense. He wants to make the familiar obscure, and to vex us. George Steiner thought that Heidegger’s purpose was less to be understood than to be experienced through a ‘felt strangeness’.

He takes Dasein in its most ordinary moments, then talks about it in the most innovative way he can. For Heidegger, Dasein’s everyday Being is right here: it is Being-in-the-world, or In-der-Welt-sein. The main feature of Dasein’s everyday Being-in-the-world right here is that it is usually busy doing something.

Thus, for Heidegger, all Being-in-the-world is also a ‘Being-with’ or Mitsein. We cohabit with others in a ‘with-world’, or Mitwelt. The old philosophical problem of how we prove the existence of other minds has now vanished. Dasein swims in the with-world long before it wonders about other minds.

Sometimes the best-educated people were those least inclined to take the Nazis seriously, dismissing them as too absurd to last. Karl Jaspers was one of those who made this mistake, as he later recalled, and Beauvoir observed similar dismissive attitudes among the French students in Berlin.

In any case, most of those who disagreed with Hitler’s ideology soon learned to keep their view to themselves. If a Nazi parade passed on the street, they would either slip out of view or give the obligatory salute like everyone else, telling themselves that the gesture meant nothing if they did not believe in it. As the psychologist Bruno Bettelheim later wrote of this period, few people will risk their life for such a small thing as raising an arm — yet that is how one’s powers of resistance are eroded away, and eventually one’s responsibility and integrity go with them.

for Arendt, if you do not respond adequately when the times demand it, you show a lack of imagination and attention that is as dangerous as deliberately committing an abuse. It amounts to disobeying the one command she had absorbed from Heidegger in those Marburg days: Think!

‘Everything takes place under a kind of anaesthesia. Objectively dreadful events produce a thin, puny emotional response. Murders are committed like schoolboy pranks. Humiliation and moral decay are accepted like minor incidents.’ Haffner thought modernity itself was partly to blame: people had become yoked to their habits and to mass media, forgetting to stop and think, or to disrupt their routines long enough to question what was going on.

Heidegger’s former lover and student Hannah Arendt would argue, in her 1951 study The Origins of Totalitarianism, that totalitarian movements thrived at least partly because of this fragmentation in modern lives, which made people more vulnerable to being swept away by demagogues. Elsewhere, she coined the phrase ‘the banality of evil’ to describe the most extreme failures of personal moral awareness.

His communicative ideal fed into a whole theory of history: he traced all civilisation to an ‘Axial Period’ in the fifth century BC, during which philosophy and culture exploded simultaneously in Europe, the Middle East and Asia, as though a great bubble of minds had erupted from the earth’s surface. ‘True philosophy needs communion to come into existence,’ he wrote, and added, ‘Uncommunicativeness in a philosopher is virtually a criterion of the untruth of his thinking.’

The idea of being called to authenticity became a major theme in later existentialism, the call being interpreted as saying something like ‘Be yourself!’, as opposed to being phony. For Heidegger, the call is more fundamental than that. It is a call to take up a self that you didn’t know you had: to wake up to your Being. Moreover, it is a call to action. It requires you to do something: to take a decision of some sort.

Being and Time contained at least one big idea that should have been of use in resisting totalitarianism. Dasein, Heidegger wrote there, tends to fall under the sway of something called das Man or ‘the they’ — an impersonal entity that robs us of the freedom to think for ourselves. To live authentically requires resisting or outwitting this influence, but this is not easy because das Man is so nebulous. Man in German does not mean ‘man’ as in English (that’s der Mann), but a neutral abstraction, something like ‘one’ in the English phrase ‘one doesn’t do that’,

for Heidegger, das Man is me. It is everywhere and nowhere; it is nothing definite, but each of us is it. As with Being, it is so ubiquitous that it is difficult to see. If I am not careful, however, das Man takes over the important decisions that should be my own. It drains away my responsibility or ‘answerability’. As Arendt might put it, we slip into banality, failing to think.

Jaspers focused on what he called Grenzsituationen — border situations, or limit situations. These are the moments when one finds oneself constrained or boxed in by what is happening, but at the same time pushed by these events towards the limits or outer edge of normal experience. For example, you might have to make a life-or-death choice, or something might remind you suddenly of your mortality,

Jaspers’ interest in border situations probably had much to do with his own early confrontation with mortality. From childhood, he had suffered from a heart condition so severe that he always expected to die at any moment. He also had emphysema, which forced him to speak slowly, taking long pauses to catch his breath. Both illnesses meant that he had to budget his energies with care in order to get his work done without endangering his life.

If I am to resist das Man, I must become answerable to the call of my ‘voice of conscience’. This call does not come from God, as a traditional Christian definition of the voice of conscience might suppose. It comes from a truly existentialist source: my own authentic self. Alas, this voice is one I do not recognise and may not hear, because it is not the voice of my habitual ‘they-self’. It is an alien or uncanny version of my usual voice. I am familiar with my they-self, but not with my unalienated voice — so, in a weird twist, my real voice is the one that sounds strangest to me.

Marcel developed a strongly theological branch of existentialism. His faith distanced him from both Sartre and Heidegger, but he shared a sense of how history makes demands on individuals. In his essay ‘On the Ontological Mystery’, written in 1932 and published in the fateful year of 1933, Marcel wrote of the human tendency to become stuck in habits, received ideas, and a narrow-minded attachment to possessions and familiar scenes. Instead, he urged his readers to develop a capacity for remaining ‘available’ to situations as they arise. Similar ideas of disponibilité or availability had been explored by other writers,

Marcel made it his central existential imperative. He was aware of how rare and difficult it was. Most people fall into what he calls ‘crispation’: a tensed, encrusted shape in life — ‘as though each one of us secreted a kind of shell which gradually hardened and imprisoned him’.

Bettelheim later observed that, under Nazism, only a few people realised at once that life could not continue unaltered: these were the ones who got away quickly. Bettelheim himself was not among them. Caught in Austria when Hitler annexed it, he was sent first to Dachau and then to Buchenwald, but was then released in a mass amnesty to celebrate Hitler’s birthday in 1939 — an extraordinary reprieve, after which he left at once for America.

we are used to reading philosophy as offering a universal message for all times and places — or at least as aiming to do so. But Heidegger disliked the notion of universal truths or universal humanity, which he considered a fantasy. For him, Dasein is not defined by shared faculties of reason and understanding, as the Enlightenment philosophers thought. Still less is it defined by any kind of transcendent eternal soul, as in religious tradition. We do not exist on a higher, eternal plane at all. Dasein’s Being is local: it has a historical situation, and is constituted in time and place.

For Marcel, learning to stay open to reality in this way is the philosopher’s prime job. Everyone can do it, but the philosopher is the one who is called on above all to stay awake, so as to be the first to sound the alarm if something seems wrong.

Second, it also means understanding that we are historical beings, and grasping the demands our particular historical situation is making on us. In what Heidegger calls ‘anticipatory resoluteness’, Dasein discovers ‘that its uttermost possibility lies in giving itself up’. At that moment, through Being-towards-death and resoluteness in facing up to one’s time, one is freed from the they-self and attains one’s true, authentic self.

If we are temporal beings by our very nature, then authentic existence means accepting, first, that we are finite and mortal. We will die: this all-important realisation is what Heidegger calls authentic ‘Being-towards-Death’, and it is fundamental to his philosophy.

Hannah Arendt, instead, left early on: she had the benefit of a powerful warning. Just after the Nazi takeover, in spring 1933, she had been arrested while researching materials on anti-Semitism for the German Zionist Organisation at Berlin’s Prussian State Library. Her apartment was searched; both she and her mother were locked up briefly, then released. They fled, without stopping to arrange travel documents. They crossed to Czechoslovakia (then still safe) by a method that sounds almost too fabulous to be true: a sympathetic German family on the border had a house with its front door in Germany and its back door in Czechoslovakia. The family would invite people for dinner, then let them leave through the back door at night.

As Sartre argued in his 1943 review of The Stranger, basic phenomenological principles show that experience comes to us already charged with significance. A piano sonata is a melancholy evocation of longing. If I watch a soccer match, I see it as a soccer match, not as a meaningless scene in which a number of people run around taking turns to apply their lower limbs to a spherical object. If the latter is what I’m seeing, then I am not watching some more essential, truer version of soccer; I am failing to watch it properly as soccer at all.

Much as they liked Camus personally, neither Sartre nor Beauvoir accepted his vision of absurdity. For them, life is not absurd, even when viewed on a cosmic scale, and nothing can be gained by saying it is. Life for them is full of real meaning, although that meaning emerges differently for each of us.

For Sartre, we show bad faith whenever we portray ourselves as passive creations of our race, class, job, history, nation, family, heredity, childhood influences, events, or even hidden drives in our subconscious which we claim are out of our control. It is not that such factors are unimportant: class and race, in particular, he acknowledged as powerful forces in people’s lives, and Simone de Beauvoir would soon add gender to that list.

Sartre takes his argument to an extreme point by asserting that even war, imprisonment or the prospect of imminent death cannot take away my existential freedom. They form part of my ‘situation’, and this may be an extreme and intolerable situation, but it still provides only a context for whatever I choose to do next. If I am about to die, I can decide how to face that death. Sartre here resurrects the ancient Stoic idea that I may not choose what happens to me, but I can choose what to make of it, spiritually speaking.

But the Stoics cultivated indifference in the face of terrible events, whereas Sartre thought we should remain passionately, even furiously engaged with what happens to us and with what we can achieve. We should not expect freedom to be anything less than fiendishly difficult.

Freedom does not mean entirely unconstrained movement, and it certainly does not mean acting randomly. We often mistake the very things that enable us to be free — context, meaning, facticity, situation, a general direction in our lives — for things that define us and take away our freedom. It is only with all of these that we can be free in a real sense.

Nor did he mean that privileged groups have the right to pontificate to the poor and downtrodden about the need to ‘take responsibility’ for themselves. That would be a grotesque misreading of Sartre’s point, since his sympathy in any encounter always lay with the more oppressed side. But for each of us — for me — to be in good faith means not making excuses for myself.

Camus’ novel gives us a deliberately understated vision of heroism and decisive action compared to those of Sartre and Beauvoir. One can only do so much. It can look like defeatism, but it shows a more realistic perception of what it takes to actually accomplish difficult tasks like liberating one’s country.

Camus just kept returning to his core principle: no torture, no killing — at least not with state approval. Beauvoir and Sartre believed they were taking a more subtle and more realistic view. If asked why a couple of innocuous philosophers had suddenly become so harsh, they would have said it was because the war had changed them in profound ways. It had shown them that one’s duties to humanity could be more complicated than they seemed. ‘The war really divided my life in two,’ Sartre said later.

Poets and artists ‘let things be’, but they also let things come out and show themselves. They help to ease things into ‘unconcealment’ (Unverborgenheit), which is Heidegger’s rendition of the Greek term alētheia, usually translated as ‘truth’. This is a deeper kind of truth than the mere correspondence of a statement to reality, as when we say ‘The cat is on the mat’ and point to a mat with a cat on it. Long before we can do this, both cat and mat must ‘stand forth out of concealedness’. They must un-hide themselves.

Heidegger does not use the word ‘consciousness’ here because — as with his earlier work — he is trying to make us think in a radically different way about ourselves. We are not to think of the mind as an empty cavern, or as a container filled with representations of things. We are not even supposed to think of it as firing off arrows of intentional ‘aboutness’, as in the earlier phenomenology of Brentano. Instead, Heidegger draws us into the depths of his Schwarzwald, and asks us to imagine a gap with sunlight filtering in. We remain in the forest, but we provide a relatively open spot where other beings can bask for a moment. If we did not do this, everything would remain in the thickets, hidden even to itself.

The astronomer Carl Sagan began his 1980 television series Cosmos by saying that human beings, though made of the same stuff as the stars, are conscious and are therefore ‘a way for the cosmos to know itself’. Merleau-Ponty similarly quoted his favourite painter Cézanne as saying, ‘The landscape thinks itself in me, and I am its consciousness.’ This is something like what Heidegger thinks humanity contributes to the earth. We are not made of spiritual nothingness; we are part of Being, but we also bring something unique with us. It is not much: a little open space, perhaps with a path and a bench like the one the young Heidegger used to sit on to do his homework. But through us, the miracle occurs.

Beauty aside, Heidegger’s late writing can also be troubling, with its increasingly mystical notion of what it is to be human. If one speaks of a human being mainly as an open space or a clearing, or a means of ‘letting beings be’ and dwelling poetically on the earth, then one doesn’t seem to be talking about any recognisable person. The old Dasein has become less human than ever. It is now a forestry feature.

Even today, Jaspers, the dedicated communicator, is far less widely read than Heidegger, who has influenced architects, social theorists, critics, psychologists, artists, film-makers, environmental activists, and innumerable students and enthusiasts — including the later deconstructionist and post-structuralist schools, which took their starting point from his late thinking. Having spent the late 1940s as an outsider and then been rehabilitated, Heidegger became the overwhelming presence in university philosophy all over the European continent from then on.

As Levinas reflected on this experience, it helped to lead him to a philosophy that was essentially ethical, rather than ontological like Heidegger’s. He developed his ideas from the work of Jewish theologian Martin Buber, whose I and Thou in 1923 had distinguished between my relationship with an impersonal ‘it’ or ‘them’, and the direct personal encounter I have with a ‘you’. Levinas took it further: when I encounter you, we normally meet face-to-face, and it is through your face that you, as another person, can make ethical demands on me. This is very different from Heidegger’s Mitsein or Being-with, which suggests a group of people standing alongside one another, shoulder to shoulder as if in solidarity — perhaps as a unified nation or Volk.

For Levinas, we literally face each other, one individual at a time, and that relationship becomes one of communication and moral expectation. We do not merge; we respond to one another. Instead of being co-opted into playing some role in my personal drama of authenticity, you look me in the eyes — and you remain Other. You remain you.

This relationship is more fundamental than the self, more fundamental than consciousness, more fundamental even than Being — and it brings an unavoidable ethical obligation. Ever since Husserl, phenomenologists and existentialists had being trying to stretch the definition of existence to incorporate our social lives and relationships. Levinas did more: he turned philosophy around entirely so that these relationships were the foundation of our existence, not an extension of it.

Her last work, The Need for Roots, argues, among other things, that none of us has rights, but each one of us has a near-infinite degree of duty and obligation to the other. Whatever the underlying cause of her death — and anorexia nervosa seems to have been involved — no one could deny that she lived out her philosophy with total commitment. Of all the lives touched on in this book, hers is surely the most profound and challenging application of Iris Murdoch’s notion that a philosophy can be ‘inhabited’.

Other thinkers took radical ethical turns during the war years. The most extreme was Simone Weil, who actually tried to live by the principle of putting other people’s ethical demands first. Having returned to France after her travels through Germany in 1932, she had worked in a factory so as to experience the degrading nature of such work for herself. When France fell in 1940, her family fled to Marseilles (against her protests), and later to the US and to Britain. Even in exile, Weil made extraordinary sacrifices. If there were people in the world who could not sleep in a bed, she would not do so either, so she slept on the floor.

The mystery tradition had roots in Kierkegaard’s ‘leap of faith’. It owed much to the other great nineteenth-century mystic of the impossible, Dostoevsky, and to older theological notions. But it also grew from the protracted trauma that was the first half of the twentieth century. Since 1914, and especially since 1939, people in Europe and elsewhere had come to the realisation that we cannot fully know or trust ourselves; that we have no excuses or explanations for what we do — and yet that we must ground our existence and relationships on something firm, because otherwise we cannot survive.

One striking link between these radical ethical thinkers, all on the fringes of our main story, is that they had religious faith. They also granted a special role to the notion of ‘mystery’ — that which cannot be known, calculated or understood, especially when it concerns our relationships with each other. Heidegger was different from them, since he rejected the religion he grew up with and had no real interest in ethics — probably as a consequence of his having no real interest in the human.

Meanwhile, the Christian existentialist Gabriel Marcel was also still arguing, as he had since the 1930s, that ethics trumps everything else in philosophy and that our duty to each other is so great as to play the role of a transcendent ‘mystery’. He too had been led to this position partly by a wartime experience: during the First World War he had worked for the Red Cross’ Information Service, with the unenviable job of answering relatives’ inquiries about missing soldiers. Whenever news came, he passed it on, and usually it was not good. As Marcel later said, this task permanently inoculated him against warmongering rhetoric of any kind, and it made him aware of the power of what is unknown in our lives.

As the play’s much-quoted and frequently misunderstood final line has it: ‘Hell is other people.’ Sartre later explained that he did not mean to say that other people were hellish in general. He meant that after death we become frozen in their view, unable any longer to fend off their interpretation. In life, we can still do something to manage the impression we make; in death, this freedom goes and we are left entombed in other’s people’s memories and perceptions.

We have to do two near-impossible things at once: understand ourselves as limited by circumstances, and yet continue to pursue our projects as though we are truly in control. In Beauvoir’s view, existentialism is the philosophy that best enables us to do this, because it concerns itself so deeply with both freedom and contingency. It acknowledges the radical and terrifying scope of our freedom in life, but also the concrete influences that other philosophies tend to ignore: history, the body, social relationships and the environment.

The aspects of our existence that limit us, Merleau-Ponty says, are the very same ones that bind us to the world and give us scope for action and perception. They make us what we are. Sartre acknowledged the need for this trade-off, but he found it more painful to accept. Everything in him longed to be free of bonds, of impediments and limitations

Of course we have to learn this skill of interpreting and anticipating the world, and this happens in early childhood, which is why Merleau-Ponty thought child psychology was essential to philosophy. This is an extraordinary insight. Apart from Rousseau, very few philosophers before him had taken childhood seriously; most wrote as though all human experience were that of a fully conscious, rational, verbal adult who has been dropped into this world from the sky — perhaps by a stork.

For Merleau-Ponty, we cannot understand our experience if we don’t think of ourselves in part as overgrown babies. We fall for optical illusions because we once learned to see the world in terms of shapes, objects and things relevant to our own interests. Our first perceptions came to us in tandem with our first active experiments in observing the world and reaching out to explore it, and are still linked with those experiences.

Another factor in all of this, for Merleau-Ponty, is our social existence: we cannot thrive without others, or not for long, and we need this especially in early life. This makes solipsistic speculation about the reality of others ridiculous; we could never engage in such speculation if we hadn’t already been formed by them.

As Descartes could have said (but didn’t), ‘I think, therefore other people exist.’ We grow up with people playing with us, pointing things out, talking, listening, and getting us used to reading emotions and movements; this is how we become capable, reflective, smoothly integrated beings.

In general, Merleau-Ponty thinks human experience only makes sense if we abandon philosophy’s time-honoured habit of starting with a solitary, capsule-like, immobile adult self, isolated from its body and world, which must then be connected up again — adding each element around it as though adding clothing to a doll. Instead, for him, we slide from the womb to the birth canal to an equally close and total immersion in the world. That immersion continues as long as we live, although we may also cultivate the art of partially withdrawing from time to time when we want to think or daydream.

When he looks for his own metaphor to describe how he sees consciousness, he comes up with a beautiful one: consciousness, he suggests, is like a ‘fold’ in the world, as though someone had crumpled a piece of cloth to make a little nest or hollow. It stays for a while, before eventually being unfolded and smoothed away. There is something seductive, even erotic, in this idea of my conscious self as an improvised pouch in the cloth of the world. I still have my privacy — my withdrawing room. But I am part of the world’s fabric, and I remain formed out of it for as long as I am here.

By the time of these works, Merleau-Ponty is taking his desire to describe experience to the outer limits of what language can convey. Just as with the late Husserl or Heidegger, or Sartre in his Flaubert book, we see a philosopher venturing so far from shore that we can barely follow. Emmanuel Levinas would head out to the fringes too, eventually becoming incomprehensible to all but his most patient initiates.

Sartre once remarked — speaking of a disagreement they had about Husserl in 1941 — that ‘we discovered, astounded, that our conflicts had, at times, stemmed from our childhood, or went back to the elementary differences of our two organisms’. Merleau-Ponty also said in an interview that Sartre’s work seemed strange to him, not because of philosophical differences, but because of a certain ‘register of feeling’, especially in Nausea, that he could not share. Their difference was one of temperament and of the whole way the world presented itself to them.

The two also differed in their purpose. When Sartre writes about the body or other aspects of experience, he generally does it in order to make a different point. He expertly evokes the grace of his café waiter, gliding between the tables, bending at an angle just so, steering the drink-laden tray through the air on the tips of his fingers — but he does it all in order to illustrate his ideas about bad faith. When Merleau-Ponty writes about skilled and graceful movement, the movement itself is his point. This is the thing he wants to understand.

We can never move definitively from ignorance to certainty, for the thread of the inquiry will constantly lead us back to ignorance again. This is the most attractive description of philosophy I’ve ever read, and the best argument for why it is worth doing, even (or especially) when it takes us no distance at all from our starting point.

By prioritising perception, the body, social life and childhood development, Merleau-Ponty gathered up philosophy’s far-flung outsider subjects and brought them in to occupy the centre of his thought.

In his inaugural lecture at the Collège de France on 15 January 1953, published as In Praise of Philosophy, he said that philosophers should concern themselves above all with whatever is ambiguous in our experience. At the same time, they should think clearly about these ambiguities, using reason and science. Thus, he said, ‘The philosopher is marked by the distinguishing trait that he possesses inseparably the taste for evidence and the feeling for ambiguity.’ A constant movement is required between these two

As Sartre wrote in response to Hiroshima, humanity had now gained the power to wipe itself out, and must decide every single day that it wanted to live. Camus also wrote that humanity faced the task of choosing between collective suicide and a more intelligent use of its technology — ‘between hell and reason’. After 1945, there seemed little reason to trust in humanity’s ability to choose well.

Merleau-Ponty observed in a lecture of 1951 that, more than any previous century, the twentieth century had reminded people how ‘contingent’ their lives were — how at the mercy of historical events and other changes that they could not control. This feeling went on long after the war ended. After the A-bombs were dropped on Hiroshima and Nagasaki, many feared that a Third World War would not be long in coming, this time between the Soviet Union and the United States.

The same technology that renders humans useless might also make it feasible to feed and support the unemployable masses through some scheme of universal basic income.

The real problem will then be to keep the masses occupied and content. People must engage in purposeful activities, or they go crazy. So what will the useless class do all day?

One answer might be computer games. Economically redundant people might spend increasing amounts of time within 3D virtual reality worlds, which would provide them with far more excitement and emotional engagement than the “real world” outside.

This, in fact, is a very old solution. For thousands of years, billions of people have found meaning in playing virtual reality games. In the past, we have called these virtual reality games “religions”.

Muslims and Christians go through life trying to gain points in their favorite virtual reality game. If you pray every day, you get points. If you forget to pray, you lose points. If by the end of your life you gain enough points, then after you die you go to the next level of the game (aka heaven).