Group items tagged

each industry, as it (mostly) legally can, designs products that are difficult to resist and sometimes addictive.

The issues of auto and gun safety, of drug, alcohol and tobacco addiction, and of hyperconsumption of unhealthy food are not as distinct as we’ve long believed; really, they’re quite similar. For example, the argument for protecting people against marketers of junk food relies in part on the fact that antismoking regulations and seatbelt laws were initially attacked as robbing us of choice; now we know they’re lifesavers.

Until now (and, sadly, perhaps well into the future), corporations have been both more nimble and more flush with cash than the public health arms of government

“What we need,” Freudenberg said to me, “is to return to the public sector the right to set health policy and to limit corporations’ freedom to profit at the expense of public health.”

The turning point in the tobacco wars was when the question changed from the industry’s — “Do people have the right to smoke?” — to that of public health: “Do people have the right to breathe clean air?” Note that both questions are legitimate, but if you address the first (to which the answer is of course “yes”) without asking the second (to which the answer is of course also “yes”) you miss an opportunity to convert the answer from one that leads to greater industry profits to one that has literally cut smoking rates in half.

Similarly, we need to be asking not “Do junk food companies have the right to market to children?” but “Do children have the right to a healthy diet?”

The question is not only, “Do we have a right to bear arms?” but also “Do we have the right to be safe in our streets and schools?”

n short, says Freudenberg: “The right to be healthy trumps the right of corporations to promote choices that lead to premature death and preventable illnesses. Protecting public health is a fundamental government responsibility

“Shouldn’t science and technology be used to improve human well-being, not to advance business goals that harm health?” Two other questions that can be answered “yes.”

The crash, which killed all 49 people on board as well as one person on the ground, should never have happened.

aptain’s response to the stall warning, the investigators reported, “should have been automatic, but his improper flight control inputs were inconsistent with his training” and instead revealed “startle and confusion.

Automation has become so sophisticated that on a typical passenger flight, a human pilot holds the controls for a grand total of just three minutes.

We humans have been handing off chores, both physical and mental, to tools since the invention of the lever, the wheel, and the counting bead.

And that, many aviation and automation experts have concluded, is a problem. Overuse of automation erodes pilots’ expertise and dulls their reflexes,

No one doubts that autopilot has contributed to improvements in flight safety over the years. It reduces pilot fatigue and provides advance warnings of problems, and it can keep a plane airborne should the crew become disabled. But the steady overall decline in plane crashes masks the recent arrival of “a spectacularly new type of accident,”

“We’re forgetting how to fly.”

The experience of airlines should give us pause. It reveals that automation, for all its benefits, can take a toll on the performance and talents of those who rely on it. The implications go well beyond safety. Because automation alters how we act, how we learn, and what we know, it has an ethical dimension. The choices we make, or fail to make, about which tasks we hand off to machines shape our lives and the place we make for ourselves in the world.

What pilots spend a lot of time doing is monitoring screens and keying in data. They’ve become, it’s not much of an exaggeration to say, computer operators.

Examples of complacency and bias have been well documented in high-risk situations—on flight decks and battlefields, in factory control rooms—but recent studies suggest that the problems can bedevil anyone working with a computer

That may leave the person operating the computer to play the role of a high-tech clerk—entering data, monitoring outputs, and watching for failures. Rather than opening new frontiers of thought and action, software ends up narrowing our focus.

A labor-saving device doesn’t just provide a substitute for some isolated component of a job or other activity. It alters the character of the entire task, including the roles, attitudes, and skills of the people taking part.

when we work with computers, we often fall victim to two cognitive ailments—complacency and bias—that can undercut our performance and lead to mistakes. Automation complacency occurs when a computer lulls us into a false sense of security. Confident that the machine will work flawlessly and handle any problem that crops up, we allow our attention to drift.

Automation bias occurs when we place too much faith in the accuracy of the information coming through our monitors. Our trust in the software becomes so strong that we ignore or discount other information sources, including our own eyes and ears

Automation is different now. Computers can be programmed to perform complex activities in which a succession of tightly coordinated tasks is carried out through an evaluation of many variables. Many software programs take on intellectual work—observing and sensing, analyzing and judging, even making decisions—that until recently was considered the preserve of humans.

Automation turns us from actors into observers. Instead of manipulating the yoke, we watch the screen. That shift may make our lives easier, but it can also inhibit the development of expertise.

Since the late 1970s, psychologists have been documenting a phenomenon called the “generation effect.” It was first observed in studies of vocabulary, which revealed that people remember words much better when they actively call them to mind—when they generate them—than when they simply read them.

When you engage actively in a task, you set off intricate mental processes that allow you to retain more knowledge. You learn more and remember more. When you repeat the same task over a long period, your brain constructs specialized neural circuits dedicated to the activit

What looks like instinct is hard-won skill, skill that requires exactly the kind of struggle that modern software seeks to alleviate.

In many businesses, managers and other professionals have come to depend on decision-support systems to analyze information and suggest courses of action. Accountants, for example, use the systems in corporate audits. The applications speed the work, but some signs suggest that as the software becomes more capable, the accountants become less so.

You can put limits on the scope of automation, making sure that people working with computers perform challenging tasks rather than merely observing.

Experts used to assume that there were limits to the ability of programmers to automate complicated tasks, particularly those involving sensory perception, pattern recognition, and conceptual knowledge

Who needs humans, anyway? That question, in one rhetorical form or another, comes up frequently in discussions of automation. If computers’ abilities are expanding so quickly and if people, by comparison, seem slow, clumsy, and error-prone, why not build immaculately self-contained systems that perform flawlessly without any human oversight or intervention? Why not take the human factor out of the equation?

The cure for imperfect automation is total automation.

That idea is seductive, but no machine is infallible. Sooner or later, even the most advanced technology will break down, misfire, or, in the case of a computerized system, encounter circumstances that its designers never anticipated. As automation technologies become more complex, relying on interdependencies among algorithms, databases, sensors, and mechanical parts, the potential sources of failure multiply. They also become harder to detect.

conundrum of computer automation.

Because many system designers assume that human operators are “unreliable and inefficient,” at least when compared with a computer, they strive to give the operators as small a role as possible.

People end up functioning as mere monitors, passive watchers of screens. That’s a job that humans, with our notoriously wandering minds, are especially bad at

people have trouble maintaining their attention on a stable display of information for more than half an hour. “This means,” Bainbridge observed, “that it is humanly impossible to carry out the basic function of monitoring for unlikely abnormalities.”

a person’s skills “deteriorate when they are not used,” even an experienced operator will eventually begin to act like an inexperienced one if restricted to just watching.

You can program software to shift control back to human operators at frequent but irregular intervals; knowing that they may need to take command at any moment keeps people engaged, promoting situational awareness and learning.

What’s most astonishing, and unsettling, about computer automation is that it’s still in its early stages.

most software applications don’t foster learning and engagement. In fact, they have the opposite effect. That’s because taking the steps necessary to promote the development and maintenance of expertise almost always entails a sacrifice of speed and productivity.

Learning requires inefficiency. Businesses, which seek to maximize productivity and profit, would rarely accept such a trade-off. Individuals, too, almost always seek efficiency and convenience.

Abstract concerns about the fate of human talent can’t compete with the allure of saving time and money.

The small island of Igloolik, off the coast of the Melville Peninsula in the Nunavut territory of northern Canada, is a bewildering place in the winter.

, Inuit hunters have for some 4,000 years ventured out from their homes on the island and traveled across miles of ice and tundra to search for game. The hunters’ ability to navigate vast stretches of the barren Arctic terrain, where landmarks are few, snow formations are in constant flux, and trails disappear overnight, has amazed explorers and scientists for centuries. The Inuit’s extraordinary way-finding skills are born not of technological prowess—they long eschewed maps and compasses—but of a profound understanding of winds, snowdrift patterns, animal behavior, stars, and tides.

The Igloolik hunters have begun to rely on computer-generated maps to get around. Adoption of GPS technology has been particularly strong among younger Inuit, and it’s not hard to understand why.

But as GPS devices have proliferated on Igloolik, reports of serious accidents during hunts have spread. A hunter who hasn’t developed way-finding skills can easily become lost, particularly if his GPS receiver fails.

The routes so meticulously plotted on satellite maps can also give hunters tunnel vision, leading them onto thin ice or into other hazards a skilled navigator would avoid.

An Inuit on a GPS-equipped snowmobile is not so different from a suburban commuter in a GPS-equipped SUV: as he devotes his attention to the instructions coming from the computer, he loses sight of his surroundings. He travels “blindfolded,” as Aporta puts it

A unique talent that has distinguished a people for centuries may evaporate in a generation.

Computer automation severs the ends from the means. It makes getting what we want easier, but it distances us from the work of knowing. As we transform ourselves into creatures of the screen, we face an existential question: Does our essence still lie in what we know, or are we now content to be defined by what we want?

His theory draws upon many of the most prominent views of how humans emerged. These range from our evolution of the ability to run long distances to our development of the earliest weapons, which involved the improvement of hand-eye coordination. Dramatic climate change in Africa over the course of a few tens of thousands of years also may have forced Australopithecus and Homo to adapt rapidly. And over roughly the same span, humans became cooperative hunters and serious meat eaters, vastly enriching our diet and favoring the development of more-robust brains. By themselves, Wilson says, none of these theories is satisfying. Taken together, though, all of these factors pushed our immediate prehuman ancestors toward what he called a huge pre-adaptive step: the formation of the earliest communities around fixed camps.

“Within groups, the selfish are more likely to succeed,” Wilson told me in a telephone conversation. “But in competition between groups, groups of altruists are more likely to succeed. In addition, it is clear that groups of humans proselytize other groups and accept them as allies, and that that tendency is much favored by group selection.” Taking in newcomers and forming alliances had become a fundamental human trait, he added, because “it is a good way to win.”

“The humans become consistent with all the others,” he said, and the evolutionary steps were likely similar—beginning with the formation of groups within a freely mixing population, followed by the accumulation of pre-adaptations that make eusociality more likely, such as the invention of campsites. Finally comes the rise to prevalence of eusocial alleles—one of two or more alternative forms of a gene that arise by mutation, and are found at the same place on a chromosome—which promote novel behaviors (like communal child care) or suppress old, asocial traits. Now it is up to geneticists, he adds, to “determine how many genes are involved in crossing the eusociality threshold, and to go find those genes.”

Wilson posits that two rival forces drive human behavior: group selection and what he calls “individual selection”—competition at the level of the individual to pass along one’s genes—with both operating simultaneously. “Group selection,” he said, “brings about virtue, and—this is an oversimplification, but—individual selection, which is competing with it, creates sin. That, in a nutshell, is an explanation of the human condition.

“When humans started having a camp—and we know that Homo erectus had campsites—then we know they were heading somewhere,” he told me. “They were a group progressively provisioned, sending out some individuals to hunt and some individuals to stay back and guard the valuable campsite. They were no longer just wandering through territory, emitting calls. They were on long-term campsites, maybe changing from time to time, but they had come together. They began to read intentions in each other’s behavior, what each other are doing. They started to learn social connections more solidly.”

If Wilson is right, the human impulse toward racism and tribalism could come to be seen as a reflection of our genetic nature as much as anything else—but so could the human capacity for altruism, and for coalition- and alliance-building. These latter possibilities may help explain Wilson’s abiding optimism—about the environment and many other matters. If these traits are indeed deeply written into our genetic codes, we might hope that we can find ways to emphasize and reinforce them, to build problem-solving coalitions that can endure, and to identify with progressively larger and more-inclusive groups over time.

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.

Many of these journals have names that closely resemble those of established publications, making them easily mistakable. There is the Journal of Economics and Finance, published by Springer, but now also the Journal of Finance and Economics. There is the Journal of Engineering Technology, put out by the American Society for Engineering Education, but now another called the GSTF Journal of Engineering Technology.

Predatory journals have few expenses, since they do not seriously review papers that are submitted and they publish only online. They blast emails to academics, inviting them to publish. And the journals often advertise on their websites that they are indexed by Google Scholar. Often that is correct — but Google Scholar does not vet the journals it indexes.

The number of such journals has exploded to more than 10,000 in recent years, with nearly as many predatory as legitimate ones. “Predatory publishing is becoming an organized industry,” wrote one group of critics in a paper in Nature

Participating in such dubious enterprises carries few risks. Dr. Pyne, who did a study of his colleagues publications, reports that faculty members at his school who got promoted last year had at least four papers in questionable journals. All but one academic in 10 who won a School of Business and Economics award had published papers in these journals. One had 10 such articles.

Academics get rewarded with promotions when they stuff their resumes with articles like these, Dr. Pyne concluded. There are few or no adverse consequences — in fact, the rewards for publishing in predatory journals were greater than for publishing in legitimate ones.

Some say the academic system bears much of the blame for the rise of predatory journals, demanding publications even from teachers at places without real resources for research and where they may have little time apart from teaching.At Queensborough, faculty members typically teach nine courses per year. At four-year colleges, faculty may teach four to six courses a year.

Recently a group of researchers who invented a fake academic: Anna O. Szust. The name in Polish means fraudster. Dr. Szust applied to legitimate and predatory journals asking to be an editor. She supplied a résumé in which her publications and degrees were total fabrications, as were the names of the publishers of the books she said she had contributed to.The legitimate journals rejected her application immediately. But 48 out of 360 questionable journals made her an editor. Four made her editor in chief. One journal sent her an email saying, “It’s our pleasure to add your name as our editor in chief for the journal with no responsibilities.”

When I speak of elite education, I mean prestigious institutions like Harvard or Stanford or Williams as well as the larger universe of second-tier selective schools, but I also mean everything that leads up to and away from them—the private and affluent public high schools; the ever-growing industry of tutors and consultants and test-prep courses; the admissions process itself, squatting like a dragon at the entrance to adulthood; the brand-name graduate schools and employment opportunities that come after the B.A.; and the parents and communities, largely upper-middle class, who push their children into the maw of this machine.

Our system of elite education manufactures young people who are smart and talented and driven, yes, but also anxious, timid, and lost, with little intellectual curiosity and a stunted sense of purpose: trapped in a bubble of privilege, heading meekly in the same direction, great at what they’re doing but with no idea why they’re doing it.

“Super People,” the writer James Atlas has called them—the stereotypical ultra-high-achieving elite college students of today. A double major, a sport, a musical instrument, a couple of foreign languages, service work in distant corners of the globe, a few hobbies thrown in for good measure: They have mastered them all, and with a serene self-assurance

The first thing that college is for is to teach you to think.

It was only after 24 years in the Ivy League—college and a Ph.D. at Columbia, ten years on the faculty at Yale—that I started to think about what this system does to kids and how they can escape from it, what it does to our society and how we can dismantle it.

I taught many wonderful young people during my years in the Ivy League—bright, thoughtful, creative kids whom it was a pleasure to talk with and learn from. But most of them seemed content to color within the lines that their education had marked out for them. Very few were passionate about ideas. Very few saw college as part of a larger project of intellectual discovery and development. Everyone dressed as if they were ready to be interviewed at a moment’s notice.

Look beneath the façade of seamless well-adjustment, and what you often find are toxic levels of fear, anxiety, and depression, of emptiness and aimlessness and isolation. A large-scale survey of college freshmen recently found that self-reports of emotional well-being have fallen to their lowest level in the study’s 25-year history.

So extreme are the admission standards now that kids who manage to get into elite colleges have, by definition, never experienced anything but success. The prospect of not being successful terrifies them, disorients them. The cost of falling short, even temporarily, becomes not merely practical, but existential. The result is a violent aversion to risk.

There are exceptions, kids who insist, against all odds, on trying to get a real education. But their experience tends to make them feel like freaks. One student told me that a friend of hers had left Yale because she found the school “stifling to the parts of yourself that you’d call a soul.”

What no one seems to ask is what the “return” is supposed to be. Is it just about earning more money? Is the only purpose of an education to enable you to get a job? What, in short, is college for?

Like so many kids today, I went off to college like a sleepwalker. You chose the most prestigious place that let you in; up ahead were vaguely understood objectives: status, wealth—“success.” What it meant to actually get an education and why you might want one—all this was off the table.

College is an opportunity to stand outside the world for a few years, between the orthodoxy of your family and the exigencies of career, and contemplate things from a distance.

it is only through the act of establishing communication between the mind and the heart, the mind and experience, that you become an individual, a unique being—a soul. The job of college is to assist you to begin to do that. Books, ideas, works of art and thought, the pressure of the minds around you that are looking for their own answers in their own ways.

College is not the only chance to learn to think, but it is the best. One thing is certain: If you haven’t started by the time you finish your B.A., there’s little likelihood you’ll do it later. That is why an undergraduate experience devoted exclusively to career preparation is four years largely wasted.

Elite schools like to boast that they teach their students how to think, but all they mean is that they train them in the analytic and rhetorical skills that are necessary for success in business and the professions.

Everything is technocratic—the development of expertise—and everything is ultimately justified in technocratic terms.

Religious colleges—even obscure, regional schools that no one has ever heard of on the coasts—often do a much better job in that respect.

At least the classes at elite schools are academically rigorous, demanding on their own terms, no? Not necessarily. In the sciences, usually; in other disciplines, not so much

there is now a thriving sector devoted to producing essay-ready summers

higher marks for shoddier work.

today’s young people appear to be more socially engaged than kids have been for several decades and that they are more apt to harbor creative or entrepreneurial impulses

they tend to be played out within the same narrow conception of what constitutes a valid life: affluence, credentials, prestige.

Experience itself has been reduced to instrumental function, via the college essay. From learning to commodify your experiences for the application, the next step has been to seek out experiences in order to have them to commodify

professors and students have largely entered into what one observer called a “nonaggression pact.”

The SAT is supposed to measure aptitude, but what it actually measures is parental income, which it tracks quite closely

what these institutions mean by leadership is nothing more than getting to the top. Making partner at a major law firm or becoming a chief executive, climbing the greasy pole of whatever hierarchy you decide to attach yourself to. I don’t think it occurs to the people in charge of elite colleges that the concept of leadership ought to have a higher meaning, or, really, any meaning.

The irony is that elite students are told that they can be whatever they want, but most of them end up choosing to be one of a few very similar things

As of 2010, about a third of graduates went into financing or consulting at a number of top schools, including Harvard, Princeton, and Cornell.

Whole fields have disappeared from view: the clergy, the military, electoral politics, even academia itself, for the most part, including basic science

It’s considered glamorous to drop out of a selective college if you want to become the next Mark Zuckerberg, but ludicrous to stay in to become a social worker. “What Wall Street figured out,” as Ezra Klein has put it, “is that colleges are producing a large number of very smart, completely confused graduates. Kids who have ample mental horsepower, an incredible work ethic and no idea what to do next.”

t almost feels ridiculous to have to insist that colleges like Harvard are bastions of privilege, where the rich send their children to learn to walk, talk, and think like the rich. Don’t we already know this? They aren’t called elite colleges for nothing. But apparently we like pretending otherwise. We live in a meritocracy, after all.

Visit any elite campus across our great nation, and you can thrill to the heart-warming spectacle of the children of white businesspeople and professionals studying and playing alongside the children of black, Asian, and Latino businesspeople and professionals

That doesn’t mean there aren’t a few exceptions, but that is all they are. In fact, the group that is most disadvantaged by our current admissions policies are working-class and rural whites, who are hardly present

The college admissions game is not primarily about the lower and middle classes seeking to rise, or even about the upper-middle class attempting to maintain its position. It is about determining the exact hierarchy of status within the upper-middle class itself.

This system is exacerbating inequality, retarding social mobility, perpetuating privilege, and creating an elite that is isolated from the society that it’s supposed to lead. The numbers are undeniable. In 1985, 46 percent of incoming freshmen at the 250 most selective colleges came from the top quarter of the income distribution. By 2000, it was 55 percent

The major reason for the trend is clear. Not increasing tuition, though that is a factor, but the ever-growing cost of manufacturing children who are fit to compete in the college admissions game

Wealthy families start buying their children’s way into elite colleges almost from the moment they are born: music lessons, sports equipment, foreign travel (“enrichment” programs, to use the all-too-perfect term)—most important, of course, private-school tuition or the costs of living in a place with top-tier public schools.

s there anything that I can do, a lot of young people have written to ask me, to avoid becoming an out-of-touch, entitled little shit? I don’t have a satisfying answer, short of telling them to transfer to a public university. You cannot cogitate your way to sympathy with people of different backgrounds, still less to knowledge of them. You need to interact with them directly, and it has to be on an equal footing

Elite private colleges will never allow their students’ economic profile to mirror that of society as a whole. They can’t afford to—they need a critical mass of full payers and they need to tend to their donor base—and it’s not even clear that they’d want to.

Elite colleges are not just powerless to reverse the movement toward a more unequal society; their policies actively promote it.

To be a high-achieving student is to constantly be urged to think of yourself as a future leader of society.

U.S. News and World Report supplies the percentage of freshmen at each college who finished in the highest 10 percent of their high school class. Among the top 20 universities, the number is usually above 90 percent. I’d be wary of attending schools like that. Students determine the level of classroom discussion; they shape your values and expectations, for good and ill. It’s partly because of the students that I’d warn kids away from the Ivies and their ilk. Kids at less prestigious schools are apt to be more interesting, more curious, more open, and far less entitled and competitive.

The best option of all may be the second-tier—not second-rate—colleges, like Reed, Kenyon, Wesleyan, Sewanee, Mount Holyoke, and others. Instead of trying to compete with Harvard and Yale, these schools have retained their allegiance to real educational values.

Not being an entitled little shit is an admirable goal. But in the end, the deeper issue is the situation that makes it so hard to be anything else. The time has come, not simply to reform that system top to bottom, but to plot our exit to another kind of society altogether.

The education system has to act to mitigate the class system, not reproduce it. Affirmative action should be based on class instead of race, a change that many have been advocating for years. Preferences for legacies and athletes ought to be discarded. SAT scores should be weighted to account for socioeconomic factors. Colleges should put an end to résumé-stuffing by imposing a limit on the number of extracurriculars that kids can list on their applications. They ought to place more value on the kind of service jobs that lower-income students often take in high school and that high achievers almost never do. They should refuse to be impressed by any opportunity that was enabled by parental wealth

More broadly, they need to rethink their conception of merit. If schools are going to train a better class of leaders than the ones we have today, they’re going to have to ask themselves what kinds of qualities they need to promote. Selecting students by GPA or the number of extracurriculars more often benefits the faithful drudge than the original mind.

reforming the admissions process. That might address the problem of mediocrity, but it won’t address the greater one of inequality

The problem is the Ivy League itself. We have contracted the training of our leadership class to a set of private institutions. However much they claim to act for the common good, they will always place their interests first.

I’ve come to see that what we really need is to create one where you don’t have to go to the Ivy League, or any private college, to get a first-rate education.

High-quality public education, financed with public money, for the benefit of all

Everybody gets an equal chance to go as far as their hard work and talent will take them—you know, the American dream. Everyone who wants it gets to have the kind of mind-expanding, soul-enriching experience that a liberal arts education provides.

We recognize that free, quality K–12 education is a right of citizenship. We also need to recognize—as we once did and as many countries still do—that the same is true of higher education. We have tried aristocracy. We have tried meritocracy. Now it’s time to try democracy.

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.