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the Common Core standards used by a majority of K-12 programs in the country require that students be able to “distinguish among fact, opinion, and reasoned judgment in a text.”

So what’s wrong with this distinction and how does it undermine the view that there are objective moral facts?

For example, many people once thought that the earth was flat. It’s a mistake to confuse truth (a feature of the world) with proof (a feature of our mental lives)

Furthermore, if proof is required for facts, then facts become person-relative. Something might be a fact for me if I can prove it but not a fact for you if you can’t. In that case, E=MC2 is a fact for a physicist but not for me.

worse, students are taught that claims are either facts or opinions. They are given quizzes in which they must sort claims into one camp or the other but not both. But if a fact is something that is true and an opinion is something that is believed, then many claims will obviously be both

How does the dichotomy between fact and opinion relate to morality

Kids are asked to sort facts from opinions and, without fail, every value claim is labeled as an opinion.

Here’s a little test devised from questions available on fact vs. opinion worksheets online: are the following facts or opinions? — Copying homework assignments is wrong. — Cursing in school is inappropriate behavior. — All men are created equal. — It is worth sacrificing some personal liberties to protect our country from terrorism. — It is wrong for people under the age of 21 to drink alcohol. — Vegetarians are healthier than people who eat meat. — Drug dealers belong in prison.

The answer? In each case, the worksheets categorize these claims as opinions. The explanation on offer is that each of these claims is a value claim and value claims are not facts. This is repeated ad nauseum: any claim with good, right, wrong, etc. is not a fact.

In summary, our public schools teach students that all claims are either facts or opinions and that all value and moral claims fall into the latter camp. The punchline: there are no moral facts. And if there are no moral facts, then there are no moral truths.

It should not be a surprise that there is rampant cheating on college campuses: If we’ve taught our students for 12 years that there is no fact of the matter as to whether cheating is wrong, we can’t very well blame them for doing so later on.

If it’s not true that it’s wrong to murder a cartoonist with whom one disagrees, then how can we be outraged? If there are no truths about what is good or valuable or right, how can we prosecute people for crimes against humanity? If it’s not true that all humans are created equal, then why vote for any political system that doesn’t benefit you over others?

the curriculum sets our children up for doublethink. They are told that there are no moral facts in one breath even as the next tells them how they ought to behave.

Our children deserve a consistent intellectual foundation. Facts are things that are true. Opinions are things we believe. Some of our beliefs are true. Others are not. Some of our beliefs are backed by evidence. Others are not.

Value claims are like any other claims: either true or false, evidenced or not.

The hard work lies not in recognizing that at least some moral claims are true but in carefully thinking through our evidence for which of the many competing moral claims is correct.

Moral truths are not the same as scientific truths or mathematical truths. Yet they may still be used a guiding principle for our individual lives as well as our laws.But there is equal danger of giving moral judgments the designation of truth as there is in not doing so. Many people believe that abortion is murder on the same level as shooting someone with a gun. But many others do not. So is it true that abortion is murder?Moral principles can become generally accepted and then form the basis for our laws. But many long accepted moral principles were later rejected as being faulty. "Separate but equal" is an example. Judging homosexual relationships as immoral is another example.

Whoa! That Einstein derived an equation is a fact. But the equation represents a theory that may have to be tweaked at some point in the future. It may be a fact that the equation foretold the violence of atomic explosions, but there are aspects of nature that elude the equation. Remember "the theory of everything?"

Here is a moral fact, this is a sermon masquerading as a philosophical debate on facts, opinions and truth. This professor of religion is asserting that the government via common core is teaching atheism via the opinion vs fact.He is arguing, in a dishonest form, that public schools should be teaching moral facts. Of course moral facts is code for the Ten Commandments.

As a fourth grade teacher, I try to teach students to read critically, including distinguishing between facts and opinions as they read (and have been doing this long before the Common Core arrived, by the way). It's not always easy for children to grasp the difference. I can only imagine the confusion that would ensue if I introduced a third category -- moral "facts" that can't be proven but are true nonetheless!

horrible acts occur not because of moral uncertainty, but because people are too sure that their views on morality are 100% true, and anyone who fails to recognize and submit themselves are heathens who deserve death.I can't think of any case where a society has suffered because people are too thoughtful and open-minded to different perspectives on moral truth.In any case, it's not an elementary school's job to teach "moral truths."

The characterization of moral anti-realism as some sort of fringe view in philosophy is misleading. Claims that can be true or false are, it seems, 'made true' by features of the world. It's not clear to many in philosophy (like me) just what features of the world could make our moral claims true. We are more likely to see people's value claims as making claims about, and enforcing conformity to, our own (contingent) social norms. This is not to hold, as Mr. McBrayer seems to think follows, that there are no reasons to endorse or criticize these social norms.

This is nonsense. Giving kids the tools to distinguish between fact and opinion is hard enough in an age when Republicans actively deny reality on Fox News every night. The last thing we need is to muddy their thinking with the concept of "moral facts."A fact is a belief that everyone _should_ agree upon because it is observable and testable. Morals are not agreed upon by all. Consider the hot button issue of abortion.

Truthfully, I'm not terribly concerned that third graders will end up taking these lessons in the definition of fact versus opinion to the extremes considered here, or take them as a license to cheat. That will come much later, when they figure out, as people always have, what they can get a way with. But Prof. McBrayer, with his blithe expectation that all the grownups know that there moral "facts"? He scares the heck out of me.

I've long chafed at the language of "fact" v. "opinion", which is grounded in a very particular, limited view of human cognition. In my own ethics courses, I work actively to undermine the distinction, focusing instead on considered judgment . . . or even more narrowly, on consideration itself. (See http://wp.me/p5Ag0i-6M )

The real waffle here is the very concept of "moral facts." Our statements of values, even very important ones are, obviously, not facts. Trying to dress them up as if they are facts, to me, argues for a pretty serious moral weakness on the part of those advancing the idea.

Our core values are not important because they are facts. They are important because we collectively hold them and cherish them. To lean on the false crutch of "moral facts" to admit the weakness of your own moral convictions.

I would like to believe that there is a core of moral facts/values upon which all humanity can agree, but it would be tough to identify exactly what those are.

For the the ancient philosophers, reality comprised the Good, the True, and the Beautiful (what we might now call ethics, science and art), seeing these as complementary and inseparable, though distinct, realms. With the ascendency of science in our culture as the only valid measure of reality to the detriment of ethics and art (that is, if it is not observable and provable, it is not real), we have turned the good and the beautiful into mere "social constructs" that have no validity on their own. While I am sympathetic in many ways with Dr. McBrayer's objections, I think he falls into the trap of discounting the Good and The Beautiful as valid in and of themselves, and tries, instead, to find ways to give them validity through the True. I think his argument would have been stronger had he used the language of validity rather than the language of truth. Goodness, Truth and Beauty each have their own validity, though interdependent and inseparable. When we artificially extract one of these and give it primacy, we distort reality and alienate ourselves from it.

Professor McBrayer seems to miss the major point of the Common Core concern: can students distinguish between premises based on (reasonably construed) fact and premises based on emotion when evaluating conclusions? I would prefer that students learn to reason rather than be taught moral 'truth' that follows Professor McBrayer's logic.

Moral issues cannot scientifically be treated on the level that Prof. McBrayer is attempting to use in this column: true or false, fact or opinion or both. Instead, they should be treated as important characteristics of the systematic working of a society or of a group of people in general. One can compare the working of two groups of people: one in which e.g. cheating and lying is acceptable, and one in which they are not. One can use historical or model examples to show the consequences and the working of specific systems of morals. I think that this method - suitably adjusted - can be used even in second grade.

Relativism has nothing to do with liberalism. The second point is that I'm not sure it does all that much harm, because I have yet to encounter a student who thought that he or she had to withhold judgment on those who hold opposing political views!

Both studies suggest that “weight of evidence” reporting is an imperfect remedy. It turns out that hearing from experts on both sides of an issue distorts our perception of consensus — even when we have all the information we need to correct that misperception.

In one study, all the participants were presented with a numerical summary, drawn from a panel of experts convened by the University of Chicago, of the range of expert opinion on certain economic issues.

One group of participants, however, was presented not only with the numerical summary of expert opinion but also with an excerpted comment from one expert on either side of an issue.

Then, all the participants were asked to rate their perception of the extent to which the experts agreed with one another on each issue. Even though both had a precise count of the number of experts on either side, the participants who also read the comments of the opposing experts gave ratings that did not distinguish as sharply between the high-consensus and the low-consensus issues. In other words, being exposed to the conflicting comments made it more difficult for participants to distinguish the issues most experts agreed on (such as carbon tax) from those for which there was substantial disagreement (such as minimum wage).

This distorting influence affected not only the participants’ perception of the degree of consensus, but also their judgments of whether there was sufficient consensus to use it to guide public policy.

What explains this cognitive glitch? One possibility is that when we are presented with comments from experts on either side of an issue, we produce a mental representation of the disagreement that takes the form of one person on either side, which somehow contaminates our impression of the distribution of opinions in the larger population of experts.

Another possibility is that we may just have difficulty discounting the weight of a plausible argument, even when we know it comes from an expert whose opinion is held by only a small fraction of his or her peers.

It’s also possible that the mere presence of conflict (in the form of contradictory expert comments) triggers a general sense of uncertainty in our minds, which in turn colors our perceptions of the accuracy of current expert understanding of an issue.

the implications are worrisome. Government action is guided in part by public opinion. Public opinion is guided in part by perceptions of what experts think. But public opinion may — and often does — deviate from expert opinion, not simply, it seems, because the public refuses to acknowledge the legitimacy of experts, but also because the public may not be able to tell where the majority of expert opinion lies.

Some are motivated by potential business revenue, others by national security concerns.

Sometimes, they trade letters, opinion essays or social threads outlining their positions and attacking others’ in public view. More often, they tout their viewpoints without acknowledging alternatives, leaving the impression that their enlightened perspective is the inevitable lens through which to view A.I.

you’ll realize this isn’t really a debate only about A.I. It’s also a contest about control and power, about how resources should be distributed and who should be held accountable.

It is critical that we begin to recognize the ideologies driving what we are being told. Resolving the fracas requires us to see through the specter of A.I. to stay true to the humanity of our values.

Because language itself is part of their battleground, the different A.I. camps tend not to use the same words to describe their positions

One faction describes the dangers posed by A.I. through the framework of safety, another through ethics or integrity, yet another through security and others through economics.

The Doomsayers

These are the A.I. safety people, and their ranks include the “Godfathers of A.I.,” Geoff Hinton and Yoshua Bengio. For many years, these leading lights battled critics who doubted that a computer could ever mimic capabilities of the human mind

Many doomsayers say they are acting rationally, but their hype about hypothetical existential risks amounts to making a misguided bet with our future

Reasonable sounding on their face, these ideas can become dangerous if stretched to their logical extremes. A dogmatic long-termer would willingly sacrifice the well-being of people today to stave off a prophesied extinction event like A.I. enslavement.

The technology historian David C. Brock calls these fears “wishful worries” — that is, “problems that it would be nice to have, in contrast to the actual agonies of the present.”

OpenAI’s Sam Altman and Meta’s Mark Zuckerberg, both of whom lead dominant A.I. companies, are pushing for A.I. regulations that they say will protect us from criminals and terrorists. Such regulations would be expensive to comply with and are likely to preserve the market position of leading A.I. companies while restricting competition from start-ups

the roboticist Rodney Brooks has pointed out that we will see the existential risks coming, the dangers will not be sudden and we will have time to change course.

While we shouldn’t dismiss the Hollywood nightmare scenarios out of hand, we must balance them with the potential benefits of A.I. and, most important, not allow them to strategically distract from more immediate concerns.

The Reformers

While the doomsayer faction focuses on the far-off future, its most prominent opponents are focused on the here and now. We agree with this group that there’s plenty already happening to cause concern: Racist policing and legal systems that disproportionately arrest and punish people of color. Sexist labor systems that rate feminine-coded résumés lower

Superpower nations automating military interventions as tools of imperialism and, someday, killer robots.

Propagators of these A.I. ethics concerns — like Meredith Broussard, Safiya Umoja Noble, Rumman Chowdhury and Cathy O’Neil — have been raising the alarm on inequities coded into A.I. for years. Although we don’t have a census, it’s noticeable that many leaders in this cohort are people of color, women and people who identify as L.G.B.T.Q.

Others frame efforts to reform A.I. in terms of integrity, calling for Big Tech to adhere to an oath to consider the benefit of the broader public alongside — or even above — their self-interest. They point to social media companies’ failure to control hate speech or how online misinformation can undermine democratic elections. Adding urgency for this group is that the very companies driving the A.I. revolution have, at times, been eliminating safeguards

reformers tend to push back hard against the doomsayers’ focus on the distant future. They want to wrestle the attention of regulators and advocates back toward present-day harms that are exacerbated by A.I. misinformation, surveillance and inequity.

Integrity experts call for the development of responsible A.I., for civic education to ensure A.I. literacy and for keeping humans front and center in A.I. systems.

Surely, we are a civilization big enough to tackle more than one problem at a time; even those worried that A.I. might kill us in the future should still demand that it not profile and exploit us in the present.

Other groups of prognosticators cast the rise of A.I. through the language of competitiveness and national security.

Some arguing from this perspective are acting on genuine national security concerns, and others have a simple motivation: money. These perspectives serve the interests of American tech tycoons as well as the government agencies and defense contractors they are intertwined with.

they appear deeply invested in the idea that there is no limit to what their creations will be able to accomplish.

U.S. megacompanies pleaded to exempt their general purpose A.I. from the tightest regulations, and whether and how to apply high-risk compliance expectations on noncorporate open-source models emerged as a key point of debate. All the while, some of the moguls investing in upstart companies are fighting the regulatory tide. The Inflection AI co-founder Reid Hoffman argued, “The answer to our challenges is not to slow down technology but to accelerate it.”

The warriors’ narrative seems to misrepresent that science and engineering are different from what they were during the mid-20th century. A.I. research is fundamentally international; no one country will win a monopoly.

As the science-fiction author Ted Chiang has said, fears about the existential risks of A.I. are really fears about the threat of uncontrolled capitalism

Regulatory solutions do not need to reinvent the wheel. Instead, we need to double down on the rules that we know limit corporate power. We need to get more serious about establishing good and effective governance on all the issues we lost track of while we were becoming obsessed with A.I., China and the fights picked among robber barons.

By analogy to the health care sector, we need an A.I. public option to truly keep A.I. companies in check. A publicly directed A.I. development project would serve to counterbalance for-profit corporate A.I. and help ensure an even playing field for access to the 21st century’s key technology while offering a platform for the ethical development and use of A.I.

Also, we should embrace the humanity behind A.I. We can hold founders and corporations accountable by mandating greater A.I. transparency in the development stage, in addition to applying legal standards for actions associated with A.I. Remarkably, this is something that both the left and the right can agree on.

This is the belief, often traced back to Nietzsche, that what you believe is determined by where you stand: Our opinions are not guided by objective truth, because there is no such thing; they are guided by our own spot in society.

Then came Michel Foucault and critical race theorists and the rest, and the argument that society is structured by elites to preserve their privilege.

Now we are at a place where it is commonly assumed that your perceptions are something that come to you through your group, through your demographic identity.

What does that mean? After you’ve stated your group identity, what is the therefore that follows?

We’ve shifted from an emphasis on individual judgment toward a greater emphasis on collective experience.

Under what circumstances should we embrace the idea that collective identity shapes our thinking? Under what circumstances should we resist collective identity and insist on the primacy of individual discretion, and our common humanity?

On the one hand, the drive to bring in formerly marginalized groups has obviously been one of the great achievements of our era

Wider inclusion has vastly improved public debate

other times, group identity seems irrelevant to many issues

And there are other times when collective thinking seems positively corrupting. Why are people’s views of global warming, genetically modified foods and other scientific issues strongly determined by political label? That seems ridiculous.

Our whole education system is based on the idea that we train individuals to be critical thinkers. Our political system is based on the idea that persuasion and deliberation lead to compromise and toward truth. The basis of human dignity is our capacity to make up our own minds

One of the things I’ve learned in a lifetime in journalism is that people are always more unpredictable than their categories.

the notion that group membership determines opinion undermines all that.

If it’s just group against group, deliberation is a sham, beliefs are just masks groups use to preserve power structures, and democracy is a fraud.

The epistemological foundation of our system is in surprisingly radical flux.

It is telling, however, that the letter’s critics focus on speakers and what they deserve to say far more than the listening public and what we deserve to hear

In Free Speech and Its Relation to Self-Government (1948), Meikeljohn challenges us to approach public discourse from the perspective of the “good man”: that is to say, the virtuous citizen

One cannot appreciate the freedom of speech, he writes, unless one sees it as an act of collective deliberation, carried out by “a man who, in his political activities, is not merely fighting for what…he can get, but is eagerly and generously serving the common welfare”

Free speech is not only about discovering truth, or encouraging ethical individualism, or protecting minority opinions—liberals’ usual lines of defense—it is ultimately about binding our fate to others’ by “sharing” the truth with our fellow citizens

Sharing truth requires mutual respect and a jealous defense of intellectual freedom, so that “no idea, no opinion, no doubt, no belief, no counter belief, no relevant information” is withheld from the electorate

For their part, voters must judge these arguments individually, through introspection, virtue, and meditation on the common good. 

The “marketplace of ideas” is dangerous because it relieves citizens of exactly these duties. As Meikeljohn writes:   As separate thinkers, we have no obligation to test our thinking, to make sure that it is worthy of a citizen who is one of the ‘rulers of the nation.’ That testing is to be done, we believe, not by us, but by ‘the competition of the market.

this is precisely the sort of self-interested posturing that many on the Left resent in their opponents, but which they now propose to embrace as their own, casually accepting the notion that their fellow citizens are incapable of exercising public reason or considering alternative viewpoints with honesty, bravery, humility, and compassion. 

In practice, curtailing public speech is likely to worsen polarization and further empower dominant cultural interests. As an ideal (or a lack thereof), it undermines the intelligibility and mutual respect that form the very basis of citizenship.

political polarization has induced Americans to abandon “truth-directed methods of persuasion”—such as argumentation and evidence—for a form of non-rational “messaging,” in which “every speech act is classified as friend or foe… and in which very little faith exists as to the rational faculties of those being spoken to.”

“In such a context,” she writes, “even the cry for ‘free speech’ invites a nonliteral interpretation, as being nothing but the most efficient way for its advocates to acquire or consolidate power.”

Segments of the Right have pushed this sort of political messaging to its cynical extremes—taking Donald Trump’s statements “seriously but not literally” or taking antagonistic positions simply to “own the libs.”

Rather than assuming the supremacy of our own opinions or aspersing the motives of those with whom we disagree, our duty as Americans is to think with, learn from, and correct each other.

some critics of the Harper’s letter seem eager to reduce all public debate to a form of power politics

Trans activist Julia Serano merely punctuates the tendency when she writes that calls for free speech represent a “misconception that we, as a society, are all in the midst of some grand rational debate, and that marginalized people simply need to properly plea our case for acceptance, and once we do, reason-minded people everywhere will eventually come around. This notion is utterly ludicrous.”

one could say that critics of the Harper’s letter take the “bad man” as their unit of analysis. By their lights, all participants in public debate are prejudiced, particular, and self-interested

if you get a conservative economist who isn’t a charlatan and crank, you are more or less by definition getting someone with no influence on policymakers. But that’s not the only problem.

But even among conservative economists who didn’t go down that rabbit hole, there has been a moral collapse – a willingness to put political loyalty over professional standards.

the intellectual decadence. In macroeconomics, what began in the 60s and 70s as a usefully challenging critique of Keynesian views went all wrong in the 80s, because the anti-Keynesians refused to reconsider their views when their own models failed the reality test while Keynesian models, with some modification, performed pretty well.

By the time the Great Recession struck, the right-leaning side of the profession had entered a Dark Age, having retrogressed to the point where famous economists trotted out 30s-era fallacies as deep insights.

The second problem with conservative economic thought is that even aside from its complete lack of policy influence, it’s in an advanced state of both intellectual and moral decadence – something that has been obvious for a while, but became utterly clear after the 2008 crisis.

We saw that most recently in the way leading conservative economists raced to endorse ludicrous claims for the efficacy of the Trump tax cuts, then tried to climb down without admitting what they had done. We saw it in the false claims that Obama had presided over a massive expansion of government programs and refusal to admit that he hadn’t, the warnings that Fed policy would cause huge inflation followed by refusal to admit having been wrong, and on and on.

What accounts for this moral decline? I suspect that it’s about a desperate attempt to retain some influence on a party that prefers the likes of Kudlow or Stephen Moore.

no, you don’t see the same thing on the other side. Liberal economists have made plenty of bad predictions – if you never get it wrong, you’re not taking enough risks – but have generally been willing to admit to and learn from mistakes, and have rarely been sycophants to people in power. In this, as in so much else, we’re looking at asymmetric polarization.

And I think that’s true across the board. The left has genuine public intellectuals with actual ideas and at least some real influence; the right does not. News organizations don’t seem to have figured out how to deal with this reality, except by pretending that it doesn’t exist

Am I saying that there are no conservative economists who have maintained their principles? Not at all. But they have no influence, zero, on GOP thinking. So in economics, a news organization trying to represent conservative thought either has to publish people with no constituency or go with the charlatans who actually matter.

the real problem here is that media organizations are looking for unicorns: serious, honest, conservative intellectuals with real influence. Forty or fifty years ago, such people did exist. But now they don’t.

If Mr. Trump talks about Muslim parents and their son who was killed in action, that’s what the public remembers. If he goes to Mexico or Louisiana, that’s what they recall reading or hearing about him. If Mr. Trump calls President Obama the founder of the Islamic State, “ISIS” moves to the top of the list of what Americans tell us they are hearing about the Republican candidate.

it may not matter exactly why Americans are so likely to recall reading about Mrs. Clinton’s email situation week after week. Its looming prominence in the public’s mind has become a reality, and it has the effect of superseding public awareness of her policy speeches and statements about issues.

What Americans recall hearing about Mrs. Clinton is significantly less varied. Specifically — and to an extraordinary degree — Americans have consistently told us that they are reading and hearing about her handling of emails

By contrast, it’s clear that Mrs. Clinton and her campaign team have not wanted her handling of emails to dominate what Americans have been taking away from her campaign over the past two months

we can assume he wants his statements and actions to be seen and heard, to attract attention. The evidence is clear that they are. The public may be getting no more than a superficial understanding of Mr. Trump’s positions on key issues or how he would implement them as laws if he is elected, but the public clearly is repeating back to us what he intends for it to hear.

the public may be learning about the candidates’ temperament, character, personality and health issues, but from what they tell us, Americans aren’t getting much in the way of real substance.

The moderators of the coming series of debates will most likely focus directly on the candidates’ positions on issues. This may shift what Americans tell us they are learning about the candidates, and if so, it could signal a significant upgrade in the way the process is working. But that also means that a lot still depends on the candidates themselves and how they end up shaping the contours of the debates

In recent years, many of the industry’s elite have pledged financial support to schools, hospitals, police stations and homeless shelters, all while many of the industry’s companies have avoided paying taxes that would fund those same vital public institutions.

Any philanthropy seems legitimate when it aligns with your own goals.

We did indeed give them this mandate through our politics: loose campaign finance laws and lower tax rates. Through policies that have reinforced exceptional wealth disparities, we have allowed them not just to govern themselves, but us as well.

To many of Gawker’s critics, Mr. Thiel is a hero on a charitable crusade for justice. It would be safe to say that this is how his fellow Silicon Valley philanthropists would also define their giving. They are under a presumptive mandate to improve society according to their own values, purely because they have made a lot of money while most everyone else has not. The Gospel of Wealth dictates that this is not only their ability, but their responsibility.

the concerned public might take a different, simpler tack.Mr. Thiel told an interviewer in 2012 that he feared the result of this precipitous wealth gap. “In the history of the modern world, inequality has only been ended through Communist revolution, war or deflationary economic collapse,” he said. “It’s a disturbing question which of these three is going to happen today, or if there’s a fourth way out.”

If we’re lucky, there may be, but Mr. Thiel isn’t going to like it. Wealth gleaned by way of tax dodges and monopolistic business practices is wealth stolen from the public, even when it is returned in the form of supposed gifts.

Philanthropy has the power to do a great deal of good, but so do tax dollars allocated in an equitable democratic system. Perhaps it’s time to adopt a Gospel of Government.

The agency also relies on industry data to develop rules on chemical safety that is often kept confidential for business reasons.

So why would he want to prohibit his own agency from using these studies? It’s not a mystery. Time and again the Trump administration has put the profits of regulated industries over the health of the American people. Fundamental research on the effects of air pollution on public health has long been a target of those who oppose the E.P.A.’s air quality regulations, like the rule that requires power plants to reduce their mercury emissions.

this doesn’t mean that we should follow public opinion.

Most important, it is fluid, inherently malleable and often simply wrong.

But we cannot do anything effectively, decide where to go, how to change things, really anything, if we don’t know what the current situation is.

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: