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searching the Internet can get you to information that would back up almost any claim of fact, no matter how unfounded. It is both the world’s best fact-checker and the world’s best bias confirmer — often at the same time.

Nor is it a coincidence that people are increasingly following the election on social media, using it both as the source of their information and as the way to get their view out. Consent is still being manufactured, but the manufacturing is being done willingly by us, usually intended for consumption by other people with whom we already agree, facts or no facts.

It really isn’t a surprise that Rubio would ask us to Google for certain facts; that’s how you and I know almost everything we know nowadays — it is a way of knowing that is so embedded into the very fabric of our lives that we don’t even notice it

The problem of course is that having more information available, even more accurate information, isn’t what is required by the ideal.

What is required is that people actually know and understand that information, and there are reasons to think we are no closer to an informed citizenry understood in that way than we ever have been. Indeed, we might be further away.

The worry is no longer about who controls content. It is about who controls the flow of that content.

the flow of digital information is just as prone to manipulation as its content

No wonder Trump and his followers on Twitter immediately shrugged off Rubio’s inconvenient truths; there is nothing to fear from information when counterinformation is just as plentiful.

The real worry concerns our faith in the ideal of an informed citizenry itself. That worry, as I see it, has two faces.

First, as Jason Stanley and others have emphasized recently, appeals to ideals can be used to undermine those very ideals.

The very availability of information can make us think that the ideal of the informed citizen is more realized than it is — and that, in turn, can actually undermine the ideal, making us less informed, simply because we think we know all we need to know already.

Second, the danger is that increasing recognition of the fact that Googling can get you wherever you want to go can make us deeply cynical about the ideal of an informed citizenry — for the simple reason that what counts as an “informed” citizen is a matter of dispute. We no longer disagree just over values. Nor do we disagree just over the facts. We disagree over whose source — whose fountain of facts — is the right one.

And once disagreement reaches that far down, the daylight of reason seems very far away indeed.

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

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

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

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

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

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

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

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

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

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

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

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

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

The History of Animal Spirits: Dreams Never Sleep

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

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

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

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

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

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

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

Progress (Naturalness and Civilization)

The Economy of Good and Evil

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

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

The Need for Greed: The History of Consumption and Labor

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

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

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

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

Masters of the Truth

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How does this affect economics?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

LABOR AND REST: THE SABBATH ECONOMY

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

materialism is not the greedy desire for material goods, but rather the belief that the fundamental reality of the world is material;

idealism is not the aspiration toward lofty and laudable goals, but rather the belief that the fundamental reality of the world is mental or idea-like. English-speaking philosophers today tend to speak of “physicalism” or “naturalism” rather than materialism (perhaps to avoid confusion with the Wall Street sense of the term). At the same time, Anglo-American historians of philosophy continue to find the distinction between materialism and idealism a useful one in our attempts at categorizing past schools of thought. Democritus and La Mettrie were materialists; Hobbes was pretty close. Berkeley and Kant were idealists; Leibniz may have been.

And it was these paradoxes that led the Irish philosopher to conclude that talk of matter was but a case of multiplying entities beyond necessity. For Berkeley, all we can know are ideas, and for this reason it made sense to suppose that the world itself consists in ideas.

Central to this performance was the concept of  “materialism.” The entire history of philosophy, in fact, was portrayed in Soviet historiography as a series of matches between the materialist home-team and its “idealist” opponents, beginning roughly with Democritus (good) and Plato (bad), and culminating in the opposition between official party philosophy and logical positivism, the latter of which was portrayed as a shrouded variety of idealism. Thus from the “Short Philosophical Dictionary,” published in Moscow in 1951, we learn that the school of logical empiricism represented by Rudolf Carnap, Otto Neurath and others, “is a form of subjective idealism, characteristic of degenerating bourgeois philosophy in the epoch of the decline of capitalism.”Now the Soviet usage of this pair of terms appears to fly in the face of our ordinary, non-philosophical understanding of them (that, for example,  Wall Street values are “materialist,” while the Occupy movement is “idealist”). One might have thought that the communists should be flinging the “materialist” label at their capitalist enemies, rather than claiming it for themselves. One might also have thought that the Bolshevik Revolution and the subsequent failed project of building a workers’ utopia was nothing if not idealistic.

one great problem with the concept of materialism is that it says very little in itself. What is required in addition is an elaboration of what a given thinker takes matter, or ideas, to be. It may not be just the Marxist aftertaste, but also the fact that the old common-sense idea about matter as brute, given stuff has turned out to have so little to do with the way the physical world actually is, that has led Anglo-American philosophers to prefer to associate themselves with the “physical” or the “natural” rather than with the material.  Reality, they want to say, is just what is natural, while everything else is in turn “supernatural” (this distinction has its clarity going for it, but it also seems uncomfortably close to tautology). Not every philosopher has a solid grasp of subatomic physics, but most know enough to grasp that, even if reality is eventually exhaustively accounted for through an enumeration of the kinds of particles and a few basic forces, this reality will still look nothing like what your average person-in-the-street takes reality to be.

The 18th-century idealist philosopher George Berkeley strongly believed that matter was only a fiction contrived by philosophers in the first place, for which the real people had no need. For Berkeley, there was never anything common-sensical about matter. We did not need to arrive at the era of atom-splitting and wave-particle duality, then, in order for the paradoxes inherent in matter to make themselves known (is it infinitely divisible or isn’t it?

Soviet and Western Marxists alike, by stark contrast, and before them the French “vulgar” (i.e., non-dialectical) materialists of the 18th century, saw and see the material world as the base and cause of all mental activity, as both bringing ideas into existence, and also determining the form and character of a society’s ideas in accordance with the state of its technology, its methods of resource extraction and its organization of labor. So here to focus on the material is not to become distracted from the true source of being, but rather to zero right in on it.

Consider money. Though it might sometimes be represented by bank notes or coins, money is an immaterial thing par excellence, and to seek to acquire it is to move on the plane of ideas. Of course, money can also be converted into material things, yet it seems simplistic to suppose that we want money only in order to convert it into the material things we really want, since even these material things aren’t just material either: they are symbolically dense artifacts, and they convey to others certain ideas about their owners. This, principally, is why their owners want them, which is to say that materialists (in the everyday sense) are trading in ideas just as much as anyone else.

In the end no one really cares about stuff itself. Material acquisitions — even, or perhaps especially, material acquisitions of things like Rolls Royces and Rolexes — are maneuvers within a universe of materially instantiated ideas. This is human reality, and it is within this reality that mystics, scientists, and philosophers alike are constrained to pursue their various ends, no matter what they might take the ultimate nature of the external world to be.

At fifty-nine, Anderson is the chair of the University of Michigan’s department of philosophy and a champion of the view that equality and freedom are mutually dependent, enmeshed in changing conditions through time.

She has built a case, elaborated across decades, that equality is the basis for a free society

Because she brings together ideas from both the left and the right to battle increasing inequality, Anderson may be the philosopher best suited to this awkward moment in American life. She builds a democratic frame for a society in which people come from different places and are predisposed to disagree.

she sketched out the entry-level idea that one basic way to expand equality is by expanding the range of valued fields within a society.

The ability not to have an identity that one carries from sphere to sphere but, rather, to be able to slip in and adopt whatever values and norms are appropriate while retaining one’s identities in other domains?” She paused. “That is what it is to be free.”

How do you move from a basic model of egalitarian variety, in which everybody gets a crack at being a star at something, to figuring out how to respond to a complex one, where people, with different allotments of talent and virtue, get unequal starts, and often meet with different constraints along the way?

The problem, she proposed, was that contemporary egalitarian thinkers had grown fixated on distribution: moving resources from lucky-seeming people to unlucky-seeming people, as if trying to spread the luck around.

Egalitarians should agree about clear cases of blameless misfortune: the quadriplegic child, the cognitively impaired adult, the teen-ager born into poverty with junkie parents. But Anderson balked there, too. By categorizing people as lucky or unlucky, she argued, these egalitarians set up a moralizing hierarchy.

In Anderson’s view, the way forward was to shift from distributive equality to what she called relational, or democratic, equality: meeting as equals, regardless of where you were coming from or going to.

By letting the lucky class go on reaping the market’s chancy rewards while asking others to concede inferior status in order to receive a drip-drip-drip of redistributive aid, these egalitarians were actually entrenching people’s status as superior or subordinate.

To the ugly and socially awkward: . . . Maybe you won’t be such a loser in love once potential dates see how rich you are.

. To the stupid and untalented: Unfortunately, other people don’t value what little you have to offer in the system of production. . . . Because of the misfortune that you were born so poorly endowed with talents, we productive ones will make it up to you: we’ll let you share in the bounty of what we have produced with our vastly superior and highly valued abilities. . . 

she imagined some citizens getting a state check and a bureaucratic letter:

This was, at heart, an exercise of freedom. The trouble was that many people, picking up on libertarian misconceptions, thought of freedom only in the frame of their own actions.

To be truly free, in Anderson’s assessment, members of a society had to be able to function as human beings (requiring food, shelter, medical care), to participate in production (education, fair-value pay, entrepreneurial opportunity), to execute their role as citizens (freedom to speak and to vote), and to move through civil society (parks, restaurants, workplaces, markets, and all the rest).

Anderson’s democratic model shifted the remit of egalitarianism from the idea of equalizing wealth to the idea that people should be equally free, regardless of their differences.

A society in which everyone had the same material benefits could still be unequal, in this crucial sense; democratic equality, being predicated on equal respect, wasn’t something you could simply tax into existence. “People, not nature, are responsible for turning the natural diversity of human beings into oppressive hierarchies,”

Her first book, “Value in Ethics and Economics,” appeared that year, announcing one of her major projects: reconciling value (an amorphous ascription of worth that is a keystone of ethics and economics) with pluralism (the fact that people seem to value things in different ways).

Philosophers have often assumed that pluralistic value reflects human fuzziness—we’re loose, we’re confused, and we mix rational thought with sentimental responses.

She offered an “expressive” theory: in her view, each person’s values could be various because they were socially expressed, and thus shaped by the range of contexts and relationships at play in a life. Instead of positing value as a basic, abstract quality across society (the way “utility” functioned for economists), she saw value as something determined by the details of an individual’s history.

Like her idea of relational equality, this model resisted the temptation to flatten human variety toward a unifying standard. In doing so, it helped expand the realm of free and reasoned economic choice.

Anderson’s model unseated the premises of rational-choice theory, in which individuals invariably make utility-maximizing decisions, occasionally in heartless-seeming ways. It ran with, rather than against, moral intuition. Because values were plural, it was perfectly rational to choose to spend evenings with your family, say, and have guilt toward the people you left in the lurch at work.

The theory also pointed out the limits on free-market ideologies, such as libertarianism.

In ethics, it broke across old factional debates. The core idea “has been picked up on by people across quite a range of positions,” Peter Railton, one of Anderson’s longtime colleagues, says. “Kantians and consequentialists alike”—people who viewed morality in terms of duties and obligations, and those who measured the morality of actions by their effects in the world—“could look at it and see something important.”

Traditionally, the discipline is taught through a-priori thought—you start with basic principles and reason forward. Anderson, by contrast, sought to work empirically, using information gathered from the world, identifying problems to be solved not abstractly but through the experienced problems of real people.

“Dewey argued that the primary problems for ethics in the modern world concerned the ways society ought to be organized, rather than personal decisions of the individual,”

In 2004, the Stanford Encyclopedia of Philosophy asked Anderson to compose its entry on the moral philosophy of John Dewey, who helped carry pragmatist methods into the social realm. Dewey had an idea of democracy as a system of good habits that began in civil life. He was an anti-ideologue with an eye for pluralism.

She started working with historians, trying to hone her understanding of ideas by studying them in the context of their creation. Take Rousseau’s apparent support of direct democracy. It’s rarely mentioned that, at the moment when he made that argument, his home town of Geneva had been taken over by oligarchs who claimed to represent the public. Pragmatism said that an idea was an instrument, which naturally gave rise to such questions as: an instrument for what, and where, and when?

In “What Is the Point of Equality?,” Anderson had already started to drift away from what philosophers, following Rawls, call ideal theory, based on an end vision for a perfectly just society. As Anderson began a serious study of race in America, though, she found herself losing faith in that approach entirely.

Broadly, there’s a culturally right and a culturally left ideal theory for race and society. The rightist version calls for color blindness. Instead of making a fuss about skin and ethnicity, its advocates say, society should treat people as people, and let the best and the hardest working rise.

The leftist theory envisions identity communities: for once, give black people (or women, or members of other historically oppressed groups) the resources and opportunities they need, including, if they want it, civil infrastructure for themselves.

In “The Imperative of Integration,” published in 2010, Anderson tore apart both of these models. Sure, it might be nice to live in a color-blind society, she wrote, but that’s nothing like the one that exists.

But the case for self-segregation was also weak. Affinity groups provided welcome comfort, yet that wasn’t the same as power or equality, Anderson pointed out. And there was a goose-and-gander problem. Either you let only certain groups self-segregate (certifying their subordinate status) or you also permitted, say, white men to do it,

Anderson’s solution was “integration,” a concept that, especially in progressive circles, had been uncool since the late sixties. Integration, by her lights, meant mixing on the basis of equality.

in attending to these empirical findings over doctrine, she announced herself as a non-ideal theorist: a philosopher with no end vision of society. The approach recalls E. L. Doctorow’s description of driving at night: “You can see only as far as the headlights, but you can make the whole trip that way.”

or others, though, a white woman making recommendations on race policy raised questions of perspective. She was engaging through a mostly white Anglo-American tradition. She worked from the premise that, because she drew on folders full of studies, the limits of her own perspective were not constraining.

Some philosophers of color welcomed the book. “She’s taking the need for racial justice seriously, and you could hardly find another white political philosopher over a period of decades doing that,”

Recently, Anderson changed the way she assigns undergraduate essays: instead of requiring students to argue a position and fend off objections, doubling down on their original beliefs, she asks them to discuss their position with someone who disagrees, and to explain how and why, if at all, the discussion changed their views.

The challenge of pluralism is the challenge of modern society: maintaining equality amid difference in a culture given to constant and unpredictable change.

Rather than fighting for the ascendancy of certain positions, Anderson suggests, citizens should fight to bolster healthy institutions and systems—those which insure that all views and experiences will be heard. Today’s righteous projects, after all, will inevitably seem fatuous and blinkered from the vantage of another age.

Smith saw the markets as an escape from that order. Their “most important” function, he explained, was to bring “liberty and security” to those “who had before lived almost in a continual state of war with their neighbours, and of servile dependency upon their superiors.”

Anderson zeroed in on Adam Smith, whose “The Wealth of Nations,” published in 1776, is taken as a keystone of free-market ideology. At the time, English labor was subject to uncompensated apprenticeships, domestic servitude, and some measure of clerical dominion.

Smith, in other words, was an egalitarian. He had written “The Wealth of Nations” in no small part to be a solution to what we’d now call structural inequality—the intractable, compounding privileges of an arbitrary hierarchy.

It was a historical irony that, a century later, writers such as Marx pointed to the market as a structure of dominion over workers; in truth, Smith and Marx had shared a socioeconomic project. And yet Marx had not been wrong to trash Smith’s ideas, because, during the time between them, the world around Smith’s model had changed, and it was no longer a useful tool.

mages of free market society that made sense prior to the Industrial Revolution continue to circulate today as ideals, blind to the gross mismatch between the background social assumptions reigning in the seventeenth and eighteenth centuries, and today’s institutional realities. We are told that our choice is between free markets and state control, when most adults live their working lives under a third thing entirely: private government.

Today, people still try to use, variously, both Smith’s and Marx’s tools on a different, postindustrial world:

The unnaturalness of this top-heavy arrangement, combined with growing evidence of power abuses, has given many people reason to believe that something is fishy about the structure of American equality. Socialist and anti-capitalist models are again in vogue.

Anderson offers a different corrective path. She thinks it’s fine for some people to earn more than others. If you’re a brilliant potter, and people want to pay you more than the next guy for your pottery, great!

The problem isn’t that talent and income are distributed in unequal parcels. The problem is that Jeff Bezos earns more than a hundred thousand dollars a minute, while Amazon warehouse employees, many talented and hardworking, have reportedly resorted to urinating in bottles in lieu of a bathroom break. That circumstance reflects some structure of hierarchical oppression. It is a rip in the democratic fabric, and it’s increasingly the norm.

Andersonism holds that we don’t have to give up on market society if we can recognize and correct for its limitations—it may even be our best hope, because it’s friendlier to pluralism than most alternatives are.

we must be flexible. We must remain alert. We must solve problems collaboratively, in the moment, using society’s ears and eyes and the best tools that we can find.

“You can see that, from about 1950 to 1970, the typical American’s wages kept up with productivity growth,” she said. Then, around 1974, she went on, hourly compensation stagnated. American wages have been effectively flat for the past few decades, with the gains of productivity increasingly going to shareholders and to salaries for big bosses.

What changed? Anderson rattled off a constellation of factors, from strengthened intellectual-property law to winnowed antitrust law. Financialization, deregulation. Plummeting taxes on capital alongside rising payroll taxes. Privatization, which exchanged modest public-sector salaries for C.E.O. paydays. She gazed into the audience and blinked. “So now we have to ask: What has been used to justify this rather dramatic shift of labor-share of income?”

It was no wonder that industrial-age thinking was riddled with contradictions: it reflected what Anderson called “the plutocratic reversal” of classical liberal ideas. Those perversely reversed ideas about freedom were the ones that found a home in U.S. policy, and, well, here we were.

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.”

Sartre listened to his problem and said simply, ‘You are free, therefore choose — that is to say, invent.’ No signs are vouchsafed in this world, he said. None of the old authorities can relieve you of the burden of freedom. You can weigh up moral or practical considerations as carefully as you like, but ultimately you must take the plunge and do something, and it’s up to you what that something is.

Even if the situation is unbearable — perhaps you are facing execution, or sitting in a Gestapo prison, or about to fall off a cliff — you are still free to decide what to make of it in mind and deed. Starting from where you are now, you choose. And in choosing, you also choose who you will be.

The war had made people realise that they and their fellow humans were capable of departing entirely from civilised norms; no wonder the idea of a fixed human nature seemed questionable.

If this sounds difficult and unnerving, it’s because it is. Sartre does not deny that the need to keep making decisions brings constant anxiety. He heightens this anxiety by pointing out that what you do really matters. You should make your choices as though you were choosing on behalf of the whole of humanity, taking the entire burden of responsibility for how the human race behaves. If you avoid this responsibility by fooling yourself that you are the victim of circumstance or of someone else’s bad advice, you are failing to meet the demands of human life and choosing a fake existence, cut off from your own ‘authenticity’.

Along with the terrifying side of this comes a great promise: Sartre’s existentialism implies that it is possible to be authentic and free, as long as you keep up the effort.

almost all agreed that it was, as an article in Les nouvelles littéraires phrased it, a ‘sickening mixture of philosophic pretentiousness, equivocal dreams, physiological technicalities, morbid tastes and hesitant eroticism … an introspective embryo that one would take distinct pleasure in crushing’.

he offered a philosophy designed for a species that had just scared the hell out of itself, but that finally felt ready to grow up and take responsibility.

In this rebellious world, just as with the Parisian bohemians and Dadaists in earlier generations, everything that was dangerous and provocative was good, and everything that was nice or bourgeois was bad.

Such interweaving of ideas and life had a long pedigree, although the existentialists gave it a new twist. Stoic and Epicurean thinkers in the classical world had practised philosophy as a means of living well, rather than of seeking knowledge or wisdom for their own sake. By reflecting on life’s vagaries in philosophical ways, they believed they could become more resilient, more able to rise above circumstances, and better equipped to manage grief, fear, anger, disappointment or anxiety.