Group items tagged

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

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

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

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

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

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

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

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

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

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

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

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

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

The History of Animal Spirits: Dreams Never Sleep

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

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

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

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

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

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

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

Progress (Naturalness and Civilization)

The Economy of Good and Evil

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

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

The Need for Greed: The History of Consumption and Labor

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

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

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

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

Masters of the Truth

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How does this affect economics?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LABOR AND REST: THE SABBATH ECONOMY

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Medieval science was guided by "logical consistency."

The logical empiricist's conception of scientific progress was thus a continuous one; more comprehensive theory replaced compatible, older theory

Hempel also believed that science evolved in a continuous manner. New theory did not contradict past theory: "theory does not simply refute the earlier empirical generalizations in its field; rather, it shows that within a certain limited range defined by qualifying conditions, the generalizations hold true in fairly close approximation." [21]

movement combined induction, based on empiricism, and deduction in the form of logic

e notion of scientific realism held by Newton led to the evolutionary view of the progress of science

he entities and processes of theory were believed to exist in nature, and science should discover those entities and processes

Particularly disturbing discoveries were made in the area of atomic physics. For instance, Heisenberg's indeterminacy (25)principle, according to historian of science Cecil Schneer, yielded the conclusion that "the world of nature is indeterminate.

"even the fundamental principle of causality fail[ed] ."

was not until the second half of the twentieth century that the preservers of the evolutionary idea of scientific progress, the logical empiricists, were seriously challenged

revolutionary model of scientific change and examined the role of the scientific community in preventing and then accepting change. Kuhn's conception of scientific change occurring through revolutions undermined the traditional scientific goal, finding "truth" in nature

Textbooks inform scientists-to-be about this common body of knowledge and understanding.

for the world is too huge and complex to be explored randomly.

a scientist knows what facts are relevant and can build on past research

Normal science, as defined by Kuhn, is cumulative. New knowledge fills a gap of ignorance

ne standard product of the scientific enterprise is missing. Normal science does not aim at novelties of fact or theory and, when successful, finds none."

ntain a mechanism that uncovers anomaly, inconsistencies within the paradigm.

eventually, details arise that are inconsistent with the current paradigm

hese inconsistencies are eventually resolved or are ignored.

y concern a topic of central importance, a crisis occurs and normal science comes to a hal

that the scientists re-examine the foundations of their science that they had been taking for granted

it resolves the crisis better than the others, it offers promise for future research, and it is more aesthetic than its competitors. The reasons for converting to a new paradigm are never completely rational.

Unlike evolutionary science, in which new knowledge fills a gap of ignorance, in Kuhn's model new knowledge replaces incompatible knowledge.

In a sense, we have circled back to the ancient and medieval practice of separating scientific theory from physical reality; both medieval scientists and Kuhn would agree that no theory corresponds to reality and therefore any number of theories might equally well explain a natural phenomenon. [36] Neither twentieth-century atomic theorists nor medieval astronomers are able to claim that their theories accurately describe physical phenomena. The inability to return to scientific realism suggests a tripartite division of the history of science, with a period of scientific realism fitting between two periods in which there is no insistence that theory correspond to reality. Although both scientific realism and the evolutionary idea of scientific progress appeal to common sense, both existed for only a few hundred years.

it is as if two magic coins, flipped at different corners of the cosmos, always came up heads or tails together. (The spooky action takes place only in the context of simultaneous measurement. The particles share states, but they don’t send signals.)

fashion, temperament, zeitgeist, and sheer tenacity affected the debate, along with evidence and argument.

The certainty that spooky action at a distance takes place, Musser says, challenges the very notion of “locality,” our intuitive sense that some stuff happens only here, and some stuff over there. What’s happening isn’t really spooky action at a distance; it’s spooky distance, revealed through an action.

Why, then, did Einstein’s question get excluded for so long from reputable theoretical physics? The reasons, unfolding through generations of physicists, have several notable social aspects,

What started out as a reductio ad absurdum became proof that the cosmos is in certain ways absurd. What began as a bug became a feature and is now a fact.

“If poetry is emotion recollected in tranquility, then science is tranquility recollected in emotion.” The seemingly neutral order of the natural world becomes the sounding board for every passionate feeling the physicist possesses.

Musser explains that the big issue was settled mainly by being pushed aside. Generational imperatives trumped evidentiary ones. The things that made Einstein the lovable genius of popular imagination were also the things that made him an easy object of condescension. The hot younger theorists patronized him,

There was never a decisive debate, never a hallowed crucial experiment, never even a winning argument to settle the case, with one physicist admitting, “Most physicists (including me) accept that Bohr won the debate, although like most physicists I am hard pressed to put into words just how it was done.”

Arguing about non-locality went out of fashion, in this account, almost the way “Rock Around the Clock” displaced Sinatra from the top of the charts.

The same pattern of avoidance and talking-past and taking on the temper of the times turns up in the contemporary science that has returned to the possibility of non-locality.

the revival of “non-locality” as a topic in physics may be due to our finding the metaphor of non-locality ever more palatable: “Modern communications technology may not technically be non-local but it sure feels that it is.”

Living among distant connections, where what happens in Bangalore happens in Boston, we are more receptive to the idea of such a strange order in the universe.

The “indeterminacy” of the atom was, for younger European physicists, “a lesson of modernity, an antidote to a misplaced Enlightenment trust in reason, which German intellectuals in the 1920’s widely held responsible for their country’s defeat in the First World War.” The tonal and temperamental difference between the scientists was as great as the evidence they called on.

Science isn’t a slot machine, where you drop in facts and get out truths. But it is a special kind of social activity, one where lots of different human traits—obstinacy, curiosity, resentment of authority, sheer cussedness, and a grudging readiness to submit pet notions to popular scrutiny—end by producing reliable knowledge

What was magic became mathematical and then mundane. “Magical” explanations, like spooky action, are constantly being revived and rebuffed, until, at last, they are reinterpreted and accepted. Instead of a neat line between science and magic, then, we see a jumpy, shifting boundary that keeps getting redrawn

Real-world demarcations between science and magic, Musser’s story suggests, are like Bugs’s: made on the move and as much a trap as a teaching aid.

In the past several decades, certainly, the old lines between the history of astrology and astronomy, and between alchemy and chemistry, have been blurred; historians of the scientific revolution no longer insist on a clean break between science and earlier forms of magic.

Where once logical criteria between science and non-science (or pseudo-science) were sought and taken seriously—Karl Popper’s criterion of “falsifiability” was perhaps the most famous, insisting that a sound theory could, in principle, be proved wrong by one test or another—many historians and philosophers of science have come to think that this is a naïve view of how the scientific enterprise actually works.

They see a muddle of coercion, old magical ideas, occasional experiment, hushed-up failures—all coming together in a social practice that gets results but rarely follows a definable logic.

Yet the old notion of a scientific revolution that was really a revolution is regaining some credibility.

David Wootton, in his new, encyclopedic history, “The Invention of Science” (Harper), recognizes the blurred lines between magic and science but insists that the revolution lay in the public nature of the new approach.

What killed alchemy was the insistence that experiments must be openly reported in publications which presented a clear account of what had happened, and they must then be replicated, preferably before independent witnesses.

Wootton, while making little of Popper’s criterion of falsifiability, makes it up to him by borrowing a criterion from his political philosophy. Scientific societies are open societies. One day the lunar tides are occult, the next day they are science, and what changes is the way in which we choose to talk about them.

Wootton also insists, against the grain of contemporary academia, that single observed facts, what he calls “killer facts,” really did polish off antique authorities

once we agree that the facts are facts, they can do amazing work. Traditional Ptolemaic astronomy, in place for more than a millennium, was destroyed by what Galileo discovered about the phases of Venus. That killer fact “serves as a single, solid, and strong argument to establish its revolution around the Sun, such that no room whatsoever remains for doubt,” Galileo wrote, and Wootton adds, “No one was so foolish as to dispute these claims.

everal things flow from Wootton’s view. One is that “group think” in the sciences is often true think. Science has always been made in a cloud of social networks.

There has been much talk in the pop-sci world of “memes”—ideas that somehow manage to replicate themselves in our heads. But perhaps the real memes are not ideas or tunes or artifacts but ways of making them—habits of mind rather than products of mind

science, then, a club like any other, with fetishes and fashions, with schemers, dreamers, and blackballed applicants? Is there a real demarcation to be made between science and every other kind of social activity

The claim that basic research is valuable because it leads to applied technology may be true but perhaps is not at the heart of the social use of the enterprise. The way scientists do think makes us aware of how we can think

In school, one learns about “the scientific method”—usually a straightforward set of steps, along the lines of “ask a question, propose a hypothesis, perform an experiment, analyze the results.”

That method works in the classroom, where students are basically told what questions to pursue. But real scientists must come up with their own questions, finding new routes through a much vaster landscape.

Since science began, there has been disagreement about how those routes are charted. Two twentieth-century philosophers of science, Karl Popper and Thomas Kuhn, are widely held to have offered the best accounts of this process.

For Popper, Strevens writes, “scientific inquiry is essentially a process of disproof, and scientists are the disprovers, the debunkers, the destroyers.” Kuhn’s scientists, by contrast, are faddish true believers who promulgate received wisdom until they are forced to attempt a “paradigm shift”—a painful rethinking of their basic assumptions.

Working scientists tend to prefer Popper to Kuhn. But Strevens thinks that both theorists failed to capture what makes science historically distinctive and singularly effective.

Sometimes they seek to falsify theories, sometimes to prove them; sometimes they’re informed by preëxisting or contextual views, and at other times they try to rule narrowly, based on t

Why do scientists agree to this scheme? Why do some of the world’s most intelligent people sign on for a lifetime of pipetting?

Strevens thinks that they do it because they have no choice. They are constrained by a central regulation that governs science, which he calls the “iron rule of explanation.” The rule is simple: it tells scientists that, “if they are to participate in the scientific enterprise, they must uncover or generate new evidence to argue with”; from there, they must “conduct all disputes with reference to empirical evidence alone.”

, it is “the key to science’s success,” because it “channels hope, anger, envy, ambition, resentment—all the fires fuming in the human heart—to one end: the production of empirical evidence.”

Strevens arrives at the idea of the iron rule in a Popperian way: by disproving the other theories about how scientific knowledge is created.

The problem isn’t that Popper and Kuhn are completely wrong. It’s that scientists, as a group, don’t pursue any single intellectual strategy consistently.

Exploring a number of case studies—including the controversies over continental drift, spontaneous generation, and the theory of relativity—Strevens shows scientists exerting themselves intellectually in a variety of ways, as smart, ambitious people usually do.

“Science is boring,” Strevens writes. “Readers of popular science see the 1 percent: the intriguing phenomena, the provocative theories, the dramatic experimental refutations or verifications.” But, he says,behind these achievements . . . are long hours, days, months of tedious laboratory labor. The single greatest obstacle to successful science is the difficulty of persuading brilliant minds to give up the intellectual pleasures of continual speculation and debate, theorizing and arguing, and to turn instead to a life consisting almost entirely of the production of experimental data.

Ultimately, in fact, it was good that the geologists had a “splendid variety” of somewhat arbitrary opinions: progress in science requires partisans, because only they have “the motivation to perform years or even decades of necessary experimental work.” It’s just that these partisans must channel their energies into empirical observation. The iron rule, Strevens writes, “has a valuable by-product, and that by-product is data.”

Science is often described as “self-correcting”: it’s said that bad data and wrong conclusions are rooted out by other scientists, who present contrary findings. But Strevens thinks that the iron rule is often more important than overt correction.

Eddington was never really refuted. Other astronomers, driven by the iron rule, were already planning their own studies, and “the great preponderance of the resulting measurements fit Einsteinian physics better than Newtonian physics.” It’s partly by generating data on such a vast scale, Strevens argues, that the iron rule can power science’s knowledge machine: “Opinions converge not because bad data is corrected but because it is swamped.”

Why did the iron rule emerge when it did? Strevens takes us back to the Thirty Years’ War, which concluded with the Peace of Westphalia, in 1648. The war weakened religious loyalties and strengthened national ones.

Two regimes arose: in the spiritual realm, the will of God held sway, while in the civic one the decrees of the state were paramount. As Isaac Newton wrote, “The laws of God & the laws of man are to be kept distinct.” These new, “nonoverlapping spheres of obligation,” Strevens argues, were what made it possible to imagine the iron rule. The rule simply proposed the creation of a third sphere: in addition to God and state, there would now be science.

Strevens imagines how, to someone in Descartes’s time, the iron rule would have seemed “unreasonably closed-minded.” Since ancient Greece, it had been obvious that the best thinking was cross-disciplinary, capable of knitting together “poetry, music, drama, philosophy, democracy, mathematics,” and other elevating human disciplines.

We’re still accustomed to the idea that a truly flourishing intellect is a well-rounded one. And, by this standard, Strevens says, the iron rule looks like “an irrational way to inquire into the underlying structure of things”; it seems to demand the upsetting “suppression of human nature.”

Descartes, in short, would have had good reasons for resisting a law that narrowed the grounds of disputation, or that encouraged what Strevens describes as “doing rather than thinking.”

In fact, the iron rule offered scientists a more supple vision of progress. Before its arrival, intellectual life was conducted in grand gestures.

Descartes’s book was meant to be a complete overhaul of what had preceded it; its fate, had science not arisen, would have been replacement by some equally expansive system. The iron rule broke that pattern.

Strevens sees its earliest expression in Francis Bacon’s “The New Organon,” a foundational text of the Scientific Revolution, published in 1620. Bacon argued that thinkers must set aside their “idols,” relying, instead, only on evidence they could verify. This dictum gave scientists a new way of responding to one another’s work: gathering data.

it also changed what counted as progress. In the past, a theory about the world was deemed valid when it was complete—when God, light, muscles, plants, and the planets cohered. The iron rule allowed scientists to step away from the quest for completeness.

The consequences of this shift would become apparent only with time

In 1713, Isaac Newton appended a postscript to the second edition of his “Principia,” the treatise in which he first laid out the three laws of motion and the theory of universal gravitation. “I have not as yet been able to deduce from phenomena the reason for these properties of gravity, and I do not feign hypotheses,” he wrote. “It is enough that gravity really exists and acts according to the laws that we have set forth.”

What mattered, to Newton and his contemporaries, was his theory’s empirical, predictive power—that it was “sufficient to explain all the motions of the heavenly bodies and of our sea.”

Descartes would have found this attitude ridiculous. He had been playing a deep game—trying to explain, at a fundamental level, how the universe fit together. Newton, by those lights, had failed to explain anything: he himself admitted that he had no sense of how gravity did its work

by authorizing what Strevens calls “shallow explanation,” the iron rule offered an empirical bridge across a conceptual chasm. Work could continue, and understanding could be acquired on the other side. In this way, shallowness was actually more powerful than depth.

Quantum theory—which tells us that subatomic particles can be “entangled” across vast distances, and in multiple places at the same time—makes intuitive sense to pretty much nobody.

Without the iron rule, Strevens writes, physicists confronted with such a theory would have found themselves at an impasse. They would have argued endlessly about quantum metaphysics.

ollowing the iron rule, they can make progress empirically even though they are uncertain conceptually. Individual researchers still passionately disagree about what quantum theory means. But that hasn’t stopped them from using it for practical purposes—computer chips, MRI machines, G.P.S. networks, and other technologies rely on quantum physics.

One group of theorists, the rationalists, has argued that science is a new way of thinking, and that the scientist is a new kind of thinker—dispassionate to an uncommon degree.

As evidence against this view, another group, the subjectivists, points out that scientists are as hopelessly biased as the rest of us. To this group, the aloofness of science is a smoke screen behind which the inevitable emotions and ideologies hide.

At least in science, Strevens tells us, “the appearance of objectivity” has turned out to be “as important as the real thing.”

The subjectivists are right, he admits, inasmuch as scientists are regular people with a “need to win” and a “determination to come out on top.”

But they are wrong to think that subjectivity compromises the scientific enterprise. On the contrary, once subjectivity is channelled by the iron rule, it becomes a vital component of the knowledge machine. It’s this redirected subjectivity—to come out on top, you must follow the iron rule!—that solves science’s “problem of motivation,” giving scientists no choice but “to pursue a single experiment relentlessly, to the last measurable digit, when that digit might be quite meaningless.”

If it really was a speech code that instigated “the extraordinary attention to process and detail that makes science the supreme discriminator and destroyer of false ideas,” then the peculiar rigidity of scientific writing—Strevens describes it as “sterilized”—isn’t a symptom of the scientific mind-set but its cause.

The iron rule—“a kind of speech code”—simply created a new way of communicating, and it’s this new way of communicating that created science.

Other theorists have explained science by charting a sweeping revolution in the human mind; inevitably, they’ve become mired in a long-running debate about how objective scientists really are

In “The Knowledge Machine: How Irrationality Created Modern Science” (Liveright), Michael Strevens, a philosopher at New York University, aims to identify that special something. Strevens is a philosopher of science

Compared with the theories proposed by Popper and Kuhn, Strevens’s rule can feel obvious and underpowered. That’s because it isn’t intellectual but procedural. “The iron rule is focused not on what scientists think,” he writes, “but on what arguments they can make in their official communications.”

Like everybody else, scientists view questions through the lenses of taste, personality, affiliation, and experience

geologists had a professional obligation to take sides. Europeans, Strevens reports, tended to back Wegener, who was German, while scholars in the United States often preferred Simpson, who was American. Outsiders to the field were often more receptive to the concept of continental drift than established scientists, who considered its incompleteness a fatal flaw.

Strevens’s point isn’t that these scientists were doing anything wrong. If they had biases and perspectives, he writes, “that’s how human thinking works.”

Eddington’s observations were expected to either confirm or falsify Einstein’s theory of general relativity, which predicted that the sun’s gravity would bend the path of light, subtly shifting the stellar pattern. For reasons having to do with weather and equipment, the evidence collected by Eddington—and by his colleague Frank Dyson, who had taken similar photographs in Sobral, Brazil—was inconclusive; some of their images were blurry, and so failed to resolve the matter definitively.

it was only natural for intelligent people who were free of the rule’s strictures to attempt a kind of holistic, systematic inquiry that was, in many ways, more demanding. It never occurred to them to ask if they might illuminate more collectively by thinking about less individually.

In the single-sphered, pre-scientific world, thinkers tended to inquire into everything at once. Often, they arrived at conclusions about nature that were fascinating, visionary, and wrong.

How Does Science Really Work?Science is objective. Scientists are not. Can an “iron rule” explain how they’ve changed the world anyway?By Joshua RothmanSeptember 28, 2020

Kuhn looked at the history of science and argued that science does not simply progress by stages based upon neutral observations

For Kuhn, the history of science is characterized by revolutions in scientific outlook. Scientists have a worldview or "paradigm"

A paradigm is a universally recognizable scientific achievement that, for a time, provides model problems and solutions to a community of practitioners.

Scientists accept the dominant paradigm until anomalies are thrown up.  Scientists then begin to question the basis of the paradigm itself, new theories emerge which challenge the dominant paradigm and eventually one of these new theories becomes accepted as the new paradigm.

A particular work may “define the legitimate problems and methods of a research field for succeeding generations of practitioners.”

This is where the paradigm shift occurs.

The pre-paradigmatic state refers to a period before a scientific consensus has been reached.

Phase 2: Normal Science

A paradigm is established which lays the foundations for legitimate work within the discipline. Scientific work then consists in articulation of the paradigm, in solving puzzles that it throws up.

It is necessary for normal science to be uncritical. If all scientists were critical of a theory and spent time trying to falsify it, no detailed work would ever get done.

Phase 1: Pre-sciencePhase 1: Pre-science

Phase 3: Crisis

"Normal Science, the activity in which most scientists inevitably spend almost all of their time, is predicated on the assumption that the scientific community knows what the world is like