Group items tagged

The most important of these loopholes is the fact that our brains are not set up to multi-task. Most of the time that is a good thing – it allows us to filter out all but the most important features of the world around us.

In fact, the key requirement for a successful pickpocket isn’t having nifty fingers, it’s having a working knowledge of the loopholes in our brains. Some are so good at it that researchers are working with them to get an insight into the way our minds work.

“A street thief will avoid like the plague people who are demonstrating a very open awareness of their environment. The man on the tube who is looking around, being very aware, they won’t go anywhere near,”

Bohannon had done similar work before — in 2013 he submitted a fake research paper to more than 300 open-access journals as part of a sting operation for the journal Science.

Studies like his are called “underpowered,” meaning that they aren’t designed to distinguish between a real effect and pure luck. A study with thousands of participants being measured for just a few effects is “powerful.” But one like Bohannon’s, with just five people per group being measured according to any of 18 different variables? Any number of factors unrelated to the study could cause one of the variables to fluctuate, allowing researchers to irresponsibly — but not untruthfully — state that eating chocolate while dieting helps you lose more weight.

A responsible scientist shouldn’t conduct a trial like this, Bohannon said, and a responsible scientific journal shouldn’t publish it. But Bohannon is not a nutrition scientist (he does have a PhD in molecular biology) and the International Archives of Medicine, he says, is not the most responsible journal.

According to Bohannon, the journal didn’t peer review his study or even edit it (and the study could have used an edit — “chocolate” is misspelled more than once).

“It’s the reporters,” he told The Post. “The reporters and ultimately the editors. … People who are on the health science beat need to treat it like science, and that has to come from the editors. And if you’re reporting on a scientific study you need to actually look at the paper, you need to talk to a source who has real scientific expertise.”

Bohannon said he didn’t have any ethical qualms about tricking his fellow journalists this way. “I didn’t lie to reporters, except about my name. And whenever they asked me a scientific question about the study I gave them a completely honest answer,” he said. “The whole point is that this was as bad as a lot of science that is considered ‘real’ science. It gets reported without people asking the right questions.”

Taste does not simply equal your taste buds. It draws on information from all our senses as well as context. As a result, food is susceptible to the same trickery as wine. Adding yellow food dye to vanilla pudding leads people to experience a lemony taste. Diners eating in the dark at a chic concept restaurant confuse veal for tuna. Branding, packaging, and price tags are equally important to enjoyment. Cheap fish is routinely passed off as its pricier cousins at seafood and sushi restaurants. 

Just like with wine and classical music, we often judge food based on very different criteria than what we claim. The result is that our perceptions are easily skewed in ways we don’t anticipate. 

What does it mean for wine that presentation so easily trumps the quality imbued by being grown on premium Napa land or years of fruitful aging? Is it comforting that the same phenomenon is found in food and classical music, or is it a strike against the authenticity of our enjoyment of them as well? How common must these manipulations be until we concede that the influence of the price tag of a bottle of wine or the visual appearance of a pianist is not a trick but actually part of the quality?

To answer these questions, we need to investigate the underlying mechanism that leads us to judge wine, food, and music by criteria other than what we claim to value. And that mechanism seems to be the quick, intuitive judgments our minds unconsciously make

this unknowability also makes it easy to be led astray when our intuition makes a mistake. We may often be able to count on the price tag or packaging of food and wine for accurate information about quality. But as we believe that we’re judging based on just the product, we fail to recognize when presentation manipulates our snap judgments.

Participants were just as effective when watching 6 second video clips and when comparing their ratings to ratings of teacher effectiveness as measured by actual student test performance. 

The power of intuitive first impressions has been demonstrated in a variety of other contexts. One experiment found that people predicted the outcome of political elections remarkably well based on silent 10 second video clips of debates - significantly outperforming political pundits and predictions made based on economic indicators.

In a real world case, a number of art experts successfully identified a 6th century Greek statue as a fraud. Although the statue had survived a 14 month investigation by a respected museum that included the probings of a geologist, they instantly recognized something was off. They just couldn’t explain how they knew.

Cases like this represent the canon behind the idea of the “adaptive unconscious,” a concept made famous by journalist Malcolm Gladwell in his book Blink. The basic idea is that we constantly, quickly, and unconsciously do the equivalent of judging a book by its cover. After all, a cover provides a lot of relevant information in a world in which we don’t have time to read every page.

Gladwell describes the adaptive unconscious as “a kind of giant computer that quickly and quietly processes a lot of the data we need in order to keep functioning as human beings.”

In a famous experiment, psychologist Nalini Ambady provided participants in an academic study with 30 second silent video clips of a college professor teaching a class and asked them to rate the effectiveness of the professor.

In follow up experiments, Chia-Jung Tsay found that those judging musicians’ auditions based on visual cues were not giving preference to attractive performers. Rather, they seemed to look for visual signs of relevant characteristics like passion, creativity, and uniqueness. Seeing signs of passion is valuable information. But in differentiating between elite performers, it gives an edge to someone who looks passionate over someone whose play is passionate

Outside of these more eccentric examples, it’s our reliance on quick judgments, and ignorance of their workings, that cause people to act on ugly, unconscious biases

It’s also why - from a business perspective - packaging and presentation is just as important as the good or service on offer. Why marketing is just as important as product. 

Gladwell ends Blink optimistically. By paying closer attention to our powers of rapid cognition, he argues, we can avoid its pitfalls and harness its powers. We can blindly audition musicians behind a screen, look at a piece of art devoid of other context, and pay particular attention to possible unconscious bias in our performance reports.

But Gladwell’s success in demonstrating how the many calculations our adaptive unconscious performs without our awareness undermines his hopeful message of consciously harnessing its power.

As a former world-class tennis player and coach of over 50 years, Braden is a perfect example of the ideas behind thin slicing. But if he can’t figure out what his unconscious is up to when he recognizes double faults, why should anyone else expect to be up to the task?

flawed judgment in fields like medicine and investing has more serious consequences. The fact that expertise is so tricky leads psychologist Daniel Kahneman to assert that most experts should seek the assistance of statistics and algorithms in making decisions.

In his book Thinking, Fast and Slow, he describes our two modes of thought: System 1, like the adaptive unconscious, is our “fast, instinctive, and emotional” intuition. System 2 is our “slower, more deliberative, and more logical” conscious thought. Kahneman believes that we often leave decisions up to System 1 and generally place far “too much confidence in human judgment” due to the pitfalls of our intuition described above.

Not every judgment will be made in a field that is stable and regular enough for an algorithm to help us make judgments or predictions. But in those cases, he notes, “Hundreds of studies have shown that wherever we have sufficient information to build a model, it will perform better than most people.”

Experts can avoid the pitfalls of intuition more easily than laypeople. But they need help too, especially as our collective confidence in expertise leads us to overconfidence in their judgments. 

This article has referred to the influence of price tags and context on products and experiences like wine and classical music concerts as tricks that skew our perception. But maybe we should consider them a real, actual part of the quality.

Losing ourselves in a universe of relativism, however, will lead us to miss out on anything new or unique. Take the example of the song “Hey Ya!” by Outkast. When the music industry heard it, they felt sure it would be a hit. When it premiered on the radio, however, listeners changed the channel. The song sounded too dissimilar from songs people liked, so they responded negatively. 

It took time for people to get familiar with the song and realize that they enjoyed it. Eventually “Hey Ya!” became the hit of the summer.

Many boorish people talking about the ethereal qualities of great wine probably can't even identify cork taint because their impressions are dominated by the price tag and the wine label. But the classic defense of wine - that you need to study it to appreciate it - is also vindicated. The open question - which is both editorial and empiric - is what it means for the industry that constant vigilance and substantial study is needed to dependably appreciate wine for the product quality alone. But the questions is relevant to the enjoyment of many other products and experiences that we enjoy in life.

Maybe the most important conclusion is to not only recognize the fallibility of our judgments and impressions, but to recognize when it matters, and when it doesn’t

There's very little scientific evidence to suggest our perception of time changes as we age. And yet, we consistently report that the past felt longer — that time is flying by faster as we age. What's going on?

Scientists can look at time estimation, or our ability to estimate how long a minute passes, compared with a clock. (This is what Sothern is doing.) They can also look at time awareness, or the broad feeling that time is moving quickly or slowly. Finally there's time perspective, the sense of a past, present, and future as constructed by our memories.

What researchers have found out is that while time estimation and time awareness don't change much as we age, time perspective does. In other words: Our memories create the illusion time is accelerating.

There weren't many differences between the old and the young. "[C]hronological age showed no systematic influence on the perception of these brief intervals of time up," the authors wrote. (That said, the researchers did find that males overestimate time while females underestimate it, perhaps due to having slightly different circadian clocks and therefore slightly different metabolic rates

Here, too, age seemed not to matter. Older people didn't seem to be aware of time passing any faster than younger people. The only question that yielded a statistically significant difference was, "How fast did the last decade pass?" Even there, the reported differences were tiny, and the effect appeared to plateau around age 50.

psychologists William Friedman and Steve Janssen found scant evidence that the subjective experience of time speeds up with age. They write in their 2009 paper, "We can concluded that when adults report on their general impressions of the speed of time, age differences are very small."

One possibility is that participants were simply biased by the (incorrect) conventional wisdom — they reported their later years as flying by more quickly because that's what everyday lore says should happen.

When people reflect back on their own life, they feel like their early years went by very slowly and their later years go by more quickly. This could be the source of the belief that time goes more quickly as they age.

 "Most people feel that time is currently passing faster for them than it did in the past," Janssen writes me in an email. "They have forgotten how they experienced the passage of time when they were younger."

We use significant events as signposts to gauge the passage of time. The fewer events, the faster time seems to go by.

Childhood is full of big, memorable moments like learning to ride a bike or making first friends. By contrast, adult life becomes ordinary and mechanized, and ambles along by.

Each passing year converts some of this experience into automatic routine which we hardly notice at all, the days and weeks smooth themselves out in recollection, and the years grow hollow and collapse.

Each new minute represents a smaller fraction of our lives. One day as a 10 year old represents about .027 percent of the kid's life. A day for a 60 year old? .0045 percent. The kid's life is just... bigger.

Also, our ability to recall events declines with age. If we can't remember a time, it didn't happen.

"[F]inding that there is insufficient time to get things done may be reinterpreted as the feeling that time is passing quickly," they write. Deadlines always come sooner than we'd like.

Psychologists have long understood the phenomenon called "forward telescoping" — i.e., our tendency to underestimate how long ago very memorable events occurred. "Because we know that memories fade over time, we use the clarity of a memory as a guide to its recency," science writer Claudia Hammond writes in her book Time Warped. "So if a memory seems unclear we assumed it happened longer ago." But very clear memories are assumed to be more recent.

If our memories can trick us into thinking time is moving quickly, then maybe there are ways to trick our brains into thinking that time is slowing down — such as committing to breaking routines and learning new things. You're more likely to remember learning how to skydive than watching another hour of mindless television.

A horizontal pattern of raised lines going across the pavement tells blind pedestrians they are on the footpath side; raised lines running along the direction of travel indicate the side designated for cycles. A wide, raised line divides the two.

Because the raised bumps are unpleasant to ride across, cyclists instinctively are drawn toward the tramline pattern which runs in the same direction as they are traveling.

Elsewhere, it is possible to find raised, rounded ribs running across pavement, creating a corduroy pattern. They look like they might be there to provide additional grip; in fact, they are sending a warning to anyone who stands on them about what is ahead.

The idea is to guide people through busy areas and around objects by drawing them along these raised lines.

They found that uncertainty about the layout of the road ahead is a powerful way of getting drivers to slow down.

triangles painted along the edge of each road – create an impression of a narrower road for example, and make drivers more cautious.

They have been painting boxes onto the road that use a clever combination of white and dark paint to create the illusion of a speed hump.

In India, they have taken things even further by painting deliberate optical illusions to give the impression that obstacles are in the road ahead.

the human ability to remember colors over any period of time, or even from room to room, is extremely poor.

“Based on memory alone, we can probably reliably identify tens of colors, with some people perhaps able to study hard and get up to a hundred or so,

Almost everyone can distinguish tones when they are compared in close succession, he said, but only a very small percentage of people have what is called perfect pitch or absolute pitch: the ability to recall and identify tones after a considerable period of time, without a reference tone for comparison.

we don’t speak of anyone as having perfect hue.”

“we can identify the tones in a chord, but we cannot identify the wavelength makeup of a color.”

The good news is that timing is relatively controllable, especially in the long run.

If you’re just starting out in your career, it won’t be easy to find a job that gives you a flexible schedule. The best approach is a strategy of moving toward more flexibility over the course of your life.

There isn’t one formula for finding schedule flexibility. Just make sure all of your important decisions are consistent with an end game of a more flexible schedule. Otherwise you are shutting yourself off from the most accessible lever for happiness — timing.

if you knew that pasta is far lower on the glycemic index than a white potato, you would make a far healthier choice that requires no willpower at all. All it took was knowledge.

The most important thing to know about staying fit is this: If it takes willpower, you’re doing it wrong. Anything that requires willpower is unsustainable in the long run.

studies show that using willpower in one area diminishes how much willpower you have in reserve for other areas. You need to get willpower out of the system

My observation is that you can usually replace willpower with knowledge.

the trick for avoiding unhealthy foods is to make sure you always have access to healthy options that you enjoy eating. Your knowledge of this trick, assuming you use it, makes willpower far less necessary.

don’t give up too much income potential just to get a flexible schedule. There’s no point in having a flexible schedule if you can’t afford to do anything.

the fittest people have systems, not goals, unless they are training for something specific. A sensible system is to continuously learn more about the science of diet and the methods for making healthy food taste great. With that system, weight management will feel automatic. Goals aren’t needed.

Did you know that sleepiness causes you to feel hungry?

Did you know that eating peanuts is a great way to suppress appetite?

Did you know that eating mostly protein instead of simple carbs for lunch will help you avoid the afternoon energy slump?

Cheese adds calories, but the fat content will help suppress your appetite, so you probably come out ahead. If you didn’t already know that, you might end up using willpower to avoid cheese at dinner and willpower again later that night to resist snacking. A little knowledge replaces a lot of willpower.

Did you know that exercise has only a small impact on your weight?

after I started noticing how drained and useless I felt after eating simple carbs, french fries became easy to resist.

I also learned that I can remove problem foods from my diet if I target them for extinction one at a time. It was easy to stop eating three large Snickers every day (which I was doing) when I realized I could eat anything else I wanted whenever I wanted

If you’re on a diet, you’re probably trying to avoid certain types of food, but you’re also trying to limit your portions. Instead of waging war on two fronts, try allowing yourself to eat as much as you want of anything that is healthy.

healthier food is almost self-regulating in the sense that you don’t have an insatiable desire to keep eating it the way you might with junk food. With healthy food, you tend to stop when you feel full

One of the biggest obstacles to healthy eating is the impression that healthy food generally tastes like cardboard. So consider making it a lifelong system to learn how to season and prepare healthy foods

Did you know that eating simple carbs can make you hungrier?

’m limiting my portion size. You only need to do that if you are eating the wrong foods. Eating half of your cake still keeps you addicted to cake. And portion control takes a lot of willpower. You’ll find that healthy food satisfies you sooner, so you don’t crave large portions.

No one can exercise enough to overcome a bad diet. Diet is the right button to push for losing weight, so long as you are active. People who eat right and stay active usually have no problems with weight.

I’m about to share with you the simplest and potentially most effective exercise plan in the world. Here it is: Be active every day.

When you’re active, and you don’t overdo it, you’ll find yourself in a good mood afterward. That reward becomes addictive over time.

After a few months of being moderately active every day, you’ll discover that it is harder to sit and do nothing than it is to get up and do something. That’s the frame of mind you want. You want exercise to become a habit with a reward so it evolves into a useful addiction

the intensity of your workout has a surprisingly small impact on your weight unless you’re running half-marathons every week. If your diet is right, moderate exercise is all you need.

When your body is feeling good, and you have some flexibility in your schedule, you’ll find that the petty annoyances that plague your life become nothing but background noise. And that’s a great launch pad for happiness.

As you find yourself getting healthier and happier, the people in your life will view you differently too. Healthy-looking people generally earn more money, get more offers and enjoy a better social life. All of that will help your happiness.

Keep in mind that happiness is a directional phenomenon. We feel happy when things are moving in the right direction no matter where we are at the moment.

The true work of the mathematician is not experienced until the later parts of graduate school, when the student is challenged to create knowledge in the form of a novel proof. It is common to fill page after page with an attempt, the seasons turning, only to arrive precisely where you began, empty-handed — or to realize that a subtle flaw of logic doomed the whole enterprise from its outset. The steady state of mathematical research is to be completely stuck. It is a process that Charles Fefferman of Princeton, himself a onetime math prodigy turned Fields medalist, likens to ‘‘playing chess with the devil.’’ The rules of the devil’s game are special, though: The devil is vastly superior at chess, but, Fefferman explained, you may take back as many moves as you like, and the devil may not. You play a first game, and, of course, ‘‘he crushes you.’’ So you take back moves and try something different, and he crushes you again, ‘‘in much the same way.’’ If you are sufficiently wily, you will eventually discover a move that forces the devil to shift strategy; you still lose, but — aha! — you have your first clue.

Tao has emerged as one of the field’s great bridge-­builders. At the time of his Fields Medal, he had already made discoveries with more than 30 different collaborators. Since then, he has also become a prolific math blogger with a decidedly non-­Gaussian ebullience: He celebrates the work of others, shares favorite tricks, documents his progress and delights at any corrections that follow in the comments. He has organized cooperative online efforts to work on problems. ‘‘Terry is what a great 21st-­century mathematician looks like,’’ Jordan Ellenberg, a mathematician at the University of Wisconsin, Madison, who has collaborated with Tao, told me. He is ‘‘part of a network, always communicating, always connecting what he is doing with what other people are doing.’’

Most mathematicians tend to specialize, but Tao ranges widely, learning from others and then working with them to make discoveries. Markus Keel, a longtime collaborator and close friend, reaches to science fiction to explain Tao’s ability to rapidly digest and employ mathematical ideas: Seeing Tao in action, Keel told me, reminds him of the scene in ‘‘The Matrix’’ when Neo has martial arts downloaded into his brain and then, opening his eyes, declares, ‘‘I know kung fu.’’ The citation for Tao’s Fields Medal, awarded in 2006, is a litany of boundary hopping and notes particularly ‘‘beautiful work’’ on Horn’s conjecture, which Tao completed with a friend he had played foosball with in graduate school. It was a new area of mathematics for Tao, at a great remove from his known stamping grounds. ‘‘This is akin,’’ the citation read, ‘‘to a leading English-­language novelist suddenly producing the definitive Russian novel.’’

For their work, Tao and Green salvaged a crucial bit from an earlier proof done by others, which had been discarded as incorrect, and aimed at a different goal. Other maneuvers came from masterful proofs by Timothy Gowers of England and Endre Szemeredi of Hungary. Their work, in turn, relied on contributions from Erdos, Klaus Roth and Frank Ramsey, an Englishman who died at age 26 in 1930, and on and on, into history. Ask mathematicians about their experience of the craft, and most will talk about an intense feeling of intellectual camaraderie. ‘‘A very central part of any mathematician’s life is this sense of connection to other minds, alive today and going back to Pythagoras,’’ said Steven Strogatz, a professor of mathematics at Cornell University. ‘‘We are having this conversation with each other going over the millennia.’’

As a group, the people drawn to mathematics tend to value certainty and logic and a neatness of outcome, so this game becomes a special kind of torture. And yet this is what any ­would-be mathematician must summon the courage to face down: weeks, months, years on a problem that may or may not even be possible to unlock. You find yourself sitting in a room without doors or windows, and you can shout and carry on all you want, but no one is listening.

An effort to prove that 1 equals 0 is not likely to yield much fruit, it’s true, but the hacker’s mind-set can be extremely useful when doing math. Long ago, mathematicians invented a number that when multiplied by itself equals negative 1, an idea that seemed to break the basic rules of multiplication. It was so far outside what mathematicians were doing at the time that they called it ‘‘imaginary.’’ Yet imaginary numbers proved a powerful invention, and modern physics and engineering could not function without them.

Early encounters with math can be misleading. The subject seems to be about learning rules — how and when to apply ancient tricks to arrive at an answer. Four cookies remain in the cookie jar; the ball moves at 12.5 feet per second. Really, though, to be a mathematician is to experiment. Mathematical research is a fundamentally creative act. Lore has it that when David Hilbert, arguably the most influential mathematician of fin de siècle Europe, heard that a colleague had left to pursue fiction, he quipped: ‘‘He did not have enough imagination for mathematics.’’

Many people think that substantial progress on Navier-­Stokes may be impossible, and years ago, Tao told me, he wrote a blog post concurring with this view. Now he has some small bit of hope. The twin-prime conjecture had the same feel, a sense of breaking through the wall of intimidation that has scared off many aspirants. Outside the world of mathematics, both Navier-­Stokes and the twin-prime conjecture are described as problems. But for Tao and others in the field, they are more like opponents. Tao’s opponent has been known to taunt him, convincing him that he is overlooking the obvious, or to fight back, making quick escapes when none should be possible. Now the opponent appears to have revealed a weakness. But Tao said he has been here before, thinking he has found a way through the defenses, when in fact he was being led into an ambush. ‘‘You learn to get suspicious,’’ Tao said. ‘‘You learn to be on the lookout.’’

We get more of what we signal we want through our dollars, clicks and votes. If our politics are too often poisonous, it is because, as a society, we are demanding too much poison.

We should ask ourselves: What will my next click say about my desires? Will the next article about politics I read elevate me? Or will it be a pathogen that provides momentary satisfaction from an eloquent insult to my enemies, but ultimately fuels personal bitterness and increases the climate of acrimony in America?

what do we really demand of the politicians we support? Humility, optimism and flexibility? Or do we excuse our own side for its ideological rigidity, preening self-regard and blame-shifting?

The next two years are a challenge to our political leaders, yes — but also to us, to demand a climate of moral elevation as opposed to destruction of the other side.

Another dark psychological secret magicians routinely take advantage of is known as change blindness — the failure to detect changes in consecutive scenes.

Scientists have found a way to induce change blindness, with a machine called a transcranial magnetic stimulator, which uses a magnetic field to disrupt localized brain regions

Such blind spots confirm what many philosophers have long suspected: reality and our perception of it are incommensurate to a far greater degree than is often believed. For all its apparent fidelity, the movie in our heads is a “Rashomon” narrative pieced together from inconsistent and unreliable bits of information. It is, to a certain extent, an illusion.

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

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

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

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

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

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

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

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

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

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

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

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

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

The History of Animal Spirits: Dreams Never Sleep

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

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

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

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

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

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

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

Progress (Naturalness and Civilization)

The Economy of Good and Evil

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

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

The Need for Greed: The History of Consumption and Labor

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

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

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

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

Masters of the Truth

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How does this affect economics?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM

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

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

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

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

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

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

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

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

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

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

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

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