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that memory is not a video recorder [but that] it’s a constructive activity that is in many ways accurate but prone to interesting errors and distortions. It’s the constructive side of memory that is most relevant to historians.

Is it the case then that our memories constantly change every time we access them?

That certainly can happen depending on how you recount a memory. What you emphasize. What you exaggerate. What you don’t talk about. All of those things will shape and sculpt the memory for future use. Certainly the potential is there.

Research on memory shows that the more distant in time the event, the more prone to inaccuracy the memory. There are several experiments when subjects recorded impressions of an event soon afterward, then a year later and then a few years later, and the memory changed.Yes. It’s not that the information is lost but, as the memory weakens, you become more prone to incorporating other kinds of information or mixing up elements of other events. This has been seen, for example, in the study of flashbulb memories. Where were you when Kennedy was shot? Where were you when you heard about 9/11?

Isn’t there a tendency to add details or information that may make the story more convincing or interesting later?Yes. That’s more a social function of memory. It may be that you draw on your general knowledge and probable information from your memory in a social context where there may be social demands that lead you distort the memory.

What are the different memory systems?

What is the difference between working memory and permanent memory?Working memory is really a temporary memory buffer where you hold onto information, manipulate information, use it, and it’s partly a gateway to long-term memory and also a buffer that you use when you’re retrieving information from long-term memory and that information temporarily resides in working memory, so to speak.

Your discussion of the testimony of White House Counsel John Dean about Watergate is illuminating. There was a perception that Dean had a photographic memory and he testified in rich detail about events. Yet later studies of White House tape recordings revealed that he was often inaccurate.

He was perceived because of all the detail with which he reported events and the great confidence to be something analogous to a human tape recorder. Yet there was interesting work done by psychologist Ulric Neisser who went back and analyzed what Dean said at the hearings as compared to available information on the White House taping system and basically found many and significant discrepancies between what Dean remembered and what was actually said. He usually had the gist and the meaning and overall significance right, but the exact details were often quite different in his memory than what actually was said.

That seems to get into the area of false memories and how they present problems in the legal system.We know from DNA exonerations of people wrongfully convicted of crimes that a large majority of those cases -- one of the more recent estimates is that in the first 250 cases of 2011 DNA exonerations, roughly 70 to 75 percent of those individuals were convicted on the basis of faulty eyewitness memory.

One of the interesting recent lines of research that my lab has been involved in over the past few years has been looking at similarities between what goes on between the brain and mind when we remember past events on the one hand and imagine events that might occur in the future or might have occurred in the past. What we have found, particularly with brain scanning studies, is that you get very similar brain networks coming online when you remember past events and imagine future events, for example. Many of the same brain regions or network of structures come online, and this has helped us understand more why, for example, imagining events that might have occurred can be so harmful to memory accuracy because when you imagine, you’re recruiting many of the same brain regions as accessed when you actually remember. So it’s not surprising that some of these imagined events can actually turn into false memories under the right circumstances.

One reasonably well accepted distinction involves episodic memory, the memory for personal experience; semantic memory, the memory for general knowledge; and procedural memory, the memory for skills and unconscious forms of memory.Those are three of the major kinds of memory and they all have different neural substrates.

One of the points from that Ross Perot study is that his supporters often misremembered what they felt like at the time he reported he had dropped out of the race. The nature of that misremembering depended on their state at the time they were remembering and what decisions they had made about Perot in the interim affected how they reconstructed their earlier memories.Again, that makes nicely the point that our current emotions and current appraisals of a situation can feed back into our reconstruction of the past and sometimes lead us to distort our memories so that they better support our current emotions and our current selves. We’re often using memories to justify what we currently know, believe and feel.

memory doesn’t work like a video camera or tape recorder.That is the main point. Our latest thinking on this is the idea that one of the major functions of memory is to support our ability to plan for the future, to imagine the future, and to use our past experiences in a flexible way to simulate different outcomes of events.

flexibility of memory is something that makes it useful to support this very important ability to run simulations of future events. But that very flexibility might be something that contributes to some of the memory distortion we talked about. That has been prominent in the last few years in my thinking about the constructive nature of memory.

The historian Daniel Aaron told his students “we remember what’s important.” What do you think of that comment?I think that generally holds true. Certainly, again, more important memories tend to be more significant with more emotional arousal and may elicit “deeper processing”, as we call it in cognitive psychology

Research has repeatedly shown that false memories can feel incredibly real and can be multi-sensory: In some, we can hear, feel, or see things, just like in real memories. Indeed, to be considered a false memory it can't be a lie, it needs to be part of our reality.

I found that if someone has a false memory, we probably can't tell just by looking at the memory. What may be more surprising is that people also seem to be no better than chance at identifying true memories.

Source confusion. What we learn from multiple sources about the same topic can very quickly become confused.

In both studies, participants were no better than chance at spotting whether a memory was true or false

It seems people were actively relying on bad cues when listening to the memories, and somehow these cues made them worse than had they tossed a coin.

Participants watched a video of a person recounting a true emotional memory, and the same person recount a false memory. They were told "All, some, or none of the videos you are about to watch involve memories of real accounts. Your task is to identify after each video whether you think the account described actually happened or not.".

What this means is that if you already have false memories of what you have done, heard, or seen during the COVID-19 pandemic, you probably can't spot them.

This can lead to creating false memories based on source confusion, which is when we misattribute where you learned something.

During these unusual times you may want to consider implementing additional safeguards to keep your memories safe.

Co-witness contamination. We are all witnesses of this world event, witnesses who are talking to each other all the time. If the COVID-19 pandemic were a crime scene, this would be really bad news.

Sameness. Every day we hear unprecedented news or horrific medical stories. But after weeks or months of the same type of information, with a reduction in the amount of new and exciting things happening elsewhere, it gets difficult to separate this long stream of information into meaningful bits.

Too late? Already think you or someone else has false memories? Look for independent evidence. You can check the news to see when you actually went into lockdown, or whether you tweeted something about how you felt, or maybe ask a friend what you said to them. That can help establish whether you have a false memory or not.

If you want reliable memories of this highly emotional time you need to keep a journal.

Assume that those feelings, ideas, fears, beliefs, and experiences will be forgotten. People are generally bad at remembering these details later on.

Fake news. Some of the content we see online will be false or misleading.

Research has repeatedly shown that false memories can feel incredibly real and can be multi-sensory: In some, we can hear, feel, or see things, just like in real memories.

But this week new research takes this even further, and shows that false memories also look real to other people.

Both your memory of the news, and your memories of emotional events that are happening in your life are possibly being changed or contaminated.

Prevention and evidence are what you need, because it's likely that once you have a false memory, neither you nor anyone else will be able to spot it.

People believe that memory should be effortless, but their expectations for how much they should remember are totally out of whack with how much they’re capable of remembering.1

What is the most common misconception about memory?

Another misconception is that memory is supposed to be an archive of the past. We expect that we should be able to replay the past like a movie in our heads.

we don’t replay the past as it happened; we do it through a lens of interpretation and imagination.

How much are we capable of remembering, from both an episodic2 2 Episodic memory is the term for the memory of life experiences. and a semantic3 3 Semantic memory is the term for the memory of facts and knowledge about the world. standpoint?

I would argue that we’re all everyday-memory experts, because we have this exceptional semantic memory, which is the scaffold for episodic memory.

If what we’re remembering, or the emotional tenor of what we’re remembering, is dictated by how we’re thinking in a present moment, what can we really say about the truth of a memory?

But if memories are malleable, what are the implications for how we understand our “true” selves?

your question gets to a major purpose of memory, which is to give us an illusion of stability in a world that is always changing. Because if we look for memories, we’ll reshape them into our beliefs of what’s happening right now. We’ll be biased in terms of how we sample the past. We have these illusions of stability, but we are always changing

And depending on what memories we draw upon, those life narratives can change.

I know it sounds squirmy to say, “Well, I can’t answer the question of how much we remember,” but I don’t want readers to walk away thinking memory is all made up.

One thing that makes the human brain so sophisticated is that we have a longer timeline in which we can integrate information than many other species. That gives us the ability to say: “Hey, I’m walking up and giving money to the cashier at the cafe. The barista is going to hand me a cup of coffee in about a minute or two.”

There is this illusion that we know exactly what’s going to happen, but the fact is we don’t. Memory can overdo it: Somebody lied to us once, so they are a liar; somebody shoplifted once, they are a thief.

If people have a vivid memory of something that sticks out, that will overshadow all their knowledge about the way things work. So there’s kind of an illus

we have this illusion that much of the world is cause and effect. But the reason, in my opinion, that we have that illusion is that our brain is constantly trying to find the patterns

I think of memory more like a painting than a photograph. There’s often photorealistic aspects of a painting, but there’s also interpretation. As a painter evolves, they could revisit the same subject over and over and paint differently based on who they are now. We’re capable of remembering things in extraordinary detail, but we infuse meaning into what we remember. We’re designed to extract meaning from the past, and that meaning should have truth in it. But it also has knowledge and imagination and, sometimes, wisdom.

memory, often, is educated guesses by the brain about what’s important. So what’s important? Things that are scary, things that get your desire going, things that are surprising. Maybe you were attracted to this person, and your eyes dilated, your pulse went up. Maybe you were working on something in this high state of excitement, and your dopamine was up.

It could be any of those things, but they’re all important in some way, because if you’re a brain, you want to take what’s surprising, you want to take what’s motivationally important for survival, what’s new.

On the more intentional side, are there things that we might be able to do in the moment to make events last in our memories? In some sense, it’s about being mindful. If we want to form a new memory, focus on aspects of the experience you want to take with you.

If you’re with your kid, you’re at a park, focus on the parts of it that are great, not the parts that are kind of annoying. Then you want to focus on the sights, the sounds, the smells, because those will give you rich detail later on

Another part of it, too, is that we kill ourselves by inducing distractions in our world. We have alerts on our phones. We check email habitually.

When we go on trips, I take candid shots. These are the things that bring you back to moments. If you capture the feelings and the sights and the sounds that bring you to the moment, as opposed to the facts of what happened, that is a huge part of getting the best of memory.

this goes back to the question of whether the factual truth of a memory matters to how we interpret it. I think it matters to have some truth, but then again, many of the truths we cling to depend on our own perspective.

There’s a great experiment on this. These researchers had people read this story about a house.8 8 The study was “Recall of Previously Unrecallable Information Following a Shift in Perspective,” by Richard C. Anderson and James W. Pichert. One group of subjects is told, I want you to read this story from the perspective of a prospective home buyer. When they remember it, they remember all the features of the house that are described in the thing. Another group is told, I want you to remember this from the perspective of a burglar. Those people tend to remember the valuables in the house and things that you would want to take. But what was interesting was then they switched the groups around. All of a sudden, people could pull up a number of details that they didn’t pull up before. It was always there, but they just didn’t approach it from that mind-set. So we do have a lot of information that we can get if we change our perspective, and this ability to change our perspective is exceptionally important for being accurate. It’s exceptionally important for being able to grow and modify our beliefs

Two of the most important factors, Peterson explained, are whether the memory “has emotion infused in it,” and whether the memory is coherent: Does the story our memory tells us actually hang together and make sense when we recall it later?

A professor at the University of North Carolina-Chapel Hill, Reznick explained that shortly after birth, infants can start forming impressions of faces and react when they see those faces again; this is recognition memory. The ability to understand words and learn language relies on working memory, which kicks in at around six months old. More sophisticated forms of memory develop in the child’s second year, as semantic memory allows children to retain understanding of concepts and general knowledge about the world.

I formed earlier memories using more rudimentary, pre-verbal means, and that made those memories unreachable as the acquisition of language reshaped how my mind works, as it does for everyone.

False memories do exist, but their construction appears to begin much later in life

A study by Peterson presented young children with fictitious events to see if they could be misled into remembering these non-existent events, yet the children almost universally avoided the bait. As for why older children and adults begin to fill in gaps in their memories with invented details, she pointed out that memory is a fundamentally constructive activity: We use it to build understanding of the world, and that sometimes requires more complete narratives than our memories can recall by themselves.

as people get older, it becomes easier to conflate actual memories with other stimuli.

He explained that recognition memory is our most pervasive system, and that associations with my hometown I formed as an infant could well have endured more than 20 years later, however vaguely.

give me enough time, and I’m sure that detail will be added to my memory. It’s just too perfect a story.

Experts have managed to turn people off all sorts of foods by convincing them it had made them ill when they were a child

“People have a life story, particularly as they get older and for some people it needs to stretch back to the very early stage of life,”

The prevailing account of how we come to believe and remember things is based around the concept of source monitoring. “Every time a thought comes to mind we have to make a decision – have we experienced it [an event], imagined it or have we talked about it with other people,” says Kimberley Wade

Most of the time we make that decision correctly and can identify where these mental experiences come from, but sometimes we get it wrong.

Wade admits she has spent a lot of time recalling an event that was actually something her brother experienced rather than herself, but despite this, it is rich in detail and provokes emotion

Memory researchers have shown it is possible to induce fictional autobiographical memories in volunteers, including accounts of getting lost in a shopping mall and even having tea with a member of the Royal Family

Based on my research, everybody is capable of forming complex false memories, given the right circumstances – Julia Shaw

In some situations, such as after looking at pictures or a video, children are more susceptible to forming false memories than adults. People with certain personality types are also thought to be more prone.

But carrying around false memories from your childhood could be having a far greater impact on you than you may realise too. The events, emotions and experiences we remember from our early years can help to shape who we are as adults, determining our likes, dislikes, fears and even our behaviour.

Memories before the age of three are more than likely to be false. Any that appear very fluid and detailed, as if you were playing back a home video and experiencing a chronological account of a memory, could well also be made up. It is more likely that fuzzy fragments, or snapshots of moments are real, as long as they are not from too early in your life.

We crave a cohesive narrative of our own existence and will even invent stories to give us a more complete picture

Interestingly, scientists have also found positive suggestions, such as “you loved asparagus the first time you ate it” tend to be more effective than negative suggestions like “you got sick drinking vodka”

“Miscarriage of justice, incarceration, loss of reputation, job and status, and family breakdown occur,

One of the major problems with legal cases involving false memories, is that it is currently impossible to distinguish between true and fictional recollections

Efforts have been made to analyse minor false memories in a brain scanner (fMRI) and detect different neurological patterns, but there is nothing as yet to indicate that this technology can be used to detect whether recollections have become distorted.

the most extreme case of memory implantation involves a controversial technique called “regression therapy”, where patients confront childhood traumas, supposedly buried in their subconscious

“Memories are malleable and tend to change slightly each time we revisit them, in the same way that spoken stories do,”

“Therefore at each recollection, new elements can easily be integrated while existing elements can be altered or lost.”

This is not to say that all evidence that relies on memory should be discarded or regarded as unreliable – they often provide the most compelling testimony in criminal cases. But it has led to rules and guidelines about how witnesses and victims should be questioned to ensure their recollections of an event or perpetrator are not contaminated by investigators or prosecutors.

Any memories that appear very fluid and detailed, as if you were playing back a home video, could well also be made up

While this may seem like a bit of fun, many scientists believe the “false memory diet” could be used to tackle obesity and encourage people to reach for healthier options like asparagus, or even help cut people’s alcohol consumption.

Children are more susceptible to forming false memories than adults, especially after looking at photographs or films

And we may not want to rid ourselves of these memories. Our memories, whether fictional or not, can help to bring us closer together.

Loftus’s research has already rattled our justice system, which relies so heavily on eyewitness testimonies.

“It’s so powerful when somebody tells you something and they have a lot of detail,” Loftus said. “Especially when they express emotion. To just say, ‘Oh my god it must be true.’ But all those characteristics are also true of false memories, particularly the heavily rehearsed ones that you ruminate over. They can be very detailed. You can be confident. You can be emotional. So you need independent corroboration.”

When later asked about the events, the superior memory subjects indicated the erroneous facts as truth at about the same rate as people with normal memory.

been able to successfully convince ordinary people that they were lost in a mall in their childhood, pointed out that false memory recollections also occur among high profile people.

All memory, as McGaugh explained, is colored with bits of life experiences. When people recall, “they are reconstructing,” he said. “It doesn't mean it’s totally false. It means that they’re telling a story about themselves and they’re integrating things they really do remember in detail, with things that are generally true.”

“puzzling why (Highly Superior Autobiographical Memory) individuals remember some trivial details, such as what they had for lunch 10 years ago, but not others, such as words on a word list or photographs in a slideshow,” Patihis and colleagues noted in the PNAS study. “The answer to this may be that they may extract some personally relevant meaning from only some trivial details and weave them into the narrative for a given day.”

For all of us, the stronger the emotion attached to a moment, the more likely those parts of our brains involved in memory will become activated.

“Why did evolution do that?” McGaugh said. “Because it was essential for our survival.

We now know animals are likely susceptible to memory distortions too, as MIT researchers recently were able to successfully plant false memories in mice.

“We’re all creating stories. Our lives are stories in that sense.”

“but you as the writer have the obligation to get as close to the truth as you possibly can,” Meyer said

The mind and its memory do not just record and retrieve information and experiences, but also infer, fill in gaps, and construct, wrote Bryan Boyd wrote in On the Origin of Stories. “Episodic memory’s failure to provide exact replicas of experiences appears to not be a limitation of memory but an adaptive design.”

Barrett is a professor of psychology at Northeastern

her research has led her to conclude that each of us constructs them in our own individual ways, from a diversity of sources: our internal sensations, our reactions to the environments we live in, our ever-evolving bodies of experience and learning, our cultures.

if Barrett is correct, we’ll need to rethink how we interpret mental illness, how we understand the mind and self, and even what psychology as a whole should become in the 21st century.

The problem was the options that Ekman had given his subjects when asking them to identify the emotions shown on the faces they were presented with. Those options, Barrett discovered, had limited the ways in which people allowed themselves to think. Barrett explained the problem to me this way: “I can break that experiment really easily, just by removing the words. I can just show you a face and ask how this person feels. Or I can show you two faces, two scowling faces, and I can say, ‘Do these people feel the same thing?’ And agreement drops into the toilet.”

Just as that first picture of the bee actually wasn’t a picture of a bee for me until I taught myself that it was, my emotions aren’t actually emotions until I’ve taught myself to think of them that way. Without that, I have only a meaningless mishmash of information about what I’m feeling.

emotion isn’t a simple reflex or a bodily state that’s hard-wired into our DNA, and it’s certainly not universally expressed. It’s a contingent act of perception that makes sense of the information coming in from the world around you, how your body is feeling in the moment, and everything you’ve ever been taught to understand as emotion. Culture to culture, person to person even, it’s never quite the same. What’s felt as sadness in one person might as easily be felt as weariness in another, or frustration in someone else.

The brain, it turns out, doesn’t consciously process every single piece of information that comes its way. Think of how impossibly distracting the regular act of blinking would be if it did. Instead, it pays attention to what you need to pay attention to, then raids your memory stores to fill in the blanks.

In many quarters, Barrett was angrily attacked for her ideas, and she’s been the subject of criticism ever since. “I think Lisa does a disservice to the actual empirical progress that we’re making,” says Dacher Keltner, a Berkeley psychologist

Keltner told me that he himself has coded thousands of facial expressions using Ekman’s system, and the results are strikingly consistent: Certain face-emotion combinations recur regularly, and others never occur. “That tells me, ‘Wow, this approach to distinct emotions has real power,’” he says.

Ekman reached the peak of his fame in the years following 2001. That’s the year the American Psychological Association named him one of the most influential psychologists of the 20th century. The next year, Malcolm Gladwell wrote an article about him in the New Yorker, and in 2003 he began working pro bono for the TSA. A year later, riding the updraft of success, he left his university post and started the Paul Ekman Group,

a small research team to visit the isolated Himba tribe in Namibia, in southern Africa. The plan was this: The team, led by Maria Gendron, would do a study similar to Ekman’s original cross-cultural one, but without providing any of the special words or context-heavy stories that Ekman had used to guide his subjects’ answers. Barrett’s researchers would simply hand a jumbled pile of different expressions (happy, sad, fearful, angry, disgusted, and neutral) to their subjects, and would ask them to sort them into six piles. If emotional expressions are indeed universal, they reasoned, then the Himba would put all low-browed, tight-lipped expressions into an anger pile, all wrinkled-nose faces into a disgust pile, and so on.

It didn’t happen that way. The Himba sorted some of the faces in ways that aligned with Ekman’s theory: smiling faces went into one pile, wide-eyed fearful faces went into another, and affectless faces went mostly into a third. But in the other three piles, the Himba mixed up angry scowls, disgusted grimaces, and sad frowns. Without any suggestive context, of the kind that Ekman had originally provided, they simply didn’t recognize the differences that leap out so naturally to Westerners.

“What we’re trying to do,” she told me, “is to just get people to pay attention to the fact that there’s a mountain of evidence that does not support the idea that facial expressions are universally recognized as emotional expressions.” That’s the crucial point, of course, because if we acknowledge that, then the entire edifice that Paul Ekman and others have been constructing for the past half-century comes tumbling down. And all sorts of things that we take for granted today—how we understand ourselves and our relationships with others, how we practice psychology

Barrett’s theory is still only in its infancy. But other researchers are beginning to take up her ideas, sometimes in part, sometimes in full, and where the science will take us as it expands is impossible to predict. It’s even possible that Barrett will turn out to be wrong, as she herself acknowledges. “Every scientist has to face that,” she says. Still, if she is right, then perhaps the most important change we’ll need to make is in our own heads. If our emotions are not universal physiological responses but concepts we’ve constructed from various biological signals and stashed memories, then perhaps we can exercise more control over our emotional lives than we’ve assumed.

“Every experience you have now is seeding your experience for the future,” Barrett told me. “Knowing that, would you choose to do what you’re doing now?” She paused a beat and looked me in the eye. “Well? Would you? You are the architect of your own experience.”

two and a half years later, the questionnaire was given a second time to the same students.

It was then that R. T. recalled, with absolute confidence, her dorm-room experience.

She didn’t know any details of what had happened,

We don’t really remember an uneventful day the way that we remember a fight or a first kiss.

Her hope is to understand how, exactly, emotional memories behave at all stages of the remembering process: how we encode them, how we consolidate and store them, how we retrieve them.

When it comes to the central details of the event, like that the Challenger exploded, they are clearer and more accurate. But when it comes to peripheral details, they are worse. And our confidence in them, while almost always strong, is often misplaced.

Within the brain, memories are formed and consolidated largely due to the help of a small seahorse-like structure called the hippocampus; damage the hippocampus, and you damage the ability to form lasting recollections.

A key element of emotional-memory formation is the direct line of communication between the amygdala and the visual cortex.

Phelps has combined Neisser’s experiential approach with the neuroscience of emotional memory to explore how such memories work, and why they work the way they do.

Memory for the emotional scenes was significantly higher, and the vividness of the recollection was significantly greater.

hat is, if you were shocked when you saw animals, your memory of the earlier animals was also enhanced. And, more important, the effect only emerged after six or twenty-four hours: the memory needed time to consolidate.

o, if memory for events is strengthened at emotional times, why does everyone forget what they were doing when the Challenger exploded?

The strength of the central memory seems to make us confident of all of the details when we should only be confident of a few.

Our misplaced confidence in recalling dramatic events is troubling when we need to rely on a memory for something important—evidence in court, for instance

After reviewing the evidence, the committee made several concrete suggestions to changes in current procedures, including “blinded” eyewitness identification

standardized instructions to witnesses, along with extensive police training in vision and memory research as it relates to eyewitness testimony, videotaped identification, expert testimony early on in trials about the issues surrounding eyewitness reliability, and early and clear jury instruction on any prior identifications

a reduction in REM sleep (or less “dreaming”) influences our ability to understand complex emotions in daily life – an essential feature of human social functioning

Dreams seem to help us process emotions by encoding and constructing memories of them. What we see and experience in our dreams might not necessarily be real, but the emotions attached to these experiences certainly are. Our dream stories essentially try to strip the emotion out of a certain experience by creating a memory of it. This way, the emotion itself is no longer active.  This mechanism fulfils an important role because when we don’t process our emotions, especially negative ones, this increases personal worry and anxiety.

In short, dreams help regulate traffic on that fragile bridge which connects our experiences with our emotions and memories.

In the future, one may be able to develop methods that help people to remember positive memories more strongly than negative ones," said Tonegawa.

Perhaps Fisher offers the nation an opportunity to divorce, once and for all, memory from history. History may be an attempt to memorialize and preserve the past, but it is not memory; memories can serve as primary sources, but they do not stand alone as history. A history is essentially a collection of memories, analyzed and reduced into meaningful conclusions—but that collection depends on the memories chosen.

Memories make for a risky foundation: As events recede further into the past, the facts are distorted or augmented by entirely new details

people construct unique memories while informing perfectly valid histories. Just as there is a plurality of memories, so, too, is there a plurality of histories.

Scholars who read a diverse set of historians who are all focused on the same specific period or event are engaging in historiography

This approach exposes textbooks as nothing more than a compilation of histories that the authors deemed to be most relevant and useful.

In historiography, the barrier between historian and student is dropped, exposing a conflict-ridden landscape. A diplomatic historian approaches an event from the perspective of the most influential statesmen (who are most often white males), analyzing the context, motives, and consequences of their decisions. A cultural historian peels back the objects, sights, and sounds of a period to uncover humanity’s underlying emotions and anxieties. A Marxist historian adopts the lens of class conflict to explain the progression of events. There are intellectual historians, social historians, and gender historians, among many others. Historians studying the same topic will draw different interpretations—sometimes radically so, depending on the sources they draw from

Jacoba Urist points out that history is "about explaining and interpreting past events analytically." If students are really to learn and master these analytical tools, then it is absolutely essential that they read a diverse set of historians and learn how brilliant men and women who are scrutinizing the same topic can reach different conclusions

Rather than constructing a curriculum based on the muddled consensus of boards, legislatures, and think tanks, schools should teach students history through historiography. The shortcomings of one historian become apparent after reading the work of another one on the list.

Although, as Urist notes, the AP course is "designed to teach students to think like historians," my own experience in that class suggests that it fails to achieve that goal.

The course’s framework has always served as an outline of important concepts aiming to allow educators flexibility in how to teach; it makes no reference to historiographical conflicts. Historiography was an epiphany for me because I had never before come face-to-face with how historians think and reason

When I took AP U.S. History, I jumbled these diverse histories into one indistinct narrative. Although the test involved open-ended essay questions, I was taught that graders were looking for a firm thesis—forcing students to adopt a side. The AP test also, unsurprisingly, rewards students who cite a wealth of supporting details

By the time I took the test in 2009, I was a master at "checking boxes," weighing political factors equally against those involving socioeconomics and ensuring that previously neglected populations like women and ethnic minorities received their due. I did not know that I was pulling ideas from different historiographical traditions. I still subscribed to the idea of a prevailing national narrative and served as an unwitting sponsor of synthesis, oblivious to the academic battles that made such synthesis impossible.

Although there may be an inclination to seek to establish order where there is chaos, that urge must be resisted in teaching history. Public controversies over memory are hardly new. Students must be prepared to confront divisiveness, not conditioned to shoehorn agreement into situations where none is possible

When conflict is accepted rather than resisted, it becomes possible for different conceptions of American history to co-exist. There is no longer a need to appoint a victor.

More importantly, the historiographical approach avoids pursuing truth for the sake of satisfying a national myth

The country’s founding fathers crafted some of the finest expressions of personal liberty and representative government the world has ever seen; many of them also held fellow humans in bondage. This paradox is only a problem if the goal is to view the founding fathers as faultless, perfect individuals. If multiple histories are embraced, no one needs to fear that one history will be lost.

History is not indoctrination. It is a wrestling match. For too long, the emphasis has been on pinning the opponent. It is time to shift the focus to the struggle itself

There is no better way to use the past to inform the present than by accepting the impossibility of a definitive history—and by ensuring that current students are equipped to grapple with the contested memories in their midst.

Many psychologists believe that in order for patients to recover from trauma, they often need to be able to recall what happened to them. The second study, published in Nature Neuroscience, investigated how the brain stores negative memories, known as “state-dependent learning.” The study, conducted in mice at Northwestern University’s Feinberg School of Medicine, suggests that negative memories caused—and then “lost”—by traumatic experiences may be retrieved by re-creating the state of the brain in which the memory first occurred.

The study suggests that in response to trauma, the brain activates this extra-synaptic GABA system, which appears to encode memories of fear-inducing events and hide them away from consciousness, rather than the glutamate system, which helps to store all memories, positive and negative. This research may provide a window into how to access these traumatic memories when needed for therapeutic reasons.

When we learn something—even as simple as someone’s name—we form connections between neurons in the brain. These synapses create new circuits between nerve cells, essentially remapping the brain.

The sheer number of possible connections gives the brain unfathomable flexibility—each of the brain’s 100 billion nerve cells can have 10,000 connections to other nerve cells.

Huganir and his team discovered that when mice are exposed to traumatic events, the level of neuronal receptors for glutamate increases at synapses in the amygdala, the fear center of the brain, and encodes the fear associated with the memory. Removing those receptors, however, reduces the strength of these connections, essentially erasing the fear component of the trauma but leaving the memory.

Now Huganir and his lab are developing drugs that target those receptors. The hope is that inactivating the receptors could help people with post-traumatic stress syndrome by reducing the fear associated with a traumatic memory, while strengthening them could improve learning, particularly in people with cognitive dysfunction or Alzheimer’s disease.

Dementia (di-men-sha): A loss of brain function that can be caused by a variety of disorders affecting the brain. Symptoms include forgetfulness, impaired thinking and judgment, personality changes, agitation and loss of emotional control. Alzheimer’s disease, Huntington’s disease and inadequate blood flow to the brain can all cause dementia. Most types of dementia are irreversible.

Post-traumatic stress disorder (PTSD): A disorder in which your “fight or flight,” or stress, response stays switched on, even when you have nothing to flee or battle. The disorder usually develops after an emotional or physical trauma, such as a mugging, physical abuse or a natural disaster. Symptoms include nightmares, insomnia, angry outbursts, emotional numbness, and physical and emotional tension.

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,