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Javier E

Economic Statistics Miss the Benefits of Technology - NYTimes.com - 2 views

  • Value added by the information technology and communications industries — mostly hardware and software — has remained stuck at around 4 percent of the nation’s economic output for the last quarter century.
  • But these statistics do not tell the whole story. Because they miss much of what technology does for people’s well-being. News organizations that take advantage of computers to let go of journalists, secretaries and research assistants will show up in the economic statistics as more productive, making more with less. But statisticians have no way to value more thorough, useful, fact-dense articles. What’s more, gross domestic product only values the goods and services people pay for. It does not capture the value to consumers of economic improvements that are given away free. And until recently this is what news media organizations like The New York Times were doing online.
  • “G.D.P. is not a measure of how much value is produced for consumers,” said Erik Brynjolfsson of the Massachusetts Institute of Technology. “Everybody should recognize that G.D.P. is not a welfare metric.”
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  • how to measure the Internet’s contribution to our lives? A few years ago, Austan Goolsbee of the University of Chicago and Peter J. Klenow of Stanford gave it a shot. They estimated that the value consumers gained from the Internet amounted to about 2 percent of their income — an order of magnitude larger than what they spent to go online. Their trick was to measure not only how much money users spent on access but also how much of their leisure time they spent online.
  • people who had access to a search engine took 15 minutes less to answer a question than those without online access.
  • Gross domestic product has always failed to capture many things — from the costs of pollution and traffic jams to the gains of unpaid household work. A
  • Varian estimated that a search engine might be worth about $500 annually to the average worker. Across the working population, this would add up to $65 billion a year.
  • the consumer surplus from free online services — the value derived by consumers from the experience above what they paid for it — has been growing by $34 billion a year, on average, since 2002. If it were tacked on as “economic output,” it would add about 0.26 of a percentage point to annual G.D.P. growth.
  • The Internet is hardly the first technology to offer consumers valuable free goods. The consumer surplus from television is about five times as large as that delivered by free stuff online, according to Mr. Brynjolfsson’s calculations.
  • Measured in money — what it contributes to G.D.P. — the recording industry is shrinking. Yet never before have Americans had access to so much music.
  • . The missed consumer surplus from the Internet may be no bigger than the unmeasured gains in the production, for example, of electric light.
  • The amount of time Americans devote to the Internet has doubled in the last five years.
  • “We know less about the sources of value in the economy than we did 25 years ago,”
Javier E

Martha Raddatz and the faux objectivity of journalists | Glenn Greenwald | Comment is f... - 2 views

  • virtually no journalists are driven by this type of objectivity. They are, instead, awash in countless highly ideological assumptions that are anything but objective.
  • this renders their worldview every bit as subjective and ideological as the opinionists and partisans they scorn.
  • At best, "objectivity" in this world of journalists usually means nothing more than: the absence of obvious and intended favoritism toward either of the two major political parties. As long as a journalist treats Democrats and Republicans more or less equally, they will be hailed – and will hail themselves – as "objective journalists".
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  • that is a conception of objectivity so shallow as to be virtually meaningless, in large part because the two parties so often share highly questionable assumptions and orthodoxies on the most critical issues.
  • The highly questionable assumptions tacitly embedded in the questions Raddatz asked illustrate how this works, as does the questions she pointedly and predictably did not ask.
  • the very idea that Iran poses some kind of major "national security" crisis for the US – let alone that there is "really no bigger national security" issue "this country is facing" – is absurd. At the very least, it's highly debatable.The US has Iran virtually encircled militarily. Even with the highly implausible fear-mongering claims earlier this year about Tehran's planned increases in military spending, that nation's total military expenditures is a tiny fraction of what the US spends. Iran has demonstrated no propensity to launch attacks on US soil, has no meaningful capability to do so, and would be instantly damaged, if not (as Hillary Clinton once put it) "totally obliterated" if they tried. Even the Israelis are clear that Iran has not even committed itself to building a nuclear weapon.
  • That Iran is some major national security issue for the US is a concoction of the bipartisan DC class that always needs a scary foreign enemy. The claim is frequently debunked in multiple venues. But because both political parties embrace this highly ideological claim, Raddatz does, too.
  • one of the most strictly enforced taboos in establishment journalism is the prohibition on aggressively challenging those views that are shared by the two parties. Doing that makes one fringe, unserious and radical: the opposite of solemn objectivity.
  • To the extent that she questioned the possibility of attacking Iran, it was purely on the grounds of whether an attack would be tactically effective,
  • there were no questions about whether the US would have the legal or moral right to launch an aggressive attack on Iran. That the US has the right to attack any country it wants is one of those unexamined assumptions in Washington discourse, probably the supreme orthodoxy of the nation's "foreign policy community".
  • there was no discussion about the severe suffering imposed on Iranian civilians by the US, whether the US wants to repeat the mass death and starvation it brought to millions of Iraqis for a full decade, or what the consequences of doing that will be.
  • all of Raddatz's questions were squarely within the extremely narrow – and highly ideological – DC consensus about US foreign policy generally and Iran specifically: namely, Iran is a national security threat to the US; it is trying to obtain nuclear weapons; the US must stop them; the US has the unchallenged right to suffocate Iranian civilians and attack militarily
  • the same is true of Raddatz's statements and questions about America's entitlement programs.
  • That social security is "going broke" – a core premise of her question – is, to put it as generously as possible, a claim that is dubious in the extreme. "Factually false" is more apt. This claim lies at the heart of the right-wing and neo-liberal quest to slash entitlement benefits for ordinary Americans – Ryan predictably responded by saying: "Absolutely. Medicare and Social Security are going bankrupt. These are indisputable facts." – but the claim is baseless.
  • this is the primary demonstrable myth being used by the DC class – which largely does not need entitlements – to deceive ordinary Americans into believing that they must "sacrifice" the pittances on which they are now living:"Which federal program took in more than it spent last year, added $95 billion to its surplus and lifted 20 million Americans of all ages out of poverty?"Why, social security, of course, which ended 2011 with a $2.7 trillion surplus."That surplus is almost twice the $1.4 trillion collected in personal and corporate income taxes last year. And it is projected to go on growing until 2021, the year the youngest Baby Boomers turn 67 and qualify for full old-age benefits."So why all the talk about social security 'going broke?' … The reason is that the people who want to kill social security have for years worked hard to persuade the young that the social security taxes they pay to support today's gray hairs will do nothing for them when their own hair turns gray."That narrative has become the conventional wisdom because it is easily reduced to a headline or sound bite. The facts, which require more nuance and detail, show that, with a few fixes, Social Security can be safe for as long as we want."
  • Nonetheless, Raddatz announced this assertion as fact. That's because she's long embedded in the DC culture that equates its own ideological desires with neutral facts. As a result, the entire discussion on entitlement programs proceeded within this narrow, highly ideological, dubious framework
  • That is what this faux journalistic neutrality, whether by design or otherwise, always achieves. It glorifies highly ideological claims that benefit a narrow elite class (the one that happens to own the largest media outlets which employ these journalists) by allowing that ideology to masquerade as journalistic fact
  • is often noted that the Catholic Church stridently opposes reproductive rights. But it is almost never noted that the Church just as stridently opposes US militarism and its economic policies that continuously promote corporate cronyism over the poor. Too much emphasis on that latter fact might imperil the bipartisan commitment to those policies, and so discussion of religious belief is typically confined to the safer arena of social issues. That the Church has for decades denounced the US government's military aggression and its subservience to the wealthiest is almost always excluded from establishment journalistic circles, even as its steadfast opposition to abortion and gay rights is endlessly touted.
Javier E

The Psychopath Makeover - The Chronicle Review - The Chronicle of Higher Education - 0 views

  • The eminent criminal psychologist and creator of the widely used Psychopathy Checklist paused before answering. "I think, in general, yes, society is becoming more psychopathic," he said. "I mean, there's stuff going on nowadays that we wouldn't have seen 20, even 10 years ago. Kids are becoming anesthetized to normal sexual behavior by early exposure to pornography on the Internet. Rent-a-friend sites are getting more popular on the Web, because folks are either too busy or too techy to make real ones. ... The recent hike in female criminality is particularly revealing. And don't even get me started on Wall Street."
  • in a survey that has so far tested 14,000 volunteers, Sara Konrath and her team at the University of Michigan's Institute for Social Research has found that college students' self-reported empathy levels (as measured by the Interpersonal Reactivity Index, a standardized questionnaire containing such items as "I often have tender, concerned feelings for people less fortunate than me" and "I try to look at everybody's side of a disagreement before I make a decision") have been in steady decline over the past three decades—since the inauguration of the scale, in fact, back in 1979. A particularly pronounced slump has been observed over the past 10 years. "College kids today are about 40 percent lower in empathy than their counterparts of 20 or 30 years ago," Konrath reports.
  • Imagining, it would seem, really does make it so. Whenever we read a story, our level of engagement is such that we "mentally simulate each new situation encountered in a narrative," according to one of the researchers, Nicole Speer. Our brains then interweave these newly encountered situations with knowledge and experience gleaned from our own lives to create an organic mosaic of dynamic mental syntheses.
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  • during this same period, students' self-reported narcissism levels have shot through the roof. "Many people see the current group of college students, sometimes called 'Generation Me,' " Konrath continues, "as one of the most self-centered, narcissistic, competitive, confident, and individualistic in recent history."
  • Reading a book carves brand-new neural pathways into the ancient cortical bedrock of our brains. It transforms the way we see the world—makes us, as Nicholas Carr puts it in his recent essay, "The Dreams of Readers," "more alert to the inner lives of others." We become vampires without being bitten—in other words, more empathic. Books make us see in a way that casual immersion in the Internet, and the quicksilver virtual world it offers, doesn't.
  • if society really is becoming more psychopathic, it's not all doom and gloom. In the right context, certain psychopathic characteristics can actually be very constructive. A neurosurgeon I spoke with (who rated high on the psychopathic spectrum) described the mind-set he enters before taking on a difficult operation as "an intoxication that sharpens rather than dulls the senses." In fact, in any kind of crisis, the most effective individuals are often those who stay calm—who are able to respond to the exigencies of the moment while at the same time maintaining the requisite degree of detachment.
  • mental toughness isn't the only characteristic that Special Forces soldiers have in common with psychopaths. There's also fearlessness.
  • I ask Andy whether he ever felt any regret over anything he'd done. Over the lives he'd taken on his numerous secret missions around the world. "No," he replies matter-of-factly, his arctic-blue eyes showing not the slightest trace of emotion. "You seriously don't think twice about it. When you're in a hostile situation, the primary objective is to pull the trigger before the other guy pulls the trigger. And when you pull it, you move on. Simple as that. Why stand there, dwelling on what you've done? Go down that route and chances are the last thing that goes through your head will be a bullet from an M16. "The regiment's motto is 'Who Dares Wins.' But sometimes it can be shortened to 'F--- It.' "
  • one of the things that we know about psychopaths is that the light switches of their brains aren't wired up in quite the same way as the rest of ours are—and that one area particularly affected is the amygdala, a peanut-size structure located right at the center of the circuit board. The amygdala is the brain's emotion-control tower. It polices our emotional airspace and is responsible for the way we feel about things. But in psychopaths, a section of this airspace, the part that corresponds to fear, is empty.
  • Turn down the signals to the amygdala, of course, and you're well on the way to giving someone a psychopath makeover. Indeed, Liane Young and her team in Boston have since kicked things up a notch and demonstrated that applying TMS to the right temporoparietal junction—a neural ZIP code within that neighborhood—has significant effects not just on lying ability but also on moral-reasoning ability: in particular, ascribing intentionality to others' actions.
  • at an undisclosed moment sometime within the next 60 seconds, the image you see at the present time will change, and images of a different nature will appear on the screen. These images will be violent. And nauseating. And of a graphic and disturbing nature. "As you view these images, changes in your heart rate, skin conductance, and EEG activity will be monitored and compared with the resting levels that are currently being recorded
  • "OK," says Nick. "Let's get the show on the road." He disappears behind us, leaving Andy and me merrily soaking up the incontinence ad. Results reveal later that, at this point, as we wait for something to happen, our physiological output readings are actually pretty similar. Our pulse rates are significantly higher than our normal resting levels, in anticipation of what's to come. But with the change of scene, an override switch flips somewhere in Andy's brain. And the ice-cold Special Forces soldier suddenly swings into action. As vivid, florid images of dismemberment, mutilation, torture, and execution flash up on the screen in front of us (so vivid, in fact, that Andy later confesses to actually being able to "smell" the blood: a "kind of sickly-sweet smell that you never, ever forget"), accompanied not by the ambient spa music of before but by blaring sirens and hissing white noise, his physiological readings start slipping into reverse. His pulse rate begins to slow. His GSR begins to drop, his EEG to quickly and dramatically attenuate. In fact, by the time the show is over, all three of Andy's physiological output measures are pooling below his baseline.
  • Nick has seen nothing like it. "It's almost as if he was gearing himself up for the challenge," he says. "And then, when the challenge eventually presented itself, his brain suddenly responded by injecting liquid nitrogen into his veins. Suddenly implemented a blanket neural cull of all surplus feral emotion. Suddenly locked down into a hypnotically deep code red of extreme and ruthless focus." He shakes his head, nonplused. "If I hadn't recorded those readings myself, I'm not sure I would have believed them," he continues. "OK, I've never tested Special Forces before. And maybe you'd expect a slight attenuation in response. But this guy was in total and utter control of the situation. So tuned in, it looked like he'd completely tuned out."
  • My physiological output readings, in contrast, went through the roof. Exactly like Andy's, they were well above baseline as I'd waited for the carnage to commence. But that's where the similarity ended. Rather than go down in the heat of battle, in the midst of the blood and guts, mine had appreciated exponentially. "At least it shows that the equipment is working properly," comments Nick. "And that you're a normal human being."
  • TMS can't penetrate far enough into the brain to reach the emotion and moral-reasoning precincts directly. But by damping down or turning up the regions of the cerebral cortex that have links with such areas, it can simulate the effects of deeper, more incursive influence.
  • Before the experiment, I'd been curious about the time scale: how long it would take me to begin to feel the rush. Now I had the answer: about 10 to 15 minutes. The same amount of time, I guess, that it would take most people to get a buzz out of a beer or a glass of wine.
  • The effects aren't entirely dissimilar. An easy, airy confidence. A transcendental loosening of inhibition. The inchoate stirrings of a subjective moral swagger: the encroaching, and somehow strangely spiritual, realization that hell, who gives a s---, anyway? There is, however, one notable exception. One glaring, unmistakable difference between this and the effects of alcohol. That's the lack of attendant sluggishness. The enhancement of attentional acuity and sharpness. An insuperable feeling of heightened, polished awareness. Sure, my conscience certainly feels like it's on ice, and my anxieties drowned with a half-dozen shots of transcranial magnetic Jack Daniel's. But, at the same time, my whole way of being feels as if it's been sumptuously spring-cleaned with light. My soul, or whatever you want to call it, immersed in a spiritual dishwasher.
  • So this, I think to myself, is how it feels to be a psychopath. To cruise through life knowing that no matter what you say or do, guilt, remorse, shame, pity, fear—all those familiar, everyday warning signals that might normally light up on your psychological dashboard—no longer trouble you.
  • I suddenly get a flash of insight. We talk about gender. We talk about class. We talk about color. And intelligence. And creed. But the most fundamental difference between one individual and another must surely be that of the presence, or absence, of conscience. Conscience is what hurts when everything else feels good. But what if it's as tough as old boots? What if one's conscience has an infinite, unlimited pain threshold and doesn't bat an eye when others are screaming in agony?
Javier E

What Do We Know? - The New York Times - 1 views

  • one thing that happens when we acquire too much “knowledge” is that, like Othello, we sometimes fail to distinguish it from what can never be known, which may not be untrue.
  • Another is that we’re tempted to lose sight of the distinction between those realms, like science and health, where the more data we have, the better, and others, like human relations, where the opposite may be true.
  • Knowledge comes to seem an end in itself, and then we gobble it down and gobble it down without stopping to realize that it’s Iago — or that anonymous writer of the Wikipedia entry — who’s serving it up to us, and that wisdom sometimes depends on seeing how much knowledge doesn’t know and how much every day is shaped by unexpectedness.
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  • As a boy I was aware that knowledge was the coolest form of power around; nearly every adolescent wants to be in the know. What I couldn’t see was that it’s precisely in matters of highest importance — love, terror, is there a God, and why is Iago possessed by the Devil? — that we’re outside the domain of knowledge
Javier E

Walmart's Visible Hand - NYTimes.com - 1 views

  • Conservatives — with the backing, I have to admit, of many economists — normally argue that the market for labor is like the market for anything else. The law of supply and demand, they say, determines the level of wages, and the invisible hand of the market will punish anyone who tries to defy this law.
  • Specifically, this view implies that any attempt to push up wages will either fail or have bad consequences. Setting a minimum wage, it’s claimed, will reduce employment and create a labor surplus, the same way attempts to put floors under the prices of agricultural commodities used to lead to butter mountains, wine lakes and so on
  • Pressuring employers to pay more, or encouraging workers to organize into unions, will have the same effect.
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  • But labor economists have long questioned this view
  • the labor force — is people. And because workers are people, wages are not, in fact, like the price of butter, and how much workers are paid depends as much on social forces and political power as it does on simple supply and demand.
  • What’s the evidence? First, there is what actually happens when minimum wages are increased. Many states set minimum wages above the federal level, and we can look at what happens when a state raises its minimum while neighboring states do no
  • the overwhelming conclusion from studying these natural experiments is that moderate increases in the minimum wage have little or no negative effect on employment.
  • Then there’s history. It turns out that the middle-class society we used to have didn’t evolve as a result of impersonal market forces — it was created by political action, and in a brief period of time
  • Part of the answer is direct government intervention, especially during World War II, when government wage-setting authority was used to narrow gaps between the best paid and the worst paid. Part of it, surely, was a sharp increase in unionization. Part of it was the full-employment economy of the war years, which created very strong demand for workers and empowered them to seek higher pay.
  • How did that happen?
  • America was still a very unequal society in 1940, but by 1950 it had been transformed by a dramatic reduction in income disparities, which the economists Claudia Goldin and Robert Margo labeled the Great Compression.
  • the Great Compression didn’t go away as soon as the war was over. Instead, full employment and pro-worker politics changed pay norms, and a strong middle class endured for more than a generation. Oh, and the decades after the war were also marked by unprecedented economic growth.
  • Walmart is under political pressure over wages so low that a substantial number of employees are on food stamps and Medicaid. Meanwhile, workers are gaining clout thanks to an improving labor market, reflected in increasing willingness to quit bad jobs.
  • its justification for the move echoes what critics of its low-wage policy have been saying for years: Paying workers better will lead to reduced turnover, better morale and higher productivity.
  • What this means, in turn, is that engineering a significant pay raise for tens of millions of Americans would almost surely be much easier than conventional wisdom suggests. Raise minimum wages by a substantial amount; make it easier for workers to organize, increasing their bargaining power; direct monetary and fiscal policy toward full employment, as opposed to keeping the economy depressed out of fear that we’ll suddenly turn into Weimar Germany. It’s not a hard list to implement — and if we did these things we could make major strides back toward the kind of society most of us want to live in.
  • The point is that extreme inequality and the falling fortunes of America’s workers are a choice, not a destiny imposed by the gods of the market. And we can change that choice if we want to.
Javier E

The Structure of Gratitude - The New York Times - 0 views

  • Most people feel grateful some of the time — after someone saves you from a mistake or brings you food during an illness. But some people seem grateful dispositionally. They seem thankful practically all of the time.
  • As most people get on in life and earn more status, they often get used to more respect and nicer treatment. But people with dispositional gratitude take nothing for granted. They take a beginner’s thrill at a word of praise, at another’s good performance or at each sunny day. These people are present-minded and hyperresponsive.
  • This kind of dispositional gratitude is worth dissecting because it induces a mentality that stands in counterbalance to the mainstream threads of our culture.
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  • We live in a capitalist meritocracy. This meritocracy encourages people to be self-sufficient — masters of their own fate.
  • But people with dispositional gratitude are hyperaware of their continual dependence on others. They treasure the way they have been fashioned by parents, friends and ancestors who were in some ways their superiors. They’re glad the ideal of individual autonomy is an illusion because if they were relying on themselves they’d be much worse off.
  • The basic logic of the capitalist meritocracy is that you get what you pay for, that you earn what you deserve.
  • But people with dispositional gratitude are continually struck by the fact that they are given far more than they pay for — and are much richer than they deserve. Their families, schools and summer camps put far more into them than they give back. There’s a lot of surplus goodness in daily life that can’t be explained by the logic of equal exchange.
  • Capitalism encourages us to see human beings as self-interested, utility-maximizing creatures.
  • But people with grateful dispositions are attuned to the gift economy where people are motivated by sympathy as well as self-interest. In the gift economy intention matters. We’re grateful to people who tried to do us favors even when those favors didn’t work out. In the gift economy imaginative empathy matters. We’re grateful because some people showed they care about us more than we thought they did. We’re grateful when others took an imaginative leap and put themselves in our mind, even with no benefit to themselves.
  • Gratitude is also a form of social glue. In the capitalist economy, debt is to be repaid to the lender. But a debt of gratitude is repaid forward, to another person who also doesn’t deserve it.
  • each gift ripples outward and yokes circles of people in bonds of affection. It reminds us that a society isn’t just a contract based on mutual benefit, but an organic connection based on natural sympathy — connections that are nurtured not by self-interest but by loyalty and service.
  • If you think that human nature is good and powerful, then you go around frustrated because the perfect society has not yet been achieved
  • But if you go through life believing that our reason is not that great, our individual skills are not that impressive, and our goodness is severely mottled, then you’re sort of amazed life has managed to be as sweet as it is. You’re grateful for all the institutions our ancestors gave us, like the Constitution and our customs, which shape us to be better than we’d otherwise be. Appreciation becomes the first political virtue and the need to perfect the gifts of others is the first political task.
  • We live in a capitalist meritocracy that encourages individualism and utilitarianism, ambition and pride.
  • But this society would fall apart if not for another economy, one in which gifts surpass expectations, in which insufficiency is acknowledged and dependence celebrated.
  • People with grateful dispositions see their efforts grandly but not themselves. Life doesn’t surpass their dreams but it nicely surpasses their expectations.
Javier E

Why a Harvard Professor Has Mixed Feelings When Students Take Jobs in Finance - NYTimes... - 0 views

  • Many of the best students are not going to research cancer, teach and inspire the next generation, or embark on careers in public service. Instead, large numbers are becoming traders, brokers and bankers. At Harvard in 2014, nearly one in five students who took a job went to finance. For economics majors, the number was closer to one in two.
  • arbitrage is valuable only to a point. It has a gold rush element with prospectors racing to get to the gold first. While finding gold has value, finding gold before someone else does is mainly rent-seeking.
  • I wonder: Is this a good decision for society as a whole?
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  • As an economist, I look at it this way: Every profession produces both private returns — the fruits of labor that a person enjoys — and social returns — those that society enjoys. If I set up a shop on Etsy selling photographs, my private returns may be defined as the revenue I generate. The social returns are the pleasure that my photographs provide to my customers.
  • People in some professions provide a surplus of social returns. Inventors are a good example. Take the modern semiconductor. It made possible countless other inventions — nearly every piece of computing we interact with today.
  • countries suffer when talented people become what we economists call “rent seekers.” Instead of creating wealth, rent seekers simply transfer it — from others to themselves.
  • Job titles don’t tell you whether someone is primarily a rent seeker. A lawyer who helps draft precise contracts may actually be helping the wheels of commerce turn, and so creating wealth. But trial lawyers in a country with poorly functioning tort systems may simply be extracting rents: They can make money by pursuing frivolous lawsuits.
  • In this respect, finance is a vexing industry.
  • I can’t help wondering: Is this the best use of talent?
  • Booth, have shown in a study how extreme this financial gold rush has become in at least one corner of the financial world. From 2005 to 2011, they found that the duration of arbitrage opportunities in the Chicago Mercantile Exchange and the New York Stock Exchange declined from a median of 97 milliseconds to seven milliseconds
  • correcting mispricing at this speed is unlikely to have any real social benefit: What serious investment is being guided by prices at the millisecond level? Short-term arbitrage, while lucrative, seems to be mainly rent-seeking.
  • This kind of rent-seeking behavior is widespread in other parts of finance. Banks sometimes make money by using hidden fees rather than adding true value. Debt collection agencies may use unscrupulous practices. Lenders to poor people buying used cars can make profits with business models that encourage high rates of default — making money by taking advantage of people’s overconfidence about what cars they can afford and by repossessing vehicles. These kinds of practices may be both lucrative — and socially pernicious.
  • The poor face a tremendous problem every day juggling money and expenses. Their pay often fluctuates week by week, yet they must pay rent no matter what they earn. Right now, poor people often use expensive payday loans or must incur expensive late fees.
  • Surely we could do better. Finding ways to smooth out these shocks is the kind of important, socially valuable problem that finance could solve. Many other crucial social problems have finance at their root, from saving for college to insuring unemployment risk.
  • Instead of finding clever ways to hide fees, banking innovations could solve these real and important problems.
  • So how should I feel about my students going into finance? I hope they realize that they have the potential to do great good and not simply make money. It may not be how the industry is structured now, but idealism and inventiveness are two of the best traits of youth, and finance especially could use them.
Javier E

We Are Just Not Digging The Whole Anymore : NPR - 1 views

  • We just don't do whole things anymore. We don't read complete books — just excerpts. We don't listen to whole CDs — just samplings. We don't sit through whole baseball games — just a few innings. Don't even write whole sentences. Or read whole stories like this one. Long-form reading, listening and viewing habits are giving way to browse-and-choose consumption. With the increase in the number of media options — or distractions, depending on how you look at them — something has to give, and that something is our attention span. - Adam Thierer, senior research fellow at George Mason University We care more about the parts and less about the entire. We are into snippets and smidgens and clips and tweets. We are not only a fragmented society, but a fragment society.
  • One Duke University student was famously quoted in a 2006 Time magazine essay telling his history professor, "We don't read whole books anymore."
  • Now there are lots of websites that present whole books and concepts in nano form
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  • nearly half of all adults — 47 percent — get some of their local news and information on mobile computing devices. We are receiving our news in kibbles and bits, sacrificing context and quality for quickness and quantity.
  • Here is the ultra-condensation of Pride and Prejudice by Jane Austen: Mr. Darcy: Nothing is good enough for me. Ms. Elizabeth Bennet: I could never marry that proud man. (They change their minds.) THE END
  • Fewer and fewer gamers are following gaming storylines all the way to completion, according to a recent blog post on the IGN Entertainment video game website.
  • "With the increase in the number of media options — or distractions, depending on how you look at them — something has to give, and that something is our attention span." He ticks off a long list of bandied-about terms. Here's a shortened version: cognitive overload; information paralysis; techno stress; and data asphyxiation.
  • Rockmore believes that the way many people learn — or try to learn — these days is via this transporter technique. "The truth is," he says, "that modern pedagogy probably needs to address this in the sense that there is so much information out there, for free, so that obtaining it — even in bits and pieces — is not the challenge, rather integrating it into a coherent whole is. That's a new paradigm."
Duncan H

It's Consumer Spending, Stupid - NYTimes.com - 0 views

  • using business profits to increase productivity and output — doesn’t actually drive economic growth. Consumer debt and government spending do. Private investment isn’t even necessary to promote growth.
  • Economists will tell you that private business investment causes growth because it pays for the new plant or equipment that creates jobs, improves labor productivity and increases workers’ incomes. As a result, you’ll hear politicians insisting that more incentives for private investors — lower taxes on corporate profits — will lead to faster and better-balanced growth.
  • But history shows that this is wrong.
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  • President George W. Bush’s tax cuts had similar effects between 2001 and 2007: real growth in the absence of new investment.
  • over the course of the last century, net business investment atrophied while G.D.P. per capita increased spectacularly. And the source of that growth? Increased consumer spending, coupled with and amplified by government outlays.
  • Between 1900 and 2000, real gross domestic product per capita (the output of goods and services per person) grew more than 600 percent. Meanwhile, net business investment declined 70 percent as a share of G.D.P. What’s more, in 1900 almost all investment came from the private sector — from companies, not from government — whereas in 2000, most investment was either from government spending (out of tax revenues) or “residential investment,” which means consumer spending on housing, rather than business expenditure on plants, equipment and labor.
  • According to the Organization for Economic Cooperation and Development, retained corporate earnings that remain uninvested are now close to 8 percent of G.D.P., a staggering sum in view of the unemployment crisis we face.
  • So corporate profits do not drive economic growth — they’re just restless sums of surplus capital, ready to flood speculative markets at home and abroad. In the 1920s, they inflated the stock market bubble, and then caused the Great Crash. Since the Reagan revolution, these superfluous profits have fed corporate mergers and takeovers, driven the dot-com craze, financed the “shadow banking” system of hedge funds and securitized investment vehicles, fueled monetary meltdowns in every hemisphere and inflated the housing bubble.
  • we doubt the moral worth of consumer culture. Like the abstemious ant who scolds the feckless grasshopper as winter approaches, we think that saving is the right thing to do. Even as we shop with abandon, we feel that if only we could contain our unruly desires, we’d be committing ourselves to a better future. But we’re wrong.
  • Consumer spending is not only the key to economic recovery in the short term; it’s also necessary for balanced growth in the long term. If our goal is to repair our damaged economy, we should bank on consumer culture — and that entails a redistribution of income away from profits toward wages, enabled by tax policy and enforced by government spending.
Javier E

What 'White Privilege' Really Means - NYTimes.com - 0 views

  • This week’s conversation is with Naomi Zack, a professor of philosophy at the University of Oregon and the author of “The Ethics and Mores of Race: Equality After the History of Philosophy.”
  • My first book, “Race and Mixed Race” (1991) was an analysis of the incoherence of U.S. black/white racial categories in their failure to allow for mixed race. In “Philosophy of Science and Race,” I examined the lack of a scientific foundation for biological notions of human races, and in “The Ethics and Mores of Race,” I turned to the absence of ideas of universal human equality in the Western philosophical tradition.
  • Critical philosophy of race, like critical race theory in legal studies, seeks to understand the disadvantages of nonwhite racial groups in society (blacks especially) by understanding social customs, laws, and legal practices.
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  • What’s happening in Ferguson is the result of several recent historical factors and deeply entrenched racial attitudes, as well as a breakdown in participatory democracy.
  • In Ferguson, the American public has awakened to images of local police, fully decked out in surplus military gear from our recent wars in Iraq and Afghanistan, who are deploying all that in accordance with a now widespread “broken windows” policy, which was established on the hypothesis that if small crimes and misdemeanors are checked in certain neighborhoods, more serious crimes will be deterred. But this policy quickly intersected with police racial profiling already in existence to result in what has recently become evident as a propensity to shoot first.
  • How does this “broken windows” policy relate to the tragic deaths of young black men/boys? N.Z.:People are now stopped by the police for suspicion of misdemeanor offenses and those encounters quickly escalate.
  • Young black men are the convenient target of choice in the tragic intersection of the broken windows policy, the domestic effects of the war on terror and police racial profiling.
  • Why do you think that young black men are disproportionately targeted? N.Z.: Exactly why unarmed young black men are the target of choice, as opposed to unarmed young white women, or unarmed old black women, or even unarmed middle-aged college professors, is an expression of a long American tradition of suspicion and terrorization of members of those groups who have the lowest status in our society and have suffered the most extreme forms of oppression, for centuries.
  • Police in the United States are mostly white and mostly male. Some confuse their work roles with their own characters. As young males, they naturally pick out other young male opponents. They have to win, because they are the law, and they have the moral charge of protecting.
  • So young black males, who have less status than they do, and are already more likely to be imprisoned than young white males, are natural suspects.
  • Besides the police, a large segment of the white American public believes they are in danger from blacks, especially young black men, who they think want to rape young white women. This is an old piece of American mythology that has been invoked to justify crimes against black men, going back to lynching. The perceived danger of blacks becomes very intense when blacks are harmed.
  • The term “white privilege” is misleading. A privilege is special treatment that goes beyond a right. It’s not so much that being white confers privilege but that not being white means being without rights in many cases. Not fearing that the police will kill your child for no reason isn’t a privilege. It’s a right. 
  • that is what “white privilege” is meant to convey, that whites don’t have many of the worries nonwhites, especially blacks, do.
  • Other examples of white privilege include all of the ways that whites are unlikely to end up in prison for some of the same things blacks do, not having to worry about skin-color bias, not having to worry about being pulled over by the police while driving or stopped and frisked while walking in predominantly white neighborhoods, having more family wealth because your parents and other forebears were not subject to Jim Crow and slavery.
  • Probably all of the ways in which whites are better off than blacks in our society are forms of white privilege.
  • Over half a century later, it hasn’t changed much in the United States. Black people are still imagined to have a hyper-physicality in sports, entertainment, crime, sex, politics, and on the street. Black people are not seen as people with hearts and minds and hopes and skills but as cyphers that can stand in for anything whites themselves don’t want to be or think they can’t be.
  • race is through and through a social construct, previously constructed by science, now by society, including its most extreme victims. But, we cannot abandon race, because people would still discriminate and there would be no nonwhite identities from which to resist. Also, many people just don’t want to abandon race and they have a fundamental right to their beliefs. So race remains with us as something that needs to be put right.
kushnerha

There may be flowing water on Mars. But is there intelligent life on Earth? - 0 views

  • We may be captivated by the thought of organisms on another planet, but we seem to have lost interest in our own. The Oxford Junior Dictionary has been excising the waymarks of the living world. Adders, blackberries, bluebells, conkers, holly, magpies, minnows, otters, primroses, thrushes, weasels and wrens are now surplus to requirements.
  • past four decades, the world has lost 50% of its vertebrate wildlife. But across the latter half of this period, there has been a steep decline in media coverage
  • as many news stories broadcast by the BBC and ITV about Madeleine McCann (who went missing in 2007) as there were about the entire range of environmental issues.
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  • Think of what would change if we valued terrestrial water as much as we value the possibility of water on Mars. Only 3% of the water on this planet is fresh; and of that, two-thirds is frozen. Yet we lay waste to the accessible portion.
  • domestic demand is such that the upper reaches of many rivers disappear during the summer. Yet still we install clunky old toilets and showers that gush like waterfalls.
  • salty water, of the kind that so enthrals us when apparently detected on Mars, on Earth we express our appreciation with a frenzy of destruction
  • Coral reefs are under such pressure that most could be gone by 2050. And in our own deep space, our desire for exotic fish rips through a world scarcely better known to us than the red planet’s surface.
  • Human ingenuity is on abundant display at Nasa, which released those astounding images. But not when it comes to policy.
  • this is the way in which governments seek to resolve planetary destruction. Leave it to the conscience of consumers, while that conscience is muted and confused by advertising and corporate lies.
  • All this drilling and digging and trawling and dumping and poisoning – what is it for, anyway? Does it enrich human experience, or stifle it? A couple of weeks ago I launched the hashtag #extremecivilisation, and invited suggestions
  • Every year, clever new ways of wasting stuff are devised, and every year we become more inured to the pointless consumption of the world’s precious resources. With each subtle intensification, the baseline of normality shifts. It should not be surprising to discover that the richer a country becomes, the less its people care about their impacts on the living planet.
Javier E

The Startling Link Between Sugar and Alzheimer's - The Atlantic - 0 views

  • A longitudinal study, published Thursday in the journal Diabetologia, followed 5,189 people over 10 years and found that people with high blood sugar had a faster rate of cognitive decline than those with normal blood sugar
  • In other words, the higher the blood sugar, the faster the cognitive decline.
  • “Currently, dementia is not curable, which makes it very important to study risk factors.”
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  • People who have type 2 diabetes are about twice as likely to get Alzheimer’s, and people who have diabetes and are treated with insulin are also more likely to get Alzheimer’s, suggesting elevated insulin plays a role in Alzheimer’s. In fact, many studies have found that elevated insulin, or “hyperinsulinemia,” significantly increases your risk of Alzheimer’s. On the other hand, people with type 1 diabetes, who don’t make insulin at all, are also thought to have a higher risk of Alzheimer’s. How could these both be true?
  • Schilling posits this happens because of the insulin-degrading enzyme, a product of insulin that breaks down both insulin and amyloid proteins in the brain—the same proteins that clump up and lead to Alzheimer’s disease. People who don’t have enough insulin, like those whose bodies’ ability to produce insulin has been tapped out by diabetes, aren’t going to make enough of this enzyme to break up those brain clumps. Meanwhile, in people who use insulin to treat their diabetes and end up with a surplus of insulin, most of this enzyme gets used up breaking that insulin down, leaving not enough enzyme to address those amyloid brain clumps.
  • this can happen even in people who don’t have diabetes yet—who are in a state known as “prediabetes.” It simply means your blood sugar is higher than normal, and it’s something that affects roughly 86 million Americans.
  • In a 2012 study, Roberts broke nearly 1,000 people down into four groups based on how much of their diet came from carbohydrates. The group that ate the most carbs had an 80 percent higher chance of developing mild cognitive impairment—a pit stop on the way to dementia—than those who ate the smallest amount of carbs.
  • “It’s hard to be sure at this stage, what an ‘ideal’ diet would look like,” she said. “There’s a suggestion that a Mediterranean diet, for example, may be good for brain health.”
  • there are several theories out there to explain the connection between high blood sugar and dementia. Diabetes can also weaken the blood vessels, which increases the likelihood that you’ll have ministrokes in the brain, causing various forms of dementia. A high intake of simple sugars can make cells, including those in the brain, insulin resistant, which could cause the brain cells to die. Meanwhile, eating too much in general can cause obesity. The extra fat in obese people releases cytokines, or inflammatory proteins that can also contribute to cognitive deterioration, Roberts said. In one study by Gottesman, obesity doubled a person’s risk of having elevated amyloid proteins in their brains later in life.
  • even people who don’t have any kind of diabetes should watch their sugar intake, she said.
  • as these and other researchers point out, decisions we make about food are one risk factor we can control. And it’s starting to look like decisions we make while we’re still relatively young can affect our future cognitive health.
  • “Alzheimer’s is like a slow-burning fire that you don’t see when it starts,” Schilling said. It takes time for clumps to form and for cognition to begin to deteriorate. “By the time you see the signs, it’s way too late to put out the fire.”
Javier E

Economics of Good and Evil: The Quest for Economic Meaning from Gilgamesh to Wall Stree... - 1 views

  • Instead of self-confident and self-centered answers, the author humbly asks fundamental questions: What is economics? What is its meaning? Where does this new religion, as it is sometimes called, come from? What are its possibilities and its limitations and borders, if there are any? Why are we so dependent on permanent growing of growth and growth of growing of growth? Where did the idea of progress come from, and where is it leading us? Why are so many economic debates accompanied by obsession and fanaticism?
  • The majority of our political parties act with a narrow materialistic focus when, in their programs, they present the economy and finance first; only then, somewhere at the end, do we find culture as something pasted on or as a libation for a couple of madmen.
  • most of them—consciously or unconsciously—accept and spread the Marxist thesis of the economic base and the spiritual superstructure.
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  • He tries to break free of narrow specialization and cross the boundaries between scientific disciplines. Expeditions beyond economics’ borders and its connection to history, philosophy, psychology, and ancient myths are not only refreshing, but necessary for understanding the world of the twenty-first century.
  • Reality is spun from stories, not from material. Zdeněk Neubauer
  • Before it was emancipated as a field, economics lived happily within subsets of philosophy—ethics, for example—miles away from today’s concept of economics as a mathematical-allocative science that views “soft sciences” with a scorn born from positivistic arrogance. But our thousand-year “education” is built on a deeper, broader, and oftentimes more solid base. It is worth knowing about.
  • Outside of our history, we have nothing more.
  • The study of the history of a certain field is not, as is commonly held, a useless display of its blind alleys or a collection of the field’s trials and errors (until we got it right), but history is the fullest possible scope of study of a menu that the given field can offer.
  • History of thought helps us to get rid of the intellectual brainwashing of the age, to see through the intellectual fashion of the day, and to take a couple of steps back.
  • “The separation between the history of a science, its philosophy, and the science itself dissolves into thin air, and so does the separation between science and non-science; differences between the scientific and unscientific are vanishing.”
  • we seek to chart the development of the economic ethos. We ask questions that come before any economic thinking can begin—both philosophically and, to a degree, historically. The area here lies at the very borders of economics—and often beyond. We may refer to this as protoeconomics (to borrow a term from protosociology) or, perhaps more fittingly, metaeconomics (to borrow a term from metaphysics).
  • stories; Adam Smith believed. As he puts it in The Theory of Moral Sentiments, “the desire of being believed, or the desire of persuading, of leading and directing other people, seems to be one of the strongest of all our natural desires.”
  • “The human mind is built to think in terms of narratives … in turn, much of human motivation comes from living through a story of our lives, a story that we tell to ourselves and that creates a framework of our motivation. Life could be just ‘one damn thing after another’ if it weren’t for such stories. The same is true for confidence in a nation, a company, or an institution. Great leaders are foremost creators of stories.”
  • contrary to what our textbooks say, economics is predominantly a normative field. Economics not only describes the world but is frequently about how the world should be (it should be effective, we have an ideal of perfect competition, an ideal of high-GDP growth in low inflation, the effort to achieve high competitiveness …). To this end, we create models, modern parables,
  • I will try to show that mathematics, models, equations, and statistics are just the tip of the iceberg of economics; that the biggest part of the iceberg of economic knowledge consists of everything else; and that disputes in economics are rather a battle of stories and various metanarratives than anything else.
  • That is the reason for this book: to look for economic thought in ancient myths and, vice versa, to look for myths in today’s economics.
  • is a paradox that a field that primarily studies values wants to be value-free. One more paradox is this: A field that believes in the invisible hand of the market wants to be without mysteries.
  • Almost all of the key concepts by which economics operates, both consciously and unconsciously, have a long history, and their roots extend predominantly outside the range of economics, and often completely beyond that of science.
  • The History of Animal Spirits: Dreams Never Sleep
  • In this sense, “the study of economics is too narrow and too fragmentary to lead to valid insight, unless complemented and completed by a study of metaeconomics.”17
  • The more important elements of a culture or field of inquiry such as economics are found in fundamental assumptions that adherents of all the various systems within the epoch unconsciously presuppose. Such assumptions appear so obvious that people do not know what they are assuming, because no other way of putting things has ever occurred to them, as the philosopher Alfred Whitehead notes in Adventures of Ideas.
  • I argue that economic questions were with mankind long before Adam Smith. I argue that the search for values in economics did not start with Adam Smith but culminated with him.
  • We should go beyond economics and study what beliefs are “behind the scenes,” ideas that have often become the dominant yet unspoken assumptions in our theories. Economics is surprisingly full of tautologies that economists are predominantly unaware of. I
  • argue that economics should seek, discover, and talk about its own values, although we have been taught that economics is a value-free science. I argue that none of this is true and that there is more religion, myth, and archetype in economics than there is mathematics.
  • In a way, this is a study of the evolution of both homo economicus and, more importantly, the history of the animal spirits within him. This book tries to study the evolution of the rational as well as the emotional and irrational side of human beings.
  • I argue that his most influential contribution to economics was ethical. His other thoughts had been clearly expressed long before him, whether on specialization, or on the principle of the invisible hand of the market. I try to show that the principle of the invisible hand of the market is much more ancient and developed long before Adam Smith. Traces of it appear even in the Epic of Gilgamesh, Hebrew thought, and in Christianity, and it is expressly stated by Aristophanes and Thomas Aquinas.
  • This is not a book on the thorough history of economic thought. The author aims instead to supplement certain chapters on the history of economic thought with a broader perspective and analysis of the influences that often escape the notice of economists and the wider public.
  • Progress (Naturalness and Civilization)
  • The Economy of Good and Evil
  • from his beginnings, man has been marked as a naturally unnatural creature, who for unique reasons surrounds himself with external possessions. Insatiability, both material and spiritual, are basic human metacharacteristics, which appear as early as the oldest myths and stories.
  • the Hebrews, with linear time, and later the Christians gave us the ideal (or amplified the Hebrew ideal) we now embrace. Then the classical economists secularized progress. How did we come to today’s progression of progress, and growth for growth’s sake?
  • The Need for Greed: The History of Consumption and Labor
  • Metamathematics From where did economics get the concept of numbers as the very foundation of the world?
  • mathematics at the core of economics, or is it just the icing of the cake, the tip of the iceberg of our field’s inquiry?
  • idea that we can manage to utilize our natural egoism, and that this evil is good for something, is an ancient philosophical and mythical concept. We will also look into the development of the ethos of homo economicus, the birth of “economic man.”
  • All of economics is, in the end, economics of good and evil. It is the telling of stories by people of people to people. Even the most sophisticated mathematical model is, de facto, a story, a parable, our effort to (rationally) grasp the world around us.
  • Masters of the Truth
  • Originally, truth was a domain of poems and stories, but today we perceive truth as something much more scientific, mathematical. Where does one go (to shop) for the truth? And who “has the truth” in our epoch?
  • Our animal spirits (something of a counterpart to rationality) are influenced by the archetype of the hero and our concept of what is good.
  • The entire history of ethics has been ruled by an effort to create a formula for the ethical rules of behavior. In the final chapter we will show the tautology of Max Utility, and we will discuss the concept of Max Good.
  • The History of the Invisible Hand of the Market and Homo Economicus
  • We understand “economics” to mean a broader field than just the production, distribution, and consumption of goods and services. We consider economics to be the study of human relations that are sometimes expressible in numbers, a study that deals with tradables, but one that also deals with nontradables (friendship, freedom, efficiency, growth).
  • When we mention economics in this book, we mean the mainstream perception of it, perhaps as best represented by Paul Samuelson.
  • By the term homo economicus, we mean the primary concept of economic anthropology. It comes from the concept of a rational individual, who, led by narrowly egotistical motives, sets out to maximize his benefit.
  • the Epic of Gilgamesh bears witness to the opposite—despite the fact that the first written clay fragments (such as notes and bookkeeping) of our ancestors may have been about business and war, the first written story is mainly about great friendship and adventure.
  • there is no mention of either money or war; for example, not once does anyone in the whole epic sell or purchase something.5 No nation conquers another, and we do not encounter a mention even of the threat of violence.
  • is a story of nature and civilization, of heroism, defiance, and the battle against the gods, and evil; an epic about wisdom, immortality, and also futility.
  • Gilgamesh becomes a hero not only due to his strength, but also due to discoveries and deeds whose importance were in large part economic—direct gaining of construction materials in the case of felling the cedar forest, stopping Enkidu from devastating Uruk’s economy, and discovering new desert routes during his expeditions.
  • Even today, we often consider the domain of humanity (human relations, love, friendship, beauty, art, etc.) to be unproductive;
  • Even today we live in Gilgamesh’s vision that human relations—and therefore humanity itself—are a disturbance to work and efficiency; that people would perform better if they did not “waste” their time and energy on nonproductive things.
  • But it is in friendship where—often by-the-way, as a side product, an externality—ideas and deeds are frequently performed or created that together can altogether change the face of society.19 Friendship can go against an ingrained system in places where an individual does not have the courage to do so himself or herself.
  • As Joseph Stiglitz says, One of the great “tricks” (some say “insights”) of neoclassical economics is to treat labour like any other factor of production. Output is written as a function of inputs—steel, machines, and labour. The mathematics treats labour like any other commodity, lulling one into thinking of labour like an ordinary commodity, such as steel or plastic.
  • Even the earliest cultures were aware of the value of cooperation on the working level—today we call this collegiality, fellowship, or, if you want to use a desecrated term, comradeship. These “lesser relationships” are useful and necessary for society and for companies because work can be done much faster and more effectively if people get along with each other on a human level
  • But true friendship, which becomes one of the central themes of the Epic of Gilgamesh, comes from completely different material than teamwork. Friendship, as C. S. Lewis accurately describes it, is completely uneconomical, unbiological, unnecessary for civilization, and an unneeded relationship
  • Here we have a beautiful example of the power of friendship, one that knows how to transform (or break down) a system and change a person. Enkidu, sent to Gilgamesh as a punishment from the gods, in the end becomes his faithful friend, and together they set out against the gods. Gilgamesh would never have gathered the courage to do something like that on his own—nor would Enkidu.
  • Due to their friendship, Gilgamesh and Enkidu then intend to stand up to the gods themselves and turn a holy tree into mere (construction) material they can handle almost freely, thereby making it a part of the city-construct, part of the building material of civilization, thus “enslaving” that which originally was part of wild nature. This is a beautiful proto-example of the shifting of the borders between the sacred and profane (secular)—and to a certain extent also an early illustration of the idea that nature is there to provide cities and people with raw material and production resources.
  • started with Babylonians—rural nature becomes just a supplier of raw materials, resources (and humans the source of human resources). Nature is not the garden in which humans were created and placed, which they should care for and which they should reside in, but becomes a mere reservoir for natural (re)sources.
  • But labour is unlike any other commodity. The work environment is of no concern for steel; we do not care about steel’s well-being.16
  • Both heroes change—each from opposite poles—into humans. In this context, a psychological dimension to the story may be useful: “Enkidu (…) is Gilgamesh’s alter ego, the dark, animal side of his soul, the complement to his restless heart. When Gilgamesh found Enkidu, he changed from a hated tyrant into the protector of his city. (…)
  • To be human seems to be somewhere in between, or both of these two. We
  • this moment of rebirth from an animal to a human state, the world’s oldest preserved epic implicitly hints at something highly important. Here we see what early cultures considered the beginning of civilization. Here is depicted the difference between people and animals or, better, savages. Here the epic quietly describes birth, the awakening of a conscious, civilized human. We are witnesses to the emancipation of humanity from animals,
  • The entire history of culture is dominated by an effort to become as independent as possible from the whims of nature.39 The more developed a civilization is, the more an individual is protected from nature and natural influences and knows how to create around him a constant or controllable environment to his liking.
  • The price we pay for independence from the whims of nature is dependence on our societies and civilizations. The more sophisticated a given society is as a whole, the less its members are able to survive on their own as individuals, without society.
  • The epic captures one of the greatest leaps in the development of the division of labor. Uruk itself is one of the oldest cities of all, and in the epic it reflects a historic step forward in specialization—in the direction of a new social city arrangement. Because of the city wall, people in the city can devote themselves to things other than worrying about their own safety, and they can continue to specialize more deeply.
  • Human life in the city gains a new dimension and suddenly it seems more natural to take up issues going beyond the life span of an individual. “The city wall symbolizes as well as founds the permanence of the city as an institution which will remain forever and give its inhabitants the certainty of unlimited safety, allowing them to start investing with an outlook reaching far beyond the borders of individual life.
  • The wall around the city of Uruk is, among other things, a symbol of an internal distancing from nature, a symbol of revolts against submission to laws that do not come under the control of man and that man can at most discover and use to his benefit.
  • “The chief thing which the common-sense individual wants is not satisfactions for the wants he had, but more, and better wants.”47
  • If a consumer buys something, theoretically it should rid him of one of his needs—and the aggregate of things they need should be decreased by one item. In reality, though, the aggregate of “I want to have” expands together with the growing aggregate of “I have.”
  • can be said that Enkidu was therefore happy in his natural state, because all of his needs were satiated. On the other hand, with people, it appears that the more a person has, the more developed and richer, the greater the number of his needs (including the unsaturated ones).
  • the Old Testament, this relationship is perceived completely differently. Man (humanity) is created in nature, in a garden. Man was supposed to care for the Garden of Eden and live in harmony with nature and the animals. Soon after creation, man walks naked and is not ashamed, de facto the same as the animals. What is characteristic is that man dresses (the natural state of creation itself is not enough for him), and he (literally and figuratively) covers52 himself—in shame after the fall.53
  • Nature is where one goes to hunt, collect crops, or gather the harvest. It is perceived as the saturator of our needs and nothing more. One goes back to the city to sleep and be “human.” On the contrary, evil resides in nature. Humbaba lives in the cedar forest, which also happens to be the reason to completely eradicate it.
  • Symbolically, then, we can view the entire issue from the standpoint of the epic in the following way: Our nature is insufficient, bad, evil, and good (humane) occurs only after emancipation from nature (from naturalness), through culturing and education. Humanity is considered as being in civilization.
  • The city was frequently (at least in older Jewish writings) a symbol of sin, degeneration, and decadence—nonhumanity. The Hebrews were originally a nomadic nation, one that avoided cities. It is no accident that the first important city57 mentioned in the Bible is proud Babylon,58 which God later turns to dust.
  • is enough, for example, to read the Book of Revelation to see how the vision of paradise developed from the deep Old Testament period, when paradise was a garden. John describes his vision of heaven as a city—paradise is in New Jerusalem, a city where the dimensions of the walls(!) are described in detail, as are the golden streets and gates of pearl.
  • Hebrews later also chose a king (despite the unanimous opposition of God’s prophets) and settled in cities, where they eventually founded the Lord’s Tabernacle and built a temple for Him. The city of Jerusalem later gained an illustrious position in all of religion.
  • this time Christianity (as well as the influence of the Greeks) does not consider human naturalness to be an unambiguous good, and it does not have such an idyllic relationship to nature as the Old Testament prophets.
  • If a tendency toward good is not naturally endowed in people, it must be imputed from above through violence or at least the threat of violence.
  • If we were to look at human naturalness as a good, then collective social actions need a much weaker ruling hand. If people themselves have a natural tendency (propensity) toward good, this role does not have to be supplied by the state, ruler, or, if you wish, Leviathan.
  • How does this affect economics?
  • us return for the last time to the humanization of the wild Enkidu, which is a process we can perceive with a bit of imagination as the first seed of the principle of the market’s invisible hand, and therefore the parallels with one of the central schematics of economic thinking.
  • Sometimes it is better to “harness the devil to the plow” than to fight with him. Instead of summoning up enormous energy in the fight against evil, it is better to use its own energy to reach a goal we desire; setting up a mill on the turbulent river instead of futile efforts to remove the current. This is also how Saint Prokop approached it in one of the oldest Czech legends.
  • Enkidu caused damage and it was impossible to fight against him. But with the help of a trap, trick, this evil was transformed into something that greatly benefited civilization.
  • By culturing and “domesticating” Enkidu, humanity tamed the uncontrollable wild and chaotic evil
  • Enkidu devastated the doings (the external, outside-the-walls) of the city. But he was later harnessed and fights at the side of civilization against nature, naturalness, the natural state of things.
  • A similar motif appears a thousand years after the reversal, which is well known even to noneconomists as the central idea of economics: the invisible hand of the market.
  • A similar story (reforming something animally wild and uncultivated in civilizational achievement) is used by Thomas Aquinas in his teachings. Several centuries later, this idea is fully emancipated in the hands of Bernard Mandeville and his Fable of the Bees: or, Private Vices, Publick Benefits. The economic and political aspects of this idea are—often incorrectly—ascribed to Adam Smith.
  • Here the individual does not try anymore to maximize his goods or profits, but what is important is writing his name in human memory in the form of heroic acts or deeds.
  • immortality, one connected with letters and the cult of the word: A name and especially a written name survives the body.”77
  • After this disappointment, he comes to the edge of the sea, where the innkeeper Siduri lives. As tonic for his sorrow, she offers him the garden of bliss, a sort of hedonistic fortress of carpe diem, where a person comes to terms with his mortality and at least in the course of the end of his life maximizes earthly pleasures, or earthly utility.
  • In the second stage, after finding his friend Enkidu, Gilgamesh abandons the wall and sets out beyond the city to maximalize heroism. “In his (…) search of immortal life, Gilgamesh
  • The hero refuses hedonism in the sense of maximizing terrestrial pleasure and throws himself into things that will exceed his life. In the blink of an eye, the epic turns on its head the entire utility maximization role that mainstream economics has tirelessly tried to sew on people as a part of their nature.81
  • It is simpler to observe the main features of our civilization at a time when the picture was more readable—at a time when our civilization was just being born and was still “half-naked.” In other words, we have tried to dig down to the bedrock of our written civilization;
  • today remember Gilgamesh for his story of heroic friendship with Enkidu, not for his wall, which no longer reaches monumental heights.
  • the eleventh and final tablet, Gilgamesh again loses what he sought. Like Sisyphus, he misses his goal just before the climax
  • is there something from it that is valid today? Have we found in Gilgamesh certain archetypes that are in us to this day?
  • The very existence of questions similar to today’s economic ones can be considered as the first observation. The first written considerations of the people of that time were not so different from those today. In other words: The epic is understandable for us, and we can identify with it.
  • We have also been witnesses to the very beginnings of man’s culturing—a great drama based on a liberation and then a distancing from the natural state.
  • Let us take this as a memento in the direction of our restlessness, our inherited dissatisfaction and the volatility connected to it. Considering that they have lasted five thousand years and to this day we find ourselves in harmony with a certain feeling of futility, perhaps these characteristics are inherent in man.
  • Gilgamesh had a wall built that divided the city from wild nature and created a space for the first human culture. Nevertheless, “not even far-reaching works of civilization could satisfy human desire.”
  • Friendship shows us new, unsuspected adventures, gives us the opportunity to leave the wall and to become neither its builder nor its part—to not be another brick in the wall.
  • with the phenomenon of the creation of the city, we have seen how specialization and the accumulation of wealth was born, how holy nature was transformed into a secular supplier of resources, and also how humans’ individualistic ego was emancipated.
  • to change the system, to break down that which is standing and go on an expedition against the gods (to awaken, from naïveté to awakening) requires friendship.
  • For small acts (hunting together, work in a factory), small love is enough: Camaraderie. For great acts, however, great love is necessary, real love: Friendship. Friendship that eludes the economic understanding of quid pro quo. Friendship gives. One friend gives (fully) for the other. That is friendship for life and death,
  • The thought that humanity comes at the expense of efficiency is just as old as humanity itself—as we have shown, subjects without emotion are the ideal of many tyrants.
  • The epic later crashes this idea through the friendship of Gilgamesh and Enkidu. Friendship—the biologically least essential love, which at first sight appears to be unnecessary
  • less a civilized, city person is dependent on nature, the more he or she is dependent on the rest of society. Like Enkidu, we have exchanged nature for society; harmony with (incalculable) nature for harmony with (incalculable) man.
  • human nature good or evil? To this day these questions are key for economic policy: If we believe that man is evil in his nature, therefore that a person himself is dog eat dog (animal), then the hard hand of a ruler is called for. If we believe that people in and of themselves, in their nature, gravitate toward good, then it is possible to loosen up the reins and live in a society that is more laissez-faire.
  • For a concept of historical progress, for the undeification of heroes, rulers, and nature, mankind had to wait for the Hebrews.
  • Because nature is not undeified, it is beyond consideration to explore it, let alone intervene in it (unless a person was a two-thirds god like Gilgamesh). It
  • They practiced money lending, traded in many assets (…) and especially were engaged in the trading of shares on capital markets, worked in currency exchange and frequently figured as mediators in financial transactions (…), they functioned as bankers and participated in emissions of all possible forms.
  • As regards modern capitalism (as opposed to the ancient and medieval periods) … there are activities in it which are, in certain forms, inherently (and completely necessarily) present—both from an economic and legal standpoint.7
  • As early as the “dark” ages, the Jews commonly used economic tools that were in many ways ahead of their time and that later became key elements of the modern economy:
  • Gilgamesh’s story ends where it began. There is a consistency in this with Greek myths and fables: At the end of the story, no progress occurs, no essential historic change; the story is set in indefinite time, something of a temporal limbo.
  • Jews believe in historical progress, and that progress is in this world.
  • For a nation originally based on nomadism, where did this Jewish business ethos come from? And can the Hebrews truly be considered as the architects of the values that set the direction of our civilization’s economic thought?
  • Hebrew religiosity is therefore strongly connected with this world, not with any abstract world, and those who take pleasure in worldly possessions are not a priori doing anything wrong.
  • PROGRESS: A SECULARIZED RELIGION One of the things the writers of the Old Testament gave to mankind is the idea and notion of progress. The Old Testament stories have their development; they change the history of the Jewish nation and tie in to each other. The Jewish understanding of time is linear—it has a beginning and an end.
  • The observance of God’s Commandments in Judaism leads not to some ethereal other world, but to an abundance of material goods (Genesis 49:25–26, Leviticus 26:3–13, Deuteronomy 28:1–13) (…) There are no accusing fingers pointed at
  • There are no echoes of asceticism nor for the cleansing and spiritual effect of poverty. It is fitting therefore, that the founders of Judaism, the Patriarchs Abraham, Isaac and Jacob, were all wealthy men.12
  • about due to a linear understanding of history. If history has a beginning as well as an end, and they are not the same point, then exploration suddenly makes sense in areas where the fruits are borne only in the next generation.
  • What’s more, economic progress has almost become an assumption of modern functional societies. We expect growth. We take it automatically. Today, if nothing “new” happens, if GDP does not grow (we say it stagnates) for several quarters, we consider it an anomaly.
  • however, the idea of progress itself underwent major changes, and today we perceive it very differently. As opposed to the original spiritual conceptions, today we perceive progress almost exclusively in an economic or scientific-technological sense.
  • Because care for the soul has today been replaced by care for external things,
  • This is why we must constantly grow, because we (deep down and often implicitly) believe that we are headed toward an (economic) paradise on Earth.
  • Only since the period of scientific-technological revolution (and at a time when economics was born as an independent field) is material progress automatically assumed.
  • Jewish thought is the most grounded, most realistic school of thought of all those that have influenced our culture.17 An abstract world of ideas was unknown to the Jews. To this day it is still forbidden to even depict God, people, and animals in symbols, paintings, statues, and drawings.
  • economists have become key figures of great importance in our time (Kacířské eseje o filosofii dějin [Heretical Essays in the Philosophy of History]). They are expected to perform interpretations of reality, give prophetic services (macroeconomic forecasts), reshape reality (mitigate the impacts of the crisis, speed up growth), and, in the long run, provide leadership on the way to the Promised Land—paradise on Earth.
  • REALISM AND ANTIASCETICISM Aside from ideas of progress, the Hebrews brought another very fundamental contribution to our culture: The desacralization of heroes, nature, and rulers.
  • Voltaire writes: “It certain fact is, that in his public laws he [Moses] never so much as once made mention of a life to come, limiting all punishments and all rewards to the present life.”21
  • As opposed to Christianity, the concept of an extraterrestrial paradise or heaven was not developed much in Hebrew thought.19 The paradise of the Israelites—Eden—was originally placed on Earth at a given place in Mesopotamia20 and at a given time,
  • The Hebrews consider the world to be real—not just a shadow reflection of a better world somewhere in the cloud of ideas, something the usual interpretation of history ascribes to Plato. The soul does not struggle against the body and is not its prisoner, as Augustine would write later.
  • The land, the world, the body, and material reality are for Jews the paramount setting for divine history, the pinnacle of creation. This idea is the conditio sine qua non of the development of economics, something of an utterly earthly making,
  • The mythology of the hero-king was strongly developed in that period, which Claire Lalouette summarizes into these basic characteristics: Beauty (a perfect face, on which it is “pleasant to look upon,” but also “beauty,” expressed in the Egyptian word nefer, not only means aesthetics, but contains moral qualities as well),
  • THE HERO AND HIS UNDEIFICATION: THE DREAM NEVER SLEEPS The concept of the hero is more important than it might appear. It may be the remote origin of Keynes’s animal spirits, or the desire to follow a kind of internal archetype that a given individual accepts as his own and that society values.
  • This internal animator of ours, our internal mover, this dream, never sleeps and it influences our behavior—including economic behavior—more than we want to realize.
  • manliness and strength,28 knowledge and intelligence,29 wisdom and understanding, vigilance and performance, fame and renown (fame which overcomes enemies because “a thousand men would not be able to stand firmly in his presence”);30 the hero is a good shepherd (who takes care of his subordinates), is a copper-clad rampart, the shield of the land, and the defender of heroes.
  • Each of us probably has a sort of “hero within”—a kind of internal role-model, template, an example that we (knowingly or not) follow. It is very important what kind of archetype it is, because its role is dominantly irrational and changes depending on time and the given civilization.
  • The oldest was the so-called Trickster—a fraudster; then the culture bearer—Rabbit; the musclebound hero called Redhorn; and finally the most developed form of hero: the Twins.
  • the Egyptian ruler, just as the Sumerian, was partly a god, or the son of a god.31
  • Jacob defrauds his father Isaac and steals his brother Esau’s blessing of the firstborn. Moses murders an Egyptian. King David seduces the wife of his military commander and then has him killed. In his old age, King Solomon turns to pagan idols, and so on.
  • Anthropology knows several archetypes of heroes. The Polish-born American anthropologist Paul Radin examined the myths of North American Indians and, for example, in his most influential book, The Trickster, he describes their four basic archetypes of heroes.
  • The Torah’s heroes (if that term can be used at all) frequently make mistakes and their mistakes are carefully recorded in the Bible—maybe precisely so that none of them could be deified.32
  • We do not have to go far for examples. Noah gets so drunk he becomes a disgrace; Lot lets his own daughters seduce him in a similar state of drunkenness. Abraham lies and (repeatedly) tries to sell his wife as a concubine.
  • the Hebrew heroes correspond most to the Tricksters, the Culture Bearers, and the Twins. The divine muscleman, that dominant symbol we think of when we say hero, is absent here.
  • To a certain extent it can be said that the Hebrews—and later Christianity—added another archetype, the archetype of the heroic Sufferer.35 Job
  • Undeification, however, does not mean a call to pillage or desecration; man was put here to take care of nature (see the story of the Garden of Eden or the symbolism of the naming of the animals). This protection and care of nature is also related to the idea of progress
  • For the heroes who moved our civilization to where it is today, the heroic archetypes of the cunning trickster, culture bearer, and sufferer are rather more appropriate.
  • the Old Testament strongly emphasizes the undeification of nature.37 Nature is God’s creation, which speaks of divinity but is not the domain of moody gods
  • This is very important for democratic capitalism, because the Jewish heroic archetype lays the groundwork much better for the development of the later phenomenon of the hero, which better suits life as we know it today. “The heroes laid down their arms and set about trading to become wealthy.”
  • in an Old Testament context, the pharaoh was a mere man (whom one could disagree with, and who could be resisted!).
  • RULERS ARE MERE MEN In a similar historical context, the Old Testament teachings carried out a similar desacralization of rulers, the so-called bearers of economic policy.
  • Ultimately the entire idea of a political ruler stood against the Lord’s will, which is explicitly presented in the Torah. The Lord unequivocally preferred the judge as the highest form of rule—an
  • The needs of future generations will have to be considered; after all humankind are the guardians of God’s world. Waste of natural resources, whether privately owned or nationally owned is forbidden.”39
  • Politics lost its character of divine infallibility, and political issues were subject to questioning. Economic policy could become a subject of examination.
  • 44 God first creates with the word and then on individual days He divides light from darkness, water from dry land, day from night, and so forth—and He gives order to things.45 The world is created orderly— it is wisely, reasonably put together. The way of the world is put together at least partially46 decipherably by any other wise and reasonable being who honors rational rules.
  • which for the methodology of science and economics is very important because disorder and chaos are difficult to examine scientifically.43 Faith in some kind of rational and logical order in a system (society, the economy) is a silent assumption of any (economic) examination.
  • THE PRAISE OF ORDER AND WISDOM: MAN AS A PERFECTER OF CREATION The created world has an order of sorts, an order recognizable by us as people,
  • From the very beginning, when God distances Himself from the entire idea, there is an anticipation that there is nothing holy, let alone divine, in politics. Rulers make mistakes, and it is possible to subject them to tough criticism—which frequently occurs indiscriminately through the prophets in the Old Testament.
  • Hebrew culture laid the foundations for the scientific examination of the world.
  • Examining the world is therefore an absolutely legitimate activity, and one that is even requested by God—it is a kind of participation in the Creator’s work.51 Man is called on to understand himself and his surroundings and to use his knowledge for good.
  • I was there when he set heavens in place, when he marked out the horizon on the face of the deep (…) Then I was the craftsman at his side.47
  • There are more urgings to gain wisdom in the Old Testament. “Wisdom calls aloud in the street (…): ‘How long will you simple ones love your simple ways?’”49 Or several chapters later: “Wisdom is supreme; therefore get wisdom. Though it cost all you have, get understanding.”50
  • examination is not forbidden. The fact that order can be grasped by human reason is another unspoken assumption that serves as a cornerstone of any scientific examination.
  • then, my sons, listen to me; blessed are those who keep my ways (…) Blessed is the man who listens to me, watching daily at my doors, waiting at my doorway. For whoever finds me finds life and receives favor from the Lord.
  • the rational examination of nature has its roots, surprisingly, in religion.
  • The Lord brought me forth as the first of his works, before his deeds of old. I was appointed from eternity, from the beginning, before the world began. When there were no oceans, I was given birth, when there were no springs abounding with water, before the mountains were settled in place,
  • The Book of Proverbs emphasizes specifically several times that it was wisdom that was present at the creation of the world. Wisdom personified calls out:
  • The last act, final stroke of the brush of creation, naming of the animals—this act is given to a human, it is not done by God, as one would expect. Man was given the task of completing the act of creation that the Lord began:
  • MAN AS A FINISHER OF CREATION The creation of the world, as it is explained in Jewish teachings, is described in the Book of Genesis. Here God (i) creates, (ii) separates, and (iii) names [my emphasis]:
  • Naming is a symbolic expression. In Jewish culture (and also in our culture to this day), the right to name meant sovereign rights and belonged, for example, to explorers (new places), inventors (new principles), or parents (children)—that is, to those who were there at the genesis, at the origin. This right was handed over by God to mankind.
  • The Naming itself (the capital N is appropriate) traditionally belongs to the crowning act of the Creator and represents a kind of grand finale of creation, the last move of the brush to complete the picture—a signature of the master.
  • Without naming, reality does not exist; it is created together with language. Wittgenstein tightly names this in his tractatus—the limits of our language are the limits of our world.53
  • He invented (fictitiously and completely abstractly!) a framework that was generally accepted and soon “made into” reality. Marx invented similarly; he created the notion of class exploitation. Through his idea, the perception of history and reality was changed for a large part of the world for nearly an entire century.
  • Reality is not a given; it is not passive. Perceiving reality and “facts” requires man’s active participation. It is man who must take the last step, an act (and we
  • How does this relate to economics? Reality itself, our “objective” world, is cocreated, man himself participates in the creation; creation, which is somewhat constantly being re-created.
  • Our scientific models put the finishing touches on reality, because (1) they interpret, (2) they give phenomena a name, (3) they enable us to classify the world and phenomena according to logical forms, and (4) through these models we de facto perceive reality.
  • When man finds a new linguistic framework or analytical model, or stops using the old one, he molds or remolds reality. Models are only in our heads; they are not “in objective reality.” In this sense, Newton invented (not merely discovered!) gravity.
  • A real-ization act on our part represents the creation of a construct, the imputation of sense and order (which is beautifully expressed by the biblical act of naming, or categorization, sorting, ordering).
  • Keynes enters into the history of economic thought from the same intellectual cadence; his greatest contribution to economics was precisely the resurrection of the imperceptible—for example in the form of animal spirits or uncertainty. The economist Piero Mini even ascribes Keynes’s doubting and rebellious approach to his almost Talmudic education.63
  • God connects man with the task of guarding and protecting the Garden of Eden, and thus man actually cocreates the cultural landscape. The Czech philosopher Zdeněk Neubauer also describes this: “Such is reality, and it is so deep that it willingly crystallizes into worlds. Therefore I profess that reality is a creation and not a place of occurrence for objectively given phenomena.”61
  • in this viewpoint it is possible to see how Jewish thought is mystical—it admits the role of the incomprehensible. Therefore, through its groundedness, Jewish thought indulges mystery and defends itself against a mechanistic-causal explanation of the world: “The Jewish way of thinking, according to Veblen, emphasizes the spiritual, the miraculous, the intangible.
  • The Jews believed the exact opposite. The world is created by a good God, and evil appears in it as a result of immoral human acts. Evil, therefore, is induced by man.66 History unwinds according to the morality of human acts.
  • What’s more, history seems to be based on morals; morals seem to be the key determining factors of history. For the Hebrews, history proceeds according to how morally its actors behave.
  • The Sumerians believed in dualism—good and evil deities exist, and the earth of people becomes their passive battlefield.
  • GOOD AND EVIL IN US: A MORAL EXPLANATION OF WELL-BEING We have seen that in the Epic of Gilgamesh, good and evil are not yet addressed systematically on a moral level.
  • This was not about moral-human evil, but rather a kind of natural evil. It is as if good and evil were not touched by morality at all. Evil simply occurred. Period.
  • the epic, good and evil are not envisaged morally—they are not the result of an (a)moral act. Evil was not associated with free moral action or individual will.
  • Hebrew thought, on the other hand, deals intensively with moral good and evil. A moral dimension touches the core of its stories.65
  • discrepancy between savings and investment, and others are convinced of the monetary essence
  • The entire history of the Jewish nation is interpreted and perceived in terms of morality. Morality has become, so to speak, a mover and shaker of Hebrew history.
  • sunspots. The Hebrews came up with the idea that morals were behind good and bad years, behind the economic cycle. But we would be getting ahead of ourselves. Pharaoh’s Dream: Joseph and the First Business Cycle To
  • It is the Pharaoh’s well-known dream of seven fat and seven lean cows, which he told to Joseph, the son of Jacob. Joseph interpreted the dream as a macroeconomic prediction of sorts: Seven years of abundance were to be followed by seven years of poverty, famine, and misery.
  • Self-Contradicting Prophecy Here, let’s make several observations on this: Through taxation74 on the level of one-fifth of a crop75 in good years to save the crop and then open granaries in bad years, the prophecy was de facto prevented (prosperous years were limited and hunger averted—through a predecessor of fiscal stabilization).
  • The Old Testament prophesies therefore were not any deterministic look into the future, but warnings and strategic variations of the possible, which demanded some kind of reaction. If the reaction was adequate, what was prophesied would frequently not occur at all.
  • This principle stands directly against the self-fulfilling prophecy,80 the well-known concept of social science. Certain prophecies become self-fulfilling when expressed (and believed) while others become self-contradicting prophecies when pronounced (and believed).
  • If the threat is anticipated, it is possible to totally or at least partially avoid it. Neither Joseph nor the pharaoh had the power to avoid bounty or crop failure (in this the dream interpretation was true and the appearance of the future mystical), but they avoided the impacts and implications of the prophecy (in this the interpretation of the dream was “false”)—famine did not ultimately occur in Egypt, and this was due to the application of reasonable and very intuitive economic policy.
  • Let us further note that the first “macroeconomic forecast” appears in a dream.
  • back to Torah: Later in this story we will notice that there is no reason offered as to why the cycle occurs (that will come later). Fat years will simply come, and then lean years after them.
  • Moral Explanation of a Business Cycle That is fundamentally different from later Hebrew interpretations, when the Jewish nation tries to offer reasons why the nation fared well or poorly. And those reasons are moral.
  • If you pay attention to these laws and are careful to follow them, then the Lord your God will keep his covenant of love with you, as he swore to your forefathers. He will love you and bless you and increase your numbers.
  • Only in recent times have some currents of economics again become aware of the importance of morals and trust in the form of measuring the quality of institutions, the level of justice, business ethics, corruption, and so forth, and examining their influence on the economy,
  • From today’s perspective, we can state that the moral dimension entirely disappeared from economic thought for a long time, especially due to the implementation of Mandeville’s concept of private vices that contrarily support the public welfare
  • Without being timid, we can say this is the first documented attempt to explain the economic cycle. The economic cycle, the explanation of which is to this day a mystery to economists, is explained morally in the Old Testament.
  • But how do we consolidate these two conflicting interpretations of the economic cycle: Can ethics be responsible for it or not? Can we influence reality around us through our acts?
  • it is not within the scope of this book to answer that question; justice has been done to the question if it manages to sketch out the main contours of possible searches for answers.
  • THE ECONOMICS OF GOOD AND EVIL: DOES GOOD PAY OFF? This is probably the most difficult moral problem we could ask.
  • Kant, the most important modern thinker in the area of ethics, answers on the contrary that if we carry out a “moral” act on the basis of economic calculus (therefore we carry out an hedonistic consideration; see below) in the expectation of later recompense, its morality is lost. Recompense, according to the strict Kant, annuls ethics.
  • Inquiring about the economics of good and evil, however, is not that easy. Where would Kant’s “moral dimension of ethics” go if ethics paid? If we do good for profit, the question of ethics becomes a mere question of rationality.
  • Job’s friends try to show that he must have sinned in some way and, in doing so, deserved God’s punishment. They are absolutely unable to imagine a situation in which Job, as a righteous man, would suffer without (moral) cause. Nevertheless, Job insists that he deserves no punishment because he has committed no offense: “God has wronged me and drawn his net around me.”94
  • But Job remains righteous, even though it does not pay to do so: Though he slay me, yet will I hope in him.95 And till I die, I will not deny my integrity I will maintain my righteousness and never let go of it; my conscience will not reproach me as long as I live.96
  • He remains righteous, even if his only reward is death. What economic advantage could he have from that?
  • morals cannot be considered in the economic dimension of productivity and calculus. The role of the Hebrews was to do good, whether it paid off or not. If good (outgoing) is rewarded by incoming goodness, it is a bonus,99 not a reason to do outgoing good. Good and reward do not correlate to each other.
  • This reasoning takes on a dimension of its own in the Old Testament. Good (incoming) has already happened to us. We must do good (outgoing) out of gratitude for the good (incoming) shown to us in the past.
  • So why do good? After all, suffering is the fate of many biblical figures. The answer can only be: For good itself. Good has the power to be its own reward. In this sense, goodness gets its reward, which may or may not take on a material dimension.
  • the Hebrews offered an interesting compromise between the teachings of the Stoics and Epicureans. We will go into it in detail later, so only briefly
  • constraint. It calls for bounded optimalization (with limits). A kind of symbiosis existed between the legitimate search for one’s own utility (or enjoyment of life) and maintaining rules, which are not negotiable and which are not subject to optimalization.
  • In other words, clear (exogenously given) rules exist that must be observed and cannot be contravened. But within these borders it is absolutely possible, and even recommended, to increase utility.
  • the mining of enjoyment must not come at the expense of exogenously given rules. “Judaism comes therefore to train or educate the unbounded desire … for wealth, so that market activities and patterns of consumption operate within a God-given morality.”102
  • The Epicureans acted with the goal of maximizing utility without regard for rules (rules developed endogenously, from within the system, computed from that which increased utility—this was one of the main trumps of the Epicurean school; they did not need exogenously given norms, and argued that they could “calculate” ethics (what to do) for every given situation from the situation itself).
  • The Stoics could not seek their enjoyment—or, by another name, utility. They could not in any way look back on it, and in no way could they count on it. They could only live according to rules (the greatest weakness of this school was to defend where exogenously the given rules came from and whether they are universal) and take a indifferent stand to the results of their actions.
  • To Love the Law The Jews not only had to observe the law (perhaps the word covenant would be more appropriate), but they were to love it because it was good.
  • Their relationship to the law was not supposed to be one of duty,105 but one of gratitude, love. Hebrews were to do good (outgoing), because goodness (incoming) has already been done to them.
  • This is in stark contrast with today’s legal system, where, naturally, no mention of love or gratefulness exists. But God expects a full internalization of the commandments and their fulfillment with love, not as much duty. By no means was this on the basis of the cost-benefit analyses so widespread in economics today, which determines when it pays to break the law and when not to (calculated on the basis of probability of being caught and the amount of punishment vis-à-vis the possible gain).
  • And now, O Israel, what does the Lord your God ask of you but to fear the Lord your God, to walk in all his ways, to love him, to serve the Lord your God with all your heart and with all your soul, and to observe the Lord’s commands and decrees that I am giving you today for your own good? To the Lord your God belong the heavens, even the highest heavens, the earth and everything in it. Yet the Lord set his affection on your forefathers and loved them….
  • the principle of doing good (outgoing) on the basis of a priori demonstrated good (incoming) was also taken over by the New Testament. Atonement itself is based on an a priori principle; all our acts are preceded by good.
  • The Hebrews, originally a nomadic tribe, preferred to be unrestrained and grew up in constant freedom of motion.
  • Human laws, if they are in conflict with the responsibilities given by God, are subordinate to personal responsibility, and a Jew cannot simply join the majority, even if it is legally allowed. Ethics, the concept of good, is therefore always superior to all local laws, rules, and customs:
  • THE SHACKLES OF THE CITY Owing to the Hebrew’s liberation from Egyptian slavery, freedom and responsibility become the key values of Jewish thought.
  • Laws given by God are binding for Jews, and God is the absolute source of all values,
  • The Hebrew ideal is represented by the paradise of the Garden of Eden, not a city.116 The despised city civilization or the tendency to see in it a sinful and shackling way of life appears in glimpses and allusions in many places in the Old Testament.
  • The nomadic Jewish ethos is frequently derived from Abraham, who left the Chaldean city of Ur on the basis of a command:
  • In addition, they were aware of a thin two-way line between owner and owned. We own material assets, but—to a certain extent—they own us and tie us down. Once we become used to a certain material
  • This way of life had understandably immense economic impacts. First, such a society lived in much more connected relationships, where there was no doubt that everyone mutually depended on each other. Second, their frequent wanderings meant the inability to own more than they could carry; the gathering up of material assets did not have great weight—precisely because the physical weight (mass) of things was tied to one place.
  • One of Moses’s greatest deeds was that he managed to explain to his nation once and for all that it is better to remain hungry and liberated than to be a slave with food “at no cost.”
  • SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM
  • regulations is developed in the Old Testament, one we hardly find in any other nation of the time. In Hebrew teachings, aside from individual utility, indications of the concept of maximalizing utility societywide appear for the first time as embodied in the Talmudic principle of Kofin al midat S´dom, which can be translated as “one is compelled not to act in the manner of Sodom” and to take care of the weaker members of society.
  • In a jubilee year, debts were to be forgiven,125 and Israelites who fell into slavery due to their indebtedness were to be set free.126
  • Such provisions can be seen as the antimonopoly and social measures of the time. The economic system even then had a clear tendency to converge toward asset concentration, and therefore power as well. It would appear that these provisions were supposed to prevent this process
  • Land at the time could be “sold,” and it was not sale, but rent. The price (rent) of real estate depended on how long there was until a forgiveness year. It was about the awareness that we may work the land, but in the last instance we are merely “aliens and strangers,” who have the land only rented to us for a fixed time. All land and riches came from the Lord.
  • These provisions express a conviction that freedom and inheritance should not be permanently taken away from any Israelite. Last but not least, this system reminds us that no ownership lasts forever and that the fields we plow are not ours but the Lord’s.
  • Glean Another social provision was the right to glean, which in Old Testament times ensured at least basic sustenance for the poorest. Anyone who owned a field had the responsibility not to harvest it to the last grain but to leave the remains in the field for the poor.
  • Tithes and Early Social Net Every Israelite also had the responsibility of levying a tithe from their entire crop. They had to be aware from whom all ownership comes and, by doing so, express their thanks.
  • “Since the community has an obligation to provide food, shelter, and basic economic goods for the needy, it has a moral right and duty to tax its members for this purpose. In line with this duty, it may have to regulate markets, prices and competition, to protect the interests of its weakest members.”135
  • In Judaism, charity is not perceived as a sign of goodness; it is more of a responsibility. Such a society then has the right to regulate its economy in such a way that the responsibility of charity is carried out to its satisfaction.
  • With a number of responsibilities, however, comes the difficulty of getting them into practice. Their fulfillment, then, in cases when it can be done, takes place gradually “in layers.” Charitable activities are classified in the Talmud according to several target groups with various priorities, classified according to, it could be said, rules of subsidiarity.
  • Do not mistreat an alien or oppress him, for you were aliens in Egypt.140 As one can see, aside from widows and orphans, the Old Testament also includes immigrants in its area of social protection.141 The Israelites had to have the same rules apply for them as for themselves—they could not discriminate on the basis of their origin.
  • ABSTRACT MONEY, FORBIDDEN INTEREST, AND OUR DEBT AGE If it appears to us that today’s era is based on money and debt, and our time will be written into history as the “Debt age,” then it will certainly be interesting to follow how this development occurred.
  • Money is a social abstractum. It is a social agreement, an unwritten contract.
  • The first money came in the form of clay tablets from Mesopotamia, on which debts were written. These debts were transferable, so the debts became currency. In the end, “It is no coincidence that in English the root of ‘credit’ is ‘credo,’ the Latin for ‘I believe.’”
  • To a certain extent it could be said that credit, or trust, was the first currency. It can materialize, it can be embodied in coins, but what is certain is that “money is not metal,” even the rarest metal, “it is trust inscribed,”
  • Inseparably, with the original credit (money) goes interest. For the Hebrews, the problem of interest was a social issue: “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest.”
  • there were also clearly set rules setting how far one could go in setting guarantees and the nonpayment of debts. No one should become indebted to the extent that they could lose the source of their livelihood:
  • In the end, the term “bank” comes from the Italian banci, or the benches that Jewish lenders sat on.157
  • Money is playing not only its classical roles (as a means of exchange, a holder of value, etc.) but also a much greater, stronger role: It can stimulate, drive (or slow down) the whole economy. Money plays a national economic role.
  • In the course of history, however, the role of loans changed, and the rich borrowed especially for investment purposes,
  • Today the position and significance of money and debt has gone so far and reached such a dominant position in society that operating with debts (fiscal policy) or interest or money supply (monetary policy) means that these can, to a certain extent, direct (or at least strongly influence) the whole economy and society.
  • In such a case a ban on interest did not have great ethical significance. Thomas Aquinas, a medieval scholar (1225-1274), also considers similarly; in his time, the strict ban on lending with usurious interest was loosened, possibly due to him.
  • As a form of energy, money can travel in three dimensions, vertically (those who have capital lend to those who do not) and horizontally (speed and freedom in horizontal or geographic motion has become the by-product—or driving force?—of globalization). But money (as opposed to people) can also travel through time.
  • money is something like energy that can travel through time. And it is a very useful energy, but at the same time very dangerous as well. Wherever
  • Aristotle condemned interest162 not only from a moral standpoint, but also for metaphysical reasons. Thomas Aquinas shared the same fear of interest and he too argued that time does not belong to us, and that is why we must not require interest.
  • MONEY AS ENERGY: TIME TRAVEL AND GROSS DEBT PRODUCT (GDP)
  • Due to this characteristic, we can energy-strip the future to the benefit of the present. Debt can transfer energy from the future to the present.163 On the other hand, saving can accumulate energy from the past and send it to the present.
  • labor was not considered degrading in the Old Testament. On the contrary, the subjugation of nature is even a mission from God that originally belonged to man’s very first blessings.
  • LABOR AND REST: THE SABBATH ECONOMY
  • The Jews as well as Aristotle behaved very guardedly toward loans. The issue of interest/usury became one of the first economic debates. Without having an inkling of the future role of economic policy (fiscal and monetary), the ancient Hebrews may have unwittingly felt that they were discovering in interest a very powerful weapon, one that can be a good servant, but (literally) an enslaving master as well.
  • It’s something like a dam. When we build one, we are preventing periods of drought and flooding in the valley; we are limiting nature’s whims and, to a large extent, avoiding its incalculable cycles. Using dams, we can regulate the flow of water to nearly a constant. With it we tame the river (and we can also gain
  • But if we do not regulate the water wisely, it may happen that we would overfill the dam and it would break. For the cities lying in the valley, their end would be worse than if a dam were never there.
  • If man lived in harmony with nature before, now, after the fall, he must fight; nature stands against him and he against it and the animals. From the Garden we have moved unto a (battle)field.
  • Only after man’s fall does labor turn into a curse.168 It could even be said that this is actually the only curse, the curse of the unpleasantness of labor, that the Lord places on Adam.
  • Both Plato and Aristotle consider labor to be necessary for survival, but that only the lower classes should devote themselves to it so that the elites would not have to be bothered with it and so that they could devote themselves to “purely spiritual matters—art, philosophy, and politics.”
  • Work is also not only a source of pleasure but a social standing; It is considered an honor. “Do you see a man skilled in his work? He will serve before kings.”170 None of the surrounding cultures appreciate work as much. The idea of the dignity of labor is unique in the Hebrew tradition.
  • Hebrew thinking is characterized by a strict separation of the sacred from the profane. In life, there are simply areas that are holy, and in which it is not allowed to economize, rationalize, or maximize efficiency.
  • good example is the commandment on the Sabbath. No one at all could work on this day, not even the ones who were subordinate to an observant Jew:
  • the message of the commandment on Saturday communicated that people were not primarily created for labor.
  • Paradoxically, it is precisely this commandment out of all ten that is probably the most violated today.
  • Aristotle even considers labor to be “a corrupted waste of time which only burdens people’s path to true honour.”
  • we have days when we must not toil connected (at least lexically) with the word meaning emptiness: the English term “vacation” (or emptying), as with the French term, les vacances, or German die Freizeit, meaning open time, free time, but also…
  • Translated into economic language: The meaning of utility is not to increase it permanently but to rest among existing gains. Why do we learn how to constantly increase gains but not how to…
  • This dimension has disappeared from today’s economics. Economic effort has no goal at which it would be possible to rest. Today we only know growth for growth’s sake, and if our company or country prospers, that does not…
  • Six-sevenths of time either be dissatisfied and reshape the world into your own image, man, but one-seventh you will rest and not change the creation. On the seventh day, enjoy creation and enjoy the work of your hands.
  • the purpose of creation was not just creating but that it had an end, a goal. The process was just a process, not a purpose. The whole of Being was created so…
  • Saturday was not established to increase efficiency. It was a real ontological break that followed the example of the Lord’s seventh day of creation. Just as the Lord did not rest due to tiredness or to regenerate strength; but because He was done. He was done with His work, so that He could enjoy it, to cherish in His creation.
  • If we believe in rest at all today, it is for different reasons. It is the rest of the exhausted machine, the rest of the weak, and the rest of those who can’t handle the tempo. It’s no wonder that the word “rest…
  • Related to this, we have studied the first mention of a business cycle with the pharaoh’s dream as well as seen a first attempt (that we may call…
  • We have tried to show that the quest for a heaven on Earth (similar to the Jewish one) has, in its desacralized form, actually also been the same quest for many of the…
  • We have also seen that the Hebrews tried to explain the business cycle with morality and ethics. For the Hebrews,…
  • ancient Greek economic ethos, we will examine two extreme approaches to laws and rules. While the Stoics considered laws to be absolutely valid, and utility had infinitesimal meaning in their philosophy, the Epicureans, at least in the usual historical explanation, placed utility and pleasure in first place—rules were to be made based on the principle of utility.
  • CONCLUSION: BETWEEN UTILITY AND PRINCIPLE The influence of Jewish thought on the development of market democracy cannot be overestimated. The key heritage for us was the lack of ascetic perception of the world, respect to law and private…
  • We have tried to show how the Torah desacralized three important areas in our lives: the earthly ruler, nature,…
  • What is the relationship between the good and evil that we do (outgoing) and the utility of disutility that we (expect to) get as a reward (incoming)? We have seen…
  • The Hebrews never despised material wealth; on contrary, the Jewish faith puts great responsibility on property management. Also the idea of progress and the linear perception of time gives our (economic)…
  • the Hebrews managed to find something of a happy compromise between both of these principles.
  • will not be able to completely understand the development of the modern notion of economics without understanding the disputes between the Epicureans and the Stoics;
  • poets actually went even further, and with their speech they shaped and established reality and truth. Honor, adventure, great deeds, and the acclaim connected with them played an important role in the establishment of the true, the real.
  • those who are famous will be remembered by people. They become more real, part of the story, and they start to be “realized,” “made real” in the lives of other people. That which is stored in memory is real; that which is forgotten is as if it never existed.
  • Today’s scientific truth is founded on the notion of exact and objective facts, but poetic truth stands on an interior (emotional) consonance with the story or poem. “It is not addressed first to the brain … [myth] talks directly to the feeling system.”
  • “epic and tragic poets were widely assumed to be the central ethical thinkers and teachers of Greece; nobody thought of their work as less serious, less aimed at truth, than the speculative prose treatises of historians and philosophers.”5 Truth and reality were hidden in speech, stories, and narration.
  • Ancient philosophy, just as science would later, tries to find constancy, constants, quantities, inalterabilities. Science seeks (creates?) order and neglects everything else as much as it can. In their own experiences, everyone knows that life is not like that,
  • Just as scientists do today, artists drew images of the world that were representative, and therefore symbolic, picturelike, and simplifying (but thus also misleading), just like scientific models, which often do not strive to be “realistic.”
  • general? In the end, poetry could be more sensitive to the truth than the philosophical method or, later, the scientific method. “Tragic poems, in virtue of their subject matter and their social function, are likely to confront and explore problems about human beings and luck that a philosophical text might be able to omit or avoid.”8
lucieperloff

Why Riders Abandoning Buses and Trains is a Problem for Climate Change - The New York T... - 0 views

  • On the London Underground, Piccadilly Circus station is nearly vacant on a weekday morning, while the Delhi Metro is ferrying fewer than half of the riders it used to. In Rio, unpaid bus drivers have gone on strike. New York City subway traffic is just a third of what it was before the pandemic.
  • Public transit offers a relatively simple way for cities to lower their greenhouse gas emissions, not to mention a way to improve air quality, noise and congestion.
  • “It’s urgent to act.”
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  • transportation experts are scrambling to figure out how to better adapt public transit to the needs of riders as cities begin to emerge from the pandemic.
  • In India, a company that sells secondhand cars online saw sales swell in 2020 and its own value as a company jump to $1 billion, according to news reports. Elsewhere, bike sales have grown, suggesting that people are pedaling a bit more.
  • Both London and Paris sought to use lockdowns to expand bike lanes.
  • ridership was just over half of normal in the first two months of this year.
  • “only travel when absolutely necessary.”
  • The city transit agency, which had once projected a budget surplus for 2020, has instead been relying on government bailouts since the pandemic hit.
  • Most importantly, if transit systems continue to lose passenger fare revenues, they will not be able to make the investments necessary to be efficient, safe and attractive to commuters.
  • There’s even more distress in cities where people rely in large part on private bus companies.
  • Strikes by bus drivers have made bus travel even slower and more chaotic.
  • efficient bus system is critical for Rio to not only reduce its carbon emissions but also to clean its air. “It’s not just an environmental issue, but a public health issue,” Ms. Celidonio said.
  • “Those cities that were investing, they will get out stronger,”
tongoscar

Canada: At "WAR" With the US? (=Water, Arctic and Refugees) - The Globalist - 0 views

  • Every Canadian government faces two existential challenges that, to make matters more complicated yet, are often intertwined.
  • The first is to keep a loose and fractious federation together. The second is to keep Canada and the United States close but separate.
  • These challenges have been made more complex with climate change and changes in U.S. politics. The regionally divisive nature of Justin Trudeau’s minority government, with no representation from Alberta and the rebirth of the “nationalist” Bloc Québécois,
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  • As with the Trump administration’s demand for a revised North American trading system, Canada will have to find a response to each that is positive enough to appease, but also robust enough to maintain the core of national sovereignty.
  • The first issue on the new U.S.-Canada agenda is America’s need for water.
  • New and more strident demands for U.S. access to Canada’s “surplus” of this vital resource is certain to be presented.
  • The Canadian position remains that water is not a tradable commodity. So far, the U.S. government has neither agreed nor contested that view.
  • The Arctic climate is changing faster than anywhere else. Waters previously unnavigable are now becoming sea lanes
  • U.S. policy is slated to become far more restrictive. Two shifts in particular will have dramatic implications for Canadian refugee policy.
  • In effect this means that any Central American refugee in the United States will feel entitled to claim asylum in Canada.
  • the United States simply cannot ever be expected to remain at arms’ length in our national life.
tongoscar

California Is Booming. Why Are So Many Californians Unhappy? - The New York Times - 0 views

  • For all its forward-thinking companies and liberal social and environmental policies, the state has mostly put higher-value jobs and industries in expensive coastal enclaves, while pushing lower-paid workers and lower-cost housing to inland areas like the Central Valley. This has made California the most expensive state — with a median home value of $550,000, about double that of the nation — and created a growing supply of three-hour “super commuters.” And while it has some of the highest wages in the country, it also has the highest poverty rate based on its cost of living, an average of 18.1 percent from 2016 to 2018. That helps explain why the state has lost more than a million residents to other states since 2006, and why the population growth rate for the year that ended July 1 was the lowest since 1900.“What’s happening in California right now is a warning shot to the rest of the country,”
  • “It’s a warning about income inequality and suburban sprawl, and how those intersect with quality of life and climate change.” You can see this in California economic forecasts for 2020, which play down the threat of a global trade war and play up the challenge of continuing to add jobs without affordable places for middle- and lower-income workers to live.
  • As the economy picked up and housing costs resumed their rise, lower-paid service and professional workers moved to distant exurbs, while homelessness spiraled to the point that local political leaders are all but declaring they are out of solutions.
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  • California is at a crossroads. The state has a thriving $3 trillion economy with record low unemployment, a surplus of well-paying jobs, and several of the world’s most valuable corporations, including Apple, Google and Facebook. Its median household income has grown about 17 percent since 2011, compared with about 10 percent nationally, adjusted for inflation.
  • There are increasing complaints in Oregon, Nevada and Idaho that rents and home prices there are being pushed up by new arrivals fleeing California.
tongoscar

Donald Trump's trade wars have not been 'easy to win'  | Financial Times - 0 views

  • The phase one trade agreement between the US and China signed on Wednesday is only a truce in the trade war, rather than a major reversal of the tariffs imposed since 2018. Nevertheless, it halts a dangerous political momentum.
  • Jan Hatzius of Goldman Sachs describes this as a “subtraction of the negatives”. Paradoxically, the worse the effects on US growth rates in the past two years, the greater the scope for a bounceback this year. Mr Trump’s initial confidence about the effects of trade protection was based on a belief that China’s bilateral trade surplus with the US would force President Xi Jinping to make major policy concessions to safeguard his own export sector. The outcome was rather different: China retaliated with similar measures and this damaged American manufacturers. 
  • The damage to financial and business confidence triggered by the trade announcements hurt US growth still further. The tightening in financial conditions caused by the rising dollar and the collapse in equities late in 2018 would probably have been more severe if the Fed had not reduced policy interest rates by 75 basis points since then.
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  • The good news is that part of this overall drag may disappear before the end of 2020, boosting American GDP growthby at least half a percentage point.What about the longer-term benefits of the trade deal?The purchase of $200bn of additional US exports in the energy, agriculture, manufacturing and services sectors, spread over two years, will reduce the bilateral trade deficit with China. But many of these exports will probably be redirected from elsewhere and will not boost US domestic output in those sectors. Longer term, China’s business restrictions, including alleged unfair trading practices, appear to be easing. Given the political boost from the phase one deal, Chinese economic reformers such as vice-premier Liu He may be in the ascendancy in Beijing for a while. 
  • The trade war has significantly damaged US growth in 2018-19Since President Donald Trump became more aggressive in his threats about trade protection early in 2018, US tariffs on Chinese goods have risen markedly, prompting retaliation from China. There have been only a few comprehensive studies on the overall impact of tariffs on the US growth rate. A notable exception is the work of Jan Hatzius’s US economics team at Goldman Sachs. They have estimated the possible impact of rising tariffs on net trade flows, real incomes, financial conditions and business confidence, and have combined these effects to produce the aggregate growth estimates shown in the graph below. As the negative effects of rising tariffs fade in 2020, the US growth rate is expected to be boosted by at least half a percentage point.
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