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create guidelines for models which, rather than focusing on BMI, strive to educate the industry and foster a healthy working environment.

"I realized that only legislation can change the situation. There was no time to educate so many people, and the change had be forced on the industry. There was no time to waste, so many girls were dieting to death."

"Certainly I don't believe the modeling industry has caused the rise in eating disorders, but it makes it harder," she says. "It's a difficult recovery environment, worshiping thinness as the beauty ideal."

If you know everyone is going to see what you wear and judge it, then what you wear becomes fraught with meaning.

She realized very early on that everything she did had ramifications

Just because something appears trivial does not mean it is any less powerful as a means of persuasion and outreach. In some ways its very triviality — the fact that everyone could talk about it, dissect it, imitate it — makes fashion the most potentially viral item in the subliminal political toolbox.

as she said to Vogue in her third cover story, the most of any first lady, one of the factors in choosing a garment always has to be, “Is it cute?”

she saw it as a way to frame her own independence and points of difference, add to her portfolio and amplify her husband’s agenda.

Mrs. Obama seemed to work with them all.

We all tend to gravitate toward certain designers in part because of sheer laziness: We know what suits us, what we like, and so we go there first. To have been so, well, evenhanded in her choices could have happened only with careful calculation.

Especially because Mrs. Obama not only wore their clothes, she also took their business seriously, framing fashion as a credible, covetable job choice during her education initiatives.

If you think that was an accident, there’s a bridge I can sell you — just as the fact she wore Jason Wu to her husband’s farewell address in Chicago, a designer she also wore at both inaugural balls, was no coincidence. It was closure.

But above all, her wardrobe was representative of the country her husband wanted to lead.

It may be because the point of what Mrs. Obama wore was never simply that it was good to mix up your wardrobe among a group of designers, but rather that clothes were most resonant when they were an expression of commitment to an idea, or an ideal, that had resonance.

The answer is the 1 percent, obviously (or those willing to incur credit card debt). Luca Solca, an analyst for Bernstein, estimates that the top 5 percent of luxury clients now account for more than 40 percent of sales for most luxury goods brands

As wealth inequality increases globally, luxury brands are doubling down on an ever smaller slice of their clientele

VF There’s a sort of warring imperative here between people who see it as a badge of honor not to buy full price and those who belong to the very tiny club that can. Economics are involved, but as much as anything, it’s also psychology.

VF Which brings me back to Phoebe Philo’s current scarcity model: We don’t even know how much of any piece they produced (the company wouldn’t say) but the message is the market will bear the prices, since the products are sold out. We think because it is more expensive, it has more value.

GT This is the stuff for which Daniel Kahneman won the Nobel. Subjects shown two identical cashmere sweaters, one at a far higher price, inevitably chose the more costly of the two. His point was that we don’t think. We act irrationally.

EP Speaking of dollars, a quarter of a trillion them have been wiped off the value of Europe’s seven biggest luxury businesses since April, and sales are generally down across most fashion groups. That is the aspirational middle class stepping away from the credit card machine.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

It feels as if fashion is doing a better job of appreciating a woman’s “curves,” but that always means hips and bootys, never bellies. How do I dress to flatter my new shape?

A lot of us changed shape over the last year as we were shut indoors and the sensory joys of life

it’s also true that it is possible to simply live peacefully with it, prioritizing what’s important according to the individual.

if we become more accepting of a variety of shapes after the last year, that’s a positive development.

But you are correct in saying that when fashion focuses on women and weight, it tends to focus on boobs and bottoms, rather than bellies.

IMG decided it wanted to represent bigger girls (good)

the agency rejected the whole inane “plus-size” terminology

but then settled on calling its new division … “curve.”

how to move forward?

Both women said forget the Spanx — that’s for “red carpet,” Elizabeth said — and focus instead on comfort and what makes you feel good.

Both also said do not pretend your stomach does not exist by wearing muumuus.

eye of the beholder

Then the message is not about “hiding anything,” she said. “You’re just not buttoning it up.”

Old Farmer’s Almanac predictions are based on solar activity and prevailing weather

newer rivals have a formula combining solar and lunar activity and the movements of the planets.

Whatever happens, it is likely that successes will be remembered and failures ignored.

This human tendency, known as confirmation bias, may do more to keep almanacs in business than the reliability of their secret formulae.

On the republican picture, owning is a relationship that presupposes law, if only the inchoate law of informal custom.

The conflict between the images is important because it shows up in alternative visions of the economy and the relationship between the economy and the state.

You own something only insofar as it is a matter of accepted convention that given the way you came to hold it — given public recognition of the title you have to the property — you enjoy public protection against those who would take it from you

This view of property, prominent in Rousseau and presupposed in the broader republican tradition, is scarcely questionable in view of the salient diversity in systems of property

These observations, scarcely richer than platitudes, are important for giving us a perspective on the market and the economy, undermining the libertarian image. That picture represents the market as a res privata, a private thing, suggesting that the role of the state is merely to lay low the hills in the way of the market and smooth the paths for its operation. And so it depicts any other interventions of government in the market as dubious on philosophical, not just empirical, grounds.

this image accounts for the continuing attachment to austerity among those on the right. They are philosophically opposed to Keynesianism, not just opposed on empirical grounds, and their ideological stance makes empirically based arguments for Keynesianism invisible to them.

In this past weekend’s Styles section of the New York Times, Siegel uses “The Lonely Crowd” to analyze the putative “Yelpification” of contemporary life: according to Siegel, Riesman’s view was that “people went from being ‘inner-directed’ to ‘outer-directed,’ from heeding their own instincts and judgment to depending on the judgments and opinions of tastemakers and trendsetters.” The “conformist power of the crowd” and its delighted ability to write online reviews led Siegel down a sad path to a lackluster expensive dinner.

What Riesman actually suggested was that we think of social organization in terms of a series of “ideal types” along a spectrum of increasingly loose authority

On one end of the spectrum is a “tradition-directed” community, where we all understand that what we’re supposed to do is what we’re supposed to do because it’s just the thing that one does; authority is unequivocal, and there’s neither the room nor the desire for autonomous action

In the middle of the spectrum, as one moves toward a freer distribution of, and response to, authority, is “inner-direction.” The inner-directed character is concerned not with “what one does” but with “what people like us do.” Which is to say that she looks to her own internalizations of past authorities to get a sense for how to conduct her affairs.

Contemporary society, Riesman thought, was best understood as chiefly “other-directed,” where the inculcated authority of the vertical (one’s lineage) gives way to the muddled authority of the horizontal (one’s peers).

The inner-directed person orients herself by an internal “gyroscope,” while the other-directed person orients herself by “radar.”

It’s not that the inner-directed person consults some deep, subjective, romantically sui generis oracle. It’s that the inner-directed person consults the internalized voices of a mostly dead lineage, while her other-directed counterpart heeds the external voices of her living contemporaries.

“the gyroscopic mechanism allows the inner-directed person to appear far more independent than he really is: he is no less a conformist to others than the other-directed person, but the voices to which he listens are more distant, of an older generation, their cues internalized in his childhood.” The inner-directed person is, simply, “somewhat less concerned than the other-directed person with continuously obtaining from contemporaries (or their stand-ins: the mass media) a flow of guidance, expectation, and approbation.

Riesman drew no moral from the transition from a community of primarily inner-directed people to a community of the other-directed. Instead, he saw that each ideal type had different advantages and faced different problems

As Riesman understood it, the primary disciplining emotion under tradition direction is shame, the threat of ostracism and exile that enforces traditional action. Inner-directed people experience not shame but guilt, or the fear that one’s behavior won’t be commensurate with the imago within. And, finally, other-directed folks experience not guilt but a “contagious, highly diffuse” anxiety—the possibility that, now that authority itself is diffuse and ambiguous, we might be doing the wrong thing all the time.

Siegel is right to make the inference, if wayward in his conclusions. It makes sense to associate the anxiety of how to relate to livingly diffuse authorities with the Internet, which presents the greatest signal-to-noise-ratio problem in human history.

The problem with Yelp is not the role it plays, for Siegel, in the proliferation of monoculture; most people of my generation have learned to ignore Yelp entirely. It’s the fact that, after about a year of usefulness, Yelp very quickly became a terrible source of information.

There are several reasons for this. The first is the nature of an algorithmic response to the world. As Jaron Lanier points out in “Who Owns the Future?,” the hubris behind each new algorithm is the idea that its predictive and evaluatory structure is game-proof; but the minute any given algorithm gains real currency, all the smart and devious people devote themselves to gaming it. On Yelp, the obvious case would be garnering positive reviews by any means necessary.

A second problem with Yelp’s algorithmic ranking is in the very idea of using online reviews; as anybody with a book on Amazon knows, they tend to draw more contributions from people who feel very strongly about something, positively or negatively. This undermines the statistical relevance of their recommendations.

the biggest problem with Yelp is not that it’s a popularity contest. It’s not even that it’s an exploitable popularity contest.

it’s the fact that Yelp makes money by selling ads and prime placements to the very businesses it lists under ostensibly neutral third-party review

But Yelp’s valuations are always possibly in bad faith, even if its authority is dressed up as the distilled algorithmic wisdom of a crowd. For Riesman, that’s the worst of all possible worlds: a manipulated consumer certainty that only shores up the authority of an unchosen, hidden source. In that world, cold monkfish is the least of our problems.

in general what he argues is that if you take a look at animal cognition, human too, it's computational systems. Therefore, you want to look the units of computation. Think about a Turing machine, say, which is the simplest form of computation, you have to find units that have properties like "read", "write" and "address." That's the minimal computational unit, so you got to look in the brain for those. You're never going to find them if you look for strengthening of synaptic connections or field properties, and so on. You've got to start by looking for what's there and what's working and you see that from Marr's highest level.

it's basically in the spirit of Marr's analysis. So when you're studying vision, he argues, you first ask what kind of computational tasks is the visual system carrying out. And then you look for an algorithm that might carry out those computations and finally you search for mechanisms of the kind that would make the algorithm work. Otherwise, you may never find anything.

"Good Old Fashioned AI," as it's labeled now, made strong use of formalisms in the tradition of Gottlob Frege and Bertrand Russell, mathematical logic for example, or derivatives of it, like nonmonotonic reasoning and so on. It's interesting from a history of science perspective that even very recently, these approaches have been almost wiped out from the mainstream and have been largely replaced -- in the field that calls itself AI now -- by probabilistic and statistical models. My question is, what do you think explains that shift and is it a step in the right direction?

AI and robotics got to the point where you could actually do things that were useful, so it turned to the practical applications and somewhat, maybe not abandoned, but put to the side, the more fundamental scientific questions, just caught up in the success of the technology and achieving specific goals.

The approximating unanalyzed data kind is sort of a new approach, not totally, there's things like it in the past. It's basically a new approach that has been accelerated by the existence of massive memories, very rapid processing, which enables you to do things like this that you couldn't have done by hand. But I think, myself, that it is leading subjects like computational cognitive science into a direction of maybe some practical applicability... ..in engineering? Chomsky: ...But away from understanding.

I was very skeptical about the original work. I thought it was first of all way too optimistic, it was assuming you could achieve things that required real understanding of systems that were barely understood, and you just can't get to that understanding by throwing a complicated machine at it.

if success is defined as getting a fair approximation to a mass of chaotic unanalyzed data, then it's way better to do it this way than to do it the way the physicists do, you know, no thought experiments about frictionless planes and so on and so forth. But you won't get the kind of understanding that the sciences have always been aimed at -- what you'll get at is an approximation to what's happening.

Suppose you want to predict tomorrow's weather. One way to do it is okay I'll get my statistical priors, if you like, there's a high probability that tomorrow's weather here will be the same as it was yesterday in Cleveland, so I'll stick that in, and where the sun is will have some effect, so I'll stick that in, and you get a bunch of assumptions like that, you run the experiment, you look at it over and over again, you correct it by Bayesian methods, you get better priors. You get a pretty good approximation of what tomorrow's weather is going to be. That's not what meteorologists do -- they want to understand how it's working. And these are just two different concepts of what success means, of what achievement is.

if you get more and more data, and better and better statistics, you can get a better and better approximation to some immense corpus of text, like everything in The Wall Street Journal archives -- but you learn nothing about the language.

the right approach, is to try to see if you can understand what the fundamental principles are that deal with the core properties, and recognize that in the actual usage, there's going to be a thousand other variables intervening -- kind of like what's happening outside the window, and you'll sort of tack those on later on if you want better approximations, that's a different approach.

take a concrete example of a new field in neuroscience, called Connectomics, where the goal is to find the wiring diagram of very complex organisms, find the connectivity of all the neurons in say human cerebral cortex, or mouse cortex. This approach was criticized by Sidney Brenner, who in many ways is [historically] one of the originators of the approach. Advocates of this field don't stop to ask if the wiring diagram is the right level of abstraction -- maybe it's no

if you went to MIT in the 1960s, or now, it's completely different. No matter what engineering field you're in, you learn the same basic science and mathematics. And then maybe you learn a little bit about how to apply it. But that's a very different approach. And it resulted maybe from the fact that really for the first time in history, the basic sciences, like physics, had something really to tell engineers. And besides, technologies began to change very fast, so not very much point in learning the technologies of today if it's going to be different 10 years from now. So you have to learn the fundamental science that's going to be applicable to whatever comes along next. And the same thing pretty much happened in medicine.

that's the kind of transition from something like an art, that you learn how to practice -- an analog would be trying to match some data that you don't understand, in some fashion, maybe building something that will work -- to science, what happened in the modern period, roughly Galilean science.

it turns out that there actually are neural circuits which are reacting to particular kinds of rhythm, which happen to show up in language, like syllable length and so on. And there's some evidence that that's one of the first things that the infant brain is seeking -- rhythmic structures. And going back to Gallistel and Marr, its got some computational system inside which is saying "okay, here's what I do with these things" and say, by nine months, the typical infant has rejected -- eliminated from its repertoire -- the phonetic distinctions that aren't used in its own language.

people like Shimon Ullman discovered some pretty remarkable things like the rigidity principle. You're not going to find that by statistical analysis of data. But he did find it by carefully designed experiments. Then you look for the neurophysiology, and see if you can find something there that carries out these computations. I think it's the same in language, the same in studying our arithmetical capacity, planning, almost anything you look at. Just trying to deal with the unanalyzed chaotic data is unlikely to get you anywhere, just like as it wouldn't have gotten Galileo anywhere.

with regard to cognitive science, we're kind of pre-Galilean, just beginning to open up the subject

You can invent a world -- I don't think it's our world -- but you can invent a world in which nothing happens except random changes in objects and selection on the basis of external forces. I don't think that's the way our world works, I don't think it's the way any biologist thinks it is. There are all kind of ways in which natural law imposes channels within which selection can take place, and some things can happen and other things don't happen. Plenty of things that go on in the biology in organisms aren't like this. So take the first step, meiosis. Why do cells split into spheres and not cubes? It's not random mutation and natural selection; it's a law of physics. There's no reason to think that laws of physics stop there, they work all the way through. Well, they constrain the biology, sure. Chomsky: Okay, well then it's not just random mutation and selection. It's random mutation, selection, and everything that matters, like laws of physics.

What I think is valuable is the history of science. I think we learn a lot of things from the history of science that can be very valuable to the emerging sciences. Particularly when we realize that in say, the emerging cognitive sciences, we really are in a kind of pre-Galilean stage. We don't know wh

at we're looking for anymore than Galileo did, and there's a lot to learn from that.

designer of the test-taking program, noted that even a simple task for children, like understanding the meaning of an arrow in the context of a test diagram, was not yet something the most advanced A.I. programs could do reliably.

scientific workshops intended to develop more accurate methods than the Turing test for measuring the capabilities of artificial intelligence programs.

Researchers in the field are now developing a wide range of gauges to measure intelligence — including the Allen Institute’s standardized-test approach and a task that Dr. Marcus proposed, which he called the “Ikea construction challenge.” That test would provide an A.I. program with a bag of parts and an instruction sheet and require it to assemble a piece of furniture.

First proposed in 2011 by Hector Levesque, a University of Toronto computer scientist, the Winograd Schema Challenge would pose questions that require real-world logic to A.I. programs. A question might be: “The trophy would not fit in the brown suitcase because it was too big. What was too big, A: the trophy or B: the suitcase?” Answering this question would require a program to reason spatially and have specific knowledge about the size of objects.

Within the A.I. community, discussions about software programs that can reason in a humanlike way are significant because recent progress in the field has been more focused on improving perception, not reasoning.

GeoSolver, or GeoS, was described at the Conference on Empirical Methods on Natural Language Processing in Lisbon this weekend. It operates by separately generating a series of logical equations, which serve as components of possible answers, from the text and the diagram in the question. It then weighs the accuracy of the equations and tries to discern whether its interpretation of the diagram and text is strong enough to select one of the multiple-choice answers.

Ultimately, Dr. Marcus said, he believed that progress in artificial intelligence would require multiple tests, just as multiple tests are used to assess human performance.

“There is no one measure of human intelligence,” he said. “Why should there be just one A.I. test?”

In the 1960s, Hubert Dreyfus, a philosophy professor at the University of California, Berkeley, expressed this skepticism most clearly when he wrote, “Believing that writing these types of programs will bring us closer to real artificial intelligence is like believing that someone climbing a tree is making progress toward reaching the moon.”

ultimately, it's not whether Levin's broader argument that's really important in this specific case. It's that he's is using obscure conceptual arguments to shield genuinely ignorant people like Perry from criticism. Even if every one of the above arguments is wrong, there's a huge difference between some subtle ethical conflicts and flat-0ut denying the theory of evolution or anthropogenic climate change.

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

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

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

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

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

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

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

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

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

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

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

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

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

The History of Animal Spirits: Dreams Never Sleep

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

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

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

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

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

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

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

Progress (Naturalness and Civilization)

The Economy of Good and Evil

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

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

The Need for Greed: The History of Consumption and Labor

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

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

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

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

Masters of the Truth

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How does this affect economics?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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