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What none of these parents understand is that their children’s and teens’ destructive obsession with technology is the predictable consequence of a virtually unrecognized merger between the tech industry and psychology.

Dr. B.J. Fogg, is a psychologist and the father of persuasive technology, a discipline in which digital machines and apps — including smartphones, social media, and video games — are configured to alter human thoughts and behaviors. As the lab’s website boldly proclaims: “Machines designed to change humans.”

These parents have no idea that lurking behind their kids’ screens and phones are a multitude of psychologists, neuroscientists, and social science experts who use their knowledge of psychological vulnerabilities to devise products that capture kids’ attention for the sake of industry profit.

psychology — a discipline that we associate with healing — is now being used as a weapon against children.

This alliance pairs the consumer tech industry’s immense wealth with the most sophisticated psychological research, making it possible to develop social media, video games, and phones with drug-like power to seduce young users.

Likewise, social media companies use persuasive design to prey on the age-appropriate desire for preteen and teen kids, especially girls, to be socially successful. This drive is built into our DNA, since real-world relational skills have fostered human evolution.

Called “the millionaire maker,” Fogg has groomed former students who have used his methods to develop technologies that now consume kids’ lives. As he recently touted on his personal website, “My students often do groundbreaking projects, and they continue having impact in the real world after they leave Stanford… For example, Instagram has influenced the behavior of over 800 million people. The co-founder was a student of mine.”

Persuasive technology (also called persuasive design) works by deliberately creating digital environments that users feel fulfill their basic human drives — to be social or obtain goals — better than real-world alternatives.

Kids spend countless hours in social media and video game environments in pursuit of likes, “friends,” game points, and levels — because it’s stimulating, they believe that this makes them happy and successful, and they find it easier than doing the difficult but developmentally important activities of childhood.

While persuasion techniques work well on adults, they are particularly effective at influencing the still-maturing child and teen brain.

“Video games, better than anything else in our culture, deliver rewards to people, especially teenage boys,” says Fogg. “Teenage boys are wired to seek competency. To master our world and get better at stuff. Video games, in dishing out rewards, can convey to people that their competency is growing, you can get better at something second by second.”

it’s persuasive design that’s helped convince this generation of boys they are gaining “competency” by spending countless hours on game sites, when the sad reality is they are locked away in their rooms gaming, ignoring school, and not developing the real-world competencies that colleges and employers demand.

Persuasive technologies work because of their apparent triggering of the release of dopamine, a powerful neurotransmitter involved in reward, attention, and addiction.

As she says, “If you don’t get 100 ‘likes,’ you make other people share it so you get 100…. Or else you just get upset. Everyone wants to get the most ‘likes.’ It’s like a popularity contest.”

there are costs to Casey’s phone obsession, noting that the “girl’s phone, be it Facebook, Instagram or iMessage, is constantly pulling her away from her homework, sleep, or conversations with her family.

Casey says she wishes she could put her phone down. But she can’t. “I’ll wake up in the morning and go on Facebook just… because,” she says. “It’s not like I want to or I don’t. I just go on it. I’m, like, forced to. I don’t know why. I need to. Facebook takes up my whole life.”

B.J. Fogg may not be a household name, but Fortune Magazine calls him a “New Guru You Should Know,” and his research is driving a worldwide legion of user experience (UX) designers who utilize and expand upon his models of persuasive design.

“No one has perhaps been as influential on the current generation of user experience (UX) designers as Stanford researcher B.J. Fogg.”

the core of UX research is about using psychology to take advantage of our human vulnerabilities.

As Fogg is quoted in Kosner’s Forbes article, “Facebook, Twitter, Google, you name it, these companies have been using computers to influence our behavior.” However, the driving force behind behavior change isn’t computers. “The missing link isn’t the technology, it’s psychology,” says Fogg.

UX researchers not only follow Fogg’s design model, but also his apparent tendency to overlook the broader implications of persuasive design. They focus on the task at hand, building digital machines and apps that better demand users’ attention, compel users to return again and again, and grow businesses’ bottom line.

the “Fogg Behavior Model” is a well-tested method to change behavior and, in its simplified form, involves three primary factors: motivation, ability, and triggers.

“We can now create machines that can change what people think and what people do, and the machines can do that autonomously.”

Regarding ability, Fogg suggests that digital products should be made so that users don’t have to “think hard.” Hence, social networks are designed for ease of use

Finally, Fogg says that potential users need to be triggered to use a site. This is accomplished by a myriad of digital tricks, including the sending of incessant notifications

moral questions about the impact of turning persuasive techniques on children and teens are not being asked. For example, should the fear of social rejection be used to compel kids to compulsively use social media? Is it okay to lure kids away from school tasks that demand a strong mental effort so they can spend their lives on social networks or playing video games that don’t make them think much at all?

Describing how his formula is effective at getting people to use a social network, the psychologist says in an academic paper that a key motivator is users’ desire for “social acceptance,” although he says an even more powerful motivator is the desire “to avoid being socially rejected.”

the startup Dopamine Labs boasts about its use of persuasive techniques to increase profits: “Connect your app to our Persuasive AI [Artificial Intelligence] and lift your engagement and revenue up to 30% by giving your users our perfect bursts of dopamine,” and “A burst of Dopamine doesn’t just feel good: it’s proven to re-wire user behavior and habits.”

Ramsay Brown, the founder of Dopamine Labs, says in a KQED Science article, “We have now developed a rigorous technology of the human mind, and that is both exciting and terrifying. We have the ability to twiddle some knobs in a machine learning dashboard we build, and around the world hundreds of thousands of people are going to quietly change their behavior in ways that, unbeknownst to them, feel second-nature but are really by design.”

Programmers call this “brain hacking,” as it compels users to spend more time on sites even though they mistakenly believe it’s strictly due to their own conscious choices.

Banks of computers employ AI to “learn” which of a countless number of persuasive design elements will keep users hooked

A persuasion profile of a particular user’s unique vulnerabilities is developed in real time and exploited to keep users on the site and make them return again and again for longer periods of time. This drives up profits for consumer internet companies whose revenue is based on how much their products are used.

“The leaders of Internet companies face an interesting, if also morally questionable, imperative: either they hijack neuroscience to gain market share and make large profits, or they let competitors do that and run away with the market.”

Social media and video game companies believe they are compelled to use persuasive technology in the arms race for attention, profits, and survival.

Children’s well-being is not part of the decision calculus.

one breakthrough occurred in 2017 when Facebook documents were leaked to The Australian. The internal report crafted by Facebook executives showed the social network boasting to advertisers that by monitoring posts, interactions, and photos in real time, the network is able to track when teens feel “insecure,” “worthless,” “stressed,” “useless” and a “failure.”

The report also bragged about Facebook’s ability to micro-target ads down to “moments when young people need a confidence boost.”

These design techniques provide tech corporations a window into kids’ hearts and minds to measure their particular vulnerabilities, which can then be used to control their behavior as consumers. This isn’t some strange future… this is now.

The official tech industry line is that persuasive technologies are used to make products more engaging and enjoyable. But the revelations of industry insiders can reveal darker motives.

Revealing the hard science behind persuasive technology, Hopson says, “This is not to say that players are the same as rats, but that there are general rules of learning which apply equally to both.”

After penning the paper, Hopson was hired by Microsoft, where he helped lead the development of the Xbox Live, Microsoft’s online gaming system

“If game designers are going to pull a person away from every other voluntary social activity or hobby or pastime, they’re going to have to engage that person at a very deep level in every possible way they can.”

This is the dominant effect of persuasive design today: building video games and social media products so compelling that they pull users away from the real world to spend their lives in for-profit domains.

Persuasive technologies are reshaping childhood, luring kids away from family and schoolwork to spend more and more of their lives sitting before screens and phones.

“Since we’ve figured to some extent how these pieces of the brain that handle addiction are working, people have figured out how to juice them further and how to bake that information into apps.”

Today, persuasive design is likely distracting adults from driving safely, productive work, and engaging with their own children — all matters which need urgent attention

Still, because the child and adolescent brain is more easily controlled than the adult mind, the use of persuasive design is having a much more hurtful impact on kids.

But to engage in a pursuit at the expense of important real-world activities is a core element of addiction.

younger U.S. children now spend 5 ½ hours each day with entertainment technologies, including video games, social media, and online videos.

Even more, the average teen now spends an incredible 8 hours each day playing with screens and phones

U.S. kids only spend 16 minutes each day using the computer at home for school.

Quietly, using screens and phones for entertainment has become the dominant activity of childhood.

Younger kids spend more time engaging with entertainment screens than they do in school

teens spend even more time playing with screens and phones than they do sleeping

kids are so taken with their phones and other devices that they have turned their backs to the world around them.

many children are missing out on real-life engagement with family and school — the two cornerstones of childhood that lead them to grow up happy and successful

persuasive technologies are pulling kids into often toxic digital environments

A too frequent experience for many is being cyberbullied, which increases their risk of skipping school and considering suicide.

And there is growing recognition of the negative impact of FOMO, or the fear of missing out, as kids spend their social media lives watching a parade of peers who look to be having a great time without them, feeding their feelings of loneliness and being less than.

The combined effects of the displacement of vital childhood activities and exposure to unhealthy online environments is wrecking a generation.

as the typical age when kids get their first smartphone has fallen to 10, it’s no surprise to see serious psychiatric problems — once the domain of teens — now enveloping young kids

Self-inflicted injuries, such as cutting, that are serious enough to require treatment in an emergency room, have increased dramatically in 10- to 14-year-old girls, up 19% per year since 2009.

While girls are pulled onto smartphones and social media, boys are more likely to be seduced into the world of video gaming, often at the expense of a focus on school

it’s no surprise to see this generation of boys struggling to make it to college: a full 57% of college admissions are granted to young women compared with only 43% to young men.

Economists working with the National Bureau of Economic Research recently demonstrated how many young U.S. men are choosing to play video games rather than join the workforce.

The destructive forces of psychology deployed by the tech industry are making a greater impact on kids than the positive uses of psychology by mental health providers and child advocates. Put plainly, the science of psychology is hurting kids more than helping them.

Hope for this wired generation has seemed dim until recently, when a surprising group has come forward to criticize the tech industry’s use of psychological manipulation: tech executives

Tristan Harris, formerly a design ethicist at Google, has led the way by unmasking the industry’s use of persuasive design. Interviewed in The Economist’s 1843 magazine, he says, “The job of these companies is to hook people, and they do that by hijacking our psychological vulnerabilities.”

Marc Benioff, CEO of the cloud computing company Salesforce, is one of the voices calling for the regulation of social media companies because of their potential to addict children. He says that just as the cigarette industry has been regulated, so too should social media companies. “I think that, for sure, technology has addictive qualities that we have to address, and that product designers are working to make those products more addictive, and we need to rein that back as much as possible,”

“If there’s an unfair advantage or things that are out there that are not understood by parents, then the government’s got to come forward and illuminate that.”

Since millions of parents, for example the parents of my patient Kelly, have absolutely no idea that devices are used to hijack their children’s minds and lives, regulation of such practices is the right thing to do.

Another improbable group to speak out on behalf of children is tech investors.

How has the consumer tech industry responded to these calls for change? By going even lower.

Facebook recently launched Messenger Kids, a social media app that will reach kids as young as five years old. Suggestive that harmful persuasive design is now honing in on very young children is the declaration of Messenger Kids Art Director, Shiu Pei Luu, “We want to help foster communication [on Facebook] and make that the most exciting thing you want to be doing.”

the American Psychological Association (APA) — which is tasked with protecting children and families from harmful psychological practices — has been essentially silent on the matter

APA Ethical Standards require the profession to make efforts to correct the “misuse” of the work of psychologists, which would include the application of B.J. Fogg’s persuasive technologies to influence children against their best interests

Manipulating children for profit without their own or parents’ consent, and driving kids to spend more time on devices that contribute to emotional and academic problems is the embodiment of unethical psychological practice.

“Never before in history have basically 50 mostly men, mostly 20–35, mostly white engineer designer types within 50 miles of where we are right now [Silicon Valley], had control of what a billion people think and do.”

Some may argue that it’s the parents’ responsibility to protect their children from tech industry deception. However, parents have no idea of the powerful forces aligned against them, nor do they know how technologies are developed with drug-like effects to capture kids’ minds

Others will claim that nothing should be done because the intention behind persuasive design is to build better products, not manipulate kids

similar circumstances exist in the cigarette industry, as tobacco companies have as their intention profiting from the sale of their product, not hurting children. Nonetheless, because cigarettes and persuasive design predictably harm children, actions should be taken to protect kids from their effects.

in a 1998 academic paper, Fogg describes what should happen if things go wrong, saying, if persuasive technologies are “deemed harmful or questionable in some regard, a researcher should then either take social action or advocate that others do so.”

I suggest turning to President John F. Kennedy’s prescient guidance: He said that technology “has no conscience of its own. Whether it will become a force for good or ill depends on man.”

The APA should begin by demanding that the tech industry’s behavioral manipulation techniques be brought out of the shadows and exposed to the light of public awareness

Changes should be made in the APA’s Ethics Code to specifically prevent psychologists from manipulating children using digital machines, especially if such influence is known to pose risks to their well-being.

Moreover, the APA should follow its Ethical Standards by making strong efforts to correct the misuse of psychological persuasion by the tech industry and by user experience designers outside the field of psychology.

It should join with tech executives who are demanding that persuasive design in kids’ tech products be regulated

The APA also should make its powerful voice heard amongst the growing chorus calling out tech companies that intentionally exploit children’s vulnerabilities.

For example, psychologist Tim Pychyl has co-authored a paper showing that students who forgave themselves for procrastinating on a previous exam were actually less likely to procrastinate on their next test. He and others have also found that people prone to procrastination are, overall, less compassionate toward themselves — an insight that points to ways to help.

But psychologists see procrastination as a misplaced coping mechanism, as an emotion-focused coping strategy. [People who procrastinate are] using avoidance to cope with emotions, and many of them are unconscious emotions.

they found our brain processes present self and future self differently. We think of future self more like a stranger.

I used to procrastinate, and now I don't, because I got all these wicked strategies. And it’s every level: some of it’s behavioral, some of it’s emotional, some of it’s cognitive.

Whenever we face a task, we’re not going to feel like doing it. Somehow adults believe that their motivational state has to match the task at hand. We say, "I’m not in the mood." Our motivational state rarely matches the task at hand, so we always have to use self-regulation skills to bring our focus to it. So at first it will be, "Okay, I recognize that I don’t feel like it, but I’m just gonna get started."

We know from psychological research by [Andrew] Elliot and others that progress on our goals feeds our well-being. So the most important thing you can do is bootstrap a little progress. Get a little progress, and that’s going to fuel your well-being and your motivation.

mplementation intentions take the form of "If, then." "If the phone rings, then I’m not going to answer it." "If my friends call me to say we’re going out, I’m going to say no." So you’ve already made this pre-commitment.

OHIO rule: only handle it once. And I’m like that with email. I look at that email and say, "I can reply to it now, or I can throw it out," but there’s not much of a middle ground. I’m not going to save it for a while.

We [think] that people will make less procrastinatory choices now because they’ll realize that "It’s me in the future we’re talking about here. I’m going to be under the gun."

Roughly 5 percent of the population has such a problem with chronic procrastination that it seriously affects their lives

Conventional wisdom has long suggested that procrastination is all about poor time management and willpower. But more recently, psychologists have been discovering that it may have more to do with how our brains and emotions work.

Procrastination, they've realized, appears to be a coping mechanism. When people procrastinate, they're avoiding emotionally unpleasant tasks and instead doing something that provides a temporary mood boost. The procrastination itself then causes shame and guilt — which in turn leads people to procrastinate even further, creating a vicious cycle.

But psychologists see procrastination as a misplaced coping mechanism, as an emotion-focused coping strategy. [People who procrastinate are] using avoidance to cope with emotions, and many of them are unconscious emotions.

Recently we’ve been doing research that relates to the work on "present self"/"future self" because what’s happening with procrastination is that "present self" is always trumping "future self."

He’s shown that in experimental settings if someone sees their own picture digitally aged, they’re more likely to allocate funds to retirement. When [the researchers] did the fMRI studies, they found our brain processes present self and future self differently. We think of future self more like a stranger.

The people who see the present and future self as more overlapping have more self-continuity and report less procrastination.

e [think] that people will make less procrastinatory choices now because they’ll realize that "It’s me in the future we’re talking about here. I’m going to be under the gun."

Our motivational state rarely matches the task at hand, so we always have to use self-regulation skills to bring our focus to it. So at first it will be, "Okay, I recognize that I don’t feel like it, but I’m just gonna get started."

Implementation intentions take the form of "If, then." "If the phone rings, then I’m not going to answer it." "If my friends call me to say we’re going out, I’m going to say no." So you’ve already made this pre-commitment.

Because it’s all about self-deception — you aren’t aware that it’s going to cost you, but you are.

OHIO rule: only handle it once. And I’m like that with email. I look at that email and say, "I can reply to it now, or I can throw it out," but there’s not much of a middle ground. I’m not going to save it for a while.

And it’s every level: some of it’s behavioral, some of it’s emotional, some of it’s cognitive

This is the big problem in science that no one is talking about: even an honest person is a master of self-deception. Our brains evolved long ago on the African savannah, where jumping to plausible conclusions about the location of ripe fruit or the presence of a predator was a matter of survival. But a smart strategy for evading lions does not necessarily translate well to a modern laboratory, where tenure may be riding on the analysis of terabytes of multidimensional data. In today's environment, our talent for jumping to conclusions makes it all too easy to find false patterns in randomness, to ignore alternative explanations for a result or to accept 'reasonable' outcomes without question — that is, to ceaselessly lead ourselves astray without realizing it.

Failure to understand our own biases has helped to create a crisis of confidence about the reproducibility of published results

Although it is impossible to document how often researchers fool themselves in data analysis, says Ioannidis, findings of irreproducibility beg for an explanation. The study of 100 psychology papers is a case in point: if one assumes that the vast majority of the original researchers were honest and diligent, then a large proportion of the problems can be explained only by unconscious biases. “This is a great time for research on research,” he says. “The massive growth of science allows for a massive number of results, and a massive number of errors and biases to study. So there's good reason to hope we can find better ways to deal with these problems.”

Although the human brain and its cognitive biases have been the same for as long as we have been doing science, some important things have changed, says psychologist Brian Nosek, executive director of the non-profit Center for Open Science in Charlottesville, Virginia, which works to increase the transparency and reproducibility of scientific research. Today's academic environment is more competitive than ever. There is an emphasis on piling up publications with statistically significant results — that is, with data relationships in which a commonly used measure of statistical certainty, the p-value, is 0.05 or less. “As a researcher, I'm not trying to produce misleading results,” says Nosek. “But I do have a stake in the outcome.” And that gives the mind excellent motivation to find what it is primed to find.

Another reason for concern about cognitive bias is the advent of staggeringly large multivariate data sets, often harbouring only a faint signal in a sea of random noise. Statistical methods have barely caught up with such data, and our brain's methods are even worse, says Keith Baggerly, a statistician at the University of Texas MD Anderson Cancer Center in Houston. As he told a conference on challenges in bioinformatics last September in Research Triangle Park, North Carolina, “Our intuition when we start looking at 50, or hundreds of, variables sucks.”

One trap that awaits during the early stages of research is what might be called hypothesis myopia: investigators fixate on collecting evidence to support just one hypothesis; neglect to look for evidence against it; and fail to consider other explanations.

Some of the most common types of illusory percepts are those that affect the impression of size, length or distance.

As visual processing needs to be both rapid and generally accurate, the brain constantly uses shortcuts and makes assumptions about the world that can, in some cases, be misleading.

These illusions are the result of visual processes shaped by evolution. Using that process may have been once beneficial (or still is), but it also allows our brains to be tricked.

if animals are tricked by the same illusions, then perhaps revealing why a different evolutionary path leads to the same visual process might help us understand why evolution favours this development.

Great bowerbirds could be the ultimate illusory artists. For example, their males construct forced perspective illusions to make them more attractive to mates.

When a male has two smaller clawed males on either side of him he is more attractive to a female (because he looks relatively larger) than if he was surrounded by two larger clawed males.

This effect is known as the Ebbinghaus illusion (see image), and suggests that males may easily manipulate their perceived attractiveness by surrounding themselves with less attractive rivals.

Deceptions of the senses are the truths of perception.

Visual illusions (and those in the non-visual senses) are a crucial tool for determining what perceptual assumptions animals make about the world around them.

Mishearings are not hallucinations, but like hallucinations they utilize the usual pathways of perception and pose as reality — it does not occur to one to question them. But since all of our perceptions must be constructed by the brain, from often meager and ambiguous sensory data, the possibility of error or deception is always present.

Was Freud entirely wrong then about slips and mishearings? Of course not. He advanced fundamental considerations about wishes, fears, motives and conflicts not present in consciousness, or thrust out of consciousness, which could color slips of the tongue, mishearings or misreadings. But he was, perhaps, too insistent that misperceptions are wholly a result of unconscious motivation

The idea behind the class is deceptively simple, and many of the lessons — such as gratitude, helping others, getting enough sleep — are familiar.

“A lot of people are waking up, realizing that we’re struggling,

All semester, hundreds of students tried to rewire themselves — to exercise more, to thank their mothers, to care less about the final grade and more about the ideas.

But in ways small and large, silly and heartbreakingly earnest, simple and profound, this class changed the conversation at Yale. It surfaced in late-night talks in dorms, it was dissected in newspaper columns, it popped up, again and again, in memes.

It’s the application that’s difficult, a point Santos made repeatedly: Our brains often lead us to bad choices, and even when we realize the choices are bad, it’s hard to break habits.

There’s no longer the same stigma around mental-health issues, he said. “Now, so many people are admitting they want to lead happier lives.”

In a way, the class is the very essence of a liberal-arts education: learning, exploration, insight into oneself and the world. But many students described it as entirely unlike any class they had ever taken — nothing to do with academics, and everything to do with life.

The impact is not limited to Yale. Stories about PSYC157 spread around the world. Santos created a pared-down version of the class and offered it to anyone on the online education site Coursera.

She taught students about cognitive biases.

“We called it the ways in which our minds suck,” Forti said. “Our minds make us think that certain things make us happy, but they don’t.”

Then, they had to apply the lessons

There was a palpable difference on campus, several students said, during the week when they performed random acts of kindness.

The biggest misconception people have about the class is that Santos is offering some kind of easy happiness fix. “It’s something you have to work on every day. . . . If I keep using these skills, they’ll, over time, help me develop better habits and be happier.

So many students have told her the class changed their lives. “If you’re really grateful, show me that,” she told them. “Change the culture.

for now students stood and clapped and clapped and clapped, beaming, drowning out even Kanye with their standing ovation. As if they had nothing but time.

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.”