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literature study in a university education requires some method of evaluation of whether the student has done well or poorly. Students’ papers must be graded and no faculty member wants to face the inevitable “that’s just your opinion” unarmed, as it were. Learning how to use a research methodology, providing evidence that one has understood and can apply such a method, is understandably an appealing pedagogy

Literature and the arts have a dimension unique in the academy, not shared by the objects studied, or “researched” by our scientific brethren. They invite or invoke, at a kind of “first level,” an aesthetic experience that is by its nature resistant to restatement in more formalized, theoretical or generalizing language. This response can certainly be enriched by knowledge of context and history, but the objects express a first-person or subjective view of human concerns that is falsified if wholly transposed to a more “sideways on” or third person view.

such works also can directly deliver a  kind of practical knowledge and self-understanding not available from a third person or more general formulation of such knowledge. There is no reason to think that such knowledge — exemplified in what Aristotle said about the practically wise man (the phronimos)or in what Pascal meant by the difference between l’esprit géometrique and l’esprit de finesse — is any less knowledge because it cannot be so formalized or even taught as such.

The history of Europe since the 18th century has been the story of successive attempts to find alternatives to God as an object of worship, among them the nation state, race and the Communist Manifesto. After this cost humanity two world wars, a Cold War and a hundred million lives, we have turned to more pacific forms of idolatry, among them the market, the liberal democratic state and the consumer society,

This is what a society built on materialism, individualism and moral relativism looks like. It maximises personal freedom but at a cost.

This freedom, energising and exciting as it is, is also profoundly disintegrative, making it very difficult for individuals to find any stable communal support, very difficult for any community to count on the responsible participation of its individual members. It opens solitary men and women to the impact of a lowest common denominator, commercial culture.’

In one respect the new atheists are right. The threat to western freedom in the 21st century is not from fascism or communism but from a religious fundamentalism combining hatred of the other, the pursuit of power and contempt for human rights.

But the idea that this can be defeated by individualism and relativism is naive almost beyond belief. Humanity has been here before.

The barbarians win. They always do.

The new barbarians are the fundamentalists who seek to impose a single truth on a plural world. Though many of them claim to be religious, they are actually devotees of the will to power. Defeating them will take the strongest possible defence of freedom, and strong societies are always moral societies

That does not mean that they need be religious. It is just that, in the words of historian Will Durant, ‘There is no significant example in history, before our time, of a society successfully maintaining moral life without the aid of religion.’

I have not yet found a secular ethic capable of sustaining in the long run a society of strong communities and families on the one hand, altruism, virtue, self-restraint, honour, obligation and trust on the other

A century after a civilisation loses its soul it loses its freedom also. That should concern all of us, believers and non-believers alike.

Economies dominated by hedge financing—that is, those with strong cashflows and low debt levels—are the most stable. When speculative and, especially, Ponzi financing come to the fore, financial systems are more vulnerable. If asset values start to fall, either because of monetary tightening or some external shock, the most overstretched firms will be forced to sell their positions. This further undermines asset values, causing pain for even more firms. They could avoid this trouble by restricting themselves to hedge financing. But over time, particularly when the economy is in fine fettle, the temptation to take on debt is irresistible. When growth looks assured, why not borrow more? Banks add to the dynamic, lowering their credit standards the longer booms last. If defaults are minimal, why not lend more? Minsky’s conclusion was unsettling. Economic stability breeds instability. Periods of prosperity give way to financial fragility.

Minsky’s insight might sound obvious. Of course, debt and finance matter. But for decades the study of economics paid little heed to the former and relegated the latter to a sub-discipline, not an essential element in broader theories.

Minsky was a maverick. He challenged both the Keynesian backbone of macroeconomics and a prevailing belief in efficient markets.

t Messrs Hicks and Hansen largely left the financial sector out of the picture, even though Keynes was keenly aware of the importance of markets. To Minsky, this was an “unfair and naive representation of Keynes’s subtle and sophisticated views”. Minsky’s financial-instability hypothesis helped fill in the holes.

His challenge to the prophets of efficient markets was even more acute. Eugene Fama and Robert Lucas, among others, persuaded most of academia and policymaking circles that markets tended towards equilibrium as people digested all available information. The structure of the financial system was treated as almost irrelevant

In recent years, behavioural economists have attacked one plank of efficient-market theory: people, far from being rational actors who maximise their gains, are often clueless about what they want and make the wrong decisions.

But years earlier Minsky had attacked another: deep-seated forces in financial systems propel them towards trouble, he argued, with stability only ever a fleeting illusion.

Investors were faster than professors to latch onto his views. More than anyone else it was Paul McCulley of PIMCO, a fund-management group, who popularised his ideas. He coined the term “Minsky moment” to describe a situation when debt levels reach breaking-point and asset prices across the board start plunging. Mr McCulley initially used the term in explaining the Russian financial crisis of 1998. Since the global turmoil of 2008, it has become ubiquitous. For investment analysts and fund managers, a “Minsky moment” is now virtually synonymous with a financial crisis.

it would be a stretch to expect the financial-instability hypothesis to become a new foundation for economic theory. Minsky’s legacy has more to do with focusing on the right things than correctly structuring quantifiable models. It is enough to observe that debt and financial instability, his main preoccupations, have become some of the principal topics of inquiry for economists today

As Mr Krugman has quipped: “We are all Minskyites now.”

Today, the “common” interpretation of the recent past is thus composed of the manifold fragments of separate pasts, each of them (Jewish, Polish, Serb, Armenian, German, Asian-American, Palestinian, Irish, homosexual…) marked by its own distinctive and assertive victimhood.

The resulting mosaic does not bind us to a shared past, it separates us from it. Whatever the shortcomings of the national narratives once taught in school, however selective their focus and instrumental their message, they had at least the advantage of providing a nation with past references for present experience. Traditional history, as taught to generations of schoolchildren and college students, gave the present a meaning by reference to the past: today’s names, places, inscriptions, ideas, and allusions could be slotted into a memorized narrative of yesterday. In our time, however, this process has gone into reverse. The past now acquires meaning only by reference to our many and often contrasting present concerns.

the United States thus has no modern memory of combat or loss remotely comparable to that of the armed forces of other countries. But it is civilian casualties that leave the most enduring mark on national memory and here the contrast is piquant indeed

Today, the opposite applies. Most people in the world outside of sub-Saharan Africa have access to a near infinity of data. But in the absence of any common culture beyond a small elite, and not always even there, the fragmented information and ideas that people select or encounter are determined by a multiplicity of tastes, affinities, and interests. As the years pass, each one of us has less in common with the fast-multiplying worlds of our contemporaries, not to speak of the world of our forebears.

What is significant about the present age of transformations is the unique insouciance with which we have abandoned not merely the practices of the past but their very memory. A world just recently lost is already half forgotten.

In the US, at least, we have forgotten the meaning of war. There is a reason for this. I

Until the last decades of the twentieth century most people in the world had limited access to information; but—thanks to national education, state-controlled radio and television, and a common print culture—within any one state or nation or community people were all likely to know many of the same things.

it was precisely that claim, that “it’s torture, and therefore it’s no good,” which until very recently distinguished democracies from dictatorships. We pride ourselves on having defeated the “evil empire” of the Soviets. Indeed so. But perhaps we should read again the memoirs of those who suffered at the hands of that empire—the memoirs of Eugen Loebl, Artur London, Jo Langer, Lena Constante, and countless others—and then compare the degrading abuses they suffered with the treatments approved and authorized by President Bush and the US Congress. Are they so very different?

American civilian losses (excluding the merchant navy) in both world wars amounted to less than 2,000 dead.

the complacent neoconservative claim that war and conflict are things Americans understand—in contrast to naive Europeans with their pacifistic fantasies—seems to me exactly wrong: it is Europeans (along with Asians and Africans) who understand war all too well. Most Americans have been fortunate enough to live in blissful ignorance of its true significance.

That same contrast may account for the distinctive quality of much American writing on the cold war and its outcome. In European accounts of the fall of communism, from both sides of the former Iron Curtain, the dominant sentiment is one of relief at the closing of a long, unhappy chapter. Here in the US, however, the story is typically recorded in a triumphalist key.5

For many American commentators and policymakers the message of the twentieth century is that war works. Hence the widespread enthusiasm for our war on Iraq in 2003 (despite strong opposition to it in most other countries). For Washington, war remains an option—on that occasion the first option. For the rest of the developed world it has become a last resort.6

Ignorance of twentieth-century history does not just contribute to a regrettable enthusiasm for armed conflict. It also leads to a misidentification of the enemy.

This abstracting of foes and threats from their context—this ease with which we have talked ourselves into believing that we are at war with “Islamofascists,” “extremists” from a strange culture, who dwell in some distant “Islamistan,” who hate us for who we are and seek to destroy “our way of life”—is a sure sign that we have forgotten the lesson of the twentieth century: the ease with which war and fear and dogma can bring us to demonize others, deny them a common humanity or the protection of our laws, and do unspeakable things to them.

How else are we to explain our present indulgence for the practice of torture? For indulge it we assuredly do.

“But what would I have achieved by proclaiming my opposition to torture?” he replied. “I have never met anyone who is in favor of torture.”8 Well, times have changed. In the US today there are many respectable, thinking people who favor torture—under the appropriate circumstances and when applied to those who merit it.

As a consequence, the United States today is the only advanced democracy where public figures glorify and exalt the military, a sentiment familiar in Europe before 1945 but quite unknown today

We are slipping down a slope. The sophistic distinctions we draw today in our war on terror—between the rule of law and “exceptional” circumstances, between citizens (who have rights and legal protections) and noncitizens to whom anything can be done, between normal people and “terrorists,” between “us” and “them”—are not new. The twentieth century saw them all invoked. They are the selfsame distinctions that licensed the worst horrors of the recent past: internment camps, deportation, torture, and murder—those very crimes that prompt us to murmur “never again.” So what exactly is it that we think we have learned from the past? Of what possible use is our self-righteous cult of memory and memorials if the United States can build its very own internment camp and torture people there?

We need to learn again—or perhaps for the first time—how war brutalizes and degrades winners and losers alike and what happens to us when, having heedlessly waged war for no good reason, we are encouraged to inflate and demonize our enemies in order to justify that war’s indefinite continuance.

The history of science is replete with examples of simpler (“more elegant,” if you are aesthetically inclined) hypotheses that had to yield to more clumsy and complicated ones.

This is both why there is no such thing as a “crucial” experiment in science (you always need to repeat them under a variety of conditions), and why naive Popperian falsificationism is wrong (you can never falsify a hypothesis directly, only the H&A complex can be falsified).

The Duhem thesis explains why Sober is right, I think, in maintaining that the razor works (when it does) given certain background assumptions that are bound to be discipline- and problem-specific.

So, Ockham’s razor is a sharp but not universal tool, and needs to be wielded with the proper care due to the specific circumstances.

There is no shortcut for a serious investigation of the world, including the spelling out of our auxiliary, and often unexplored, hypotheses and assumptions.

Tooby and Cosmides ran their simulation for tens of thousands of generations, to figure out where the generosity thermostat would get set. They find that it makes more sense to adopt a general attitude of generosity, in the hope that paying it forward now will pay back later. What does this all mean for how we think about ourselves? To the researchers, it suggests that "human generosity, far from being a thin veneer of cultural conditioning atop a Machiavellian core, may turn out to be a bedrock feature of human nature." Why? Because thousands of years of small-town living have left their mark.

Why would you choose to cooperate or cheat? The answer hinges, essentially, on a guess: For many encounters, you simply can't know whether or not they'll be one-shot or repeated.

Empowered by their own sources of information and their own interpretations of research, doubters have declared war on the consensus of experts.

Our lives are permeated by science and technology as never before. For many of us this new world is wondrous, comfortable, and rich in rewards—but also more complicated and sometimes unnerving. We now face risks we can’t easily analyze.

The world crackles with real and imaginary hazards, and distinguishing the former from the latter isn’t easy.

In this bewildering world we have to decide what to believe and how to act on that. In principle that’s what science is for.

“Science is not a body of facts,” says geophysicist Marcia McNutt,

“Science is a method for deciding whether what we choose to believe has a basis in the laws of nature or not.”

The scientific method leads us to truths that are less than self-evident, often mind-blowing, and sometimes hard to swallow.

We don’t believe you.

Galileo was put on trial and forced to recant. Two centuries later Charles Darwin escaped that fate. But his idea that all life on Earth evolved from a primordial ancestor and that we humans are distant cousins of apes, whales, and even deep-sea mollusks is still a big ask for a lot of people. So is another 19th-century notion: that carbon dioxide, an invisible gas that we all exhale all the time and that makes up less than a tenth of one percent of the atmosphere, could be affecting Earth’s climate.

we intellectually accept these precepts of science, we subconsciously cling to our intuitions

Shtulman’s research indicates that as we become scientifically literate, we repress our naive beliefs but never eliminate them entirely. They lurk in our brains, chirping at us as we try to make sense of the world.

Most of us do that by relying on personal experience and anecdotes, on stories rather than statistics.

We have trouble digesting randomness; our brains crave pattern and meaning.

we can deceive ourselves.

Even for scientists, the scientific method is a hard discipline. Like the rest of us, they’re vulnerable to what they call confirmation bias—the tendency to look for and see only evidence that confirms what they already believe. But unlike the rest of us, they submit their ideas to formal peer review before publishing them

other scientists will try to reproduce them

Scientific results are always provisional, susceptible to being overturned by some future experiment or observation. Scientists rarely proclaim an absolute truth or absolute certainty. Uncertainty is inevitable at the frontiers of knowledge.

Many people in the United States—a far greater percentage than in other countries—retain doubts about that consensus or believe that climate activists are using the threat of global warming to attack the free market and industrial society generally.

news media give abundant attention to such mavericks, naysayers, professional controversialists, and table thumpers. The media would also have you believe that science is full of shocking discoveries made by lone geniuses

science tells us the truth rather than what we’d like the truth to be. Scientists can be as dogmatic as anyone else—but their dogma is always wilting in the hot glare of new research.

But industry PR, however misleading, isn’t enough to explain why only 40 percent of Americans, according to the most recent poll from the Pew Research Center, accept that human activity is the dominant cause of global warming.

“science communication problem,”

yielded abundant new research into how people decide what to believe—and why they so often don’t accept the scientific consensus.

higher literacy was associated with stronger views—at both ends of the spectrum. Science literacy promoted polarization on climate, not consensus. According to Kahan, that’s because people tend to use scientific knowledge to reinforce beliefs that have already been shaped by their worldview.

“egalitarian” and “communitarian” mind-set are generally suspicious of industry and apt to think it’s up to something dangerous that calls for government regulation; they’re likely to see the risks of climate change.

“hierarchical” and “individualistic” mind-set respect leaders of industry and don’t like government interfering in their affairs; they’re apt to reject warnings about climate change, because they know what accepting them could lead to—some kind of tax or regulation to limit emissions.

For a hierarchical individualist, Kahan says, it’s not irrational to reject established climate science: Accepting it wouldn’t change the world, but it might get him thrown out of his tribe.

Science appeals to our rational brain, but our beliefs are motivated largely by emotion, and the biggest motivation is remaining tight with our peers.

organizations funded in part by the fossil fuel industry have deliberately tried to undermine the public’s understanding of the scientific consensus by promoting a few skeptics.

Internet makes it easier than ever for climate skeptics and doubters of all kinds to find their own information and experts

Internet has democratized information, which is a good thing. But along with cable TV, it has made it possible to live in a “filter bubble” that lets in only the information with which you already agree.

How to convert climate skeptics? Throwing more facts at them doesn’t help.

people need to hear from believers they can trust, who share their fundamental values.

We believe in scientific ideas not because we have truly evaluated all the evidence but because we feel an affinity for the scientific community.

“Believing in evolution is just a description about you. It’s not an account of how you reason.”

evolution actually happened. Biology is incomprehensible without it. There aren’t really two sides to all these issues. Climate change is happening. Vaccines really do save lives. Being right does matter—and the science tribe has a long track record of getting things right in the end. Modern society is built on things it got right.

Doubting science also has consequences.

In the climate debate the consequences of doubt are likely global and enduring. In the U.S., climate change skeptics have achieved their fundamental goal of halting legislative action to combat global warming.

“That line between science communication and advocacy is very hard to step back from,”

It’s their very detachment, what you might call the cold-bloodedness of science, that makes science the killer app.

that need to fit in is so strong that local values and local opinions are always trumping science.

not a sin to change your mind when the evidence demands it.

for the best scientists, the truth is more important than the tribe.

Students come away thinking of science as a collection of facts, not a method.

Shtulman’s research has shown that even many college students don’t really understand what evidence is.

“Everybody should be questioning,” says McNutt. “That’s a hallmark of a scientist. But then they should use the scientific method, or trust people using the scientific method, to decide which way they fall on those questions.”

science has made us the dominant organisms,

incredibly rapid change, and it’s scary sometimes. It’s not all progress.

systems that work in parallel.

The Common Core promotes 10 so-called "College and Career Readiness Anchor Standards" for reading that emphasize technical skills like analyzing, integrating, and delineating a text. But these expectations deal very little with ensuring students are actually appreciating the literature at hand—and say nothing about the personal engagement and life lessons to which my principal was referring

Kate Kinsella, an influential author who consults school districts across the country and is considered "a guiding force on the National Advisory Board for the Consortium on Reading Excellence," recently told me to "ditch literature" since "literary fiction is not critical to college success." Kinsella continued, "What’s represented by the standards is the need to analyze texts rather than respond to literature.

As a teacher working within this regimented environment, my classroom objectives have had to shift. I used to feel deeply satisfied facilitating a rich classroom discussion on a Shakespearean play; now, I feel proud when my students explicitly acknowledge the aforementioned "anchor standards" and take the initiative to learn these technical skills.

But as a man who used to be a high school student interested in pursuing wisdom, I’m almost startled to find myself up late at night, literally studying these anchor standards instead of Hamlet itself.

It just feels like a very slow, gradual cultural shift that I don’t even notice except for sudden moments of nostalgia, like remembering a dream out of nowhere

I get it: My job is to teach communication, not values, and maybe that’s reasonable. After all, I’m not sure I would want my daughter gaining her wisdom from a randomly selected high-school teacher just because he passed a few writing and literature courses at a state university (which is what I did). My job description has evolved, and I’m fine with that

This arrangement, in theory, allows students to read the literature on their own, when they get their own time—and I’m fine with that. But then, where are they getting the time and space to appreciate the deeper lessons of classic literature, to evaluate its truth and appropriately apply it to their own lives?

But where are the students getting their wisdom?

I’m not talking about my child, or your child. I’m absolutely positive that my daughter will know the difference between Darcy and Wickham before she’s in eighth grade; and it's likely that people who would gravitate toward this story would appreciate this kind of thinking

I’m talking about American children in general—kids whose parents work all day, whose fathers left them or whose mothers died

even for the parents who do prioritize the humanities in their households, I’m not sure that one generation is actually sharing culturally relevant wisdom with the next one—not if the general community doesn’t even talk about what that wisdom specifically means. Each family can be responsible for teaching wisdom in their own way, and I’m fine with that. But then, does the idea of cultural wisdom get surrendered in the process?

Secular wisdom in the public schools seems like it should inherently spring from the literature that’s shaped American culture. And while the students focus on how Whitman’s "purpose shapes the content and style of his text," they’re obviously exposed to the words that describe his leaves of grass.

But there is a noticeable deprioritization of literature, and a crumbling consensus regarding the nation’s idea of classic literature. The Common Core requires only Shakespeare, which is puzzling if only for its singularity

The country’s disregard for the institutional transfer of cultural wisdom is evident with this single observation: None of the state assessments has a single question about the content of any classic literature. They only test on reading skills

research suggests that a significant majority of teens do not attend church, and youth church attendance has been decreasing over the past few decades. This is fine with me. But then again, where are they getting their wisdom?

Admittedly, nothing about the Common Core or any modern shifts in teaching philosophies is forbidding me from sharing deeper lessons found in Plato’s cave or Orwell’s Airstrip One. The fine print of the Common-Core guidelines even mentions a few possible titles. But this comes with constant and pervasive language that favors objective analysis over personal engagement.

Later, a kid who reminds me of the teenager I was in high school—a boy who is at different times depressed, excited, naive, and curious—asked me why I became an English teacher. I smiled in self-defense, but I was silent again, not knowing what to say anymore.

This is a revealing definition of “human rights,” I’d argue, particularly as it’s one that never addresses things like liberty, equality, or justice. It never addresses freedom of expression or freedom of assembly or freedom of association.

in certain countries, a number of people say they do not use the Internet yet they talk about how much time they spend on Facebook. According to one survey, 11% of Indonesians who said they used Facebook also said they did not use the Internet. A survey in Nigeria had similar results:

Evgeny Morozov has described this belief as “Internet-centrism,” an ideology he argues permeates the tech industry, its PR wing the tech blogosphere, and increasingly government policy

“Internet-centrism” describes the tendency to see “the Internet” – Morozov uses quotations around the phrase – as a new yet unchanging, autonomous, benevolent, and inevitable socio-technological development. “The Internet” is a master framework for how all institutions will supposedly operate moving forward

“The opportunity to connect” as a human right assumes that “connectivity” will hasten the advent of these other rights, I suppose – that the Internet will topple dictatorships, for example, that it will extend participation in civic life to everyone and, for our purposes here at this conference, that it will “democratize education.”

“The Silicon Valley Narrative,” as I call it, is the story that the technology industry tells about the world – not only the world-as-is but the world-as-Silicon-Valley-wants-it-to-be.

Facebook is really just synecdochal here, I should add – just one example of the forces I think are at play, politically, economically, technologically, culturally.

it matters at the level of ideology. Infrastructure is ideological, of course. The new infrastructure – “the Internet” if you will – has a particular political, economic, and cultural bent to it. It is not neutral.

This infrastructure matters. In this case, this is a French satellite company (Eutelsat). This is an American social network (Facebook). Mark Zuckerberg’s altruistic rhetoric aside, this is their plan – an economic plan – to monetize the world’s poor.

The content and the form of “connectivity” perpetuate imperialism, and not only in Africa but in all of our lives. Imperialism at the level of infrastructure – not just cultural imperialism but technological imperialism

Empire is not simply an endeavor of the nation-state – we have empire through technology (that’s not new) and now, the technology industry as empire.

To better analyze and assess both technology and education technology requires our understanding of these as ideological, argues Neil Selwyn – “‘a site of social struggle’ through which hegemonic positions are developed, legitimated, reproduced and challenged.”

This narrative has several commonly used tropes

It often features a hero: the technology entrepreneur. Smart. Independent. Bold. Risk-taking. White. Male

“The Silicon Valley narrative” invokes themes like “innovation” and “disruption.” It privileges the new; everything else that can be deemed “old” is viewed as obsolete.

Facebook is “the Internet” for a fairly sizable number of people. They know nothing else – conceptually, experientially. And, let’s be honest, Facebook wants to be “the Internet” for everyone.

“The Silicon Valley narrative” fosters a distrust of institutions – the government, the university. It is neoliberal. It hates paying taxes.

“The Silicon Valley narrative” draws from the work of Ayn Rand; it privileges the individual at all costs; it calls this “personalization.”

“The Silicon Valley narrative” does not neatly co-exist with public education. We forget this at our peril. This makes education technology, specifically, an incredibly fraught area.

Here’s the story I think we like to hear about ed-tech, about distance education, about “connectivity” and learning: Education technology is supportive, not exploitative. Education technology opens, not forecloses, opportunities. Education technology is driven by a rethinking of teaching and learning, not expanding markets or empire. Education technology meets individual and institutional and community goals.

That’s not really what the “Silicon Valley narrative” says about education

It is interested in data extraction and monetization and standardization and scale. It is interested in markets and return on investment. “Education is broken,” and technology will fix it

If “Silicon Valley” isn’t quite accurate, then I must admit that the word “narrative” is probably inadequate too

The better term here is “ideology.”

It contends that its workings are meritocratic: anyone who hustles can make it.

We tend to not see technology as ideological – its connections to libertarianism, neoliberalism, global capitalism, empire.

The California ideology ignores race and labor and the water supply; it is sustained by air and fantasy. It is built upon white supremacy and imperialism.

As is the technology sector, which has its own history, of course, in warfare and cryptography.

So far this year, some $3.76 billion of venture capital has been invested in education technology – a record-setting figure. That money will change the landscape – that’s its intention. That money carries with it a story about the future; it carries with it an ideology.

I want to show you this map, a proposal – a failed proposal, thankfully – by venture capitalist Tim Draper to split the state of California into six separate states: Jefferson, North California, Silicon Valley, Central California, West California, and South California. The proposal, which Draper tried to collect enough signatures to get on the ballot in California, would have created the richest state in the US – Silicon Valley would be first in per-capita income. It would also have created the nation’s poorest state, Central California, which would rank even below Mississippi.

We in education would be naive, I think, to think that the designs that venture capitalists and technology entrepreneurs have for us would be any less radical than creating a new state, like Draper’s proposed state of Silicon Valley, that would enormously wealthy and politically powerful.

When I hear talk of “unbundling” in education – one of the latest gerunds you’ll hear venture capitalists and ed-tech entrepreneurs invoke, meaning the disassembling of institutions into products and services – I can’t help but think of the “unbundling” that Draper wished to do to my state: carving up land and resources, shifting tax revenue and tax burdens, creating new markets, privatizing public institutions, redistributing power and doing so explicitly not in the service of equity or justice.

When a venture capitalist says that “software is eating the world,” we can push back on the inevitability implied in that. We can resist – not in the name of clinging to “the old” as those in educational institutions are so often accused of doing – but we can resist in the name of freedom and justice and a future that isn’t dictated by the wealthiest white men in Hollywood or Silicon Valley.

that’s not all that Silicon Valley really does.

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.