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Duncan H

The Danger of Too Much Efficiency - NYTimes.com - 2 views

www.nytimes.com/...er-of-too-much-efficiency.html

danger efficiency knowledge bias

shared by Duncan H on 16 Feb 12 - No Cached
  • Each of these developments has made it easier to do one’s business without wasted time and energy — without friction. Each has made economic transactions quicker and more efficient. That’s obviously good, and that’s what Bain Capital tries to do in the companies it buys. You may employ a lazy brother-in-law who is not earning his keep. If you try to do something about it, you may encounter enormous friction — from your spouse. But if Bain buys you out, it won’t have any trouble at all getting rid of your brother-in-law and replacing him with someone more productive. This is what “creative destruction” is all about.
  • These are all situations in which a little friction to slow us down would have enabled both institutions and individuals to make better decisions. And in the case of individuals, there is the added bonus that using cash more and credit less would have made it apparent sooner just how much the “booming ’90s” had left the middle class behind. Credit hid the ever-shrinking purchasing power of the middle class from view.
  • e. If credit card companies weren’t allowed to charge outrageous interest, perhaps not everyone with a pulse would be offered credit cards. And if people had to pay with cash, rather than plastic, they might keep their hands in their pockets just a little bit longer.
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  • All these examples tell us that increased efficiency is good, and that removing friction increases efficiency. But the financial crisis, along with the activities of the Occupy movement and the criticism being leveled at Mr. Romney, suggests that maybe there can be too much of a good thing. If loans weren’t securitized, bankers might have taken the time to assess the creditworthiness of each applicant. If homeowners had to apply for loans to improve their houses or buy new cars, instead of writing checks against home equity, they might have thought harder before making weighty financial commitments. If people actually had to go into a bank and stand in line to withdraw cash, they might spend a little less and save a little mor
  • Finding the “mean” isn’t easy, even when we try to. It is sometimes said that the only way to figure out how much is enough is by experiencing too much. But the challenge is even greater when we’re talking about companies, because companies aren’t even trying to find the “mean.” For an individual company and its shareholders, there is no such thing as too much efficiency. The price of too much efficiency is not paid by the company. It is what economists call a negative externality, paid by the people who lose their jobs and the communities that suffer from job loss. Thus, we can’t expect the free market to find the level of efficiency that keeps firms competitive, provides quality goods at affordable prices and sustains workers and their communities. If we are to find the balance, we must consider stakeholders and not just shareholders. Companies by themselves won’t do this. Sensible regulation might.
  • So the real criticism embodied by current attacks on Bain Capital is not a criticism of capitalism. It is a criticism of unbridled, single-minded capitalism. Capitalism needn’t be either of those things. It isn’t in other societies with high standards of living, and it hadn’t been historically in the United States. Perhaps we can use the current criticism of Bain Capital as an opportunity to bring a little friction back into our lives. One way to do this is to use regulation to rekindle certain social norms that serve to slow us down. For example, if people thought about their homes less as investments and more as places to live, full of the friction of kids, dogs, friends, neighbors and community organizations attached, there might be less speculation with an eye toward house-flipping. And if companies thought of themselves, at least partly, as caretakers of their communities, they might look differently at streamlining their operations.
  • We’d all like a car that gets 100 miles to the gallon. The forces of friction that slow us down are an expensive annoyance. But when we’re driving a car, we know where we’re going and we’re in control. Fast is good, though even here, a little bit of friction can forestall disaster when you encounter an icy road. Life is not as predictable as driving. We don’t always know where we’re going. We’re not always in control. Black ice is everywhere. A little something to slow us down in the uncertain world we inhabit may be a lifesaver.
  • Duncan H on 16 Feb 12
     
    What do you think of his argument?
  • Javier E on 17 Feb 12
     
    How interesting! And persuasive, too. However, it also defies easy integration into the simplistic models that most of us use as foundations for our thinking about society, and particularly, in our normative thinking ("What *should* we do?"). So I expect that 3% of readers will share my initial intellectual appreciation of the argument, but 97% of those who do will quickly forget it.
demetriar

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?
  • 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.
  • 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?
  • 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.
caelengrubb

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.
  • 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.
  • 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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  • Such trading on information originating outside the company is generally not covered by insider trading regulation.
  • 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.
  • 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.
  • 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.”
  • 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.
  • As of 2004, at least ninety-three countries, the vast majority of nations that possess organized securities markets, had laws regulating insider trading
  • 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.
  • 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.
  • A controversial case is that of abstaining from trading on the basis of inside information (Fried 2003).
  • 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.
  • Accurately priced stocks give valuable signals to investors and ensure more efficient allocation of capital.
  • The controversial question is whether insider trading is more or less effective than public disclosure.
  • 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 (
  • 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).
  • Another economic argument for insider trading is that it provides efficient compensation to holders of large blocks of stock
  • 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).
  • 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).
  • 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.
sissij

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.”
  • You had all week to finalize a proposal, but waited to do it until 4:30pm on the Friday.
  • 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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  • Interestingly enough, I worked more but got less done. On top of that, I was stressed all the time.
  • I was an addict, not to work, but to thinking that I was working.
  • Specificity and restrictions create freedom and nourish creativity. Add them to your arsenal of tools as you become an uber productive and efficient creator.
  • 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.
  • 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)
Javier E

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?
  • 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.
  • 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.
  • Reality is spun from stories, not from material. Zdeněk Neubauer
  • Before it was emancipated as a field, economics lived happily within subsets of philosophy—ethics, for example—miles away from today’s concept of economics as a mathematical-allocative science that views “soft sciences” with a scorn born from positivistic arrogance. But our thousand-year “education” is built on a deeper, broader, and oftentimes more solid base. It is worth knowing about.
  • Outside of our history, we have nothing more.
  • The study of the history of a certain field is not, as is commonly held, a useless display of its blind alleys or a collection of the field’s trials and errors (until we got it right), but history is the fullest possible scope of study of a menu that the given field can offer.
  • History of thought helps us to get rid of the intellectual brainwashing of the age, to see through the intellectual fashion of the day, and to take a couple of steps back.
  • “The separation between the history of a science, its philosophy, and the science itself dissolves into thin air, and so does the separation between science and non-science; differences between the scientific and unscientific are vanishing.”
  • we seek to chart the development of the economic ethos. We ask questions that come before any economic thinking can begin—both philosophically and, to a degree, historically. The area here lies at the very borders of economics—and often beyond. We may refer to this as protoeconomics (to borrow a term from protosociology) or, perhaps more fittingly, metaeconomics (to borrow a term from metaphysics).
  • stories; Adam Smith believed. As he puts it in The Theory of Moral Sentiments, “the desire of being believed, or the desire of persuading, of leading and directing other people, seems to be one of the strongest of all our natural desires.”
  • “The human mind is built to think in terms of narratives … in turn, much of human motivation comes from living through a story of our lives, a story that we tell to ourselves and that creates a framework of our motivation. Life could be just ‘one damn thing after another’ if it weren’t for such stories. The same is true for confidence in a nation, a company, or an institution. Great leaders are foremost creators of stories.”
  • contrary to what our textbooks say, economics is predominantly a normative field. Economics not only describes the world but is frequently about how the world should be (it should be effective, we have an ideal of perfect competition, an ideal of high-GDP growth in low inflation, the effort to achieve high competitiveness …). To this end, we create models, modern parables,
  • I will try to show that mathematics, models, equations, and statistics are just the tip of the iceberg of economics; that the biggest part of the iceberg of economic knowledge consists of everything else; and that disputes in economics are rather a battle of stories and various metanarratives than anything else.
  • That is the reason for this book: to look for economic thought in ancient myths and, vice versa, to look for myths in today’s economics.
  • is a paradox that a field that primarily studies values wants to be value-free. One more paradox is this: A field that believes in the invisible hand of the market wants to be without mysteries.
  • 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.
  • The History of Animal Spirits: Dreams Never Sleep
  • 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
  • The more important elements of a culture or field of inquiry such as economics are found in fundamental assumptions that adherents of all the various systems within the epoch unconsciously presuppose. Such assumptions appear so obvious that people do not know what they are assuming, because no other way of putting things has ever occurred to them, as the philosopher Alfred Whitehead notes in Adventures of Ideas.
  • I argue that economic questions were with mankind long before Adam Smith. I argue that the search for values in economics did not start with Adam Smith but culminated with him.
  • We should go beyond economics and study what beliefs are “behind the scenes,” ideas that have often become the dominant yet unspoken assumptions in our theories. Economics is surprisingly full of tautologies that economists are predominantly unaware of. I
  • argue that economics should seek, discover, and talk about its own values, although we have been taught that economics is a value-free science. I argue that none of this is true and that there is more religion, myth, and archetype in economics than there is mathematics.
  • In a way, this is a study of the evolution of both homo economicus and, more importantly, the history of the animal spirits within him. This book tries to study the evolution of the rational as well as the emotional and irrational side of human beings.
  • I argue that his most influential contribution to economics was ethical. His other thoughts had been clearly expressed long before him, whether on specialization, or on the principle of the invisible hand of the market. I try to show that the principle of the invisible hand of the market is much more ancient and developed long before Adam Smith. Traces of it appear even in the Epic of Gilgamesh, Hebrew thought, and in Christianity, and it is expressly stated by Aristophanes and Thomas Aquinas.
  • This is not a book on the thorough history of economic thought. The author aims instead to supplement certain chapters on the history of economic thought with a broader perspective and analysis of the influences that often escape the notice of economists and the wider public.
  • Progress (Naturalness and Civilization)
  • The Economy of Good and Evil
  • from his beginnings, man has been marked as a naturally unnatural creature, who for unique reasons surrounds himself with external possessions. Insatiability, both material and spiritual, are basic human metacharacteristics, which appear as early as the oldest myths and stories.
  • the Hebrews, with linear time, and later the Christians gave us the ideal (or amplified the Hebrew ideal) we now embrace. Then the classical economists secularized progress. How did we come to today’s progression of progress, and growth for growth’s sake?
  • The Need for Greed: The History of Consumption and Labor
  • Metamathematics From where did economics get the concept of numbers as the very foundation of the world?
  • mathematics at the core of economics, or is it just the icing of the cake, the tip of the iceberg of our field’s inquiry?
  • idea that we can manage to utilize our natural egoism, and that this evil is good for something, is an ancient philosophical and mythical concept. We will also look into the development of the ethos of homo economicus, the birth of “economic man.”
  • All of economics is, in the end, economics of good and evil. It is the telling of stories by people of people to people. Even the most sophisticated mathematical model is, de facto, a story, a parable, our effort to (rationally) grasp the world around us.
  • Masters of the Truth
  • Originally, truth was a domain of poems and stories, but today we perceive truth as something much more scientific, mathematical. Where does one go (to shop) for the truth? And who “has the truth” in our epoch?
  • Our animal spirits (something of a counterpart to rationality) are influenced by the archetype of the hero and our concept of what is good.
  • The entire history of ethics has been ruled by an effort to create a formula for the ethical rules of behavior. In the final chapter we will show the tautology of Max Utility, and we will discuss the concept of Max Good.
  • The History of the Invisible Hand of the Market and Homo Economicus
  • We understand “economics” to mean a broader field than just the production, distribution, and consumption of goods and services. We consider economics to be the study of human relations that are sometimes expressible in numbers, a study that deals with tradables, but one that also deals with nontradables (friendship, freedom, efficiency, growth).
  • When we mention economics in this book, we mean the mainstream perception of it, perhaps as best represented by Paul Samuelson.
  • By the term homo economicus, we mean the primary concept of economic anthropology. It comes from the concept of a rational individual, who, led by narrowly egotistical motives, sets out to maximize his benefit.
  • the Epic of Gilgamesh bears witness to the opposite—despite the fact that the first written clay fragments (such as notes and bookkeeping) of our ancestors may have been about business and war, the first written story is mainly about great friendship and adventure.
  • 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.
  • 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.
  • 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.
  • Even today, we often consider the domain of humanity (human relations, love, friendship, beauty, art, etc.) to be unproductive;
  • Even today we live in Gilgamesh’s vision that human relations—and therefore humanity itself—are a disturbance to work and efficiency; that people would perform better if they did not “waste” their time and energy on nonproductive things.
  • But it is in friendship where—often by-the-way, as a side product, an externality—ideas and deeds are frequently performed or created that together can altogether change the face of society.19 Friendship can go against an ingrained system in places where an individual does not have the courage to do so himself or herself.
  • 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.
  • 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
  • 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
  • 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.
  • 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.
  • 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.
  • 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
  • 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. (…)
  • To be human seems to be somewhere in between, or both of these two. We
  • 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,
  • The entire history of culture is dominated by an effort to become as independent as possible from the whims of nature.39 The more developed a civilization is, the more an individual is protected from nature and natural influences and knows how to create around him a constant or controllable environment to his liking.
  • The 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.
  • 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.
  • 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.
  • 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.
  • “The chief thing which the common-sense individual wants is not satisfactions for the wants he had, but more, and better wants.”47
  • If a consumer buys something, theoretically it should rid him of one of his needs—and the aggregate of things they need should be decreased by one item. In reality, though, the aggregate of “I want to have” expands together with the growing aggregate of “I have.”
  • 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).
  • the Old Testament, this relationship is perceived completely differently. Man (humanity) is created in nature, in a garden. Man was supposed to care for the Garden of Eden and live in harmony with nature and the animals. Soon after creation, man walks naked and is not ashamed, de facto the same as the animals. What is characteristic is that man dresses (the natural state of creation itself is not enough for him), and he (literally and figuratively) covers52 himself—in shame after the fall.53
  • Nature is where one goes to hunt, collect crops, or gather the harvest. It is perceived as the saturator of our needs and nothing more. One goes back to the city to sleep and be “human.” On the contrary, evil resides in nature. Humbaba lives in the cedar forest, which also happens to be the reason to completely eradicate it.
  • Symbolically, then, we can view the entire issue from the standpoint of the epic in the following way: Our nature is insufficient, bad, evil, and good (humane) occurs only after emancipation from nature (from naturalness), through culturing and education. Humanity is considered as being in civilization.
  • The city was frequently (at least in older Jewish writings) a symbol of sin, degeneration, and decadence—nonhumanity. The Hebrews were originally a nomadic nation, one that avoided cities. It is no accident that the first important city57 mentioned in the Bible is proud Babylon,58 which God later turns to dust.
  • is enough, for example, to read the Book of Revelation to see how the vision of paradise developed from the deep Old Testament period, when paradise was a garden. John describes his vision of heaven as a city—paradise is in New Jerusalem, a city where the dimensions of the walls(!) are described in detail, as are the golden streets and gates of pearl.
  • Hebrews later also chose a king (despite the unanimous opposition of God’s prophets) and settled in cities, where they eventually founded the Lord’s Tabernacle and built a temple for Him. The city of Jerusalem later gained an illustrious position in all of religion.
  • this time Christianity (as well as the influence of the Greeks) does not consider human naturalness to be an unambiguous good, and it does not have such an idyllic relationship to nature as the Old Testament prophets.
  • If a tendency toward good is not naturally endowed in people, it must be imputed from above through violence or at least the threat of violence.
  • If we were to look at human naturalness as a good, then collective social actions need a much weaker ruling hand. If people themselves have a natural tendency (propensity) toward good, this role does not have to be supplied by the state, ruler, or, if you wish, Leviathan.
  • How does this affect economics?
  • us return for the last time to the humanization of the wild Enkidu, which is a process we can perceive with a bit of imagination as the first seed of the principle of the market’s invisible hand, and therefore the parallels with one of the central schematics of economic thinking.
  • Sometimes it is better to “harness the devil to the plow” than to fight with him. Instead of summoning up enormous energy in the fight against evil, it is better to use its own energy to reach a goal we desire; setting up a mill on the turbulent river instead of futile efforts to remove the current. This is also how Saint Prokop approached it in one of the oldest Czech legends.
  • Enkidu caused damage and it was impossible to fight against him. But with the help of a trap, trick, this evil was transformed into something that greatly benefited civilization.
  • By culturing and “domesticating” Enkidu, humanity tamed the uncontrollable wild and chaotic evil
  • Enkidu devastated the doings (the external, outside-the-walls) of the city. But he was later harnessed and fights at the side of civilization against nature, naturalness, the natural state of things.
  • A similar 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.
  • A similar story (reforming something animally wild and uncultivated in civilizational achievement) is used by Thomas Aquinas in his teachings. Several centuries later, this idea is fully emancipated in the hands of Bernard Mandeville and his Fable of the Bees: or, Private Vices, Publick Benefits. The economic and political aspects of this idea are—often incorrectly—ascribed to Adam Smith.
  • Here the individual does not try anymore to maximize his goods or profits, but what is important is writing his name in human memory in the form of heroic acts or deeds.
  • immortality, one connected with letters and the cult of the word: A name and especially a written name survives the body.”77
  • After this disappointment, he comes to the edge of the sea, where the innkeeper Siduri lives. As tonic for his sorrow, she offers him the garden of bliss, a sort of hedonistic fortress of carpe diem, where a person comes to terms with his mortality and at least in the course of the end of his life maximizes earthly pleasures, or earthly utility.
  • In the second stage, after finding his friend Enkidu, Gilgamesh abandons the wall and sets out beyond the city to maximalize heroism. “In his (…) search of immortal life, Gilgamesh
  • The hero refuses hedonism in the sense of maximizing terrestrial pleasure and throws himself into things that will exceed his life. In the blink of an eye, the epic turns on its head the entire utility maximization role that mainstream economics has tirelessly tried to sew on people as a part of their nature.81
  • 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;
  • today remember Gilgamesh for his story of heroic friendship with Enkidu, not for his wall, which no longer reaches monumental heights.
  • the eleventh and final tablet, Gilgamesh again loses what he sought. Like Sisyphus, he misses his goal just before the climax
  • is there something from it that is valid today? Have we found in Gilgamesh certain archetypes that are in us to this day?
  • The very existence of questions similar to today’s economic ones can be considered as the first observation. The first written considerations of the people of that time were not so different from those today. In other words: The epic is understandable for us, and we can identify with it.
  • We have also been witnesses to the very beginnings of man’s culturing—a great drama based on a liberation and then a distancing from the natural state.
  • Let us take this as a memento in the direction of our restlessness, our inherited dissatisfaction and the volatility connected to it. Considering that they have lasted five thousand years and to this day we find ourselves in harmony with a certain feeling of futility, perhaps these characteristics are inherent in man.
  • 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.”
  • 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.
  • 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.
  • 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.
  • 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,
  • 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.
  • 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
  • less a civilized, city person is dependent on nature, the more he or she is dependent on the rest of society. Like Enkidu, we have exchanged nature for society; harmony with (incalculable) nature for harmony with (incalculable) man.
  • human nature good or evil? To this day these questions are key for economic policy: If we believe that man is evil in his nature, therefore that a person himself is dog eat dog (animal), then the hard hand of a ruler is called for. If we believe that people in and of themselves, in their nature, gravitate toward good, then it is possible to loosen up the reins and live in a society that is more laissez-faire.
  • For a concept of historical progress, for the undeification of heroes, rulers, and nature, mankind had to wait for the Hebrews.
  • Because nature is not undeified, it is beyond consideration to explore it, let alone intervene in it (unless a person was a two-thirds god like Gilgamesh). It
  • 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.
  • 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
  • As early as the “dark” ages, the Jews commonly used economic tools that were in many ways ahead of their time and that later became key elements of the modern economy:
  • Gilgamesh’s story ends where it began. There is a consistency in this with Greek myths and fables: At the end of the story, no progress occurs, no essential historic change; the story is set in indefinite time, something of a temporal limbo.
  • Jews believe in historical progress, and that progress is in this world.
  • 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?
  • 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.
  • PROGRESS: A SECULARIZED RELIGION One of the things the writers of the Old Testament gave to mankind is the idea and notion of progress. The Old Testament stories have their development; they change the history of the Jewish nation and tie in to each other. The Jewish understanding of time is linear—it has a beginning and an end.
  • The observance of God’s Commandments in Judaism leads not to some ethereal other world, but to an abundance of material goods (Genesis 49:25–26, Leviticus 26:3–13, Deuteronomy 28:1–13) (…) There are no accusing fingers pointed at
  • There are no echoes of asceticism nor for the cleansing and spiritual effect of poverty. It is fitting therefore, that the founders of Judaism, the Patriarchs Abraham, Isaac and Jacob, were all wealthy men.12
  • about due to a linear understanding of history. If history has a beginning as well as an end, and they are not the same point, then exploration suddenly makes sense in areas where the fruits are borne only in the next generation.
  • 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.
  • however, the idea of progress itself underwent major changes, and today we perceive it very differently. As opposed to the original spiritual conceptions, today we perceive progress almost exclusively in an economic or scientific-technological sense.
  • Because care for the soul has today been replaced by care for external things,
  • This is why we must constantly grow, because we (deep down and often implicitly) believe that we are headed toward an (economic) paradise on Earth.
  • Only since the period of scientific-technological revolution (and at a time when economics was born as an independent field) is material progress automatically assumed.
  • Jewish thought is the most grounded, most realistic school of thought of all those that have influenced our culture.17 An abstract world of ideas was unknown to the Jews. To this day it is still forbidden to even depict God, people, and animals in symbols, paintings, statues, and drawings.
  • economists have become key figures of great importance in our time (Kacířské eseje o filosofii dějin [Heretical Essays in the Philosophy of History]). They are expected to perform interpretations of reality, give prophetic services (macroeconomic forecasts), reshape reality (mitigate the impacts of the crisis, speed up growth), and, in the long run, provide leadership on the way to the Promised Land—paradise on Earth.
  • REALISM AND ANTIASCETICISM Aside from ideas of progress, the Hebrews brought another very fundamental contribution to our culture: The desacralization of heroes, nature, and rulers.
  • Voltaire writes: “It certain fact is, that in his public laws he [Moses] never so much as once made mention of a life to come, limiting all punishments and all rewards to the present life.”21
  • As opposed to Christianity, the concept of an extraterrestrial paradise or heaven was not developed much in Hebrew thought.19 The paradise of the Israelites—Eden—was originally placed on Earth at a given place in Mesopotamia20 and at a given time,
  • The Hebrews consider the world to be real—not just a shadow reflection of a better world somewhere in the cloud of ideas, something the usual interpretation of history ascribes to Plato. The soul does not struggle against the body and is not its prisoner, as Augustine would write later.
  • The land, the world, the body, and material reality are for Jews the paramount setting for divine history, the pinnacle of creation. This idea is the conditio sine qua non of the development of economics, something of an utterly earthly making,
  • The mythology of the hero-king was strongly developed in that period, which Claire Lalouette summarizes into these basic characteristics: Beauty (a perfect face, on which it is “pleasant to look upon,” but also “beauty,” expressed in the Egyptian word nefer, not only means aesthetics, but contains moral qualities as well),
  • THE HERO AND HIS UNDEIFICATION: THE DREAM NEVER SLEEPS The concept of the hero is more important than it might appear. It may be the remote origin of Keynes’s animal spirits, or the desire to follow a kind of internal archetype that a given individual accepts as his own and that society values.
  • This internal animator of ours, our internal mover, this dream, never sleeps and it influences our behavior—including economic behavior—more than we want to realize.
  • 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.
  • 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.
  • 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.
  • the Egyptian ruler, just as the Sumerian, was partly a god, or the son of a god.31
  • 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.
  • Anthropology knows several archetypes of heroes. The Polish-born American anthropologist Paul Radin examined the myths of North American Indians and, for example, in his most influential book, The Trickster, he describes their four basic archetypes of heroes.
  • The Torah’s heroes (if that term can be used at all) frequently make mistakes and their mistakes are carefully recorded in the Bible—maybe precisely so that none of them could be deified.32
  • 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.
  • 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.
  • 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
  • Undeification, however, does not mean a call to pillage or desecration; man was put here to take care of nature (see the story of the Garden of Eden or the symbolism of the naming of the animals). This protection and care of nature is also related to the idea of progress
  • For the heroes who moved our civilization to where it is today, the heroic archetypes of the cunning trickster, culture bearer, and sufferer are rather more appropriate.
  • the Old Testament strongly emphasizes the undeification of nature.37 Nature is God’s creation, which speaks of divinity but is not the domain of moody gods
  • 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.”
  • in an Old Testament context, the pharaoh was a mere man (whom one could disagree with, and who could be resisted!).
  • RULERS ARE MERE MEN In a similar historical context, the Old Testament teachings carried out a similar desacralization of rulers, the so-called bearers of economic policy.
  • Ultimately the entire idea of a political ruler stood against the Lord’s will, which is explicitly presented in the Torah. The Lord unequivocally preferred the judge as the highest form of rule—an
  • The needs of future generations will have to be considered; after all humankind are the guardians of God’s world. Waste of natural resources, whether privately owned or nationally owned is forbidden.”39
  • Politics lost its character of divine infallibility, and political issues were subject to questioning. Economic policy could become a subject of examination.
  • 44 God first creates with the word and then on individual days He divides light from darkness, water from dry land, day from night, and so forth—and He gives order to things.45 The world is created orderly— it is wisely, reasonably put together. The way of the world is put together at least partially46 decipherably by any other wise and reasonable being who honors rational rules.
  • 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.
  • THE PRAISE OF ORDER AND WISDOM: MAN AS A PERFECTER OF CREATION The created world has an order of sorts, an order recognizable by us as people,
  • From the very beginning, when God distances Himself from the entire idea, there is an anticipation that there is nothing holy, let alone divine, in politics. Rulers make mistakes, and it is possible to subject them to tough criticism—which frequently occurs indiscriminately through the prophets in the Old Testament.
  • Hebrew culture laid the foundations for the scientific examination of the world.
  • Examining the world is therefore an absolutely legitimate activity, and one that is even requested by God—it is a kind of participation in the Creator’s work.51 Man is called on to understand himself and his surroundings and to use his knowledge for good.
  • 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
  • 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
  • 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.
  • 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.
  • the rational examination of nature has its roots, surprisingly, in religion.
  • 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,
  • The Book of Proverbs emphasizes specifically several times that it was wisdom that was present at the creation of the world. Wisdom personified calls out:
  • The last act, final stroke of the brush of creation, naming of the animals—this act is given to a human, it is not done by God, as one would expect. Man was given the task of completing the act of creation that the Lord began:
  • MAN AS A FINISHER OF CREATION The creation of the world, as it is explained in Jewish teachings, is described in the Book of Genesis. Here God (i) creates, (ii) separates, and (iii) names [my emphasis]:
  • Naming is a symbolic expression. In Jewish culture (and also in our culture to this day), the right to name meant sovereign rights and belonged, for example, to explorers (new places), inventors (new principles), or parents (children)—that is, to those who were there at the genesis, at the origin. This right was handed over by God to mankind.
  • The Naming itself (the capital N is appropriate) traditionally belongs to the crowning act of the Creator and represents a kind of grand finale of creation, the last move of the brush to complete the picture—a signature of the master.
  • Without naming, reality does not exist; it is created together with language. Wittgenstein tightly names this in his tractatus—the limits of our language are the limits of our world.53
  • 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.
  • 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
  • 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.
  • 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.
  • 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.
  • 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).
  • 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
  • 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
  • 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.
  • 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.
  • 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.
  • The Sumerians believed in dualism—good and evil deities exist, and the earth of people becomes their passive battlefield.
  • 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.
  • 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.
  • the epic, good and evil are not envisaged morally—they are not the result of an (a)moral act. Evil was not associated with free moral action or individual will.
  • Hebrew thought, on the other hand, deals intensively with moral good and evil. A moral dimension touches the core of its stories.65
  • discrepancy between savings and investment, and others are convinced of the monetary essence
  • The entire history of the Jewish nation is interpreted and perceived in terms of morality. Morality has become, so to speak, a mover and shaker of Hebrew history.
  • sunspots. The Hebrews came up with the idea that morals were behind good and bad years, behind the economic cycle. But we would be getting ahead of ourselves. Pharaoh’s Dream: Joseph and the First Business Cycle To
  • It is the Pharaoh’s well-known dream of seven fat and seven lean cows, which he told to Joseph, the son of Jacob. Joseph interpreted the dream as a macroeconomic prediction of sorts: Seven years of abundance were to be followed by seven years of poverty, famine, and misery.
  • Self-Contradicting Prophecy Here, let’s make several observations on this: Through taxation74 on the level of one-fifth of a crop75 in good years to save the crop and then open granaries in bad years, the prophecy was de facto prevented (prosperous years were limited and hunger averted—through a predecessor of fiscal stabilization).
  • The Old Testament prophesies therefore were not any deterministic look into the future, but warnings and strategic variations of the possible, which demanded some kind of reaction. If the reaction was adequate, what was prophesied would frequently not occur at all.
  • 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).
  • If the threat is anticipated, it is possible to totally or at least partially avoid it. Neither Joseph nor the pharaoh had the power to avoid bounty or crop failure (in this the dream interpretation was true and the appearance of the future mystical), but they avoided the impacts and implications of the prophecy (in this the interpretation of the dream was “false”)—famine did not ultimately occur in Egypt, and this was due to the application of reasonable and very intuitive economic policy.
  • Let us further note that the first “macroeconomic forecast” appears in a dream.
  • back to Torah: Later in this story we will notice that there is no reason offered as to why the cycle occurs (that will come later). Fat years will simply come, and then lean years after them.
  • Moral Explanation of a Business Cycle That is fundamentally different from later Hebrew interpretations, when the Jewish nation tries to offer reasons why the nation fared well or poorly. And those reasons are moral.
  • 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.
  • 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,
  • 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
  • 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.
  • 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?
  • it is not within the scope of this book to answer that question; justice has been done to the question if it manages to sketch out the main contours of possible searches for answers.
  • THE ECONOMICS OF GOOD AND EVIL: DOES GOOD PAY OFF? This is probably the most difficult moral problem we could ask.
  • 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.
  • 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.
  • 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
  • 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
  • He remains righteous, even if his only reward is death. What economic advantage could he have from that?
  • morals cannot be considered in the economic dimension of productivity and calculus. The role of the Hebrews was to do good, whether it paid off or not. If good (outgoing) is rewarded by incoming goodness, it is a bonus,99 not a reason to do outgoing good. Good and reward do not correlate to each other.
  • This reasoning takes on a dimension of its own in the Old Testament. Good (incoming) has already happened to us. We must do good (outgoing) out of gratitude for the good (incoming) shown to us in the past.
  • So why do good? After all, suffering is the fate of many biblical figures. The answer can only be: For good itself. Good has the power to be its own reward. In this sense, goodness gets its reward, which may or may not take on a material dimension.
  • the Hebrews offered an interesting compromise between the teachings of the Stoics and Epicureans. We will go into it in detail later, so only briefly
  • constraint. It calls for bounded optimalization (with limits). A kind of symbiosis existed between the legitimate search for one’s own utility (or enjoyment of life) and maintaining rules, which are not negotiable and which are not subject to optimalization.
  • In other words, clear (exogenously given) rules exist that must be observed and cannot be contravened. But within these borders it is absolutely possible, and even recommended, to increase utility.
  • 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
  • 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).
  • 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.
  • 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.
  • 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.
  • 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).
  • 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….
  • the principle of doing good (outgoing) on the basis of a priori demonstrated good (incoming) was also taken over by the New Testament. Atonement itself is based on an a priori principle; all our acts are preceded by good.
  • The Hebrews, originally a nomadic tribe, preferred to be unrestrained and grew up in constant freedom of motion.
  • 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:
  • THE SHACKLES OF THE CITY Owing to the Hebrew’s liberation from Egyptian slavery, freedom and responsibility become the key values of Jewish thought.
  • Laws given by God are binding for Jews, and God is the absolute source of all values,
  • The Hebrew ideal is represented by the paradise of the Garden of Eden, not a city.116 The despised city civilization or the tendency to see in it a sinful and shackling way of life appears in glimpses and allusions in many places in the Old Testament.
  • The nomadic Jewish ethos is frequently derived from Abraham, who left the Chaldean city of Ur on the basis of a command:
  • 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
  • This way of life had understandably immense economic impacts. First, such a society lived in much more connected relationships, where there was no doubt that everyone mutually depended on each other. Second, their frequent wanderings meant the inability to own more than they could carry; the gathering up of material assets did not have great weight—precisely because the physical weight (mass) of things was tied to one place.
  • One of Moses’s greatest deeds was that he managed to explain to his nation once and for all that it is better to remain hungry and liberated than to be a slave with food “at no cost.”
  • SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM
  • regulations is developed in the Old Testament, one we hardly find in any other nation of the time. In Hebrew teachings, aside from individual utility, indications of the concept of maximalizing utility societywide appear for the first time as embodied in the Talmudic principle of Kofin al midat S´dom, which can be translated as “one is compelled not to act in the manner of Sodom” and to take care of the weaker members of society.
  • In a jubilee year, debts were to be forgiven,125 and Israelites who fell into slavery due to their indebtedness were to be set free.126
  • 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
  • Land at the time could be “sold,” and it was not sale, but rent. The price (rent) of real estate depended on how long there was until a forgiveness year. It was about the awareness that we may work the land, but in the last instance we are merely “aliens and strangers,” who have the land only rented to us for a fixed time. All land and riches came from the Lord.
  • These provisions express a conviction that freedom and inheritance should not be permanently taken away from any Israelite. Last but not least, this system reminds us that no ownership lasts forever and that the fields we plow are not ours but the Lord’s.
  • Glean Another social provision was the right to glean, which in Old Testament times ensured at least basic sustenance for the poorest. Anyone who owned a field had the responsibility not to harvest it to the last grain but to leave the remains in the field for the poor.
  • Tithes and Early Social Net Every Israelite also had the responsibility of levying a tithe from their entire crop. They had to be aware from whom all ownership comes and, by doing so, express their thanks.
  • “Since the community has an obligation to provide food, shelter, and basic economic goods for the needy, it has a moral right and duty to tax its members for this purpose. In line with this duty, it may have to regulate markets, prices and competition, to protect the interests of its weakest members.”135
  • In Judaism, charity is not perceived as a sign of goodness; it is more of a responsibility. Such a society then has the right to regulate its economy in such a way that the responsibility of charity is carried out to its satisfaction.
  • With a number of responsibilities, however, comes the difficulty of getting them into practice. Their fulfillment, then, in cases when it can be done, takes place gradually “in layers.” Charitable activities are classified in the Talmud according to several target groups with various priorities, classified according to, it could be said, rules of subsidiarity.
  • Do not mistreat an alien or oppress him, for you were aliens in Egypt.140 As one can see, aside from widows and orphans, the Old Testament also includes immigrants in its area of social protection.141 The Israelites had to have the same rules apply for them as for themselves—they could not discriminate on the basis of their origin.
  • ABSTRACT MONEY, FORBIDDEN INTEREST, AND OUR DEBT AGE If it appears to us that today’s era is based on money and debt, and our time will be written into history as the “Debt age,” then it will certainly be interesting to follow how this development occurred.
  • Money is a social abstractum. It is a social agreement, an unwritten contract.
  • The first money came in the form of clay tablets from Mesopotamia, on which debts were written. These debts were transferable, so the debts became currency. In the end, “It is no coincidence that in English the root of ‘credit’ is ‘credo,’ the Latin for ‘I believe.’”
  • To a certain extent it could be said that credit, or trust, was the first currency. It can materialize, it can be embodied in coins, but what is certain is that “money is not metal,” even the rarest metal, “it is trust inscribed,”
  • Inseparably, with the original credit (money) goes interest. For the Hebrews, the problem of interest was a social issue: “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest.”
  • there were also clearly set rules setting how far one could go in setting guarantees and the nonpayment of debts. No one should become indebted to the extent that they could lose the source of their livelihood:
  • In the end, the term “bank” comes from the Italian banci, or the benches that Jewish lenders sat on.157
  • Money is playing not only its classical roles (as a means of exchange, a holder of value, etc.) but also a much greater, stronger role: It can stimulate, drive (or slow down) the whole economy. Money plays a national economic role.
  • In the course of history, however, the role of loans changed, and the rich borrowed especially for investment purposes,
  • 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.
  • In such a case a ban on interest did not have great ethical significance. Thomas Aquinas, a medieval scholar (1225-1274), also considers similarly; in his time, the strict ban on lending with usurious interest was loosened, possibly due to him.
  • As a form of energy, money can travel in three dimensions, vertically (those who have capital lend to those who do not) and horizontally (speed and freedom in horizontal or geographic motion has become the by-product—or driving force?—of globalization). But money (as opposed to people) can also travel through time.
  • money is something like energy that can travel through time. And it is a very useful energy, but at the same time very dangerous as well. Wherever
  • Aristotle condemned interest162 not only from a moral standpoint, but also for metaphysical reasons. Thomas Aquinas shared the same fear of interest and he too argued that time does not belong to us, and that is why we must not require interest.
  • MONEY AS ENERGY: TIME TRAVEL AND GROSS DEBT PRODUCT (GDP)
  • Due to this characteristic, we can energy-strip the future to the benefit of the present. Debt can transfer energy from the future to the present.163 On the other hand, saving can accumulate energy from the past and send it to the present.
  • labor was not considered degrading in the Old Testament. On the contrary, the subjugation of nature is even a mission from God that originally belonged to man’s very first blessings.
  • LABOR AND REST: THE SABBATH ECONOMY
  • The Jews as well as Aristotle behaved very guardedly toward loans. The issue of interest/usury became one of the first economic debates. Without having an inkling of the future role of economic policy (fiscal and monetary), the ancient Hebrews may have unwittingly felt that they were discovering in interest a very powerful weapon, one that can be a good servant, but (literally) an enslaving master as well.
  • It’s something like a dam. When we build one, we are preventing periods of drought and flooding in the valley; we are limiting nature’s whims and, to a large extent, avoiding its incalculable cycles. Using dams, we can regulate the flow of water to nearly a constant. With it we tame the river (and we can also gain
  • But if we do not regulate the water wisely, it may happen that we would overfill the dam and it would break. For the cities lying in the valley, their end would be worse than if a dam were never there.
  • If man lived in harmony with nature before, now, after the fall, he must fight; nature stands against him and he against it and the animals. From the Garden we have moved unto a (battle)field.
  • Only after man’s fall does labor turn into a curse.168 It could even be said that this is actually the only curse, the curse of the unpleasantness of labor, that the Lord places on Adam.
  • Both Plato and Aristotle consider labor to be necessary for survival, but that only the lower classes should devote themselves to it so that the elites would not have to be bothered with it and so that they could devote themselves to “purely spiritual matters—art, philosophy, and politics.”
  • Work is also not only a source of pleasure but a social standing; It is considered an honor. “Do you see a man skilled in his work? He will serve before kings.”170 None of the surrounding cultures appreciate work as much. The idea of the dignity of labor is unique in the Hebrew tradition.
  • Hebrew thinking is characterized by a strict separation of the sacred from the profane. In life, there are simply areas that are holy, and in which it is not allowed to economize, rationalize, or maximize efficiency.
  • 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:
  • the message of the commandment on Saturday communicated that people were not primarily created for labor.
  • Paradoxically, it is precisely this commandment out of all ten that is probably the most violated today.
  • Aristotle even considers labor to be “a corrupted waste of time which only burdens people’s path to true honour.”
  • 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…
  • 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…
  • 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…
  • 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.
  • 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…
  • 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.
  • 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…
  • 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…
  • 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…
  • We have also seen that the Hebrews tried to explain the business cycle with morality and ethics. For the Hebrews,…
  • ancient Greek economic ethos, we will examine two extreme approaches to laws and rules. While the Stoics considered laws to be absolutely valid, and utility had infinitesimal meaning in their philosophy, the Epicureans, at least in the usual historical explanation, placed utility and pleasure in first place—rules were to be made based on the principle of utility.
  • CONCLUSION: BETWEEN UTILITY AND PRINCIPLE The influence of Jewish thought on the development of market democracy cannot be overestimated. The key heritage for us was the lack of ascetic perception of the world, respect to law and private…
  • We have tried to show how the Torah desacralized three important areas in our lives: the earthly ruler, nature,…
  • 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…
  • 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)…
  • the Hebrews managed to find something of a happy compromise between both of these principles.
  • 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;
  • poets actually went even further, and with their speech they shaped and established reality and truth. Honor, adventure, great deeds, and the acclaim connected with them played an important role in the establishment of the true, the real.
  • those who are famous will be remembered by people. They become more real, part of the story, and they start to be “realized,” “made real” in the lives of other people. That which is stored in memory is real; that which is forgotten is as if it never existed.
  • 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.”
  • “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.
  • 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,
  • 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.”
  • 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
kortanekev

The Crisis Of Market Fundamentalism - 0 views

www.socialeurope.eu/...crisis-market-fundamentalism

economics efficiency

shared by kortanekev on 02 Mar 17 - No Cached
  • At the same time, a second, more momentous, intellectual revolution will be needed regarding government intervention in social outcomes and economic structures. Market fundamentalism conceals a profound contradiction. Free trade, technological progress, and other forces that promote economic “efficiency” are presented as beneficial to society, even if they harm individual workers or businesses, because growing national incomes allow winners to compensate losers, ensuring that nobody is left worse off.
  • kortanekev on 02 Mar 17
     
    This article calls into question the definition of a "good outcome." Who does it benefit? Does some solution benefit the masses, but take advantage of a minority? The highlighted passage shows the ideal of pareto-efficiency, when no one is left worse off when a change has been made. So even if only one group has been benefitted, the other groups are not worse off (unless that calls into account discrimination etc.).  Evie K 3/1/17
sissij

When Did 'Ambition' Become a Dirty Word? - The New York Times - 0 views

www.nytimes.com/...-international-womens-day.html

knowledge social media bias

shared by sissij on 02 Mar 17 - No Cached
  • but is instead a stark, black-and-white video, a public service announcement that takes on a thorny issue that dominated the last presidential campaign and has divided people on the right and left.
  • “Embrace Ambition,”
  • “I can think of a lot of dirty words,” Ms. Witherspoon says. “Ambition is not one of them.”
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  • Nevertheless, she seemed to choose her words carefully as she spoke about the campaign.
  • she wanted to get away from the idea that this project was politically motivated, or anti-Trump.
  • But the issue of ambition, and the way it is used to defame women, is nevertheless personal to her.
  • This was confusing to Ms. Burch, who never saw herself as being a particularly threatening person.
  • “I do it, too,” she said. “I’m guilty of all of it.”
  • And the word “feminist” began to shed its Bella Abzug and Betty Friedan connotations, as women like Madonna went from saying they are “not feminists” but “humanists” to wearing T-shirts at anti-Trump events that had the word “feminist” emblazoned across the center.
  • sissij on 02 Mar 17
     
    Sometimes, people are ashamed of their ambition. They are afraid to have a dream because they would not bear any failure. I think people don't dare to dream big now. I think it might be because of the concept of economics we have in the recent years. Most people follow the efficiency rule so nobody is willing to risk and make a revolution. Putting on big stake is not the most efficient choice in economics. Although it tells us it is okay to be greedy, but it limited us to the model and make us less willingly to make a breakthrough. --Sissi (3/2/2017)
Javier E

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.
  • 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.
  • “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.
  • 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.
  • 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.
  • “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.”
  • “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,”
  • 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.
  • 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.
  • 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.
  • 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.
  • “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?
  • “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?”
sissij

A Homebody President Sits Out His Honeymoon Period - The New York Times - 0 views

www.nytimes.com/...travel-trump-obama-bush.html

new york times bias

shared by sissij on 17 Apr 17 - No Cached
  • Mr. Trump, who dislikes spending the night away from home and has been adapting to life at the White House, has rarely ventured far from the Executive Mansion or his Mar-a-Lago retreat in Florida during his first 85 days in office. He has not strayed west of the Mississippi River, appearing at public events in only seven states and eschewing trips overseas.
  • “Trump is going to his own drummer, as usual. It’s a risky strategy.”
  • “When you’re president, you don’t travel to get frequent flier miles — you travel to make a point,”
  • ...3 more annotations...
  • focus on an ambitious domestic agenda, including the signing of executive orders and legislation to roll back Obama-era regulations.
  • his time is his most valuable asset.
  • What’s striking with President Trump is not only how contained his travel has been, but how much of it is around campaign rallies, rather than something he wants to get done
  • sissij on 17 Apr 17
     
    I think this comparison of Mr. Trump with other presidents might be a little biased. Every president has their own policies so I think it is not appropriate to compare the time they spend traveling. Since Mr. Trump's focus is on domestic policy so it is sort of reasonable for him to spend more time with in the United States. However, in the latter half of the article, the author talked about the quality of Mr. Trump's staying. Indeed, I agree with author that Mr. Trump's staying is not very efficient. I think the frequency of traveling shouldn't be the measure of their presidency, but the quality and efficiency of their action and decision should be weighted. --Sissi (4/17/2017)
blythewallick

What the brains of people with excellent general knowledge look like: Some people seem ... - 0 views

www.sciencedaily.com/...190731102127.htm

knowledge psychology research brain science science education

shared by blythewallick on 25 Oct 19 - No Cached
  • "Although we can precisely measure the general knowledge of people and this wealth of knowledge is very important for an individual's journey through life, we currently know little about the links between general knowledge and the characteristics of the brain,"
  • This makes it possible to reconstruct the pathways of nerve fibres and thus gain an insight into the structural network properties of the brain. By means of mathematical algorithms, the researchers assigned an individual value to the brain of each participant, which reflected the efficiency of his or her structural fibre network.
  • The participants also completed a general knowledge test called the Bochum Knowledge Test, which was developed in Bochum by Dr. Rüdiger Hossiep. It is comprised of over 300 questions from various fields of knowledge such as art and architecture or biology and chemistry. The team led by Erhan Genç finally investigated whether the efficiency of structural networking is associated with the amount of general knowledge stored.
  • ...2 more annotations...
  • "We assume that individual units of knowledge are dispersed throughout the entire brain in the form of pieces of information," explains Erhan Genç. "Efficient networking of the brain is essential in order to put together the information stored in various areas of the brain and successfully recall knowledge content."
  • To answer the question of which constants occur in Einstein's theory of relativity, you have to connect the meaning of the term "constant" with knowledge of the theory of relativity. "We assume that more efficient networking of the brain contributes to better integration of pieces of information and thus leads to better results in a general knowledge test,
kirkpatrickry

The Fascinating Economics Of The Hedge Funds' Private Brexit Exit Polls - Forbes - 0 views

www.forbes.com/...unds-private-brexit-exit-polls

knowledge economics

shared by kirkpatrickry on 03 Jun 16 - No Cached
  • This is our efficient markets hypothesis in action. The EMH does not insist, not at all, that markets are the efficient manner of organising everything. Rather, simply that markets are efficient at processing the information about what prices should be in a market. And this is one of the ways this works. We don’t know the result of that coming referendum. But we do know that it will have major effects on prices either way. Leave and sterling tumbles, stay in and it rises (largely offsetting that current risk of it falling). And obviously we’ll not actually know until the votes have been counted.
  • Firstly, information about what will happen in the future gets incorporated into prices today. Because people trade on it today to profit from that future event. Secondly, there’s significant incentive to go out and find the information about what will happen in the future.
Javier E

Minsky's moment | The Economist - 0 views

www.economist.com/...omic-ideas-looks-hyman-minskys

economics theory finance crisis

shared by Javier E on 05 Aug 16 - No Cached
  • Minsky started with an explanation of investment. It is, in essence, an exchange of money today for money tomorrow. A firm pays now for the construction of a factory; profits from running the facility will, all going well, translate into money for it in coming years.
  • Put crudely, money today can come from one of two sources: the firm’s own cash or that of others (for example, if the firm borrows from a bank). The balance between the two is the key question for the financial system.
  • Minsky distinguished between three kinds of financing. The first, which he called “hedge financing”, is the safest: firms rely on their future cashflow to repay all their borrowings. For this to work, they need to have very limited borrowings and healthy profits. The second, speculative financing, is a bit riskier: firms rely on their cashflow to repay the interest on their borrowings but must roll over their debt to repay the principal. This should be manageable as long as the economy functions smoothly, but a downturn could cause distress. The third, Ponzi financing, is the most dangerous. Cashflow covers neither principal nor interest; firms are betting only that the underlying asset will appreciate by enough to cover their liabilities. If that fails to happen, they will be left exposed.
  • ...10 more annotations...
  • Economies dominated by hedge financing—that is, those with strong cashflows and low debt levels—are the most stable. When speculative and, especially, Ponzi financing come to the fore, financial systems are more vulnerable. If asset values start to fall, either because of monetary tightening or some external shock, the most overstretched firms will be forced to sell their positions. This further undermines asset values, causing pain for even more firms. They could avoid this trouble by restricting themselves to hedge financing. But over time, particularly when the economy is in fine fettle, the temptation to take on debt is irresistible. When growth looks assured, why not borrow more? Banks add to the dynamic, lowering their credit standards the longer booms last. If defaults are minimal, why not lend more? Minsky’s conclusion was unsettling. Economic stability breeds instability. Periods of prosperity give way to financial fragility.
  • Minsky’s insight might sound obvious. Of course, debt and finance matter. But for decades the study of economics paid little heed to the former and relegated the latter to a sub-discipline, not an essential element in broader theories.
  • Minsky was a maverick. He challenged both the Keynesian backbone of macroeconomics and a prevailing belief in efficient markets.
  • t Messrs Hicks and Hansen largely left the financial sector out of the picture, even though Keynes was keenly aware of the importance of markets. To Minsky, this was an “unfair and naive representation of Keynes’s subtle and sophisticated views”. Minsky’s financial-instability hypothesis helped fill in the holes.
  • His challenge to the prophets of efficient markets was even more acute. Eugene Fama and Robert Lucas, among others, persuaded most of academia and policymaking circles that markets tended towards equilibrium as people digested all available information. The structure of the financial system was treated as almost irrelevant
  • In recent years, behavioural economists have attacked one plank of efficient-market theory: people, far from being rational actors who maximise their gains, are often clueless about what they want and make the wrong decisions.
  • But years earlier Minsky had attacked another: deep-seated forces in financial systems propel them towards trouble, he argued, with stability only ever a fleeting illusion.
  • Investors were faster than professors to latch onto his views. More than anyone else it was Paul McCulley of PIMCO, a fund-management group, who popularised his ideas. He coined the term “Minsky moment” to describe a situation when debt levels reach breaking-point and asset prices across the board start plunging. Mr McCulley initially used the term in explaining the Russian financial crisis of 1998. Since the global turmoil of 2008, it has become ubiquitous. For investment analysts and fund managers, a “Minsky moment” is now virtually synonymous with a financial crisis.
  • it would be a stretch to expect the financial-instability hypothesis to become a new foundation for economic theory. Minsky’s legacy has more to do with focusing on the right things than correctly structuring quantifiable models. It is enough to observe that debt and financial instability, his main preoccupations, have become some of the principal topics of inquiry for economists today
  • As Mr Krugman has quipped: “We are all Minskyites now.”
Javier E

Social Media and the Devolution of Friendship: Full Essay (Pts I & II) » Cybo... - 1 views

thesocietypages.org/...friendship-full-essay-pts-i-ii

friendship devolution social media social culture

shared by Javier E on 01 Jan 13 - No Cached
  • social networking sites create pressure to put time and effort into tending weak ties, and how it can be impossible to keep up with them all. Personally, I also find it difficult to keep up with my strong ties. I’m a great “pick up where we left off” friend, as are most of the people closest to me (makes sense, right?). I’m decidedly sub-awesome, however, at being in constant contact with more than a few people at a time.
  • the devolution of friendship. As I explain over the course of this essay, I link the devolution of friendship to—but do not “blame” it on—the affordances of various social networking platforms, especially (but not exclusively) so-called “frictionless sharing” features.
  • I’m using the word here in the same way that people use it to talk about the devolution of health care. One example of devolution of health care is some outpatient surgeries: patients are allowed to go home after their operations, but they still require a good deal of post-operative care such as changing bandages, irrigating wounds, administering medications, etc. Whereas before these patients would stay in the hospital and nurses would perform the care-labor necessary for their recoveries, patients must now find their own caregivers (usually family members or friends; sometimes themselves) to perform free care-labor. In this context, devolution marks the shift of labor and responsibility away from the medical establishment and onto the patient; within the patient-medical establishment collaboration, the patient must now provide a greater portion of the necessary work. Similarly, in some ways, we now expect our friends to do a greater portion of the work of being friends with us.
  • ...13 more annotations...
  • Through social media, “sharing with friends” is rationalized to the point of relentless efficiency. The current apex of such rationalization is frictionless sharing: we no longer need to perform the labor of telling our individual friends about what we read online, or of copy-pasting links and emailing them to “the list,” or of clicking a button for one-step posting of links on our Facebook walls. With frictionless sharing, all we have to do is look, or listen; what we’ve read or watched or listened to is then “shared” or “scrobbled” to our Facebook, Twitter, Tumblr, or whatever other online profiles. Whether we share content actively or passively, however, we feel as though we’ve done our half of the friendship-labor by ‘pushing’ the information to our walls, streams, and tumblelogs. It’s then up to our friends to perform their halves of the friendship-labor by ‘pulling’ the information we share from those platforms.
  • We’re busy people; we like the idea of making one announcement on Facebook and being done with it, rather than having to repeat the same story over and over again to different friends individually. We also like not always having to think about which friends might like which stories or songs; we like the idea of sharing with all of our friends at once, and then letting them sort out amongst themselves who is and isn’t interested. Though social media can create burdensome expectations to keep up with strong ties, weak ties, and everyone in between, social media platforms can also be very efficient. Using the same moment of friendship-labor to tend multiple friendships at once kills more birds with fewer stones.
  • sometimes we like the devolution of friendship. When we have to ‘pull’ friendship-content instead of receiving it in a ‘push’, we can pick and choose which content items to pull. We can ignore the baby pictures, or the pet pictures, or the sushi pictures—whatever it is our friends post that we only pretend to care about
  • I’ve been thinking since, however, on what it means to view our friends as “generalized others.” I may now feel like less of like “creepy stalker” when I click on a song in someone’s Spotify feed, but I don’t exactly feel ‘shared with’ either. Far as I know, I’ve never been SpotiVaguebooked (or SubSpotified?); I have no reason to think anyone is speaking to me personally as they listen to music, or as they choose not to disable scrobbling (if they make that choice consciously at all). I may have been granted the opportunity to view something, but it doesn’t follow that what I’m viewing has anything to do with me unless I choose to make it about me. Devolved friendship means it’s not up to us to interact with our friends personally; instead it’s now up to our friends to make our generalized broadcasts personal.
  • While I won’t go so far as to say they’re definitely ‘problems,’ there are two major things about devolved friendship that I think are worth noting. The first is the non-uniform rationalization of friendship-labor, and the second is the depersonalization of friendship-labor.
  • In short, “sharing” has become a lot easier and a lot more efficient, but “being shared with” has become much more time-consuming, demanding, and inefficient (especially if we don’t ignore most of our friends most of the time). Given this, expecting our friends to keep up with our social media content isn’t expecting them to meet us halfway; it’s asking them to take on the lion’s share of staying in touch with us. Our jobs (in this role) have gotten easier; our friends’ jobs have gotten harder.
  • The second thing worth noting is that devolved friendship is also depersonalized friendship.
  • Personal interaction doesn’t just happen on Spotify, and since I was hoping Spotify would be the New Porch, I initially found Spotify to be somewhat lonely-making. It’s the mutual awareness of presence that gives companionate silence its warmth, whether in person or across distance. The silence within Spotify’s many sounds, on the other hand, felt more like being on the outside looking in. This isn’t to say that Spotify can’t be social in a more personal way; once I started sending tracks to my friends, a few of them started sending tracks in return. But it took a lot more work to get to that point, which gets back to the devolution of friendship (as I explain below).
  • Within devolved friendship interactions, it takes less effort to be polite while secretly waiting for someone to please just stop talking.
  • When we consider the lopsided rationalization of ‘sharing’ and ‘shared with,’ as well as the depersonalization of frictionless sharing and generalized broadcasting, what becomes clear is this: the social media deck is stacked in such a way as to make being ‘a self’ easier and more rewarding than being ‘a friend.’
  • It’s easy to share, to broadcast, to put our selves and our tastes and our identity performances out into the world for others to consume; what feedback and friendship we get in return comes in response to comparatively little effort and investment from us. It takes a lot more work, however, to do the consumption, to sift through everything all (or even just some) of our friends produce, to do the work of connecting to our friends’ generalized broadcasts so that we can convert their depersonalized shares into meaningful friendship-labor.
  • We may be prosumers of social media, but the reward structures of social media sites encourage us to place greater emphasis on our roles as share-producers—even though many of us probably spend more time consuming shared content than producing it. There’s a reason for this, of course; the content we produce (for free) is what fuels every last ‘Web 2.0’ machine, and its attendant self-centered sociality is the linchpin of the peculiarly Silicon Valley concept of “Social” (something Nathan Jurgenson and I discuss together in greater detail here). It’s not super-rewarding to be one of ten people who “like” your friend’s shared link, but it can feel rewarding to get 10 “likes” on something you’ve shared—even if you have hundreds or thousands of ‘friends.’ Sharing is easy; dealing with all that shared content is hard.
  • t I wonder sometimes if the shifts in expectation that accompany devolved friendship don’t migrate across platforms and contexts in ways we don’t always see or acknowledge. Social media affects how we see the world—and how we feel about being seen in the world—even when we’re not engaged directly with social media websites. It’s not a stretch, then, to imagine that the affordances of social media platforms might also affect how we see friendship and our obligations as friends most generally.
dicindioha

Democrats skeptical about SEC nominee's ties to Wall Street - The Washington Post - 0 views

www.washingtonpost.com/...ons-on-wall-street-connections

markets economy SEC

shared by dicindioha on 24 Mar 17 - No Cached
  • Jay Clayton, on Thursday defended his ability to regulate Wall Street despite spending decades helping big banks weather government scrutiny
  • Clayton said, he would make sure “our markets are fair, open, orderly, and efficient and . . . that investors are protected
  • New York lawyer's deep connections to Wall Street, particularly Goldman Sachs, and inexperience with corporate prosecutions drew skepticism from Democrats
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  • Clayton, who made more than $7 million last year, is among six people with ties to Goldman Sachs chosen by Trump to serve in his administration.
  • He was warmly received by Republicans on the committee, who praised his financial industry experience.
  • It seems a little surprising to me that a person's success in a field in which we are asking them to now lead an agency could be a criticism,” said Sen. Mike Crapo
  • Advising on the deal was Clayton.
  • he said. U.S. markets are “less attractive to business than in the past,” and that should change.
  • It should be easier, and cheaper, for companies to sell stock on the public markets, Clayton told them.
  • In those cases, Warren said, if the rest of SEC's four commissioners vote along partisan lines, the investigations would stall and the firms could escape being held responsible.
  • “I think individual prosecutions, particularly in the white-collar area, have a significant effect on behavior,” Clayton said. “I want to be clear: Companies should be held responsible.”
  • Warren said she wants the SEC chair to look into and “put a stop to” any trading advantages Icahn might reap while serving in his new role.
  • dicindioha on 24 Mar 17
     
    This article talks about Trump's pick for the SEC, who formerly advised on the deal where Warren Buffet salvaged Goldmann and Sachs with a $5 billion dollar investment. The article says some question his ability, then, to make sure that companies are held responsible for mistakes in the market. He wants to ensure our markets are "fair" which we know is not a term associated with efficiency, so it will be interesting to see if this occurs.
julia rhodes

University of California - Science Today | How the brain functions during visual searches - 0 views

www.ucop.edu/...28128

science research psychology brain science search see visual function searches

shared by julia rhodes on 12 Sep 13 - No Cached
  • task that took you a couple seconds to complete is a task that computers -- despite decades of advancement and intricate calculations -- still can't perform as efficiently as humans: the visual search.
  • "Our daily lives are comprised of little searches that are constantly changing, depending on what we need to do," said Miguel Eckstein, UC Santa Barbara professor of psychological and brain sciences. "So the idea is, where does that take place in the brain?"
  • What Eckstein and co-authors wanted to determine was how we decide whether the target object we are looking for is actually in the scene, how difficult the search is, and how we know we've found what we wanted.
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  • In the parts of the human brain used earlier in the processing stream, regions stimulated by specific features like color, motion, and direction are a major part of the search. However, in the dorsal frontoparietal network, activity is not confined to any specific features of the object.
  • . By watching the intraparietal sulcus (IPS), located within the dorsal frontoparietal network, the researchers were able to note not only whether their subjects found the objects, but also how confident they were in their finds.
  • The IPS region would be stimulated even if the object was not there, said Eckstein, but the pattern of activity would not be the same as it would had the object actually existed in the scene.
  • "As you go further up in processing, the neurons are less interested in a specific feature, but they're more interested in whatever is behaviorally relevant to you at the moment,"
  • Thus, a search for an apple, for instance, would make red, green, and rounded shapes relevant.
  • "For visual search to be efficient, we want those visual features related to what we are looking for to elicit strong responses in our brain and not others that are not related to our search, and are distracting,"
  • "What we're trying to really understand is what other mechanisms or strategies the brain has to make searches efficient and easy,
Emily Freilich

All Can Be Lost: The Risk of Putting Our Knowledge in the Hands of Machines - Nicholas ... - 0 views

www.theatlantic.com/...309516

automation knowledge technology psychology

shared by Emily Freilich on 01 Nov 13 - No Cached
  • We rely on computers to fly our planes, find our cancers, design our buildings, audit our businesses. That's all well and good. But what happens when the computer fails?
  • On the evening of February 12, 2009, a Continental Connection commuter flight made its way through blustery weather between Newark, New Jersey, and Buffalo, New York.
  • The Q400 was well into its approach to the Buffalo airport, its landing gear down, its wing flaps out, when the pilot’s control yoke began to shudder noisily, a signal that the plane was losing lift and risked going into an aerodynamic stall. The autopilot disconnected, and the captain took over the controls. He reacted quickly, but he did precisely the wrong thing: he jerked back on the yoke, lifting the plane’s nose and reducing its airspeed, instead of pushing the yoke forward to gain velocity.
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  • The crash, which killed all 49 people on board as well as one person on the ground, should never have happened.
  • aptain’s response to the stall warning, the investigators reported, “should have been automatic, but his improper flight control inputs were inconsistent with his training” and instead revealed “startle and confusion.
  • Automation has become so sophisticated that on a typical passenger flight, a human pilot holds the controls for a grand total of just three minutes.
  • We humans have been handing off chores, both physical and mental, to tools since the invention of the lever, the wheel, and the counting bead.
  • And that, many aviation and automation experts have concluded, is a problem. Overuse of automation erodes pilots’ expertise and dulls their reflexes,
  • No one doubts that autopilot has contributed to improvements in flight safety over the years. It reduces pilot fatigue and provides advance warnings of problems, and it can keep a plane airborne should the crew become disabled. But the steady overall decline in plane crashes masks the recent arrival of “a spectacularly new type of accident,”
  • “We’re forgetting how to fly.”
  • The experience of airlines should give us pause. It reveals that automation, for all its benefits, can take a toll on the performance and talents of those who rely on it. The implications go well beyond safety. Because automation alters how we act, how we learn, and what we know, it has an ethical dimension. The choices we make, or fail to make, about which tasks we hand off to machines shape our lives and the place we make for ourselves in the world.
  • What pilots spend a lot of time doing is monitoring screens and keying in data. They’ve become, it’s not much of an exaggeration to say, computer operators.
  • Automation is different now. Computers can be programmed to perform complex activities in which a succession of tightly coordinated tasks is carried out through an evaluation of many variables. Many software programs take on intellectual work—observing and sensing, analyzing and judging, even making decisions—that until recently was considered the preserve of humans.
  • That may leave the person operating the computer to play the role of a high-tech clerk—entering data, monitoring outputs, and watching for failures. Rather than opening new frontiers of thought and action, software ends up narrowing our focus.
  • A labor-saving device doesn’t just provide a substitute for some isolated component of a job or other activity. It alters the character of the entire task, including the roles, attitudes, and skills of the people taking part.
  • when we work with computers, we often fall victim to two cognitive ailments—complacency and bias—that can undercut our performance and lead to mistakes. Automation complacency occurs when a computer lulls us into a false sense of security. Confident that the machine will work flawlessly and handle any problem that crops up, we allow our attention to drift.
  • Automation bias occurs when we place too much faith in the accuracy of the information coming through our monitors. Our trust in the software becomes so strong that we ignore or discount other information sources, including our own eyes and ears
  • Examples of complacency and bias have been well documented in high-risk situations—on flight decks and battlefields, in factory control rooms—but recent studies suggest that the problems can bedevil anyone working with a computer
  • Automation turns us from actors into observers. Instead of manipulating the yoke, we watch the screen. That shift may make our lives easier, but it can also inhibit the development of expertise.
  • Since the late 1970s, psychologists have been documenting a phenomenon called the “generation effect.” It was first observed in studies of vocabulary, which revealed that people remember words much better when they actively call them to mind—when they generate them—than when they simply read them.
  • When you engage actively in a task, you set off intricate mental processes that allow you to retain more knowledge. You learn more and remember more. When you repeat the same task over a long period, your brain constructs specialized neural circuits dedicated to the activit
  • What looks like instinct is hard-won skill, skill that requires exactly the kind of struggle that modern software seeks to alleviate.
  • In many businesses, managers and other professionals have come to depend on decision-support systems to analyze information and suggest courses of action. Accountants, for example, use the systems in corporate audits. The applications speed the work, but some signs suggest that as the software becomes more capable, the accountants become less so.
  • What’s most astonishing, and unsettling, about computer automation is that it’s still in its early stages.
  • Experts used to assume that there were limits to the ability of programmers to automate complicated tasks, particularly those involving sensory perception, pattern recognition, and conceptual knowledge
  • Who needs humans, anyway? That question, in one rhetorical form or another, comes up frequently in discussions of automation. If computers’ abilities are expanding so quickly and if people, by comparison, seem slow, clumsy, and error-prone, why not build immaculately self-contained systems that perform flawlessly without any human oversight or intervention? Why not take the human factor out of the equation?
  • The cure for imperfect automation is total automation.
  • That idea is seductive, but no machine is infallible. Sooner or later, even the most advanced technology will break down, misfire, or, in the case of a computerized system, encounter circumstances that its designers never anticipated. As automation technologies become more complex, relying on interdependencies among algorithms, databases, sensors, and mechanical parts, the potential sources of failure multiply. They also become harder to detect.
  • conundrum of computer automation.
  • Because many system designers assume that human operators are “unreliable and inefficient,” at least when compared with a computer, they strive to give the operators as small a role as possible.
  • People end up functioning as mere monitors, passive watchers of screens. That’s a job that humans, with our notoriously wandering minds, are especially bad at
  • people have trouble maintaining their attention on a stable display of information for more than half an hour. “This means,” Bainbridge observed, “that it is humanly impossible to carry out the basic function of monitoring for unlikely abnormalities.”
  • a person’s skills “deteriorate when they are not used,” even an experienced operator will eventually begin to act like an inexperienced one if restricted to just watching.
  • You can program software to shift control back to human operators at frequent but irregular intervals; knowing that they may need to take command at any moment keeps people engaged, promoting situational awareness and learning.
  • You can put limits on the scope of automation, making sure that people working with computers perform challenging tasks rather than merely observing.
  • most software applications don’t foster learning and engagement. In fact, they have the opposite effect. That’s because taking the steps necessary to promote the development and maintenance of expertise almost always entails a sacrifice of speed and productivity.
  • Learning requires inefficiency. Businesses, which seek to maximize productivity and profit, would rarely accept such a trade-off. Individuals, too, almost always seek efficiency and convenience.
  • Abstract concerns about the fate of human talent can’t compete with the allure of saving time and money.
  • The small island of Igloolik, off the coast of the Melville Peninsula in the Nunavut territory of northern Canada, is a bewildering place in the winter.
  • , Inuit hunters have for some 4,000 years ventured out from their homes on the island and traveled across miles of ice and tundra to search for game. The hunters’ ability to navigate vast stretches of the barren Arctic terrain, where landmarks are few, snow formations are in constant flux, and trails disappear overnight, has amazed explorers and scientists for centuries. The Inuit’s extraordinary way-finding skills are born not of technological prowess—they long eschewed maps and compasses—but of a profound understanding of winds, snowdrift patterns, animal behavior, stars, and tides.
  • The Igloolik hunters have begun to rely on computer-generated maps to get around. Adoption of GPS technology has been particularly strong among younger Inuit, and it’s not hard to understand why.
  • But as GPS devices have proliferated on Igloolik, reports of serious accidents during hunts have spread. A hunter who hasn’t developed way-finding skills can easily become lost, particularly if his GPS receiver fails.
  • The routes so meticulously plotted on satellite maps can also give hunters tunnel vision, leading them onto thin ice or into other hazards a skilled navigator would avoid.
  • An Inuit on a GPS-equipped snowmobile is not so different from a suburban commuter in a GPS-equipped SUV: as he devotes his attention to the instructions coming from the computer, he loses sight of his surroundings. He travels “blindfolded,” as Aporta puts it
  • A unique talent that has distinguished a people for centuries may evaporate in a generation.
  • Computer automation severs the ends from the means. It makes getting what we want easier, but it distances us from the work of knowing. As we transform ourselves into creatures of the screen, we face an existential question: Does our essence still lie in what we know, or are we now content to be defined by what we want?
  • Emily Freilich on 01 Nov 13
     
    Automation increases efficiency and speed of tasks, but decreases the individual's knowledge of a task and decrease's a human's ability to learn. 
Javier E

Joshua Foer: John Quijada and Ithkuil, the Language He Invented : The New Yorker - 2 views

www.newyorker.com/...121224fa_fact_foer

language linguistics artificial invented Sapir-Whorf

shared by Javier E on 19 Dec 12 - Cached
  • Languages are something of a mess. They evolve over centuries through an unplanned, democratic process that leaves them teeming with irregularities, quirks, and words like “knight.” No one who set out to design a form of communication would ever end up with anything like English, Mandarin, or any of the more than six thousand languages spoken today.“Natural languages are adequate, but that doesn’t mean they’re optimal,” John Quijada, a fifty-four-year-old former employee of the California State Department of Motor Vehicles, told me. In 2004, he published a monograph on the Internet that was titled “Ithkuil: A Philosophical Design for a Hypothetical Language.” Written like a linguistics textbook, the fourteen-page Web site ran to almost a hundred and sixty thousand words. It documented the grammar, syntax, and lexicon of a language that Quijada had spent three decades inventing in his spare time. Ithkuil had never been spoken by anyone other than Quijada, and he assumed that it never would be.
  • his “greater goal” was “to attempt the creation of what human beings, left to their own devices, would never create naturally, but rather only by conscious intellectual effort: an idealized language whose aim is the highest possible degree of logic, efficiency, detail, and accuracy in cognitive expression via spoken human language, while minimizing the ambiguity, vagueness, illogic, redundancy, polysemy (multiple meanings) and overall arbitrariness that is seemingly ubiquitous in natural human language.”
  • Ithkuil, one Web site declared, “is a monument to human ingenuity and design.” It may be the most complete realization of a quixotic dream that has entranced philosophers for centuries: the creation of a more perfect language.
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  • Since at least the Middle Ages, philosophers and philologists have dreamed of curing natural languages of their flaws by constructing entirely new idioms according to orderly, logical principles.
  • What if, they wondered, you could create a universal written language that could be understood by anyone, a set of “real characters,” just as the creation of Arabic numerals had done for counting? “This writing will be a kind of general algebra and calculus of reason, so that, instead of disputing, we can say that ‘we calculate,’ ” Leibniz wrote, in 1679.
  • nventing new forms of speech is an almost cosmic urge that stems from what the linguist Marina Yaguello, the author of “Lunatic Lovers of Language,” calls “an ambivalent love-hate relationship.” Language creation is pursued by people who are so in love with what language can do that they hate what it doesn’t. “I don’t believe any other fantasy has ever been pursued with so much ardor by the human spirit, apart perhaps from the philosopher’s stone or the proof of the existence of God; or that any other utopia has caused so much ink to flow, apart perhaps from socialism,”
  • Quijada began wondering, “What if there were one single language that combined the coolest features from all the world’s languages?”
  • Solresol, the creation of a French musician named Jean-François Sudre, was among the first of these universal languages to gain popular attention. It had only seven syllables: Do, Re, Mi, Fa, So, La, and Si. Words could be sung, or performed on a violin. Or, since the language could also be translated into the seven colors of the rainbow, sentences could be woven into a textile as a stream of colors.
  • “I had this realization that every individual language does at least one thing better than every other language,” he said. For example, the Australian Aboriginal language Guugu Yimithirr doesn’t use egocentric coördinates like “left,” “right,” “in front of,” or “behind.” Instead, speakers use only the cardinal directions. They don’t have left and right legs but north and south legs, which become east and west legs upon turning ninety degrees
  • Among the Wakashan Indians of the Pacific Northwest, a grammatically correct sentence can’t be formed without providing what linguists refer to as “evidentiality,” inflecting the verb to indicate whether you are speaking from direct experience, inference, conjecture, or hearsay.
  • In his “Essay Towards a Real Character, and a Philosophical Language,” from 1668, Wilkins laid out a sprawling taxonomic tree that was intended to represent a rational classification of every concept, thing, and action in the universe. Each branch along the tree corresponded to a letter or a syllable, so that assembling a word was simply a matter of tracing a set of forking limbs
  • he started scribbling notes on an entirely new grammar that would eventually incorporate not only Wakashan evidentiality and Guugu Yimithirr coördinates but also Niger-Kordofanian aspectual systems, the nominal cases of Basque, the fourth-person referent found in several nearly extinct Native American languages, and a dozen other wild ways of forming sentences.
  • he discovered “Metaphors We Live By,” a seminal book, published in 1980, by the cognitive linguists George Lakoff and Mark Johnson, which argues that the way we think is structured by conceptual systems that are largely metaphorical in nature. Life is a journey. Time is money. Argument is war. For better or worse, these figures of speech are profoundly embedded in how we think.
  • I asked him if he could come up with an entirely new concept on the spot, one for which there was no word in any existing language. He thought about it for a moment. “Well, no language, as far as I know, has a single word for that chin-stroking moment you get, often accompanied by a frown on your face, when someone expresses an idea that you’ve never thought of and you have a moment of suddenly seeing possibilities you never saw before.” He paused, as if leafing through a mental dictionary. “In Ithkuil, it’s ašţal.”
  • Neither Sapir nor Whorf formulated a definitive version of the hypothesis that bears their names, but in general the theory argues that the language we speak actually shapes our experience of reality. Speakers of different languages think differently. Stronger versions of the hypothesis go even further than this, to suggest that language constrains the set of possible thoughts that we can have. In 1955, a sociologist and science-fiction writer named James Cooke Brown decided he would test the Sapir-Whorf hypothesis by creating a “culturally neutral” “model language” that might recondition its speakers’ brains.
  • most conlangers come to their craft by way of fantasy and science fiction. J. R. R. Tolkien, who called conlanging his “secret vice,” maintained that he created the “Lord of the Rings” trilogy for the primary purpose of giving his invented languages, Quenya, Sindarin, and Khuzdul, a universe in which they could be spoken. And arguably the most commercially successful invented language of all time is Klingon, which has its own translation of “Hamlet” and a dictionary that has sold more than three hundred thousand copies.
  • He imagined that Ithkuil might be able to do what Lakoff and Johnson said natural languages could not: force its speakers to precisely identify what they mean to say. No hemming, no hawing, no hiding true meaning behind jargon and metaphor. By requiring speakers to carefully consider the meaning of their words, he hoped that his analytical language would force many of the subterranean quirks of human cognition to the surface, and free people from the bugs that infect their thinking.
  • Brown based the grammar for his ten-thousand-word language, called Loglan, on the rules of formal predicate logic used by analytical philosophers. He hoped that, by training research subjects to speak Loglan, he might turn them into more logical thinkers. If we could change how we think by changing how we speak, then the radical possibility existed of creating a new human condition.
  • today the stronger versions of the Sapir-Whorf hypothesis have “sunk into . . . disrepute among respectable linguists,” as Guy Deutscher writes, in “Through the Looking Glass: Why the World Looks Different in Other Languages.” But, as Deutscher points out, there is evidence to support the less radical assertion that the particular language we speak influences how we perceive the world. For example, speakers of gendered languages, like Spanish, in which all nouns are either masculine or feminine, actually seem to think about objects differently depending on whether the language treats them as masculine or feminine
  • The final version of Ithkuil, which Quijada published in 2011, has twenty-two grammatical categories for verbs, compared with the six—tense, aspect, person, number, mood, and voice—that exist in English. Eighteen hundred distinct suffixes further refine a speaker’s intent. Through a process of laborious conjugation that would befuddle even the most competent Latin grammarian, Ithkuil requires a speaker to home in on the exact idea he means to express, and attempts to remove any possibility for vagueness.
  • Every language has its own phonemic inventory, or library of sounds, from which a speaker can string together words. Consonant-poor Hawaiian has just thirteen phonemes. English has around forty-two, depending on dialect. In order to pack as much meaning as possible into each word, Ithkuil has fifty-eight phonemes. The original version of the language included a repertoire of grunts, wheezes, and hacks that are borrowed from some of the world’s most obscure tongues. One particular hard-to-make clicklike sound, a voiceless uvular ejective affricate, has been found in only a few other languages, including the Caucasian language Ubykh, whose last native speaker died in 1992.
  • Human interactions are governed by a set of implicit codes that can sometimes seem frustratingly opaque, and whose misreading can quickly put you on the outside looking in. Irony, metaphor, ambiguity: these are the ingenious instruments that allow us to mean more than we say. But in Ithkuil ambiguity is quashed in the interest of making all that is implicit explicit. An ironic statement is tagged with the verbal affix ’kçç. Hyperbolic statements are inflected by the letter ’m.
  • “I wanted to use Ithkuil to show how you would discuss philosophy and emotional states transparently,” Quijada said. To attempt to translate a thought into Ithkuil requires investigating a spectrum of subtle variations in meaning that are not recorded in any natural language. You cannot express a thought without first considering all the neighboring thoughts that it is not. Though words in Ithkuil may sound like a hacking cough, they have an inherent and unavoidable depth. “It’s the ideal language for political and philosophical debate—any forum where people hide their intent or obfuscate behind language,” Quijada co
  • In Ithkuil, the difference between glimpsing, glancing, and gawking is the mere flick of a vowel. Each of these distinctions is expressed simply as a conjugation of the root word for vision. Hunched over the dining-room table, Quijada showed me how he would translate “gawk” into Ithkuil. First, though, since words in Ithkuil are assembled from individual atoms of meaning, he had to engage in some introspection about what exactly he meant to say.For fifteen minutes, he flipped backward and forward through his thick spiral-bound manuscript, scratching his head, pondering each of the word’s aspects, as he packed the verb with all of gawking’s many connotations. As he assembled the evolving word from its constituent meanings, he scribbled its pieces on a notepad. He added the “second degree of the affix for expectation of outcome” to suggest an element of surprise that is more than mere unpreparedness but less than outright shock, and the “third degree of the affix for contextual appropriateness” to suggest an element of impropriety that is less than scandalous but more than simply eyebrow-raising. As he rapped his pen against the notepad, he paged through his manuscript in search of the third pattern of the first stem of the root for “shock” to suggest a “non-volitional physiological response,” and then, after several moments of contemplation, he decided that gawking required the use of the “resultative format” to suggest “an event which occurs in conjunction with the conflated sense but is also caused by it.” He eventually emerged with a tiny word that hardly rolled off the tongue: apq’uxasiu. He spoke the first clacking syllable aloud a couple of times before deciding that he had the pronunciation right, and then wrote it down in the script he had invented for printed Ithkuil:
  • “You can make up words by the millions to describe concepts that have never existed in any language before,” he said.
  • Many conlanging projects begin with a simple premise that violates the inherited conventions of linguistics in some new way. Aeo uses only vowels. Kēlen has no verbs. Toki Pona, a language inspired by Taoist ideals, was designed to test how simple a language could be. It has just a hundred and twenty-three words and fourteen basic sound units. Brithenig is an answer to the question of what English might have sounded like as a Romance language, if vulgar Latin had taken root on the British Isles. Láadan, a feminist language developed in the early nineteen-eighties, includes words like radíidin, defined as a “non-holiday, a time allegedly a holiday but actually so much a burden because of work and preparations that it is a dreaded occasion; especially when there are too many guests and none of them help.”
  • “We think that when a person learns Ithkuil his brain works faster,” Vishneva told him, in Russian. She spoke through a translator, as neither she nor Quijada was yet fluent in their shared language. “With Ithkuil, you always have to be reflecting on yourself. Using Ithkuil, we can see things that exist but don’t have names, in the same way that Mendeleyev’s periodic table showed gaps where we knew elements should be that had yet to be discovered.”
  • Lakoff, who is seventy-one, bearded, and, like Quijada, broadly built, seemed to have read a fair portion of the Ithkuil manuscript and familiarized himself with the language’s nuances.“There are a whole lot of questions I have about this,” he told Quijada, and then explained how he felt Quijada had misread his work on metaphor. “Metaphors don’t just show up in language,” he said. “The metaphor isn’t in the word, it’s in the idea,” and it can’t be wished away with grammar.“For me, as a linguist looking at this, I have to say, ‘O.K., this isn’t going to be used.’ It has an assumption of efficiency that really isn’t efficient, given how the brain works. It misses the metaphor stuff. But the parts that are successful are really nontrivial. This may be an impossible language,” he said. “But if you think of it as a conceptual-art project I think it’s fascinating.”
Javier E

The advantage of ambiguity | MIT News - 1 views

news.mit.edu/...ambiguity-in-language-0119

language ambiguity meaning wittgenstein

shared by Javier E on 29 Nov 17 - No Cached
  • Why did language evolve? While the answer might seem obvious — as a way for individuals to exchange information — linguists and other students of communication have debated this question for years. Many prominent linguists, including MIT’s Noam Chomsky, have argued that language is, in fact, poorly designed for communication. Such a use, they say, is merely a byproduct of a system that probably evolved for other reasons — perhaps for structuring our own private thoughts.
  • In a new theory, they claim that ambiguity actually makes language more efficient, by allowing for the reuse of short, efficient sounds that listeners can easily disambiguate with the help of context.
  • “Various people have said that ambiguity is a problem for communication,” says Ted Gibson, an MIT professor of cognitive science and senior author of a paper describing the research to appear in the journal Cognition. "But the fact that context disambiguates has important ramifications for the re-use of potentially ambiguous forms. Ambiguity is no longer a problem — it's something that you can take advantage of, because you can reuse easy [words] in different contexts over and over again."
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  • virtually no speaker of English gets confused when he or she hears the word “mean.” That’s because the different senses of the word occur in such different contexts as to allow listeners to infer its meaning nearly automatically.
  • To understand why ambiguity makes a language more efficient rather than less so, think about the competing desires of the speaker and the listener. The speaker is interested in conveying as much as possible with the fewest possible words, while the listener is aiming to get a complete and specific understanding of what the speaker is trying to say.
  • it is “cognitively cheaper” to have the listener infer certain things from the context than to have the speaker spend time on longer and more complicated utterances. The result is a system that skews toward ambiguity, reusing the “easiest” words. Once context is considered, it’s clear that “ambiguity is actually something you would want in the communication system,” Piantadosi says.
  • “You would expect that since languages are constantly changing, they would evolve to get rid of ambiguity,” Wasow says. “But if you look at natural languages, they are massively ambiguous: Words have multiple meanings, there are multiple ways to parse strings of words. … This paper presents a really rigorous argument as to why that kind of ambiguity is actually functional for communicative purposes, rather than dysfunctional.”
  • “Ambiguity is only good for us [as humans] because we have these really sophisticated cognitive mechanisms for disambiguating,” he says. “It’s really difficult to work out the details of what those are, or even some sort of approximation that you could get a computer to use.”
johnsonel7

Opinion | Do heuristics help us make good decisions in uncertain times? - 0 views

www.livemint.com/...e-good-decisions-in-uncer.html

heuristic opinion research

shared by johnsonel7 on 19 Oct 19 - No Cached
  • Do heuristics, the shortcuts that the brain takes, support efficient decision making or does it impede efficient decision making?
  • Humans have neither unlimited resources nor unlimited time to take decisions. So, the brain has always developed smart heuristics, shortcuts to take efficient decisions.
  • One other key thought put forward by Gigerenzer is that there is a big difference between risk and uncertainty. We are dealing with risk when you know all the alternatives, outcomes and their probabilities. We are dealing with uncertainty when you don’t know all the alternatives, outcomes or their probabilities.
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  • It has been found that if doctors are trained how to translate conditional probabilities into natural frequencies, the ability of the doctors to communicate the risk to their patients goes up dramatically. Just imagine the huge difference this can make to customer satisfaction in the healthcare business.
Javier E

Technopoly-Chs. 9,10--Scientism, the great symbol drain - 0 views

scientism science social science narrative objectivity advertising morality authority coherence Postman book notes

shared by Javier E on 02 Oct 21 - No Cached
  • By Scientism, I mean three interrelated ideas that, taken together, stand as one of the pillars of Technopoly.
  • The first and indispensable idea is, as noted, that the methods of the natural sciences can be applied to the study of human behavior. This idea is the backbone of much of psychology and sociology as practiced at least in America, and largely accounts for the fact that social science, to quote F. A. Hayek, "has cont~ibuted scarcely anything to our understanding of social phenomena." 2
  • The second idea is, as also noted, that social science generates specific principles which can be used to organize society on a rational and humane basis. This implies that technical meansmostly "invisible technologies" supervised by experts-can be designed to control human behavior and set it on the proper course.
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  • The third idea is that faith in science can serve as a comprehensive belief system that gives meaning to life, as well. as a sense of well-being, morality, and even immortality.
  • the spirit behind this scientific ideal inspired several men to believe that the reliable and predictable knowledge that could be obtained about stars and atoms could also be obtained about human behavior.
  • Among the best known of these early "social scientists" were Claude-Henri de Saint-Simon, Prosper Enfantin, and, of course, Auguste Comte.
  • They held in common two beliefs to which T echnopoly is deeply indebted: that the natural sciences provide a method to unlock the secrets of both the human heart and the direction of social life; that society can be rationally and humanely reorganized according to principles that social science will uncover. It is with these men that the idea of "social engineering" begins and the seeds of Scientism are planted.
  • Information produced by counting may sometimes be valuable in helping a person get an idea, or, even more so, in providing support for an idea. But the mere activity of counting does not make science.
  • Nor does observing th_ings, though it is sometimes said that if one is empirical, one is scientific. To be empirical means to look at things before drawing conclusions. Everyone, therefore, is an empiricist, with the possible exception of paranoid schizophrenics.
  • What we may call science, then, is the quest to find the immutable and universal laws that govern processes, presuming that there are cause-and-effect relations among these processes. It follows that the quest to understand human behavior and feeling can in no sense except the most trivial be called science.
  • Scientists do strive to be empirical and where possible precise, but it is also basic to their enterprise that they maintain a high degree of objectivity, which means that they study things independently of what people think or do about them.
  • I do not say, incidentally, that the Oedipus complex and God do not exist. Nor do I say that to believe in them is harmful-far from it. I say only that, there being no tests that could, in principle, show them to be false, they fall outside the purview Scientism 151 of science, as do almost all theories that make up the content of "social science."
  • in the nineteenth centu~, novelists provided us with most of the powerful metaphors and images of our culture.
  • This fact relieves the scientist of inquiring into their values and motivations and for this reason alone separates science from what is called social science, consigning the methodology of the latter (to quote Gunnar Myrdal) to the status of the "metaphysical and pseudo-objective." 3
  • The status of social-science methods is further reduced by the fact that there are almost no experiments that will reveal a social-science theory to be false.
  • et us further suppose that Milgram had found that 100 percent of his 1 subjecl:s did what they were told, with or without Hannah Arendt. And now let us suppose that I tell you a story of a Scientism 153 group of people who in some real situation refused to comply with the orders of a legitimate authority-let us say, the Danes who in the face of Nazi occupation helped nine thousand Jews escape to Sweden. Would you say to me that this cannot be so because Milgram' s study proves otherwise? Or would you say that this overturns Milgram's work? Perhaps you would say that the Danish response is not relevant, since the Danes did not regard the Nazi occupation as constituting legitimate autho!ity. But then, how would we explain the cooperative response to Nazi authority of the French, the Poles, and the Lithuanians? I think you would say none of these things, because Milgram' s experiment qoes not confirm or falsify any theory that might be said to postulate a law of human nature. His study-which, incidentally, I find both fascinating and terrifying-is not science. It is something else entirely.
  • Freud, could not imagine how the book could be judged exemplary: it was science or it was nothing. Well, of course, Freud was wrong. His work is exemplary-indeed, monumental-but scarcely anyone believes today that Freud was doing science, any more than educated people believe that Marx was doing science, or Max Weber or Lewis Mumford or Bruno Bettelheim or Carl Jung or Margaret Mead or Arnold Toynbee. What these people were doing-and Stanley Milgram was doing-is documenting the behavior and feelings of people as they confront problems posed by their culture.
  • the stories of social r~searchers are much closer in structure and purpose to what is called imaginative literature; that is to say, both a social researcher and a novelist give unique interpretations to a set of human events and support their interpretations with examples in various forms. Their interpretations cannot be proved or disproved but will draw their appeal from the power of their language, the depth of their explanations, the relevance of their examples, and the credibility of their themes.
  • And all of this has, in both cases, an identifiable moral purpose.
  • The words "true" and "false" do not apply here in the sense that they are used in mathematics or science. For there is nothing universally and irrevocably true or false about these interpretations. There are no critical tests to confirm or falsify them. There are no natural laws from which they are derived. They are bound by time, by situation, and above all by the cultural prejudices of the researcher or writer.
  • Both the novelist and the social researcher construct their stories by the use of archetypes and metaphors.
  • Cervantes, for example, gave us the enduring archetype of the incurable dreamer and idealist in Don Quixote. The social historian Marx gave us the archetype of the ruthless and conspiring, though nameless, capitalist. Flaubert gave us the repressed b~urgeois romantic in Emma Bovary. And Margaret Mead gave us the carefree, guiltless Samoan adolescent. Kafka gave us the alienated urbanite driven to self-loathing. And Max Weber gave us hardworking men driven by a mythology he called the Protestant Ethic. Dostoevsky gave us the egomaniac redeemed by love and religious fervor. And B. F. Skinner gave us the automaton redeemed by a benign technology.
  • Why do such social researchers tell their stories? Essentially for didactic and moralistic purposes. These men and women tell their stories for the same reason the Buddha, Confucius, Hillel, and Jesus told their stories (and for the same reason D. H. Lawrence told his).
  • Moreover, in their quest for objectivity, scientists proceed on the assumption that the objects they study are indifferent to the fact that they are being studied.
  • If, indeed, the price of civilization is repressed sexuality, it was not Sigmund Freud who discovered it. If the consciousness of people is formed by their material circumstances, it was not Marx who discovered it. If the medium is the message, it was not McLuhan who discovered it. They have merely retold ancient stories in a modem style.
  • Unlike science, social research never discovers anything. It only rediscovers what people once were told and need to be told again.
  • Only in knowing ~omething of the reasons why they advocated education can we make sense of the means they suggest. But to understand their reas.ons we must also understand the narratives that governed their view of the world. By narrative, I mean a story of human history that gives meaning to the past, explains the present, and provides guidance for the future.
  • In Technopoly, it is not Scientism 159 enough to say, it is immoral and degrading to allow people to be homeless. You cannot get anywhere by asking a judge, a politician, or a bureaucrat to r~ad Les Miserables or Nana or, indeed, the New Testament. Y 01.i must show that statistics have produced data revealing the homeless to be unhappy and to be a drain on the economy. Neither Dostoevsky nor Freud, Dickens nor Weber, Twain nor Marx, is now a dispenser of legitimate knowledge. They are interesting; they are ''.worth reading"; they are artifacts of our past. But as for "truth," we must tum to "science."
  • In Technopoly, it is not enough for social research to rediscover ancient truths or to comment on and criticize the moral behavior of people. In T echnopoly, it is an insult to call someone a "moralizer." Nor is it sufficient for social research to put forward metaphors, images, and ideas that can help people live with some measure of understanding and dignity.
  • Such a program lacks the aura of certain knowledge that only science can provide. It becomes necessary, then, to transform psychology, sociology, and anthropology into "sciences," in which humanity itself becomes an object, much like plants, planets, or ice cubes.
  • That is why the commonplaces that people fear death and that children who come from stable families valuing scholarship will do well in school must be announced as "discoveries" of scientific enterprise. In this way, social resear~hers can see themselves, and can be seen, as scientists, researchers without bias or values, unburdened by mere opinion. In this way, social policies can be claimed to rest on objectively determined facts.
  • given the psychological, social, and material benefits that attach to the label "scientist," it is not hard to see why social researchers should find it hard to give it up.
  • Our social "s'cientists" have from the beginning been less tender of conscience, or less rigorous in their views of science, or perhaps just more confused about the questions their procedures can answer and those they cannot. In any case, they have not been squeamish about imputing to their "discoveries" and the rigor of their procedures the power to direct us in how we ought rightly to behave.
  • It is less easy to see why the rest of us have so willingly, even eagerly, cooperated in perpetuating the same illusion.
  • When the new technologies and techniques and spirit of men like Galileo, Newton, and Bacon laid the foundations of natural science, they also discredited the authority of earlier accounts of the physical world, as found, for example, in the great tale of Genesis. By calling into question the truth of such accounts in one realm, science undermined the whole edifice of belief in sacred stories and ultimately swept away with it the source to which most humans had looked for moral authority. It is not too much to say, I think, that the desacralized world has been searching for an alternative source of moral authority ever since.
  • We welcome them gladly, and the claim explicitly made or implied, because we need so desperately to find some source outside the frail and shaky judgments of mortals like ourselves to authorize our moral decisions and behavior. And outside of the authority of brute force, which can scarcely be called moral, we seem to have little left but the authority of procedures.
  • It is not merely the misapplication of techniques such as quantification to questions where numbers have nothing to say; not merely the confusion of the material and social realms of human experience; not merely the claim of social researchers to be applying the aims and procedures of natural scien\:e to the human world.
  • This, then, is what I mean by Scientism.
  • It is the desperate hope, and wish, and ultimately the illusory belief that some standardized set of procedures called "science" can provide us with an unimpeachable source of moral authority, a suprahuman basis for answers to questions like "What is life, and when, and why?" "Why is death, and suffering?" 'What is right and wrong to do?" "What are good and evil ends?" "How ought we to think and feel and behave?
  • Science can tell us when a heart begins to beat, or movement begins, or what are the statistics on the survival of neonates of different gestational ages outside the womb. But science has no more authority than you do or I do to establish such criteria as the "true" definition of "life" or of human state or of personhood.
  • Social research can tell us how some people behave in the presence of what they believe to be legitimate authority. But it cannot tell us when authority is "legitimate" and when not, or how we must decide, or when it may be right or wrong to obey.
  • To ask of science, or expect of science, or accept unchallenged from science the answers to such questions is Scientism. And it is Technopoly's grand illusion.
  • In the institutional form it has taken in the United States, advertising is a symptom of a world-view 'that sees tradition as an obstacle to its claims. There can, of course, be no functioning sense of tradition without a measure of respect for symbols. Tradition is, in fact, nothing but the acknowledgment of the authority of symbols and the relevance of the narratives that gave birth to them. With the erosion of symbols there follows a loss of narrative, which is one of the most debilitating consequences of Technopoly' s power.
  • What the advertiser needs to know is not what is right about the product but what is wrong about the buyer. And so the balance of business expenditures shifts from product research to market research, which meahs orienting business away from making products of value and toward making consumers feel valuable. The business of business becomes pseudo-therapy; the consumer, a patient reassl.,lred by psychodramas.
  • At the moment, 1t 1s considered necessary to introduce computers to the classroom, as it once was thought necessary to bring closed-circuit television and film to the classroom. To the question "Why should we do this?" the answer is: "To make learning more efficient and more interesting." Such an answer is considered entirely adequate, since in T ~chnopoly efficiency and interest need no justification. It is, therefore, usually not noticed that this answer does not address the question "What is learning for?"
  • What this means is that somewhere near the core of Technopoly is a vast industry with license to use all available symbols to further the interests of commerce, by devouring the psyches of consumers.
  • In the twentieth century, such metaphors and images have come largely from the pens of social historians and researchers. ·Think of John Dewey, William James, Erik Erikson, Alfred Kinsey, Thorstein Veblen, Margaret Mead, Lewis Mumford, B. F. Skinner, Carl Rogers, Marshall McLuhan, Barbara Tuchman, Noam Chomsky, Robert Coles, even Stanley Milgram, and you must acknowledge that our ideas of what we are like and what kind of country we live in come from their stories to a far greater extent than from the stories of our most renowned novelists.
  • social idea that must be advanced through education.
  • Confucius advocated teaching "the Way" because in tradition he saw the best hope for social order. As our first systematic fascist, Plato wished education to produce philosopher kings. Cicero argued that education must free the student from the tyranny of the present. Jefferson thought the purpose of education is to teach the young how to protect their liberties. Rousseau wished education to free the young from the unnatural constraints of a wicked and arbitrary social order. And among John Dewey's aims was to help the student function without certainty in a world of constant change and puzzling· ambiguities.
  • The point is that cultures must have narratives and will find them where they will, even if they lead to catastrophe. The alternative is to live without meaning, the ultimate negation of life itself.
  • It is also to the point to say that each narrative is given its form and its emotional texture through a cluster of symbols that call for respect and allegiance, even devotion.
  • by definition, there can be no education philosophy that does not address what learning is for. Confucius, Plato, Quintilian, Cicero, Comenius, Erasmus, Locke, Rousseau, Jefferson, Russell, Montessori, Whitehead, and Dewey--each believed that there was some transcendent political, spiritual, or
  • The importance of the American Constitution is largely in its function as a symbol of the story of our origins. It is our political equivalent of Genesis. To mock it, to• ignore it, to circwnvent it is to declare the irrelevance of the story of the United States as a moral light unto the world. In like fashion, the Statue of Liberty is the key symbol of the story of America as the natural home of the teeming masses, from anywhere, yearning to be free.
  • There are those who believe--as did the great historian Arnold Toynbee-that without a comprehensive religious narrative at its center a culture must decline. Perhaps. There are, after all, other sources-mythology, politics, philosophy, and science; for example--but it is certain that no culture can flourish without narratives of transcendent orjgin and power.
  • This does not mean that the mere existence of such a narrative ensures a culture's stability and strength. There are destructive narratives. A narrative provides meaning, not necessarily survival-as, for example, the story provided by Adolf Hitler to the German nation in t:he 1930s.
  • What story does American education wish to tell now? In a growing Technopoly, what do we believe education is for?
  • The answers are discouraging, and one of. them can be inferred from any television commercial urging the young to stay in school. The commercial will either imply or state explicitly that education will help the persevering student to get a ·good job. And that's it. Well, not quite. There is also the idea that we educate ourselves to compete with the Japanese or the Germans in an economic struggle to be number one.
  • Young men, for example, will learn how to make lay-up shots when they play basketball. To be able to make them is part of the The Great Symbol Drain 177 definition of what good players are. But they do not play basketball for that purpose. There is usually a broader, deeper, and more meaningful reason for wanting to play-to assert their manhood, to please their fathers, to be acceptable to their peers, even for the sheer aesthetic pleasure of the game itself. What you have to do to be a success must be addressed only after you have found a reason to be successful.
  • Bloom's solution is that we go back to the basics of Western thought.
  • He wants us to teach our students what Plato, Aristotle, Cicero, Saint Augustine, and other luminaries have had to say on the great ethical and epistemological questions. He believes that by acquainting themselves with great books our students will acquire a moral and intellectual foundation that will give meaning and texture to their lives.
  • Hirsch's encyclopedic list is not a solution but a description of the problem of information glut. It is therefore essentially incoherent. But it also confuses a consequence of education with a purpose. Hirsch attempted to answer the question "What is an educated person?" He left unanswered the question "What is an education for?"
  • Those who reject Bloom's idea have offered several arguments against it. The first is that such a purpose for education is elitist: the mass of students would not find the great story of
  • Western civilization inspiring, are too deeply alienated from the past to find it so, and would therefore have difficulty connecting the "best that has been thought and said" to their own struggles to find q1eaning in their lives.
  • A second argument, coming from what is called a "leftist" perspective, is even more discouraging. In a sense, it offers a definition of what is meant by elitism. It asserts that the "story of Western civilization" is a partial, biased, and even oppressive one. It is not the story of blacks, American Indians, Hispanics, women, homosexuals-of any people who are not white heterosexual males of Judea-Christian heritage. This claim denies that there is or can be a national culture, a narrative of organizing power and inspiring symbols which all citizens can identify with and draw sustenance from. If this is true, it means nothing less than that our national symbols have been drained of their power to unite, and that education must become a tribal affair; that is, each subculture must find its own story and symbols, and use them as the moral basis of education.
  • nto this void comes the Technopoly story, with its emphasis on progress without limits, rights without responsibilities, and technology without cost. The T echnopoly story is without a moral center. It puts in its place efficiency, interest, and economic advance. It promises heaven on earth through the conveniences of technological progress. It casts aside all traditional narratives and symbols that· suggest stability and orderliness, and tells, instead, of a life of skills, technical expertise, and the ecstasy of consumption. Its purpose is to produce functionaries for an ongoing Technopoly.
  • It answers Bloom by saying that the story of Western civilization is irrelevant; it answers the political left by saying there is indeed a common culture whose name is T echnopoly and whose key symbol is now the computer, toward which there must be neither irreverence nor blasphemy. It even answers Hirsch by saying that there are items on his list that, if thought about too deeply and taken too seriously, will interfere with the progress of technology.
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