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Is 'More Efficient' Always Better? - NYTimes.com - 0 views

economix.blogs.nytimes.com/...s-more-efficient-always-better

economics efficiency

shared by demetriar on 05 Jun 15 - No Cached

All of these public policies have one thing in common: They create winners and losers among members of society. Therefore, an overarching question (on which economists themselves seem unable to agree) is whether economists in their role as social scientists should make recommendations on such issues at all — even if these recommendations are driven by the quest for greater efficiency. In fact, what does efficiency actually mean in economic analysis?
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Astute readers will have figured out by now that literally every point falling on the entire solid curve in the graph must be “Pareto optimal” by the economist’s definition of that term, not only those falling on line segment Y-Z. That circumstance makes the economist’s use of the word optimal even more dubious.
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Indeed, can it be said that a more efficient resource allocation is better than a less efficient one, given the changes in the distribution of welfare among members of society that these allocations imply?
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Can economists judge this to be a good thing? Indeed, how useful is efficiency as a normative guide to public policy? Can economists legitimately base their advocacy of particular policies on that criterion?
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But when greater efficiency is accompanied by a redistribution of economic privilege in society, subjective ethical dimensions inevitably get baked into the economist’s recommendations.
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The American Scholar: The Lottery Society - William Deresiewicz - 1 views

theamericanscholar.org/the-lottery-society

inequality rich distribution wealth lottery social class

shared by Javier E on 11 Aug 15 - No Cached

I think it’s great when rich people do good things with their money. I think it’s appalling that we need them to. To put it bluntly, the money that the Brins and Bloombergs have to shower down on a fortunate few—that money, and a great deal more besides—should be taxed away and allocated by democratic means.
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the problem goes beyond taxation. Markets allocate resources, but governments structure markets. Never mind that the rich don’t pay enough in taxes. (And as we know, it isn’t even that they don’t pay more than the rest of us. In a lot of cases, they pay a great deal less.) They shouldn’t be in a position to make that kind of money in the first place.
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You want to tell me that they earned it? Earned is a moral term. How do you measure the share of the money that somebody gets that they actually “earn”? From 1978 to 2011, the average worker’s pay went up by 6 percent. The average compensation of a CEO went up by 727 percent. Do you really believe that executives earned a raise that’s 120 times greater than their workers did?
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The problem is the way that wealth has come to be distributed. The share of national income that accrues to the top one percent, which had stayed at about 10 percent from 1954 to 1980, has risen to about 23 percent. In a $15 trillion economy, the difference represents a premium of almost $2 trillion a year, or more than twice the current annual federal budget deficit. As far as I’m concerned, that money belongs to the rest of us, especially the bottom 80 percent, whether in the form of increased pay or higher public spending. By manipulating the legislative and legal systems—which is to say, by buying them—the rich have simply stolen it.
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The outcome is the lottery society that’s with us now. Social mobility has slowed to a crawl. If you work hard and play by the rules, it probably won’t make a damn bit of difference
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Uber's Business Model Could Change Your Work - NYTimes.com - 0 views

www.nytimes.com/...r-a-rising-business-model.html

work efficiency busing business model on-demand allocation employment career agency

shared by Javier E on 16 Feb 15 - No Cached

Just as Uber is doing for taxis, new technologies have the potential to chop up a broad array of traditional jobs into discrete tasks that can be assigned to people just when they’re needed, with wages set by a dynamic measurement of supply and demand, and every worker’s performance constantly tracked, reviewed and subject to the sometimes harsh light of customer satisfaction.
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Uber and its ride-sharing competitors, including Lyft and Sidecar, are the boldest examples of this breed, which many in the tech industry see as a new kind of start-up — one whose primary mission is to efficiently allocate human beings and their possessions, rather than information.
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“I do think we are defining a new category of work that isn’t full-time employment but is not running your own business either,”
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Various companies are now trying to emulate Uber’s business model in other fields, from daily chores like grocery shopping and laundry to more upmarket products like legal services and even medicine.
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“We may end up with a future in which a fraction of the work force would do a portfolio of things to generate an income — you could be an Uber driver, an Instacart shopper, an Airbnb host and a Taskrabbit,”
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But the rise of such work could also make your income less predictable and your long-term employment less secure. And it may relegate the idea of establishing a lifelong career to a distant memory.
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“This on-demand economy means a work life that is unpredictable, doesn’t pay very well and is terribly insecure.” After interviewing many workers in the on-demand world, Dr. Reich said he has concluded that “most would much rather have good, well-paying, regular jobs.”
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Proponents of on-demand work point out that many of the tech giants that sprang up over the last decade minted billions in profits without hiring very many people; Facebook, for instance, serves more than a billion users, but employs only a few thousand highly skilled workers, most of them in California.
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at the end of 2014, Uber had 160,000 drivers regularly working for it in the United States. About 40,000 new drivers signed up in December alone, and the number of sign-ups was doubling every six months.
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The report found that on average, Uber’s drivers worked fewer hours and earned more per hour than traditional taxi drivers, even when you account for their expenses. That conclusion, though, has raised fierce debate among economists, because it’s not clear how much Uber drivers really are paying in expenses. Drivers on the service use their own cars and pay for their gas; taxi drivers generally do not.
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A survey of Uber drivers contained in the report found that most were already employed full or part time when they found Uber, and that earning an additional income on the side was a primary benefit of driving for Uber.
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The larger worry about on-demand jobs is not about benefits, but about a lack of agency — a future in which computers, rather than humans, determine what you do, when and for how much. The rise of Uber-like jobs is the logical culmination of an economic and tech system that holds efficiency as its paramount virtue.
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“These services are successful because they are tapping into people’s available time more efficiently,” Dr. Sundararajan said. “You could say that people are monetizing their own downtime.”Think about that for a second; isn’t “monetizing downtime” a hellish vision of the future of work?
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“I’m glad if people like working for Uber, but those subjective feelings have got to be understood in the context of there being very few alternatives,” Dr. Reich said. “Can you imagine if this turns into a Mechanical Turk economy, where everyone is doing piecework at all odd hours, and no one knows when the next job will come, and how much it will pay? What kind of private lives can we possibly have, what kind of relationships, what kind of families?”
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Economics of Good and Evil: The Quest for Economic Meaning from Gilgamesh to Wall Stree... - 1 views

DIIGO_FILE_HOME/7ui9/74ec4c99e72deda4a64da10692a15bf6

economics history literature good evil theory philosophy philosophers Bible Gilgamesh Adam Smith

shared by Javier E on 15 Aug 19 - No Cached

Instead of self-confident and self-centered answers, the author humbly asks fundamental questions: What is economics? What is its meaning? Where does this new religion, as it is sometimes called, come from? What are its possibilities and its limitations and borders, if there are any? Why are we so dependent on permanent growing of growth and growth of growing of growth? Where did the idea of progress come from, and where is it leading us? Why are so many economic debates accompanied by obsession and fanaticism?
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The majority of our political parties act with a narrow materialistic focus when, in their programs, they present the economy and finance first; only then, somewhere at the end, do we find culture as something pasted on or as a libation for a couple of madmen.
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most of them—consciously or unconsciously—accept and spread the Marxist thesis of the economic base and the spiritual superstructure.
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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.
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Reality is spun from stories, not from material. Zdeněk Neubauer
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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.
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Outside of our history, we have nothing more.
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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.
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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.
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“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.”
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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).
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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.”
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“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.”
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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,
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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.
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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.
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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.
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Almost all of the key concepts by which economics operates, both consciously and unconsciously, have a long history, and their roots extend predominantly outside the range of economics, and often completely beyond that of science.
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The History of Animal Spirits: Dreams Never Sleep
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In this sense, “the study of economics is too narrow and too fragmentary to lead to valid insight, unless complemented and completed by a study of metaeconomics.”17
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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.
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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.
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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
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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.
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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.
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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.
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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.
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Progress (Naturalness and Civilization)
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The Economy of Good and Evil
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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.
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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?
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The Need for Greed: The History of Consumption and Labor
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Metamathematics From where did economics get the concept of numbers as the very foundation of the world?
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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?
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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.”
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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.
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Masters of the Truth
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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?
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Our animal spirits (something of a counterpart to rationality) are influenced by the archetype of the hero and our concept of what is good.
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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.
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The History of the Invisible Hand of the Market and Homo Economicus
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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).
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When we mention economics in this book, we mean the mainstream perception of it, perhaps as best represented by Paul Samuelson.
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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.
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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.
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there is no mention of either money or war; for example, not once does anyone in the whole epic sell or purchase something.5 No nation conquers another, and we do not encounter a mention even of the threat of violence.
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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.
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Gilgamesh becomes a hero not only due to his strength, but also due to discoveries and deeds whose importance were in large part economic—direct gaining of construction materials in the case of felling the cedar forest, stopping Enkidu from devastating Uruk’s economy, and discovering new desert routes during his expeditions.
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Even today, we often consider the domain of humanity (human relations, love, friendship, beauty, art, etc.) to be unproductive;
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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.
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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.
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As Joseph Stiglitz says, One of the great “tricks” (some say “insights”) of neoclassical economics is to treat labour like any other factor of production. Output is written as a function of inputs—steel, machines, and labour. The mathematics treats labour like any other commodity, lulling one into thinking of labour like an ordinary commodity, such as steel or plastic.
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Even the earliest cultures were aware of the value of cooperation on the working level—today we call this collegiality, fellowship, or, if you want to use a desecrated term, comradeship. These “lesser relationships” are useful and necessary for society and for companies because work can be done much faster and more effectively if people get along with each other on a human level
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But true friendship, which becomes one of the central themes of the Epic of Gilgamesh, comes from completely different material than teamwork. Friendship, as C. S. Lewis accurately describes it, is completely uneconomical, unbiological, unnecessary for civilization, and an unneeded relationship
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Here we have a beautiful example of the power of friendship, one that knows how to transform (or break down) a system and change a person. Enkidu, sent to Gilgamesh as a punishment from the gods, in the end becomes his faithful friend, and together they set out against the gods. Gilgamesh would never have gathered the courage to do something like that on his own—nor would Enkidu.
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Due to their friendship, Gilgamesh and Enkidu then intend to stand up to the gods themselves and turn a holy tree into mere (construction) material they can handle almost freely, thereby making it a part of the city-construct, part of the building material of civilization, thus “enslaving” that which originally was part of wild nature. This is a beautiful proto-example of the shifting of the borders between the sacred and profane (secular)—and to a certain extent also an early illustration of the idea that nature is there to provide cities and people with raw material and production resources.
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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.
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But labour is unlike any other commodity. The work environment is of no concern for steel; we do not care about steel’s well-being.16
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Both heroes change—each from opposite poles—into humans. In this context, a psychological dimension to the story may be useful: “Enkidu (…) is Gilgamesh’s alter ego, the dark, animal side of his soul, the complement to his restless heart. When Gilgamesh found Enkidu, he changed from a hated tyrant into the protector of his city. (…)
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To be human seems to be somewhere in between, or both of these two. We
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this moment of rebirth from an animal to a human state, the world’s oldest preserved epic implicitly hints at something highly important. Here we see what early cultures considered the beginning of civilization. Here is depicted the difference between people and animals or, better, savages. Here the epic quietly describes birth, the awakening of a conscious, civilized human. We are witnesses to the emancipation of humanity from animals,
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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.
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The price we pay for independence from the whims of nature is dependence on our societies and civilizations. The more sophisticated a given society is as a whole, the less its members are able to survive on their own as individuals, without society.
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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.
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Human life in the city gains a new dimension and suddenly it seems more natural to take up issues going beyond the life span of an individual. “The city wall symbolizes as well as founds the permanence of the city as an institution which will remain forever and give its inhabitants the certainty of unlimited safety, allowing them to start investing with an outlook reaching far beyond the borders of individual life.
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The wall around the city of Uruk is, among other things, a symbol of an internal distancing from nature, a symbol of revolts against submission to laws that do not come under the control of man and that man can at most discover and use to his benefit.
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“The chief thing which the common-sense individual wants is not satisfactions for the wants he had, but more, and better wants.”47
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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.”
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can be said that Enkidu was therefore happy in his natural state, because all of his needs were satiated. On the other hand, with people, it appears that the more a person has, the more developed and richer, the greater the number of his needs (including the unsaturated ones).
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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How does this affect economics?
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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.
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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.
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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.
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By culturing and “domesticating” Enkidu, humanity tamed the uncontrollable wild and chaotic evil
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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.
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A similar motif appears a thousand years after the reversal, which is well known even to noneconomists as the central idea of economics: the invisible hand of the market.
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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.
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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.
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immortality, one connected with letters and the cult of the word: A name and especially a written name survives the body.”77
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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.
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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
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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
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It is simpler to observe the main features of our civilization at a time when the picture was more readable—at a time when our civilization was just being born and was still “half-naked.” In other words, we have tried to dig down to the bedrock of our written civilization;
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today remember Gilgamesh for his story of heroic friendship with Enkidu, not for his wall, which no longer reaches monumental heights.
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the eleventh and final tablet, Gilgamesh again loses what he sought. Like Sisyphus, he misses his goal just before the climax
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is there something from it that is valid today? Have we found in Gilgamesh certain archetypes that are in us to this day?
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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.
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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.
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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.
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Gilgamesh had a wall built that divided the city from wild nature and created a space for the first human culture. Nevertheless, “not even far-reaching works of civilization could satisfy human desire.”
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Friendship shows us new, unsuspected adventures, gives us the opportunity to leave the wall and to become neither its builder nor its part—to not be another brick in the wall.
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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.
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to change the system, to break down that which is standing and go on an expedition against the gods (to awaken, from naïveté to awakening) requires friendship.
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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,
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The thought that humanity comes at the expense of efficiency is just as old as humanity itself—as we have shown, subjects without emotion are the ideal of many tyrants.
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The epic later crashes this idea through the friendship of Gilgamesh and Enkidu. Friendship—the biologically least essential love, which at first sight appears to be unnecessary
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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.
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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.
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For a concept of historical progress, for the undeification of heroes, rulers, and nature, mankind had to wait for the Hebrews.
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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
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They practiced money lending, traded in many assets (…) and especially were engaged in the trading of shares on capital markets, worked in currency exchange and frequently figured as mediators in financial transactions (…), they functioned as bankers and participated in emissions of all possible forms.
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As regards modern capitalism (as opposed to the ancient and medieval periods) … there are activities in it which are, in certain forms, inherently (and completely necessarily) present—both from an economic and legal standpoint.7
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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:
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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.
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Jews believe in historical progress, and that progress is in this world.
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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?
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Hebrew religiosity is therefore strongly connected with this world, not with any abstract world, and those who take pleasure in worldly possessions are not a priori doing anything wrong.
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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.
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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
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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
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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.
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What’s more, economic progress has almost become an assumption of modern functional societies. We expect growth. We take it automatically. Today, if nothing “new” happens, if GDP does not grow (we say it stagnates) for several quarters, we consider it an anomaly.
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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.
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Because care for the soul has today been replaced by care for external things,
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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.
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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.
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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.
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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.
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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.
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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
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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,
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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.
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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,
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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),
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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.
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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.
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manliness and strength,28 knowledge and intelligence,29 wisdom and understanding, vigilance and performance, fame and renown (fame which overcomes enemies because “a thousand men would not be able to stand firmly in his presence”);30 the hero is a good shepherd (who takes care of his subordinates), is a copper-clad rampart, the shield of the land, and the defender of heroes.
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Each of us probably has a sort of “hero within”—a kind of internal role-model, template, an example that we (knowingly or not) follow. It is very important what kind of archetype it is, because its role is dominantly irrational and changes depending on time and the given civilization.
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The oldest was the so-called Trickster—a fraudster; then the culture bearer—Rabbit; the musclebound hero called Redhorn; and finally the most developed form of hero: the Twins.
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the Egyptian ruler, just as the Sumerian, was partly a god, or the son of a god.31
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Jacob defrauds his father Isaac and steals his brother Esau’s blessing of the firstborn. Moses murders an Egyptian. King David seduces the wife of his military commander and then has him killed. In his old age, King Solomon turns to pagan idols, and so on.
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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.
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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
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We do not have to go far for examples. Noah gets so drunk he becomes a disgrace; Lot lets his own daughters seduce him in a similar state of drunkenness. Abraham lies and (repeatedly) tries to sell his wife as a concubine.
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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.
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To a certain extent it can be said that the Hebrews—and later Christianity—added another archetype, the archetype of the heroic Sufferer.35 Job
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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
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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.
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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
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This is very important for democratic capitalism, because the Jewish heroic archetype lays the groundwork much better for the development of the later phenomenon of the hero, which better suits life as we know it today. “The heroes laid down their arms and set about trading to become wealthy.”
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in an Old Testament context, the pharaoh was a mere man (whom one could disagree with, and who could be resisted!).
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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.
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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
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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
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Politics lost its character of divine infallibility, and political issues were subject to questioning. Economic policy could become a subject of examination.
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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.
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which for the methodology of science and economics is very important because disorder and chaos are difficult to examine scientifically.43 Faith in some kind of rational and logical order in a system (society, the economy) is a silent assumption of any (economic) examination.
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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,
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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.
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Hebrew culture laid the foundations for the scientific examination of the world.
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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.
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I was there when he set heavens in place, when he marked out the horizon on the face of the deep (…) Then I was the craftsman at his side.47
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There are more urgings to gain wisdom in the Old Testament. “Wisdom calls aloud in the street (…): ‘How long will you simple ones love your simple ways?’”49 Or several chapters later: “Wisdom is supreme; therefore get wisdom. Though it cost all you have, get understanding.”50
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examination is not forbidden. The fact that order can be grasped by human reason is another unspoken assumption that serves as a cornerstone of any scientific examination.
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then, my sons, listen to me; blessed are those who keep my ways (…) Blessed is the man who listens to me, watching daily at my doors, waiting at my doorway. For whoever finds me finds life and receives favor from the Lord.
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the rational examination of nature has its roots, surprisingly, in religion.
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The Lord brought me forth as the first of his works, before his deeds of old. I was appointed from eternity, from the beginning, before the world began. When there were no oceans, I was given birth, when there were no springs abounding with water, before the mountains were settled in place,
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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:
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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:
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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]:
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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.
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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.
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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
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He invented (fictitiously and completely abstractly!) a framework that was generally accepted and soon “made into” reality. Marx invented similarly; he created the notion of class exploitation. Through his idea, the perception of history and reality was changed for a large part of the world for nearly an entire century.
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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
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How does this relate to economics? Reality itself, our “objective” world, is cocreated, man himself participates in the creation; creation, which is somewhat constantly being re-created.
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Our scientific models put the finishing touches on reality, because (1) they interpret, (2) they give phenomena a name, (3) they enable us to classify the world and phenomena according to logical forms, and (4) through these models we de facto perceive reality.
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When man finds a new linguistic framework or analytical model, or stops using the old one, he molds or remolds reality. Models are only in our heads; they are not “in objective reality.” In this sense, Newton invented (not merely discovered!) gravity.
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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).
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Keynes enters into the history of economic thought from the same intellectual cadence; his greatest contribution to economics was precisely the resurrection of the imperceptible—for example in the form of animal spirits or uncertainty. The economist Piero Mini even ascribes Keynes’s doubting and rebellious approach to his almost Talmudic education.63
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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
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in this viewpoint it is possible to see how Jewish thought is mystical—it admits the role of the incomprehensible. Therefore, through its groundedness, Jewish thought indulges mystery and defends itself against a mechanistic-causal explanation of the world: “The Jewish way of thinking, according to Veblen, emphasizes the spiritual, the miraculous, the intangible.
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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.
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What’s more, history seems to be based on morals; morals seem to be the key determining factors of history. For the Hebrews, history proceeds according to how morally its actors behave.
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The Sumerians believed in dualism—good and evil deities exist, and the earth of people becomes their passive battlefield.
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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.
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This was not about moral-human evil, but rather a kind of natural evil. It is as if good and evil were not touched by morality at all. Evil simply occurred. Period.
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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.
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Hebrew thought, on the other hand, deals intensively with moral good and evil. A moral dimension touches the core of its stories.65
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discrepancy between savings and investment, and others are convinced of the monetary essence
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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.
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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
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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.
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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).
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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.
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This principle stands directly against the self-fulfilling prophecy,80 the well-known concept of social science. Certain prophecies become self-fulfilling when expressed (and believed) while others become self-contradicting prophecies when pronounced (and believed).
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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.
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Let us further note that the first “macroeconomic forecast” appears in a dream.
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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.
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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.
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If you pay attention to these laws and are careful to follow them, then the Lord your God will keep his covenant of love with you, as he swore to your forefathers. He will love you and bless you and increase your numbers.
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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,
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From today’s perspective, we can state that the moral dimension entirely disappeared from economic thought for a long time, especially due to the implementation of Mandeville’s concept of private vices that contrarily support the public welfare
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Without being timid, we can say this is the first documented attempt to explain the economic cycle. The economic cycle, the explanation of which is to this day a mystery to economists, is explained morally in the Old Testament.
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But how do we consolidate these two conflicting interpretations of the economic cycle: Can ethics be responsible for it or not? Can we influence reality around us through our acts?
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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.
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THE ECONOMICS OF GOOD AND EVIL: DOES GOOD PAY OFF? This is probably the most difficult moral problem we could ask.
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Kant, the most important modern thinker in the area of ethics, answers on the contrary that if we carry out a “moral” act on the basis of economic calculus (therefore we carry out an hedonistic consideration; see below) in the expectation of later recompense, its morality is lost. Recompense, according to the strict Kant, annuls ethics.
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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.
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Job’s friends try to show that he must have sinned in some way and, in doing so, deserved God’s punishment. They are absolutely unable to imagine a situation in which Job, as a righteous man, would suffer without (moral) cause. Nevertheless, Job insists that he deserves no punishment because he has committed no offense: “God has wronged me and drawn his net around me.”94
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But Job remains righteous, even though it does not pay to do so: Though he slay me, yet will I hope in him.95 And till I die, I will not deny my integrity I will maintain my righteousness and never let go of it; my conscience will not reproach me as long as I live.96
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He remains righteous, even if his only reward is death. What economic advantage could he have from that?
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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.
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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.
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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.
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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
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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.
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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.
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the mining of enjoyment must not come at the expense of exogenously given rules. “Judaism comes therefore to train or educate the unbounded desire … for wealth, so that market activities and patterns of consumption operate within a God-given morality.”102
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The Epicureans acted with the goal of maximizing utility without regard for rules (rules developed endogenously, from within the system, computed from that which increased utility—this was one of the main trumps of the Epicurean school; they did not need exogenously given norms, and argued that they could “calculate” ethics (what to do) for every given situation from the situation itself).
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The Stoics could not seek their enjoyment—or, by another name, utility. They could not in any way look back on it, and in no way could they count on it. They could only live according to rules (the greatest weakness of this school was to defend where exogenously the given rules came from and whether they are universal) and take a indifferent stand to the results of their actions.
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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.
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Their relationship to the law was not supposed to be one of duty,105 but one of gratitude, love. Hebrews were to do good (outgoing), because goodness (incoming) has already been done to them.
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This is in stark contrast with today’s legal system, where, naturally, no mention of love or gratefulness exists. But God expects a full internalization of the commandments and their fulfillment with love, not as much duty. By no means was this on the basis of the cost-benefit analyses so widespread in economics today, which determines when it pays to break the law and when not to (calculated on the basis of probability of being caught and the amount of punishment vis-à-vis the possible gain).
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And now, O Israel, what does the Lord your God ask of you but to fear the Lord your God, to walk in all his ways, to love him, to serve the Lord your God with all your heart and with all your soul, and to observe the Lord’s commands and decrees that I am giving you today for your own good? To the Lord your God belong the heavens, even the highest heavens, the earth and everything in it. Yet the Lord set his affection on your forefathers and loved them….
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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.
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The Hebrews, originally a nomadic tribe, preferred to be unrestrained and grew up in constant freedom of motion.
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Human laws, if they are in conflict with the responsibilities given by God, are subordinate to personal responsibility, and a Jew cannot simply join the majority, even if it is legally allowed. Ethics, the concept of good, is therefore always superior to all local laws, rules, and customs:
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THE SHACKLES OF THE CITY Owing to the Hebrew’s liberation from Egyptian slavery, freedom and responsibility become the key values of Jewish thought.
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Laws given by God are binding for Jews, and God is the absolute source of all values,
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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.
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The nomadic Jewish ethos is frequently derived from Abraham, who left the Chaldean city of Ur on the basis of a command:
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In addition, they were aware of a thin two-way line between owner and owned. We own material assets, but—to a certain extent—they own us and tie us down. Once we become used to a certain material
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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.
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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.”
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SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM
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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.
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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
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Such provisions can be seen as the antimonopoly and social measures of the time. The economic system even then had a clear tendency to converge toward asset concentration, and therefore power as well. It would appear that these provisions were supposed to prevent this process
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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.
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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.
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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.
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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.
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“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
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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.
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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.
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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.
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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.
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Money is a social abstractum. It is a social agreement, an unwritten contract.
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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.’”
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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,”
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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.”
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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:
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In the end, the term “bank” comes from the Italian banci, or the benches that Jewish lenders sat on.157
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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.
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In the course of history, however, the role of loans changed, and the rich borrowed especially for investment purposes,
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Today the position and significance of money and debt has gone so far and reached such a dominant position in society that operating with debts (fiscal policy) or interest or money supply (monetary policy) means that these can, to a certain extent, direct (or at least strongly influence) the whole economy and society.
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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.
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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.
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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
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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.
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MONEY AS ENERGY: TIME TRAVEL AND GROSS DEBT PRODUCT (GDP)
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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.
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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.
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LABOR AND REST: THE SABBATH ECONOMY
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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.
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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
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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.
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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.
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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.
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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.”
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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.
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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.
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good example is the commandment on the Sabbath. No one at all could work on this day, not even the ones who were subordinate to an observant Jew:
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the message of the commandment on Saturday communicated that people were not primarily created for labor.
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Paradoxically, it is precisely this commandment out of all ten that is probably the most violated today.
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Aristotle even considers labor to be “a corrupted waste of time which only burdens people’s path to true honour.”
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we have days when we must not toil connected (at least lexically) with the word meaning emptiness: the English term “vacation” (or emptying), as with the French term, les vacances, or German die Freizeit, meaning open time, free time, but also…
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Translated into economic language: The meaning of utility is not to increase it permanently but to rest among existing gains. Why do we learn how to constantly increase gains but not how to…
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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…
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Six-sevenths of time either be dissatisfied and reshape the world into your own image, man, but one-seventh you will rest and not change the creation. On the seventh day, enjoy creation and enjoy the work of your hands.
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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…
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Saturday was not established to increase efficiency. It was a real ontological break that followed the example of the Lord’s seventh day of creation. Just as the Lord did not rest due to tiredness or to regenerate strength; but because He was done. He was done with His work, so that He could enjoy it, to cherish in His creation.
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If we believe in rest at all today, it is for different reasons. It is the rest of the exhausted machine, the rest of the weak, and the rest of those who can’t handle the tempo. It’s no wonder that the word “rest…
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Related to this, we have studied the first mention of a business cycle with the pharaoh’s dream as well as seen a first attempt (that we may call…
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We have tried to show that the quest for a heaven on Earth (similar to the Jewish one) has, in its desacralized form, actually also been the same quest for many of the…
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We have also seen that the Hebrews tried to explain the business cycle with morality and ethics. For the Hebrews,…
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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.
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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…
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We have tried to show how the Torah desacralized three important areas in our lives: the earthly ruler, nature,…
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What is the relationship between the good and evil that we do (outgoing) and the utility of disutility that we (expect to) get as a reward (incoming)? We have seen…
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The Hebrews never despised material wealth; on contrary, the Jewish faith puts great responsibility on property management. Also the idea of progress and the linear perception of time gives our (economic)…
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the Hebrews managed to find something of a happy compromise between both of these principles.
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will not be able to completely understand the development of the modern notion of economics without understanding the disputes between the Epicureans and the Stoics;
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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.
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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.
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Today’s scientific truth is founded on the notion of exact and objective facts, but poetic truth stands on an interior (emotional) consonance with the story or poem. “It is not addressed first to the brain … [myth] talks directly to the feeling system.”
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“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.
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Ancient philosophy, just as science would later, tries to find constancy, constants, quantities, inalterabilities. Science seeks (creates?) order and neglects everything else as much as it can. In their own experiences, everyone knows that life is not like that,
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Just as scientists do today, artists drew images of the world that were representative, and therefore symbolic, picturelike, and simplifying (but thus also misleading), just like scientific models, which often do not strive to be “realistic.”
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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
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Why your brain loves procrastination - Vox - 0 views

www.vox.com/...stination-psychology-help-stop

science research psychology knowledge technology

shared by lenaurick on 24 Apr 16 - No Cached

Roughly 5 percent of the population has such a problem with chronic procrastination that it seriously affects their lives.
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Conventional wisdom has long suggested that procrastination is all about poor time management and willpower. But more recently, psychologists have been discovering that it may have more to do with how our brains and emotions work.
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Procrastination, they've realized, appears to be a coping mechanism. When people procrastinate, they're avoiding emotionally unpleasant tasks and instead doing something that provides a temporary mood boost. The procrastination itself then causes shame and guilt — which in turn leads people to procrastinate even further, creating a vicious cycle.
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...22 more annotations...
For example, psychologist Tim Pychyl has co-authored a paper showing that students who forgave themselves for procrastinating on a previous exam were actually less likely to procrastinate on their next test. He and others have also found that people prone to procrastination are, overall, less compassionate toward themselves — an insight that points to ways to help.
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But psychologists see procrastination as a misplaced coping mechanism, as an emotion-focused coping strategy. [People who procrastinate are] using avoidance to cope with emotions, and many of them are unconscious emotions.
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they found our brain processes present self and future self differently. We think of future self more like a stranger.
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I used to procrastinate, and now I don't, because I got all these wicked strategies. And it’s every level: some of it’s behavioral, some of it’s emotional, some of it’s cognitive.
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Whenever we face a task, we’re not going to feel like doing it. Somehow adults believe that their motivational state has to match the task at hand. We say, "I’m not in the mood." Our motivational state rarely matches the task at hand, so we always have to use self-regulation skills to bring our focus to it. So at first it will be, "Okay, I recognize that I don’t feel like it, but I’m just gonna get started."
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We know from psychological research by [Andrew] Elliot and others that progress on our goals feeds our well-being. So the most important thing you can do is bootstrap a little progress. Get a little progress, and that’s going to fuel your well-being and your motivation.
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mplementation intentions take the form of "If, then." "If the phone rings, then I’m not going to answer it." "If my friends call me to say we’re going out, I’m going to say no." So you’ve already made this pre-commitment.
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OHIO rule: only handle it once. And I’m like that with email. I look at that email and say, "I can reply to it now, or I can throw it out," but there’s not much of a middle ground. I’m not going to save it for a while.
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We [think] that people will make less procrastinatory choices now because they’ll realize that "It’s me in the future we’re talking about here. I’m going to be under the gun."
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Roughly 5 percent of the population has such a problem with chronic procrastination that it seriously affects their lives
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Conventional wisdom has long suggested that procrastination is all about poor time management and willpower. But more recently, psychologists have been discovering that it may have more to do with how our brains and emotions work.
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Procrastination, they've realized, appears to be a coping mechanism. When people procrastinate, they're avoiding emotionally unpleasant tasks and instead doing something that provides a temporary mood boost. The procrastination itself then causes shame and guilt — which in turn leads people to procrastinate even further, creating a vicious cycle.
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But psychologists see procrastination as a misplaced coping mechanism, as an emotion-focused coping strategy. [People who procrastinate are] using avoidance to cope with emotions, and many of them are unconscious emotions.
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Recently we’ve been doing research that relates to the work on "present self"/"future self" because what’s happening with procrastination is that "present self" is always trumping "future self."
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He’s shown that in experimental settings if someone sees their own picture digitally aged, they’re more likely to allocate funds to retirement. When [the researchers] did the fMRI studies, they found our brain processes present self and future self differently. We think of future self more like a stranger.
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The people who see the present and future self as more overlapping have more self-continuity and report less procrastination.
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e [think] that people will make less procrastinatory choices now because they’ll realize that "It’s me in the future we’re talking about here. I’m going to be under the gun."
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Our motivational state rarely matches the task at hand, so we always have to use self-regulation skills to bring our focus to it. So at first it will be, "Okay, I recognize that I don’t feel like it, but I’m just gonna get started."
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Implementation intentions take the form of "If, then." "If the phone rings, then I’m not going to answer it." "If my friends call me to say we’re going out, I’m going to say no." So you’ve already made this pre-commitment.
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Because it’s all about self-deception — you aren’t aware that it’s going to cost you, but you are.
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OHIO rule: only handle it once. And I’m like that with email. I look at that email and say, "I can reply to it now, or I can throw it out," but there’s not much of a middle ground. I’m not going to save it for a while.
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And it’s every level: some of it’s behavioral, some of it’s emotional, some of it’s cognitive
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A Beginners Guide To Parkinson's Law: How To Do More Stuff By Giving Yourself... - 1 views

impossiblehq.com/parkinsons-law

Parkinson's law psychology brain science

shared by sissij on 18 Nov 16 - No Cached

Parkinson’s Law: “Work expands so as to fill the time available for its completion.”
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You had all week to finalize a proposal, but waited to do it until 4:30pm on the Friday.
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He found that even a series of simple tasks increased in complexity to fill up the time allotted to it. As the length of time allocated to a task became shorter, the task became simpler and easier to solve.
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...4 more annotations...
Interestingly enough, I worked more but got less done. On top of that, I was stressed all the time.
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I was an addict, not to work, but to thinking that I was working.
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Specificity and restrictions create freedom and nourish creativity. Add them to your arsenal of tools as you become an uber productive and efficient creator.
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I’ve referred to this in the past as “shoot first, aim later” or “jump … and then figure it out on the way down.” Pick a big goal, commit to it, and you’ll probably find that you’re able to figure out a way to achieve it.
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sissij on 18 Nov 16

I found this law very interesting. It also reminds me of the TedTalk we had during advisory on procrastination. Being busy and being busy and efficient is completely different. I have a personally experience that agree on this law. Last week, my days were completely filled with cross-country practice, musical rehearsal, and school work, so everyday I sleep around eleven o'clock. This week, I suddenly have a lot more time as the cross-country season ends and the musical is over, but I still go to bed at eleven o'clock and fill my time still not enough for me. I was busy this week but obviously, my efficiency is much lower than last week. --Sissi (11/18/2016)

<div class="cArrow"> </div><div class="cContentInner">I found this law very interesting. It also reminds me of the TedTalk we had during advisory on procrastination. Being busy and being busy and efficient is completely different. I have a personally experience that agree on this law. Last week, my days were completely filled with cross-country practice, musical rehearsal, and school work, so everyday I sleep around eleven o'clock. This week, I suddenly have a lot more time as the cross-country season ends and the musical is over, but I still go to bed at eleven o'clock and fill my time still not enough for me. I was busy this week but obviously, my efficiency is much lower than last week. --Sissi (11/18/2016)</div>

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What Can't Tech Money Buy? - The New York Times - 0 views

www.nytimes.com/...what-cant-tech-money-buy.html

rich oligarchy philanthropy tech elite social gospel billionaire politics

shared by Javier E on 29 May 16 - No Cached

IT did not take long for the tech industry to become the new establishment, and to assign itself the rights and responsibilities that come with such prosperity.
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Tech’s elite, lauded for their originality, are influencing media, politics and society at large with a kind of venture philanthropy, much as their industrial predecessors did more than 100 years ago.
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The robber barons of the 19th and 20th centuries were kings of infrastructure. The people with towering wealth today are kings of information. The rise of Silicon Valley is best understood as a new industrial revolution in this tradition.
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...7 more annotations...
In recent years, many of the industry’s elite have pledged financial support to schools, hospitals, police stations and homeless shelters, all while many of the industry’s companies have avoided paying taxes that would fund those same vital public institutions.
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Any philanthropy seems legitimate when it aligns with your own goals.
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We did indeed give them this mandate through our politics: loose campaign finance laws and lower tax rates. Through policies that have reinforced exceptional wealth disparities, we have allowed them not just to govern themselves, but us as well.
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To many of Gawker’s critics, Mr. Thiel is a hero on a charitable crusade for justice. It would be safe to say that this is how his fellow Silicon Valley philanthropists would also define their giving. They are under a presumptive mandate to improve society according to their own values, purely because they have made a lot of money while most everyone else has not. The Gospel of Wealth dictates that this is not only their ability, but their responsibility.
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the concerned public might take a different, simpler tack.Mr. Thiel told an interviewer in 2012 that he feared the result of this precipitous wealth gap. “In the history of the modern world, inequality has only been ended through Communist revolution, war or deflationary economic collapse,” he said. “It’s a disturbing question which of these three is going to happen today, or if there’s a fourth way out.”
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If we’re lucky, there may be, but Mr. Thiel isn’t going to like it. Wealth gleaned by way of tax dodges and monopolistic business practices is wealth stolen from the public, even when it is returned in the form of supposed gifts.
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Philanthropy has the power to do a great deal of good, but so do tax dollars allocated in an equitable democratic system. Perhaps it’s time to adopt a Gospel of Government.
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How Scientists Engage the Public | Pew Research Center - 0 views

www.pewinternet.org/...how-scientists-engage-public

science technology society communication

shared by charlottedonoho on 02 Jun 15 - No Cached

American scientists believe they face a challenging environment and the vast majority of them support the idea that participation in policy debates and engagement with citizens and journalists is necessary to further their work and careers.
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A survey of 3,748 American-based scientists connected with the American Association for the Advancement of Science (AAAS) finds that 87% agree with the statement “Scientists should take an active role in public policy debates about issues related to science and technology.”
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These findings come at a time when science topics are increasingly part of the public debate. Pew Research findings from this survey reported last month showed an overall drop among AAAS scientists in how they rate the state of science in general and their particular scientific field. Scientists also express concerns about the precarious state of research funding, some of the influences on how funding is allocated, and difficulties they feel hinder the capacity of science disciplines to attract the best talent to the field.
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...2 more annotations...
Nearly all the AAAS scientists (98%) say they have some level of interaction with citizens at least from time to time, and 51% have at least some contact with reporters about research findings. In addition, nearly half of AAAS scientists – 47% – use social media to talk about science or read about scientific developments at least some of the time.
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The scientists who are most likely to be involved in public activities show distinct patterns by age, by the level of public debate and public interest they perceive in their specialty, and by discipline. Virtually all scientists engage with citizens. Mid-career and older scientists are especially likely to speak to reporters. Younger scientists are more likely to use social media. And blogging is something that equally spans the generations under age 65.
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If Evolution Has Implications for Religion, Can We Justify Teaching It in Public School... - 0 views

www.evolutionnews.org/...if_evolution_ha096541.html

evolution religion teaching

shared by carolinewren on 03 Jun 15 - No Cached

Evolutionary biology is a science, so it can be legally taught in public schools when it's treated as a science and isn't promoted as a support for atheism or materialism.
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few would deny that Darwinian evolution has larger implications that aren't friendly to theism
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the Court held in Lynch v. Donnelly that "not every law that confers an indirect, remote, or incidental benefit upon [religion] is, for that reason alone, constitutionally invalid"
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...19 more annotations...
Do the larger religious (or anti-religious) implications of a scientific theory make it inadmissible for instruction in public schools? They shouldn't.
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just because we're declaring the teaching of evolution to be constitutional doesn't mean we that it has no connections to religion
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while it may sound odd to hear that we can (sometimes) declare something constitutional to teach in public schools even though it touches upon religion, there's good legal precedent for such a finding.
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a government policy establishes religion if its "principal or primary effect" is one that "advances or inhibits" religion.
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the statute must have a secular legislative purpose; second, its principal or primary effect must be one that neither advances nor inhibits religion; finally, the statute must not foster an excessive government entanglement with religion
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a government policy is unconstitutional if it has a "primary" or "principal" effect that advances (or inhibits) religion. However, in light of this second part, the Supreme Court has also developed a legal doctrine called the "incidental effects" or "secondary effects" doctrine which says that government law or policy may have "secondary" or "incidental" effects that touch upon religion and not violate the Establishment Clause.
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Secondary effects that touch upon religion are not constitutionally fatal.
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the conversation focuses strictly on the science, the implications are still there.
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one can legally justify teaching evolution while being sensitive to the fact that it has larger implications that touch upon the religious beliefs of many Americans.
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evolutionary biology is based upon science, when we teach it as a science, the primary effect is to advance scientific knowledge.
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a scientific theory like evolution does speak to ultimate questions about origins, which are also addressed by religion
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it certainly touches upon religious questions. But when we discuss Darwinian evolution strictly on a scientific level, any effects upon religion are "secondary" or "incidental" compared to their primary effect of advancing scientific knowledge.
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if creation science were a scientific theory, it could have been taught because any its touching upon religion would have been a secondary effect
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approach was also followed in Crowley v. Smithsonian Institution, where a federal judge rejected arguments that Smithsonian exhibits on evolution established "secular humanism" because the "impact [on religion] is at most incidental to the primary effect of presenting a body of scientific knowledge"
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Because evolution is based upon science, any effects upon religion would not bar its teaching.
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[I]f a theory has scientific value and evidence to support it, its primary effect would be to advance knowledge of the natural world, not to advance religion
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ultimate goal of schools is to educate students. Where a theory has scientific value and supporting evidence, it provides a basis for knowledge. Whether it coincidentally advances religion should not matter.
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if government aid "is allocated on the basis of neutral, secular criteria that neither favor nor disfavor religion, and is made available to both religious and secular beneficiaries on a nondiscriminatory basis," then any effects upon religion are merely incidental.
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best of both worlds. It allows science to be taught in the science classroom while respecting the beliefs of people who have religious objections to evolution.
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NIH to Cut Back on Chimp Research | The Scientist Magazine® - 0 views

www.the-scientist.com/?articles.view/articleNo/36208/title/NIH-to-Cut-Back-on-Chimp-Research/

research science

shared by grayton downing on 23 Oct 13 - No Cached

announced plans this morning (June 26) to accept and implement changes to its chimpanzee research program
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“This represents a significant, positive, albeit incremental step forward
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“Americans have benefitted greatly from the chimpanzees’ service to biomedical research, but new scientific methods and technologies have rendered their use in research largely unnecessary,” said Collins in a statement. “After extensive consideration with the expert guidance of many, I am confident that greatly reducing their use in biomedical research is scientifically sound and the right thing to do.”
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...3 more annotations...
establishing a review panel to consider the use of chimpanzees in future research that satisfies criteria laid by the IOM report, such as minimally invasive projects involving genomic and behavioral research; winding down research projects that do not meet IOM’s criteria; and providing ethologically appropriate housing facilities that attempt to mimic the animals’ natural settings.
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Funds available to the NIH for retiring chimpanzees have been nearly depleted—only $800,000 of the $30 million allocated under the CHIMP Act of 2002 is still available. The agency will be seeking additional funds from Congress to implement its chimp retirement plan.
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“It is crucial now to ensure that the release of hundreds of chimpanzees to sanctuary becomes a reality.”
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How Game Theory Helped Improve New York City's High School Application Process - NYTime... - 0 views

www.nytimes.com/...chool-application-process.html

game theory economics social science schools

shared by Javier E on 06 Dec 14 - No Cached

“It was an allocation problem,” explained Neil Dorosin, the director of high-school admissions at the time of the redesign. The city had a scarce resource — in this case, good schools — and had to work out an equitable way to distribute it. “But unlike a scarce resource like Rolling Stones tickets, where whoever’s willing to pay the most gets the tickets, here we can’t use price,”
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In the early 1960s, the economists David Gale and Lloyd Shapley proved that it was theoretically possible to pair an unlimited number of men and women in stable marriages according to their preferences.In game theory, “stable” means that every player’s preferences are optimized; in this case, no man and no woman matched with another partner would both prefer to be with each other.
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a “deferred acceptance algorithm.”
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...6 more annotations...
Here is how it works: Each suitor proposes to his first-choice mate; each woman has her own list of favorites. (The economists worked from the now-quaint premise that men only married women, and did the proposing.) She rejects all proposals except her favorite — but does not give him a firm answer. Each suitor rejected by his most beloved then proposes to his second choice, and each woman being wooed in this round again rejects all but her favorite.
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Professor Abdulkadiroglu said he had fielded calls from anguished parents seeking advice on how their children could snare the best match. His advice: “Rank them in true preference order.”
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The deferred acceptance algorithm, Professor Pathak said, is “one of the great ideas in economics.” It quickly became the basis for a standard lesson in graduate-level economics courses.
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In the case of rejection, the algorithm looks to make a match with a student’s second-choice school, and so on. Like the brides and grooms of Professors Gale and Shapley, students and schools connect only tentatively until the very end of the process.
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The courting continues until everyone is betrothed. But because each woman has waited to give her final answer (the “deferred acceptance”), she has the opportunity to accept a proposal later from a suitor whom she prefers to someone she had tentatively considered earlier. The later match is preferable for her, and therefore more stable.
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It seems that most students prefer to go to school close to home, and if nearby schools are underperforming, students will choose them nevertheless. Researching other options is labor intensive, and poor and immigrant children in particular may not get the help they need to do it.
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A New Report Argues Inequality Is Causing Slower Growth. Here's Why It Matters. - NYTim... - 0 views

www.nytimes.com/...-from-a-mainstream-source.html

inequality debate economist social science social context

shared by Javier E on 06 Aug 14 - No Cached

Is income inequality holding back the United States economy? A new report argues that it is, that an unequal distribution in incomes is making it harder for the nation to recover from the recession
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The fact that S.&P., an apolitical organization that aims to produce reliable research for bond investors and others, is raising alarms about the risks that emerge from income inequality is a small but important sign of how a debate that has been largely confined to the academic world and left-of-center political circles is becoming more mainstream.
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“Our review of the data, as well as a wealth of research on this matter, leads us to conclude that the current level of income inequality in the U.S. is dampening G.D.P. growth,” the S.&P. researchers write
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...7 more annotations...
To understand why this matters, you have to know a little bit about the many tribes within the world of economics.
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There are the academic economists who study the forces shaping the modern economy. Their work is rigorous but often obscure. Some of them end up in important policy jobs (See: Bernanke, B.) or write books for a mass audience (Piketty, T.), but many labor in the halls of academia for decades writing carefully vetted articles for academic journals that are rigorous as can be but are read by, to a first approximation, no one.
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Then there are the economists in what can broadly be called the business forecasting community. They wear nicer suits than the academics, and are better at offering a glib, confident analysis of the latest jobs numbers delivered on CNBC or in front of a room full of executives who are their clients. They work for ratings firms like S.&P., forecasting firms like Macroeconomic Advisers and the economics research departments of all the big banks.
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they are trying to do the practical work of explaining to clients — companies trying to forecast future demand, investors trying to allocate assets — how the economy is likely to evolve. They’re not really driven by ideology, or by models that are rigorous enough in their theoretical underpinnings to pass academic peer review. Rather, their success or failure hinges on whether they’re successful at giving those clients an accurate picture of where the economy is heading.
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worries that income inequality is a factor behind subpar economic growth over the last five years (and really the last 15 years) is going from an idiosyncratic argument made mainly by left-of center economists to something that even the tribe of business forecasters needs to wrestle with.
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Because the affluent tend to save more of what they earn rather than spend it, as more and more of the nation’s income goes to people at the top income brackets, there isn’t enough demand for goods and services to maintain strong growth, and attempts to bridge that gap with debt feed a boom-bust cycle of crises, the report argues. High inequality can feed on itself, as the wealthy use their resources to influence the political system toward policies that help maintain that advantage, like low tax rates on high incomes and low estate taxes, and underinvestment in education and infrastructur
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The report itself does not break any major new analytical or empirical ground. It spends many pages summarizing the findings of various academic and government economists who have studied inequality and its discontents, and stops short of recommending any radical policy changes
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Economics: A new focus on context and connections - 0 views

www.economist.com/..._focus_context_and_connections

economics crisis paradigm instruction theory connections government efficiency market market fundamentalism

shared by Javier E on 05 Apr 15 - No Cached

THE basic principles of economics have not changed—people and firms respond to incentives; demand and supply determine the relative prices of goods, services and even money itself; markets generally allocate resources well and deliver welfare-improving outcomes. However, the notion that markets are always efficient, can be left to themselves and are self-correcting is no longer tenable. Markets do eventually correct but, if allowed free rein, can get so far out of line that the corrections take the form of collapses that can be very painful. 
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The crisis has highlighted the importance of the government's role in regulating markets to make them function smoothly. At the same time, the government is equally capable of mucking up markets—even well-meaning governments, in the name of improving social welfare (e.g., making housing affordable for everyone), can often create perverse incentives that only foment more instability.
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In short, the crisis has brought to the fore the complex connections among markets, government and social and economic policies.
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The crisis has injected a good dose of humility into the discipline (at least in most corners) and made it much more challenging to teach economics because our existing models are simply too rudimentary to capture all of these connections
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It is has become even more important to emphasise what economic theory can in fact give us—powerful but narrow insights that should guide our thinking but not dominate them. 
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This Is Not a Market | Dissent Magazine - 0 views

www.dissentmagazine.org/...t-economy-bad-metaphor-transit

market fundamentalism market theory economics American idea language

shared by Javier E on 25 Aug 16 - No Cached

Given how ordinary people use the term, it’s not surprising that academic economists are a little vague about it—but you’ll be glad to hear that they know they’re being vague. A generation of economists have criticized their colleagues’ inability to specify what a “market” actually is. George Stigler, back in 1967, thought it “a source of embarrassment that so little attention has been paid to the theory of markets.” Sociologists agree: according to Harrison White, there is no “neoclassical theory of the market—[only] a pure theory of exchange.” And Wayne Baker found that the idea of the market is “typically assumed—not studied” by most economists, who “implicitly characterize ‘market’ as a ‘featureless plane.’
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When we say “market” now, we mean nothing particularly specific, and, at the same time, everything—the entire economy, of course, but also our lives in general. If you can name it, there’s a market in it: housing, education, the law, dating. Maybe even love is “just an economy based on resource scarcity.”
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The use of markets to describe everything is odd, because talking about “markets” doesn’t even help us understand how the economy works—let alone the rest of our lives. Even though nobody seems to know what it means, we use the metaphor freely, even unthinkingly. Let the market decide. The markets are volatile. The markets responded poorly. Obvious facts—that the economy hasn’t rebounded after the recession—are hidden or ignored, because “the market” is booming, and what is the economy other than “the market”? Well, it’s lots of other things. We might see that if we talked about it a bit differently.
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...9 more annotations...
For instance, we might choose a different metaphor—like, say, the traffic system. Sounds ridiculous? No more so than the market metaphor. After all, we already talk about one important aspect of economic life in terms of traffic: online activity. We could describe it in market terms (the market demands Trump memes!), but we use a different metaphor, because it’s just intuitively more suitable. That last Trump meme is generating a lot of traffic. Redirect your attention as required.
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We don’t know much about markets, because we don’t deal with them very often. But most of us know plenty about traffic systems: drivers will know the frustration of trying to turn left onto a major road, of ceaseless, pointless lane-switching on a stalled rush-hour freeway, but also the joys of clear highways.
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We know the traffic system because, whether we like it or not, we are always involved in it, from birth
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As of birth, Jean is in the economy—even if s/he rarely goes to a market. You can’t not be an economic actor; you can’t not be part of the transport system.
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Consider also the composition of the traffic system and the economy. A market, whatever else it is, is always essentially the same thing: a place where people can come together to buy and sell things. We could set up a market right now, with a few fences and a sign announcing that people could buy and sell. We don’t even really need the fences. A traffic system, however, is far more complex. To begin with, the system includes publicly and privately run elements: most cars are privately owned, as are most airlines
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If we don’t evaluate traffic systems based on their size, or their growth, how do we evaluate them? Mostly, by how well they help people get where they want to go. The market metaphor encourages us to think that all economic activity is motivated by the search for profit, and pursued in the same fashion everywhere. In a market, everyone’s desires are perfectly interchangeable. But, while everybody engages in the transport system, we have no difficulty remembering that we all want to go to different places, in different ways, at different times, at different speeds, for different reasons
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Deciding how to improve the traffic system, how to expand people’s opportunities, is obviously a question of resource allocation and prioritization on a scale that private individuals—even traders—cannot influence on their own. That’s why government have not historically trusted the “magic of the markets” to produce better opportunities for transport. We intuitively understand that these decisions are made at the level of mass society and public policy. And, whether you like it or not, this is true for decisions about the economy as well.
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Thinking of the economy in terms of the market—a featureless plane, with no entry or exit costs, little need for regulation, and equal opportunity for all—obscures this basic insight. And this underlying misconception creates a lot of problems: we’ve fetishized economic growth, we’ve come to distrust government regulation, and we imagine that the inequalities in our country, and our world, are natural or justified. If we imagine the economy otherwise—as a traffic system, for example—we see more clearly how the economy actually works.
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We see that our economic life looks a lot less like going to “market” for fun and profit than it does sitting in traffic on our morning commute, hoping against hope that we’ll get where we want to go, and on time.
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Why some people resist authority: Neuroimaging research provides new insight into urge ... - 0 views

www.sciencedaily.com/...180515081753.htm

science psychology research authority bias

shared by anonymous on 20 May 18 - No Cached

Why some people resist authority: Neuroimaging research provides new insight into urge to rebel
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Control aversion -- the urge to rebel against control over one's decisions -- can be explained by connectivity between two regions of the brain as well as behavioral measures of distrust and lack of understanding, according to a study of university students published in JNeurosci.
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Connectivity between the parietal lobule and dorsolateral prefrontal cortex predicted the average difference in the chosen allocation level between the free choice and controlled conditions.
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By combining a social decision-making task with real consequences, this neuroimaging research provides new insight into the influence of choice restriction on personal decisions.
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Just 2.5% of Pandemic Response Spending So Far is Green | Time - 0 views

time.com/...vid-19-recovery-climate-change

science research knowledge pandemic

shared by clairemann on 26 Mar 21 - No Cached

“build back better,” promising to use economic recovery funds to accelerate the transition away from fossil fuels and create societies that are more resilient to extreme weather and other climate-related shocks.
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“Governments in many cases are just trying to return to the old normal,” he told a launch event for the report. “It seems like the world is trying to put out a house fire with a garden hose when a perfectly good fire hydrant is available just next door.”
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Still, the report “clearly shows that we are not yet building back better when it comes to recovery spending,”
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...3 more annotations...
But that hasn’t happened yet. A study published March 10 by the U.N. Environment Program, in partnership with the University of Oxford, found that of the $14.6 trillion committed by governments of the world’s 50 largest economies in 2020, just 2.5% was on programs likely to decrease greenhouse-gas emissions, lower pollution or restoring degraded natural systems.
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Based on proportion of GDP, Spain, South Korea, and the U.K. led on green spending during the pandemic—though that is partly because these countries have announced the allocations of greater shares of their recovery plans than most countries so far. But when considering green spending as a proportion of recovery funds so far announced, Denmark, Finland, Germany, France, Norway, and Poland led.
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“Trillions in fiscal spending [still to be announced] provide the greatest opportunity in decades to reorient for the future,” it reads. “Citizens, businesses, policy makers, and politicians must hold each other to account to ensure that the opportunity is not wasted.”
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Insider Trading - Econlib - 0 views

www.econlib.org/...InsiderTrading.html

shared by caelengrubb on 27 Mar 21 - No Cached

Insider trading” refers to transactions in a company’s securities, such as stocks or options, by corporate insiders or their associates based on information originating within the firm that would, once publicly disclosed, affect the prices of such securities.
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Corporate insiders are individuals whose employment with the firm (as executives, directors, or sometimes rank-and-file employees) or whose privileged access to the firm’s internal affairs (as large shareholders, consultants, accountants, lawyers, etc.) gives them valuable information.
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Famous examples of insider trading include transacting on the advance knowledge of a company’s discovery of a rich mineral ore (Securities and Exchange Commission v. Texas Gulf Sulphur Co.), on a forthcoming cut in dividends by the board of directors (Cady, Roberts & Co.), and on an unanticipated increase in corporate expenses (Diamond v. Oreamuno).
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...18 more annotations...
Such trading on information originating outside the company is generally not covered by insider trading regulation.
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Insider trading is quite different from market manipulation, disclosure of false or misleading information to the market, or direct expropriation of the corporation’s wealth by insiders.
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Regulation of insider trading began in the United States at the turn of the twentieth century, when judges in several states became willing to rescind corporate insiders’ transactions with uninformed shareholders.
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One of the earliest (and unsuccessful) federal attempts to regulate insider trading occurred after the 1912–1913 congressional hearings before the Pujo Committee, which concluded that “the scandalous practices of officers and directors in speculating upon inside and advance information as to the action of their corporations may be curtailed if not stopped.”
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The Securities Acts of 1933–1934, passed by the U.S. Congress in the aftermath of the stock market crash, though aimed primarily at prohibiting fraud and market manipulation, also targeted insider trading.
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As of 2004, at least ninety-three countries, the vast majority of nations that possess organized securities markets, had laws regulating insider trading
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Several factors explain the rapid emergence of such regulation, particularly during the last twenty years: namely, the growth of the securities industry worldwide, pressures to make national securities markets look more attractive in the eyes of outside investors, and the pressure the SEC exerted on foreign lawmakers and regulators to increase the effectiveness of domestic enforcement by identifying and punishing offenders and their associates operating outside the United States.
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Many researchers argue that trading on inside information is a zero-sum game, benefiting insiders at the expense of outsiders. But most outsiders who bought from or sold to insiders would have traded anyway, and possibly at a worse price (Manne 1970). So, for example, if the insider sells stock because he expects the price to fall, the very act of selling may bring the price down to the buyer.
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A controversial case is that of abstaining from trading on the basis of inside information (Fried 2003).
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There is little disagreement that insider trading makes securities markets more efficient by moving the current market price closer to the future postdisclosure price. In other words, insiders’ transactions, even if they are anonymous, signal future price trends to others and make the current stock price reflect relevant information sooner.
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Accurately priced stocks give valuable signals to investors and ensure more efficient allocation of capital.
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The controversial question is whether insider trading is more or less effective than public disclosure.
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Insider trading’s advantage is that it introduces individual profit motives, does not directly reveal sensitive intercorporate information, and mitigates the management’s aversion to disclosing negative information (
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Probably the most controversial issue in the economic analysis of insider trading is whether it is an efficient way to pay managers for their entrepreneurial services to the corporation. Some researchers believe that insider trading gives managers a monetary incentive to innovate, search for, and produce valuable information, as well as to take risks that increase the firm’s value (Carlton and Fischel 1983; Manne 1966).
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Another economic argument for insider trading is that it provides efficient compensation to holders of large blocks of stock
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A common contention is that the presence of insider trading decreases public confidence in, and deters many potential investors from, equity markets, making them less liquid (Loss 1970).
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Empirical research generally supports skepticism that regulation of insider trading has been effective in either the United States or internationally, as evidenced by the persistent trading profits of insiders, behavior of stock prices around corporate announcements, and relatively infrequent prosecution rates (Bhattacharya and Daouk 2002; Bris 2005).
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Despite numerous and extensive debates, economists and legal scholars do not agree on a desirable government policy toward insider trading. On the one hand, absolute information parity is clearly infeasible, and information-based trading generally increases the pricing efficiency of financial markets. Information, after all, is a scarce economic good that is costly to produce or acquire, and its subsequent use and dissemination are difficult to control. On the other hand, insider trading, as opposed to other forms of informed trading, may produce unintended adverse consequences for the functioning of the corporate enterprise, the market-wide system of publicly mandated disclosure, or the market for information.
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Investment - Econlib - 0 views

www.econlib.org/...Investment.html

shared by caelengrubb on 27 Mar 21 - No Cached

nvestment is one of the most important variables in economics.
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Its surges and collapses are still a primary cause of recessions.
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By investment, economists mean the production of goods that will be used to produce other goods. This definition differs from the popular usage, wherein decisions to purchase stocks (see stock market) or bonds are thought of as investment.
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Investment is usually the result of forgoing consumption. In a purely agrarian society, early humans had to choose how much grain to eat after the harvest and how much to save for future planting. The latter was investment.
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In a more modern society, we allocate our productive capacity to producing pure consumer goods such as hamburgers and hot dogs, and investment goods such as semiconductor foundries. If we create one dollar worth of hamburgers today, then our gross national product is higher by one dollar.
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Investment need not always take the form of a privately owned physical product. The most common example of nonphysical investment is investment in human capital.
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In an economy that is closed to the outside world, investment can come only from the forgone consumption—the saving—of private individuals, private firms, or government.
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In an open economy, however, investment can surge at the same time that a nation’s saving is low because a country can borrow the resources necessary to invest from neighboring countries.
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That economists have a fairly strong understanding of firms’ investment behavior makes sense. A firm that maximizes its profits must address investment using the framework discussed in this article.
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This method of financing investment has been very important in the United States. The industrial base of the United States in the nineteenth century—railroads, factories, and so on—was built on foreign finance, especially from Britain. More recently, the United States has repeatedly posted significant investment growth and very low savings.
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Investment fluctuates a lot because the fundamentals that drive investment—output prices, interest rates, and taxes—also fluctuate. But economists do not fully understand fluctuations in investment. Indeed, the sharp swings in investment that occur might require an extension to the Jorgenson theory.
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In Jorgenson’s user cost model, firms will purchase a machine if the extra revenue the machine generates is a smidgen more than its cost.
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The general conclusion is that there is a gain to waiting if there is uncertainty and if the installation of the machine entails sunk costs, that is, costs that cannot be recovered once spent.
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Although quantifying this gain exactly is a highly mathematical exercise, the reasoning is straightforward. That would explain why firms typically want to invest only in projects that have a high expected profit.
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The fact of irreversibility might explain the large fluctuations in investment that we observe.
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The theory of investment dates back to the giants of economics. irving fisher, arthur cecil pigou, and alfred marshall all made contributions; as did john maynard keynes, whose Marshallian user cost theory is a central feature in his General Theory.
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Consumer behavior is harder to study than firms’ behavior. Market forces that drive irrational people out of the marketplace are much weaker than market forces that drive bad companies from the market.
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Because the saving response of consumers must be known if one is to fully understand the impact of any investment policy, and because saving behavior is so poorly understood, much work remains to be done.
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How Do You Know When Society Is About to Fall Apart? - The New York Times - 1 views

www.nytimes.com/...societal-collapse.html

collapse civilization decline history crisis politics economics culture complexity

shared by Javier E on 21 Dec 20 - No Cached

Tainter seemed calm. He walked me through the arguments of the book that made his reputation, “The Collapse of Complex Societies,” which has for years been the seminal text in the study of societal collapse, an academic subdiscipline that arguably was born with its publication in 1988
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It is only a mild overstatement to suggest that before Tainter, collapse was simply not a thing.
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His own research has moved on; these days, he focuses on “sustainability.”
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...53 more annotations...
He writes with disarming composure about the factors that have led to the disintegration of empires and the abandonment of cities and about the mechanism that, in his view, makes it nearly certain that all states that rise will one day fall
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societal collapse and its associated terms — “fragility” and “resilience,” “risk” and “sustainability” — have become the objects of extensive scholarly inquiry and infrastructure.
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Princeton has a research program in Global Systemic Risk, Cambridge a Center for the Study of Existential Risk
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even Tainter, for all his caution and reserve, was willing to allow that contemporary society has built-in vulnerabilities that could allow things to go very badly indeed — probably not right now, maybe not for a few decades still, but possibly sooner. In fact, he worried, it could begin before the year was over.
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Plato, in “The Republic,” compared cities to animals and plants, subject to growth and senescence like any living thing. The metaphor would hold: In the early 20th century, the German historian Oswald Spengler proposed that all cultures have souls, vital essences that begin falling into decay the moment they adopt the trappings of civilization.
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that theory, which became the heart of “The Collapse of Complex Societies.” Tainter’s argument rests on two proposals. The first is that human societies develop complexity, i.e. specialized roles and the institutional structures that coordinate them, in order to solve problems
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All history since then has been “characterized by a seemingly inexorable trend toward higher levels of complexity, specialization and sociopolitical control.”
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Eventually, societies we would recognize as similar to our own would emerge, “large, heterogeneous, internally differentiated, class structured, controlled societies in which the resources that sustain life are not equally available to all.”
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Something more than the threat of violence would be necessary to hold them together, a delicate balance of symbolic and material benefits that Tainter calls “legitimacy,” the maintenance of which would itself require ever more complex structures, which would become ever less flexible, and more vulnerable, the more they piled up.
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Social complexity, he argues, is inevitably subject to diminishing marginal returns. It costs more and more, in other words, while producing smaller and smaller profits.
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Take Rome, which, in Tainter's telling, was able to win significant wealth by sacking its neighbors but was thereafter required to maintain an ever larger and more expensive military just to keep the imperial machine from stalling — until it couldn’t anymore.
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This is how it goes. As the benefits of ever-increasing complexity — the loot shipped home by the Roman armies or the gentler agricultural symbiosis of the San Juan Basin — begin to dwindle, Tainter writes, societies “become vulnerable to collapse.”
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haven’t countless societies weathered military defeats, invasions, even occupations and lengthy civil wars, or rebuilt themselves after earthquakes, floods and famines?
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Only complexity, Tainter argues, provides an explanation that applies in every instance of collapse.
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Complexity builds and builds, usually incrementally, without anyone noticing how brittle it has all become. Then some little push arrives, and the society begins to fracture.
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A disaster — even a severe one like a deadly pandemic, mass social unrest or a rapidly changing climate — can, in Tainter’s view, never be enough by itself to cause collapse
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The only precedent Tainter could think of, in which pandemic coincided with mass social unrest, was the Black Death of the 14th century. That crisis reduced the population of Europe by as much as 60 percent.
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Whether any existing society is close to collapsing depends on where it falls on the curve of diminishing returns.
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The United States hardly feels like a confident empire on the rise these days. But how far along are we?
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Scholars of collapse tend to fall into two loose camps. The first, dominated by Tainter, looks for grand narratives and one-size-fits-all explanations
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The second is more interested in the particulars of the societies they study
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Patricia McAnany, who teaches at the University of North Carolina at Chapel Hill, has questioned the usefulness of the very concept of collapse — she was an editor of a 2010 volume titled “Questioning Collapse” — but admits to being “very, very worried” about the lack, in the United States, of the “nimbleness” that crises require of governments.
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We’re too vested and tied to places.” Without the possibility of dispersal, or of real structural change to more equitably distribute resources, “at some point the whole thing blows. It has to.”
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In Turchin’s case the key is the loss of “social resilience,” a society’s ability to cooperate and act collectively for common goals. By that measure, Turchin judges that the United States was collapsing well before Covid-19 hit. For the last 40 years, he argues, the population has been growing poorer and more unhealthy as elites accumulate more and more wealth and institutional legitimacy founders. “The United States is basically eating itself from the inside out,
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Inequality and “popular immiseration” have left the country extremely vulnerable to external shocks like the pandemic, and to internal triggers like the killings of George Floyd
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Societies evolve complexity, he argues, precisely to meet such challenges.
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Eric H. Cline, who teaches at the George Washington University, argued in “1177 B.C.: The Year Civilization Collapsed” that Late Bronze Age societies across Europe and western Asia crumbled under a concatenation of stresses, including natural disasters — earthquakes and drought — famine, political strife, mass migration and the closure of trade routes. On their own, none of those factors would have been capable of causing such widespread disintegration, but together they formed a “perfect storm” capable of toppling multiple societies all at once.
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Collapse “really is a matter of when,” he told me, “and I’m concerned that this may be the time.”
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In “The Collapse of Complex Societies,” Tainter makes a point that echoes the concern that Patricia McAnany raised. “The world today is full,” Tainter writes. Complex societies occupy every inhabitable region of the planet. There is no escaping. This also means, he writes, that collapse, “if and when it comes again, will this time be global.” Our fates are interlinked. “No longer can any individual nation collapse. World civilization will disintegrate as a whole.”
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If it happens, he says, it would be “the worst catastrophe in history.”
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The quest for efficiency, he wrote recently, has brought on unprecedented levels of complexity: “an elaborate global system of production, shipping, manufacturing and retailing” in which goods are manufactured in one part of the world to meet immediate demands in another, and delivered only when they’re needed. The system’s speed is dizzying, but so are its vulnerabilities.
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A more comprehensive failure of fragile supply chains could mean that fuel, food and other essentials would no longer flow to cities. “There would be billions of deaths within a very short period,” Tainter says.
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If we sink “into a severe recession or a depression,” Tainter says, “then it will probably cascade. It will simply reinforce itself.”
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Tainter tells me, he has seen “a definite uptick” in calls from journalists: The study of societal collapse suddenly no longer seems like a purely academic pursuit
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Turchin is keenly aware of the essential instability of even the sturdiest-seeming systems. “Very severe events, while not terribly likely, are quite possible,” he says. When he emigrated from the U.S.S.R. in 1977, he adds, no one imagined the country would splinter into its constituent parts. “But it did.”
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He writes of visions of “bloated bureaucracies” becoming the basis of “entire political careers.” Arms races, he observes, presented a “classic example” of spiraling complexity that provides “no tangible benefit for much of the population” and “usually no competitive advantage” either.
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It is hard not to read the book through the lens of the last 40 years of American history, as a prediction of how the country might deteriorate if resources continued to be slashed from nearly every sector but the military, prisons and police.
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The more a population is squeezed, Tainter warns, the larger the share that “must be allocated to legitimization or coercion.
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And so it was: As U.S. military spending skyrocketed — to, by some estimates, a total of more than $1 trillion today from $138 billion in 1980 — the government would try both tactics, ingratiating itself with the wealthy by cutting taxes while dismantling public-assistance programs and incarcerating the poor in ever-greater numbers.
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“As resources committed to benefits decline,” Tainter wrote in 1988, “resources committed to control must increase.”
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The overall picture drawn by Tainter’s work is a tragic one. It is our very creativity, our extraordinary ability as a species to organize ourselves to solve problems collectively, that leads us into a trap from which there is no escaping
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Complexity is “insidious,” in Tainter’s words. “It grows by small steps, each of which seems reasonable at the time.” And then the world starts to fall apart, and you wonder how you got there.
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Perhaps collapse is not, actually, a thing. Perhaps, as an idea, it was a product of its time, a Cold War hangover that has outlived its usefulness, or an academic ripple effect of climate-change anxiety, or a feedback loop produced by some combination of the two
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if you pay attention to people’s lived experience, and not just to the abstractions imposed by a highly fragmented archaeological record, a different kind of picture emerges.
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Tainter’s understanding of societies as problem-solving entities can obscure as much as it reveals
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Plantation slavery arose in order to solve a problem faced by the white landowning class: The production of agricultural commodities like sugar and cotton requires a great deal of backbreaking labor. That problem, however, has nothing to do with the problems of the people they enslaved. Which of them counts as “society”?
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Since the beginning of the pandemic, the total net worth of America’s billionaires, all 686 of them, has jumped by close to a trillion dollars.
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If societies are not in fact unitary, problem-solving entities but heaving contradictions and sites of constant struggle, then their existence is not an all-or-nothing game.
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Collapse appears not as an ending, but a reality that some have already suffered — in the hold of a slave ship, say, or on a long, forced march from their ancestral lands to reservations faraway — and survived.
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The current pandemic has already given many of us a taste of what happens when a society fails to meet the challenges that face it, when the factions that rule over it tend solely to their own problems
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the real danger comes from imagining that we can keep living the way we always have, and that the past is any more stable than the present.
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If you close your eyes and open them again, the periodic disintegrations that punctuate our history — all those crumbling ruins — begin to fade, and something else comes into focus: wiliness, stubbornness and, perhaps the strongest and most essential human trait, adaptability.
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When one system fails, we build another. We struggle to do things differently, and we push on. As always, we have no other choice.
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Civil Rights Office At HHS Fights Discrimination Of Disabled People In Pandemic : NPR - 0 views

www.npr.org/...mination-of-people-with-disabi

Discrimination Disabilities

shared by ilanaprincilus06 on 16 Jan 21 - No Cached

Civil rights officials at the Department of Health and Human Services issued a series of actions to protect people with disabilities from health care discrimination by medical providers during the pandemic.
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start of a process to write regulations that explicitly prohibit medical workers from denying care to people with disabilities
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to assure that people with disabilities and older people are not passed over for scarce care, like drug treatments and ventilator
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"People will not be subject to age or disability discrimination when the going gets tough."
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The new OCR action makes clear that doctors cannot issue a blanket DNR and cannot substitute their subjective beliefs about the quality of a disabled person's life over the person's own wishes.
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"that discrimination against persons with disabilities will be absolutely forbidden and stereotypes about their usefulness should never be part of a discussion when we allocate care."
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it would become a significant expansion of disability civil rights law.
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But a final rule exists in draft form, according to a source at HHS, with hopes that new Biden Administration officials will pick it up.
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include language to guarantee doctors will not pressure patients to sign Do Not Resuscitate orders and not exclude people from treatment based on their disability alone.
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The steps taken by OCR to stop medical discrimination reflect the findings of a series of papers on bioethics and disability, issued by the National Council on Disability,
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"Disability discrimination in health care is among the most insidious — with life and death consequences — and it's hard to root out,"
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"sends an unequivocally clear message that we will not accept health care that relegates people with disabilities to last in line or 'lost cause.'"
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