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huffem4

The Zero-Sum Bias: When People Think that Everything is a Competition - Effectiviology - 1 views

effectiviology.com/zero-sum-bias

zero-sum cognitive bias antagonistic nature social individual

shared by huffem4 on 08 Aug 20 - No Cached
  • The zero-sum bias is a cognitive bias that causes people to mistakenly view certain situations as being zero-sum, meaning that they incorrectly believe that one party’s gains are directly balanced by other parties’ losses.
  • This bias can shape people’s thinking and behavior in a variety of situations, both on an individual scale as well as on a societal one, so it’s important to understand it.
  • this bias encourages belief in an antagonistic nature of social relationships. It can generally be said to affect people on two scales:Individual scale. This means that the zero-sum bias causes people to mistakenly assume that there is intra-group competition for a certain resource, between them and other members of a certain social group.Group scale. This means that the zero-sum bias causes people to mistakenly assume that there is inter-group competition for a certain resource, between their group and other groups.
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  • the issue with the zero-sum bias is that it causes people to believe that situations are zero-sum, when that’s not actually the case.
Javier E

Seven Lessons In Economic Leadership From Ancient Egypt - 0 views

www.forbes.com/...-leadership-from-ancient-egypt

economics reform theory financial crisis financial bubble egypt

shared by Javier E on 11 May 18 - No Cached
  • Although there are plenty of grounds for rage against the big banks, the challenge is to sort out which are the activities that grow the real economy of goods and services, and which are the activities that are essentially a zero-sum game of socially useless gambling?
  • The situation today is that the zero-sum games of the financial sector aren’t just a tiny sideshow. They have grown exponentially and have become almost the main game of the financial sector.
  • When finance becomes the end, not the means, then the result is what analyst Gautam Mukunda calls “excessive financialization” of the economy, as his excellent article by “The Price of Wall Street Power” in the June 2014 issue of Harvard Business Review makes clear.
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  • Quite apart from the “unbalanced power” of the financial sector, and the tendency of a super-sized financial sector to cause increasingly bad global financial crashes, excessive financialization leads to resources being misallocated. “In many of the financial sector’s segments that have grown fastest since deregulation—like investment banks—the transactions are primarily zero-sum.”
  • However in times of rapid technological transformation like today, the role of the economic priesthood in protecting its own interests can become a massively destabilizing.
  • Thus we know from the history of the last couple of hundred years that in times of rapid technological transformation, the financial sector tends to become disconnected from the real economy
  • This has occurred a number of times in the last few hundred years, including the Canal Mania (England—1790s), the Rail Mania (England—1840s), the Gilded Age (US: 1880s—early 1900s) the Roaring Twenties (US—1920s) and the Big Banks of today.
  • Getting to safety is not made any easier by the fact the modern economic priesthood—the managers of large firms and the banks—has, like their ancient Egyptian forbears, found ways to participate in the casino economy and benefit from “making money out of money”, even as the economy as a whole suffers.  As Upton Sinclair wrote, “It is difficult to get a man to understand something, when his salary depends upon his not understanding it.
  • Just as the ancient Egyptian economic priesthood clung to power as the economy stagnated, so today the economic priesthood shows no signs of relinquishing their gains or their power. The appetite and expectation of extraordinary returns is still there.
  • “Corporate chieftains rationally choose financial engineering—debt-financed share buybacks, for example—over capital investment in property, plants and equipment. Financial markets reward shareholder activism. Institutional investors extend their risk parameters to beat their benchmarks… But real economic growth—averaging just a bit above 2 percent for the fifth year in a row—remains sorely lacking.”
  • As a result, the economy remains in the “Great Stagnation”(Tyler Cowen), also known as “the Secular Stagnation (Larry Summers). It is running on continuing life support from the Federal Reserve. Large enterprises still appear to be profitable. The appearance, though not the reality, of economic well-being has been sufficient to make the stock market soa
  • Just as no change was possible in ancient Egyptian society so long as the economic priesthood colluded to preserve the status quo, so the excesses and prevarications of the Financial Sector will continue so long as the regulators remain its cheerleaders.
  • Just listen to the chair of the Securities and Exchange Commission (SEC), Mary Jo White at Stanford University Rock Center for Corporate Governance speaking to directors. In her speech, she makes no secret of her view that the overall corporate arrangements are sound. The job of the SEC, as outlined in the speech, is to find the odd individual who might be doing something wrong. The idea that the large-scale activities of the major banks might be socially corrosive is not even alluded.
  • Thus in times of transformational technology, there is a huge expansion of investment, driven by the financial sector. Wealthy investors begin to expect outsized returns and so there is over-investment. The resulting bubbles in due course burst
  • Just as in ancient Egypt, no progress was possible so long as the myths and rituals of the economic priesthood and their offerings to the gods were widely accepted as real indicators of what was going on, so today no progress is possible so long as the myths and rituals of the modern economic priesthood still has a pervasive hold of people’s minds
  • In the modern economy, the myths and rituals of the economic priesthood are built on the notion that the purpose of a firm is to maximize shareholder value and the notion that if the share price is increasing, things are going well. These ideas are the intellectual underpinnings of the zero-sum activities of the financial sector for “making money out of money”, by whatever means possible
  • Like the myths and rituals of the priests of ancient Egypt, shareholder value theory is espoused with religious overtones. Shareholder value, which even Jack Welch has called “the dumbest idea in the world,” remains pervasive in business, even though it is responsible for massive offshoring of manufacturing, thereby destroying major segments of the US economy, undermining US capacity to compete in international markets and killing the economic recovery.
  • If instead society decides that the financial sector should concentrate on its socially important function of financing the real economy and providing financial security for an ever wider circle of citizens and enterprises, we could enjoy an era of growth and lasting prosperity.
caelengrubb

Free Market - Econlib - 0 views

www.econlib.org/...FreeMarket.html

shared by caelengrubb on 27 Mar 21 - No Cached
  • Free market” is a summary term for an array of exchanges that take place in society.
  • Each exchange is undertaken as a voluntary agreement between two people or between groups of people represented by agents. These two individuals (or agents) exchange two economic goods, either tangible commodities or nontangible services
  • Both parties undertake the exchange because each expects to gain from it. Also, each will repeat the exchange next time (or refuse to) because his expectation has proved correct (or incorrect) in the recent past.
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  • Trade, or exchange, is engaged in precisely because both parties benefit; if they did not expect to gain, they would not agree to the exchange.
  • This simple reasoning refutes the argument against free trade typical of the “mercantilist” period of sixteenth- to eighteenth-century Europe and classically expounded by the famed sixteenth-century French essayist Montaigne.
  • The mercantilists argued that in any trade, one party can benefit only at the expense of the other—that in every transaction there is a winner and a loser, an “exploiter” and an “exploited.”
  • We can immediately see the fallacy in this still-popular viewpoint: the willingness and even eagerness to trade means that both parties benefit. In modern game-theory jargon, trade is a win-win situation, a “positive-sum” rather than a “zero-sum” or “negative-sum” game.
  • Each one values the two goods or services differently, and these differences set the scene for an exchange.
  • Two factors determine the terms of any agreement: how much each participant values each good in question, and each participant’s bargaining skills.
  • the market in relation to how favorably buyers evaluate these goods—in shorthand, by the interaction of their supply with the demand for them.
  • On the other hand, given the buyers’ evaluation, or demand, for a good, if the supply increases, each unit of supply—each baseball card or loaf of bread—will fall in value, and therefore the price of the good will fall. The reverse occurs if the supply of the good decreases.
  • The market, then, is not simply an array; it is a highly complex, interacting latticework of exchanges.
  • Production begins with natural resources, and then various forms of machines and capital goods, until finally, goods are sold to the consumer.
  • At each stage of production from natural resource to consumer good, money is voluntarily exchanged for capital goods, labor services, and land resources. At each step of the way, terms of exchanges, or prices, are determined by the voluntary interactions of suppliers and demanders. This market is “free” because choices, at each step, are made freely and voluntarily.
  • The free market and the free price system make goods from around the world available to consumers.
  • Saving and investment can then develop capital goods and increase the productivity and wages of workers, thereby increasing their standard of living.
  • The free competitive market also rewards and stimulates technological innovation that allows the innovator to get a head start in satisfying consumer wants in new and creative ways.
  • Government, in every society, is the only lawful system of coercion. Taxation is a coerced exchange, and the heavier the burden of taxation on production, the more likely it is that economic growth will falter and decline
  • The ultimate in government coercion is socialism.
  • Under socialist central planning the socialist planning board lacks a price system for land or capital goods.
  • Market socialism is, in fact, a contradiction in terms.
  • The fashionable discussion of market socialism often overlooks one crucial aspect of the market: When two goods are exchanged, what is really exchanged is the property titles in those goods.
  • This means that the key to the existence and flourishing of the free market is a society in which the rights and titles of private property are respected, defended, and kept secure.
  • The key to socialism, on the other hand, is government ownership of the means of production, land, and capital goods.
  • Under socialism, therefore, there can be no market in land or capital goods worthy of the name.
  • ome critics of the free market argue that property rights are in conflict with “human” rights. But the critics fail to realize that in a free-market system, every person has a property right over his own person and his own labor and can make free contracts for those services.
  • A common charge against the free-market society is that it institutes “the law of the jungle,” of “dog eat dog,” that it spurns human cooperation for competition and exalts material success as opposed to spiritual values, philosophy, or leisure activities.
  • It is the coercive countries with little or no market activity—the notable examples in the last half of the twentieth century were the communist countries—where the grind of daily existence not only impoverishes people materially but also deadens their spirit.
Javier E

E.D. Hirsch Jr.'s 'Cultural Literacy' in the 21st Century - The Atlantic - 0 views

www.theatlantic.com/...397334

language vocabulary cultural literacy Common Core commonality knowledge social media

shared by Javier E on 19 Jul 15 - No Cached
  • much of this angst can be interpreted as part of a noisy but inexorable endgame: the end of white supremacy. From this vantage point, Americanness and whiteness are fitfully, achingly, but finally becoming delinked—and like it or not, over the course of this generation, Americans are all going to have to learn a new way to be American.
  • What is the story of “us” when “us” is no longer by default “white”? The answer, of course, will depend on how aware Americans are of what they are, of what their culture already (and always) has been.
  • The thing about the list, though, was that it was—by design—heavy on the deeds and words of the “dead white males” who had formed the foundations of American culture but who had by then begun to fall out of academic fashion.
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  • Conservatives thus embraced Hirsch eagerly and breathlessly. He was a stout defender of the patrimony. Liberals eagerly and breathlessly attacked him with equal vigor. He was retrograde, Eurocentric, racist, sexist.
  • Lost in all the crossfire, however, were two facts: First, Hirsch, a lifelong Democrat who considered himself progressive, believed his enterprise to be in service of social justice and equality. Cultural illiteracy, he argued, is most common among the poor and power-illiterate, and compounds both their poverty and powerlessness. Second: He was right.
  • A generation of hindsight now enables Americans to see that it is indeed necessary for a nation as far-flung and entropic as the United States, one where rising economic inequality begets worsening civic inequality, to cultivate continuously a shared cultural core. A vocabulary. A set of shared referents and symbols.
  • So, first of all, Americans do need a list. But second, it should not be Hirsch’s list. And third, it should not made the way he made his. In the balance of this essay, I want to unpack and explain each of those three statements.
  • If you take the time to read the book attached to Hirsch’s appendix, you’ll find a rather effective argument about the nature of background knowledge and public culture. Literacy is not just a matter of decoding the strings of letters that make up words or the meaning of each word in sequence. It is a matter of decoding context: the surrounding matrix of things referred to in the text and things implied by it
  • That means understanding what’s being said in public, in the media, in colloquial conversation. It means understanding what’s not being said. Literacy in the culture confers power, or at least access to power. Illiteracy, whether willful or unwitting, creates isolation from power.
  • his point about background knowledge and the content of shared public culture extends well beyond schoolbooks. They are applicable to the “texts” of everyday life, in commercial culture, in sports talk, in religious language, in politics. In all cases, people become literate in patterns—“schema” is the academic word Hirsch uses. They come to recognize bundles of concept and connotation like “Party of Lincoln.” They perceive those patterns of meaning the same way a chess master reads an in-game chessboard or the way a great baseball manager reads an at bat. And in all cases, pattern recognition requires literacy in particulars.
  • Lots and lots of particulars. This isn’t, or at least shouldn’t be, an ideologically controversial point. After all, parents on both left and right have come to accept recent research that shows that the more spoken words an infant or toddler hears, the more rapidly she will learn and advance in school. Volume and variety matter. And what is true about the vocabulary of spoken or written English is also true, one fractal scale up, about the vocabulary of American culture.
  • those who demonized Hirsch as a right-winger missed the point. Just because an endeavor requires fluency in the past does not make it worshipful of tradition or hostile to change.
  • radicalism is made more powerful when garbed in traditionalism. As Hirsch put it: “To be conservative in the means of communication is the road to effectiveness in modern life, in whatever direction one wishes to be effective.”
  • Hence, he argued, an education that in the name of progressivism disdains past forms, schema, concepts, figures, and symbols is an education that is in fact anti-progressive and “helps preserve the political and economic status quo.” This is true. And it is made more urgently true by the changes in American demography since Hirsch gave us his list in 1987.
  • If you are an immigrant to the United States—or, if you were born here but are the first in your family to go to college, and thus a socioeconomic new arrival; or, say, a black citizen in Ferguson, Missouri deciding for the first time to participate in a municipal election, and thus a civic neophyte—you have a single overriding objective shared by all immigrants at the moment of arrival: figure out how stuff really gets done here.
  • So, for instance, a statement like “One hundred and fifty years after Appomattox, our house remains deeply divided” assumes that the reader knows that Appomattox is both a place and an event; that the event signified the end of a war; that the war was the Civil War and had begun during the presidency of a man, Abraham Lincoln, who earlier had famously declared that “a house divided against itself cannot stand”; that the divisions then were in large part about slavery; and that the divisions today are over the political, social, and economic legacies of slavery and how or whether we are to respond to those legacies.
  • But why a list, one might ask? Aren’t lists just the very worst form of rote learning and standardized, mechanized education? Well, yes and no.
  • it’s not just newcomers who need greater command of common knowledge. People whose families have been here ten generations are often as ignorant about American traditions, mores, history, and idioms as someone “fresh off the boat.”
  • The more serious challenge, for Americans new and old, is to make a common culture that’s greater than the sum of our increasingly diverse parts. It’s not enough for the United States to be a neutral zone where a million little niches of identity might flourish; in order to make our diversity a true asset, Americans need those niches to be able to share a vocabulary. Americans need to be able to have a broad base of common knowledge so that diversity can be most fully activated.
  • as the pool of potential culture-makers has widened, the modes of culture creation have similarly shifted away from hierarchies and institutions to webs and networks. Wikipedia is the prime embodiment of this reality, both in how the online encyclopedia is crowd-created and how every crowd-created entry contains links to other entries.
  • so any endeavor that makes it easier for those who do not know the memes and themes of American civic life to attain them closes the opportunity gap. It is inherently progressive.
  • since I started writing this essay, dipping into the list has become a game my high-school-age daughter and I play together.
  • I’ll name each of those entries, she’ll describe what she thinks to be its meaning. If she doesn’t know, I’ll explain it and give some back story. If I don’t know, we’ll look it up together. This of course is not a good way for her teachers to teach the main content of American history or English. But it is definitely a good way for us both to supplement what school should be giving her.
  • And however long we end up playing this game, it is already teaching her a meta-lesson about the importance of cultural literacy. Now anytime a reference we’ve discussed comes up in the news or on TV or in dinner conversation, she can claim ownership. Sometimes she does so proudly, sometimes with a knowing look. My bet is that the satisfaction of that ownership, and the value of it, will compound as the years and her education progress.
  • The trouble is, there are also many items on Hirsch’s list that don’t seem particularly necessary for entry into today’s civic and economic mainstream.
  • Which brings us back to why diversity matters. The same diversity that makes it necessary to have and to sustain a unifying cultural core demands that Americans make the core less monochromatic, more inclusive, and continuously relevant for contemporary life
  • it’s worth unpacking the baseline assumption of both Hirsch’s original argument and the battles that erupted around it. The assumption was that multiculturalism sits in polar opposition to a traditional common culture, that the fight between multiculturalism and the common culture was zero-sum.
  • As scholars like Ronald Takaki made clear in books like A Different Mirror, the dichotomy made sense only to the extent that one imagined that nonwhite people had had no part in shaping America until they started speaking up in the second half of the twentieth century.
  • The truth, of course, is that since well before the formation of the United States, the United States has been shaped by nonwhites in its mores, political structures, aesthetics, slang, economic practices, cuisine, dress, song, and sensibility.
  • In its serious forms, multiculturalism never asserted that every racial group should have its own sealed and separate history or that each group’s history was equally salient to the formation of the American experience. It simply claimed that the omni-American story—of diversity and hybridity—was the legitimate American story.
  • as Nathan Glazer has put it (somewhat ruefully), “We are all multiculturalists now.” Americans have come to see—have chosen to see—that multiculturalism is not at odds with a single common culture; it is a single common culture.
  • it is true that in a finite school year, say, with finite class time and books of finite heft, not everything about everyone can be taught. There are necessary trade-offs. But in practice, recognizing the true and longstanding diversity of American identity is not an either-or. Learning about the internment of Japanese Americans does not block out knowledge of D-Day or Midway. It is additive.
  • As more diverse voices attain ever more forms of reach and power we need to re-integrate and reimagine Hirsch’s list of what literate Americans ought to know.
  • To be clear: A 21st-century omni-American approach to cultural literacy is not about crowding out “real” history with the perishable stuff of contemporary life. It’s about drawing lines of descent from the old forms of cultural expression, however formal, to their progeny, however colloquial.
  • Nor is Omni-American cultural literacy about raising the “self-esteem” of the poor, nonwhite, and marginalized. It’s about raising the collective knowledge of all—and recognizing that the wealthy, white, and powerful also have blind spots and swaths of ignorance
  • What, then, would be on your list? It’s not an idle question. It turns out to be the key to rethinking how a list should even get made.
  • the Internet has transformed who makes culture and how. As barriers to culture creation have fallen, orders of magnitude more citizens—amateurs—are able to shape the culture in which we must all be literate. Cat videos and Star Trek fan fiction may not hold up long beside Toni Morrison. But the entry of new creators leads to new claims of right: The right to be recognized. The right to be counted. The right to make the means of recognition and accounting.
  • It is true that lists alone, with no teaching to bring them to life and no expectation that they be connected to a broader education, are somewhere between useless and harmful.
  • This will be a list of nodes and nested networks. It will be a fractal of associations, which reflects far more than a linear list how our brains work and how we learn and create. Hirsch himself nodded to this reality in Cultural Literacy when he described the process he and his colleagues used for collecting items for their list, though he raised it by way of pointing out the danger of infinite regress.
  • His conclusion, appropriate to his times, was that you had to draw boundaries somewhere with the help of experts. My take, appropriate to our times, is that Americans can draw not boundaries so much as circles and linkages, concept sets and pathways among them.
  • Because 5,000 or even 500 items is too daunting a place to start, I ask here only for your top ten. What are ten things every American—newcomer or native born, affluent or indigent—should know? What ten things do you feel are both required knowledge and illuminating gateways to those unenlightened about American life? Here are my entries: Whiteness The Federalist Papers The Almighty Dollar Organized labor Reconstruction Nativism The American Dream The Reagan Revolution DARPA A sucker born every minute
Javier E

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

DIIGO_FILE_HOME/7ui9/74ec4c99e72deda4a64da10692a15bf6

economics history literature good evil theory philosophy philosophers Bible Gilgamesh Adam Smith

shared by Javier E on 15 Aug 19 - No Cached
  • 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
Javier E

Wine-tasting: it's junk science | Life and style | The Observer - 0 views

www.guardian.co.uk/...-tasting-junk-science-analysis

taste sense perception research

shared by Javier E on 03 Jul 13 - No Cached
  • google_ad_client = 'ca-guardian_js'; google_ad_channel = 'lifeandstyle'; google_max_num_ads = '3'; // Comments Click here to join the discussion. We can't load the discussion on guardian.co.uk because you don't have JavaScript enabled. if (!!window.postMessage) { jQuery.getScript('http://discussion.guardian.co.uk/embed.js') } else { jQuery('#d2-root').removeClass('hd').html( '' + 'Comments' + 'Click here to join the discussion.We can\'t load the ' + 'discussion on guardian.co.uk ' + 'because your web browser does not support all the features that we ' + 'need. If you cannot upgrade your browser to a newer version, you can ' + 'access the discussion ' + 'here.' ); } Wor
  • Hodgson approached the organisers of the California State Fair wine competition, the oldest contest of its kind in North America, and proposed an experiment for their annual June tasting sessions.Each panel of four judges would be presented with their usual "flight" of samples to sniff, sip and slurp. But some wines would be presented to the panel three times, poured from the same bottle each time. The results would be compiled and analysed to see whether wine testing really is scientific.
  • Results from the first four years of the experiment, published in the Journal of Wine Economics, showed a typical judge's scores varied by plus or minus four points over the three blind tastings. A wine deemed to be a good 90 would be rated as an acceptable 86 by the same judge minutes later and then an excellent 94.
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  • Hodgson's findings have stunned the wine industry. Over the years he has shown again and again that even trained, professional palates are terrible at judging wine."The results are disturbing," says Hodgson from the Fieldbrook Winery in Humboldt County, described by its owner as a rural paradise. "Only about 10% of judges are consistent and those judges who were consistent one year were ordinary the next year."Chance has a great deal to do with the awards that wines win."
  • French academic Frédéric Brochet tested the effect of labels in 2001. He presented the same Bordeaux superior wine to 57 volunteers a week apart and in two different bottles – one for a table wine, the other for a grand cru.The tasters were fooled.When tasting a supposedly superior wine, their language was more positive – describing it as complex, balanced, long and woody. When the same wine was presented as plonk, the critics were more likely to use negatives such as weak, light and flat.
  • In 2011 Professor Richard Wiseman, a psychologist (and former professional magician) at Hertfordshire University invited 578 people to comment on a range of red and white wines, varying from £3.49 for a claret to £30 for champagne, and tasted blind.People could tell the difference between wines under £5 and those above £10 only 53% of the time for whites and only 47% of the time for reds. Overall they would have been just as a successful flipping a coin to guess.
  • why are ordinary drinkers and the experts so poor at tasting blind? Part of the answer lies in the sheer complexity of wine.For a drink made by fermenting fruit juice, wine is a remarkably sophisticated chemical cocktail. Dr Bryce Rankine, an Australian wine scientist, identified 27 distinct organic acids in wine, 23 varieties of alcohol in addition to the common ethanol, more than 80 esters and aldehydes, 16 sugars, plus a long list of assorted vitamins and minerals that wouldn't look out of place on the ingredients list of a cereal pack. There are even harmless traces of lead and arsenic that come from the soil.
  • "People underestimate how clever the olfactory system is at detecting aromas and our brain is at interpreting them," says Hutchinson."The olfactory system has the complexity in terms of its protein receptors to detect all the different aromas, but the brain response isn't always up to it. But I'm a believer that everyone has the same equipment and it comes down to learning how to interpret it." Within eight tastings, most people can learn to detect and name a reasonable range of aromas in wine
  • People struggle with assessing wine because the brain's interpretation of aroma and bouquet is based on far more than the chemicals found in the drink. Temperature plays a big part. Volatiles in wine are more active when wine is warmer. Serve a New World chardonnay too cold and you'll only taste the overpowering oak. Serve a red too warm and the heady boozy qualities will be overpowering.
  • Colour affects our perceptions too. In 2001 Frédérick Brochet of the University of Bordeaux asked 54 wine experts to test two glasses of wine – one red, one white. Using the typical language of tasters, the panel described the red as "jammy' and commented on its crushed red fruit.The critics failed to spot that both wines were from the same bottle. The only difference was that one had been coloured red with a flavourless dye
  • Other environmental factors play a role. A judge's palate is affected by what she or he had earlier, the time of day, their tiredness, their health – even the weather.
  • Robert Hodgson is determined to improve the quality of judging. He has developed a test that will determine whether a judge's assessment of a blind-tasted glass in a medal competition is better than chance. The research will be presented at a conference in Cape Town this year. But the early findings are not promising."So far I've yet to find someone who passes," he says.
Javier E

Here is the news - but only if Facebook thinks you need to know | John Naughton | Opini... - 0 views

www.theguardian.com/...s-publishers-feeding-the-beast

media algorithm facebook social media news power influence

shared by Javier E on 16 May 16 - No Cached
  • power essentially comes in three varieties: the ability to compel people to do what they don’t want to do; the capability to stop them doing what they want to do; and the power to shape the way they think
  • This last is the kind of power exercised by our mass media. They can shape the public (and therefore the political) agenda by choosing the news that people read, hear or watch; and they can shape the ways in which that news is presented.
  • For a long time, Google was the 800lb gorilla in this domain, because its dominance of search determined what people could find in the unimaginable wastelands of cyberspace
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  • search could be – and was – personalised, because Google’s algorithms could figure out what each user was most likely to be interested in, and therefore what kinds of information would be most relevant for her or him. So, imperceptibly, but inexorably over time, we have come to live in what Eli Pariser christened a “filter bubble”.
  • Before the internet, our problem with information was its scarcity. Now our problem is unmanageable abundance. So now the scarce resources are attention and time, over which a vicious war has broken out between traditional media and the internet-based upstarts.
  • YouTube has a billion users, half of whom access it via mobile devices. The average time spent on the site is 40 minutes. Facebook now claims to have 1.65 billion monthly active users, who spend on average 50 minutes a day on its services. So if Google is an 800lb gorilla, Facebook is a megaton King Kong.
  • Competition for attention and time is a zero-sum game that traditional media are losing. In desperation, they are trying both to appease Facebook and to harness its hold on people’s attention
  • In doing so, they have entered into a truly Faustian bargain. Because while publishers can without difficulty ship their stuff to Instant Articles, they cannot control which ones Facebook users actually get to see. This is because users’ news feeds are determined by Facebook’s machine-learning algorithms that try to guess what each user would like to see (and what might dispose them to click on an advertisement).
  • when you ask – as Professor George Brock memorably did – whether Mark Zuckerberg and his satraps understand that they have acquired editorial responsibilities, they look blank. Facebook is not a publisher, they explain, merely a “platform”. And, besides, no humans are involved in curating users’ news feeds: it’s all done by algorithms and is therefore neutral. In other words: nothing to see here; move on.
  • Any algorithm that has to make choices has criteria that are specified by its designers. And those criteria are expressions of human values. Engineers may think they are “neutral”, but long experience has shown us they are babes in the woods of politics, economics and ideology.
Javier E

How Stanford Took On the Giants of Economics - The New York Times - 1 views

www.nytimes.com/...n-the-giants-of-economics.html

science social science economics rivalry

shared by Javier E on 11 Sep 15 - No Cached
  • it is a reflection of a broader shift in the study of economics, in which the most cutting-edge work increasingly relies less on a big-brained individual scholar developing mathematical theories, and more on the ability to crunch extensive sets of data to glean insights about topics as varied as how incomes differ across society and how industries organize themselves.
  • “Who wouldn’t want to be where the future of the world is being made?” said Tyler Cowen, an economist at George Mason University (and regular contributor to The New York Times) who often blogs about trends in academic economics. Stanford’s economics department, he said, “has an excitement about it which Boston and Cambridge can’t touch.”
  • In economics, Stanford has frequently been ranked just behind Harvard, M.I.T., Princeton and the University of Chicago, including in the most recent U.S. News & World Report survey
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  • In the last four years, Stanford has increased the number of senior faculty by 25 percent, and 11 scholars with millions in cumulative salary have either been recruited from other top programs or resisted poaching attempts by those programs.
  • The specialties of the new recruits vary, but they are all examples of how the momentum in economics has shifted away from theoretical modeling and toward “empirical microeconomics,” the analysis of how things work in the real world, often arranging complex experiments or exploiting large sets of data. That kind of work requires lots of research assistants, work across disciplines including fields like sociology and computer science, and the use of advanced computational techniques unavailable a generation ago.
  • the scholars who have newly signed on with Stanford described a university particularly well suited to research in that vein, with a combination of lab space, strong budgets for research support and proximity to engineering talent.
  • The Chicago School, under the intellectual imprint of Milton Friedman, was a leader in neoclassical thought that emphasizes the efficiency of markets and the risks of government intervention. M.I.T.’s economics department has a long record of economic thought in the Keynesian tradition, and it produced several of the top policy makers who have guided the world economy through the tumultuous last several years.
  • “There isn’t a Stanford school of thought,” said B. Douglas Bernheim, chairman of the university’s economics department. “This isn’t a doctrinaire place. Generally doctrine involves simplification, and increasingly we recognize that these social issues we’re trying to figure out are phenomenally complicated. The consensus at Stanford has focused around the idea that you have to be open to a lot of approaches and ways of thinking about things, and to be rigorous, thorough and careful in bringing the highest standard of craft to bear on your research.”
  • “My sense is this is a good development for economics,” Mr. Chetty said. “I think Stanford is going to be another great department at the level of Harvard and M.I.T. doing this type of work, which is an example of economics becoming a deeper field. It’s a great thing for all the universities — I don’t think it’s a zero-sum game.”
julia rhodes

Emergence in Social Groups and in Brains | Psychology Today - 0 views

www.psychologytoday.com/...in-social-groups-and-in-brains

psychology brain science education bias science research knowledge emergence social groups brains congress

shared by julia rhodes on 03 Oct 13 - No Cached
  • Emergence is an important occurrence in social systems ranging in size from small families to large international organizations.
  • A system is demergent if the whole is less than the sum of its parts, that is, if the interaction of the parts prevents the whole from having valuable properties that it otherwise might have.
  • My current favorite example of a demergent system is the U.S. Congress, which has many talented people but is failing horribly to pass legislation because of toxic behaviors and interactions.
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  • Of course, the problem with the House of Representatives is not just interactions, because some of its parts (members) have serious ideological defects.
  • But collaborations can also be demergent, if individuals do not have the intellectual flexibility to build new ideas rather than stick with old ones and waste each other’s time.
  • The brain is a marvel of emergence. I am currently working on a new theory of consciousness that explains it as the result of three neural mechanisms: representation by patterns of firing in neural populations, binding by neural processes that combine representations into new ones called semantic pointers, and competition among semantic pointers to represent the most salient aspects of the current situation.
  • For example the concept of zero cannot be based on perception, but can come about by combining the concepts of quantity and absence.
  • When brains malfunction, however, they can have demergent properties.
  • In epilepsy, individual neurons fire appropriately, but the whole brain develops abnormal patterns that can lead to unconsciousness or convulsions.
  • Figuring out how to have emergence replace demergence is important for neural functioning, and also for effective social functioning.
Javier E

"Breaking Bad" By Niccolo Machiavelli « The Dish - 0 views

dish.andrewsullivan.com/...the-waves-of-chance-and-change

machiavelli virtu evil morality agency psychology

shared by Javier E on 05 Oct 13 - No Cached
  • If a man is truly a man through force and fraud and nerve, then Walter becomes the man he always wanted to be. He trounces every foe; he gains a huge fortune; he dies a natural death. Compared with being a high school chemistry teacher? Niccolo would scoff at the comparison. “I did it for me.”
  • Walt is consumed all along by justified resentment of the success others stole from him, and by a rage that his superior mind was out-foxed by unscrupulous colleagues. He therefore lived and died his final years for human honor – for what <img class="alignright size-medium wp-image-150262" alt="466px-Portrait_of_Niccolò_Machiavelli_by_Santi_di_Tito" src="http://sullydish.files.wordpress.com/2013/02/466px-portrait_of_niccolocc80_machiavelli_by_santi_di_tito.jpg?w=233&h=300" width="233" height="300" />Machiavelli calls virtu, a caustic, brutal inversion of Christian virtue
  • his skills were eventually proven beyond any measure in ways that would never have happened if he had never broken bad. And breaking bad cannot mean putting a limit on what you are capable of doing. What Machiavelli insisted upon was that a successful power-broker know how to be “altogether bad.”
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  • the cost-benefit analysis of “breaking bad” when the alternative is imminently “dying alone” is rigged in favor of the very short term, i.e. zero-sum evil. If Walt had had to weigh a long, unpredictable lifetime of unending fear and constant danger for his family and himself, he would have stopped cooking meth.
  • was he happy? Yes, but in a way that never really reflects any inner peace. He is happy in a way that all millionaires and tyrants are happy.
  • Machiavelli differs from later realists like Hobbes—and more contemporary “neorealists” like the late Kenneth Waltz—in recognizing that human agency matters as much as the structural fact of international anarchy in determining both foreign policy behavior and ultimate outcomes in world politics.
  • It should be taught because it really does convey the egoist appeal of evil, of acting ruthlessly in the world
  • The benefits only work if your life is nasty, brutish and short. The costs are seen in the exhausted, broken eyes of Skyler, the betrayal of an only painfully faithful son, the murder of a brother-in-law, the grisly massacre of dozens, the endless nervous need to be on the alert, to run and hide and lie and lie and lie again, until life itself becomes merely a means to achieve temporary security.
  • Breaking Bad should be taught alongside Machiavelli – as a riveting companion piece.
  • a leader’s choices can have a pivotal impact on politics, both domestic and international.
  • Though fortune be capricious and history contingent, the able leader may shape his fate and that of his state through the exercise of virtu. This is not to be mistaken for “virtue”, as defined by Christian moral teaching (implying integrity, charity, humility, and the like). Rather, it denotes the human qualities prized in classical antiquity, including knowledge, courage, cunning, pride, and strength.
Javier E

Scholar Behind Viral 'Oligarchy' Study Tells You What It Means - 0 views

talkingpointsmemo.com/...emocracy-america-tpm-interview

elites democracy oligarchy inequality policy legislation history research political science social science

shared by Javier E on 19 Mar 15 - No Cached
  • Let's talk about the study. If you had 30 seconds to sum up the main conclusion of your study for the average person, how would you do so? I'd say that contrary to what decades of political science research might lead you to believe, ordinary citizens have virtually no influence over what their government does in the United States. And economic elites and interest groups, especially those representing business, have a substantial degree of influence. Government policy-making over the last few decades reflects the preferences of those groups -- of economic elites and of organized interests.
  • People mean different things by the term oligarchy. One reason why I shy away from it is it brings to mind this image of a very small number of very wealthy people who are pulling strings behind the scenes to determine what government does. And I think it's more complicated than that. It's not only Sheldon Adelson or the Koch brothers or Bill Gates or George Soros who are shaping government policy-making. So that's my concern with what at least many people would understand oligarchy to mean.
  • What "Economic Elite Domination" and "Biased Pluralism" mean is that rather than average citizens of moderate means having an important role in determining policy, ability to shape outcomes is restricted to people at the top of the income distribution and to organized groups that represent primarily -- although not exclusively -- business.
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  • Talk about some examples of policy preferences that the majority holds that the government is not responsive to. Financial reform -- the deregulatory agenda has been pursued, somewhat more fervently among Republicans but certainly by Democrats as well in recent decades. Higher minimum wage. More support for the unemployed. More support for education spending. We'd see, perhaps ironically, less liberal policies in some domains like religious or moral issues. Affluent people tend to be more socially liberal on things like abortion or gay rights.
  • When did things start to become this way? It's possible that in earlier eras, that we don't have data for, that things were better. But in the time period that we do have data for, there's certainly no such evidence. Over time responsiveness to elites has grown.
  • Given your findings, what do you make of the great sense of persecution that people at the top appear to feel in recent years? Is there a phenomenon you came by that speaks to this, and does that perpetuate the cycle of policy moving in their direction? It's certainly not something our study or data has addressed. But it's part of an effort to defend, in the face of growing inequality, their advantages and wealth.
  • sometimes non-rich people favor an agenda that supports the rich. For instance, middle class tea partiers want low taxes on the highest earners, just as Steve Forbes does. Isn't that still democracy at work, albeit in an arguably perverse way? Yes, absolutely. I think people are entitled to preferences that conflict with their immediate interests -- narrowly conceived interests. That may be an example of that. Opposition to the estate tax among low-income individuals is another. But what we see in this study is that's not what this is happening. We don't look at whether preferences expressed by these different groups are consistent or inconsistent with their interests, narrowly conceived. We just look at whether they're responded to by government policy-makers, and we find that in the case of ordinary Americans, they're not.
  • What are the three or four most crucial factors that have made the United States this way? Very good question. I'd say two crucial factors. One central factor is the role of money in our political system, and the overwhelming role that affluent individuals that affluent individuals and organized interests play, in campaign finance and in lobbying. And the second thing is the lack of mass organizations that represent and facilitate the voice of ordinary citizens. Part of that would be the decline of unions in the country which has been quite dramatic over the last 30 or 40 years. And part of it is the lack of a socialist or a worker's party.
  • Your study calls to mind something that Dennis Kucinich, the former congressman, said years ago during the recession. He essentially said the class war is over and the working class lost. Was he right? I mean, for now, it certainly seems like it. The middle class has not done well over the last three and a half decades, and certainly has not done well during the Great Recession. The political system responded to the crisis in a way that led to a pretty nice recovery for economic elites and corporations.
  • what kind of data do you use to test this theory and how confident are you in the conclusions? What we did was to collect survey questions that asked whether respondents would favor or oppose some particular change in federal government policy. These were questions asked across the decades from 1981 to 2002. And so from each of those questions we know what citizens of average income level prefer and we know what people at the top of the income distribution say they want. For each of the 2,000 possible policy changes we determined whether in fact they've been adopted or not. I had a large number of research assistants who spent years putting that data together.
  • A new political science study that's gone viral finds that majority-rule democracy exists only in theory in the United States -- not so much in practice. The government caters to the affluent few and organized interest groups, the researchers find, while the average citizen's influence on policy is "near zero."
  • TPM spoke to Gilens about the study, its main findings and its lessons.
caelengrubb

Insider Trading - Econlib - 0 views

www.econlib.org/...InsiderTrading.html

shared by caelengrubb on 27 Mar 21 - No Cached
  • Insider trading” refers to transactions in a company’s securities, such as stocks or options, by corporate insiders or their associates based on information originating within the firm that would, once publicly disclosed, affect the prices of such securities.
  • Corporate insiders are individuals whose employment with the firm (as executives, directors, or sometimes rank-and-file employees) or whose privileged access to the firm’s internal affairs (as large shareholders, consultants, accountants, lawyers, etc.) gives them valuable information.
  • Famous examples of insider trading include transacting on the advance knowledge of a company’s discovery of a rich mineral ore (Securities and Exchange Commission v. Texas Gulf Sulphur Co.), on a forthcoming cut in dividends by the board of directors (Cady, Roberts & Co.), and on an unanticipated increase in corporate expenses (Diamond v. Oreamuno).
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  • Such trading on information originating outside the company is generally not covered by insider trading regulation.
  • Insider trading is quite different from market manipulation, disclosure of false or misleading information to the market, or direct expropriation of the corporation’s wealth by insiders.
  • Regulation of insider trading began in the United States at the turn of the twentieth century, when judges in several states became willing to rescind corporate insiders’ transactions with uninformed shareholders.
  • One of the earliest (and unsuccessful) federal attempts to regulate insider trading occurred after the 1912–1913 congressional hearings before the Pujo Committee, which concluded that “the scandalous practices of officers and directors in speculating upon inside and advance information as to the action of their corporations may be curtailed if not stopped.”
  • The Securities Acts of 1933–1934, passed by the U.S. Congress in the aftermath of the stock market crash, though aimed primarily at prohibiting fraud and market manipulation, also targeted insider trading.
  • As of 2004, at least ninety-three countries, the vast majority of nations that possess organized securities markets, had laws regulating insider trading
  • Several factors explain the rapid emergence of such regulation, particularly during the last twenty years: namely, the growth of the securities industry worldwide, pressures to make national securities markets look more attractive in the eyes of outside investors, and the pressure the SEC exerted on foreign lawmakers and regulators to increase the effectiveness of domestic enforcement by identifying and punishing offenders and their associates operating outside the United States.
  • Many researchers argue that trading on inside information is a zero-sum game, benefiting insiders at the expense of outsiders. But most outsiders who bought from or sold to insiders would have traded anyway, and possibly at a worse price (Manne 1970). So, for example, if the insider sells stock because he expects the price to fall, the very act of selling may bring the price down to the buyer.
  • A controversial case is that of abstaining from trading on the basis of inside information (Fried 2003).
  • There is little disagreement that insider trading makes securities markets more efficient by moving the current market price closer to the future postdisclosure price. In other words, insiders’ transactions, even if they are anonymous, signal future price trends to others and make the current stock price reflect relevant information sooner.
  • Accurately priced stocks give valuable signals to investors and ensure more efficient allocation of capital.
  • The controversial question is whether insider trading is more or less effective than public disclosure.
  • Insider trading’s advantage is that it introduces individual profit motives, does not directly reveal sensitive intercorporate information, and mitigates the management’s aversion to disclosing negative information (
  • Probably the most controversial issue in the economic analysis of insider trading is whether it is an efficient way to pay managers for their entrepreneurial services to the corporation. Some researchers believe that insider trading gives managers a monetary incentive to innovate, search for, and produce valuable information, as well as to take risks that increase the firm’s value (Carlton and Fischel 1983; Manne 1966).
  • Another economic argument for insider trading is that it provides efficient compensation to holders of large blocks of stock
  • A common contention is that the presence of insider trading decreases public confidence in, and deters many potential investors from, equity markets, making them less liquid (Loss 1970).
  • Empirical research generally supports skepticism that regulation of insider trading has been effective in either the United States or internationally, as evidenced by the persistent trading profits of insiders, behavior of stock prices around corporate announcements, and relatively infrequent prosecution rates (Bhattacharya and Daouk 2002; Bris 2005).
  • Despite numerous and extensive debates, economists and legal scholars do not agree on a desirable government policy toward insider trading. On the one hand, absolute information parity is clearly infeasible, and information-based trading generally increases the pricing efficiency of financial markets. Information, after all, is a scarce economic good that is costly to produce or acquire, and its subsequent use and dissemination are difficult to control. On the other hand, insider trading, as opposed to other forms of informed trading, may produce unintended adverse consequences for the functioning of the corporate enterprise, the market-wide system of publicly mandated disclosure, or the market for information.
katherineharron

The US was once the uncontested world leader in science and engineering. That's changed... - 0 views

www.cnn.com/...index.html

shared by katherineharron on 19 Jan 20 - No Cached
  • he United States was once the dominant, global leader in science and engineering, but that ranking has dropped as other countries invest in research and development, according to a new report.
  • The findings were presented this week in the State of US Science and Engineering 2020 report, compiled and published by the National Science Board and the National Science Foundation. The report is published every two years and submitted to Congress."Our latest report shows the continued spread of [science and engineering] capacity across the globe, which is good for humanity because science is not a zero-sum game," said Diane Souvaine, National Science Board chair, in a statement. "However, it also means that where once the US was the uncontested leader in S&E, we now are playing a less-dominant role in many areas."
  • "Federal support of basic research drives innovation. Only the federal government can make a strategic, long-term commitment to creating new knowledge that [could] to lead to new or improved technologies, goods or services," said Julia Phillips, chair of the National Science Board's science and engineering policy committee. "Basic research is the 'seed corn' of our US S&E enterprise, a global competitive advantage, and the starting point for much of our GDP growth since World War II."
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  • "The United States has seen its relative share of global S&T [science and technology] activity flatten or shrink, even as its absolute activity levels kept rising," the authors wrote in the report. "As more countries around the world develop R&D and human capital infrastructure to sustain and compete in a knowledge-oriented economy, the United States is playing a less dominant role in many areas of S&E [science and engineering] activity."
  • "Research is now a truly global enterprise. Opportunities are everywhere and humanity's collective knowledge is growing exponentially," Souvaine said. "To remain a leader, we need to tap into our American 'can do' spirit and recommit to strong partnerships among government, universities and industry that have been the hallmarks of our success. I believe we should react with excitement, not fear, because we are well positioned to compete, collaborate and thrive."
Javier E

Why the Past 10 Years of American Life Have Been Uniquely Stupid - The Atlantic - 0 views

www.theatlantic.com/...629369

politics history social media technology psychology bias fragmentation

shared by Javier E on 26 Apr 22 - No Cached
  • Social scientists have identified at least three major forces that collectively bind together successful democracies: social capital (extensive social networks with high levels of trust), strong institutions, and shared stories.
  • Social media has weakened all three.
  • gradually, social-media users became more comfortable sharing intimate details of their lives with strangers and corporations. As I wrote in a 2019 Atlantic article with Tobias Rose-Stockwell, they became more adept at putting on performances and managing their personal brand—activities that might impress others but that do not deepen friendships in the way that a private phone conversation will.
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  • the stage was set for the major transformation, which began in 2009: the intensification of viral dynamics.
  • Before 2009, Facebook had given users a simple timeline––a never-ending stream of content generated by their friends and connections, with the newest posts at the top and the oldest ones at the bottom
  • That began to change in 2009, when Facebook offered users a way to publicly “like” posts with the click of a button. That same year, Twitter introduced something even more powerful: the “Retweet” button, which allowed users to publicly endorse a post while also sharing it with all of their followers.
  • “Like” and “Share” buttons quickly became standard features of most other platforms.
  • Facebook developed algorithms to bring each user the content most likely to generate a “like” or some other interaction, eventually including the “share” as well.
  • Later research showed that posts that trigger emotions––especially anger at out-groups––are the most likely to be shared.
  • By 2013, social media had become a new game, with dynamics unlike those in 2008. If you were skillful or lucky, you might create a post that would “go viral” and make you “internet famous”
  • If you blundered, you could find yourself buried in hateful comments. Your posts rode to fame or ignominy based on the clicks of thousands of strangers, and you in turn contributed thousands of clicks to the game.
  • This new game encouraged dishonesty and mob dynamics: Users were guided not just by their true preferences but by their past experiences of reward and punishment,
  • As a social psychologist who studies emotion, morality, and politics, I saw this happening too. The newly tweaked platforms were almost perfectly designed to bring out our most moralistic and least reflective selves. The volume of outrage was shocking.
  • It was just this kind of twitchy and explosive spread of anger that James Madison had tried to protect us from as he was drafting the U.S. Constitution.
  • The Framers of the Constitution were excellent social psychologists. They knew that democracy had an Achilles’ heel because it depended on the collective judgment of the people, and democratic communities are subject to “the turbulency and weakness of unruly passions.”
  • The key to designing a sustainable republic, therefore, was to build in mechanisms to slow things down, cool passions, require compromise, and give leaders some insulation from the mania of the moment while still holding them accountable to the people periodically, on Election Day.
  • The tech companies that enhanced virality from 2009 to 2012 brought us deep into Madison’s nightmare.
  • a less quoted yet equally important insight, about democracy’s vulnerability to triviality.
  • Madison notes that people are so prone to factionalism that “where no substantial occasion presents itself, the most frivolous and fanciful distinctions have been sufficient to kindle their unfriendly passions and excite their most violent conflicts.”
  • Social media has both magnified and weaponized the frivolous.
  • It’s not just the waste of time and scarce attention that matters; it’s the continual chipping-away of trust.
  • a democracy depends on widely internalized acceptance of the legitimacy of rules, norms, and institutions.
  • when citizens lose trust in elected leaders, health authorities, the courts, the police, universities, and the integrity of elections, then every decision becomes contested; every election becomes a life-and-death struggle to save the country from the other side
  • The most recent Edelman Trust Barometer (an international measure of citizens’ trust in government, business, media, and nongovernmental organizations) showed stable and competent autocracies (China and the United Arab Emirates) at the top of the list, while contentious democracies such as the United States, the United Kingdom, Spain, and South Korea scored near the bottom (albeit above Russia).
  • The literature is complex—some studies show benefits, particularly in less developed democracies—but the review found that, on balance, social media amplifies political polarization; foments populism, especially right-wing populism; and is associated with the spread of misinformation.
  • When people lose trust in institutions, they lose trust in the stories told by those institutions. That’s particularly true of the institutions entrusted with the education of children.
  • Facebook and Twitter make it possible for parents to become outraged every day over a new snippet from their children’s history lessons––and math lessons and literature selections, and any new pedagogical shifts anywhere in the country
  • The motives of teachers and administrators come into question, and overreaching laws or curricular reforms sometimes follow, dumbing down education and reducing trust in it further.
  • young people educated in the post-Babel era are less likely to arrive at a coherent story of who we are as a people, and less likely to share any such story with those who attended different schools or who were educated in a different decade.
  • former CIA analyst Martin Gurri predicted these fracturing effects in his 2014 book, The Revolt of the Public. Gurri’s analysis focused on the authority-subverting effects of information’s exponential growth, beginning with the internet in the 1990s. Writing nearly a decade ago, Gurri could already see the power of social media as a universal solvent, breaking down bonds and weakening institutions everywhere it reached.
  • he notes a constructive feature of the pre-digital era: a single “mass audience,” all consuming the same content, as if they were all looking into the same gigantic mirror at the reflection of their own society. I
  • The digital revolution has shattered that mirror, and now the public inhabits those broken pieces of glass. So the public isn’t one thing; it’s highly fragmented, and it’s basically mutually hostile
  • Facebook, Twitter, YouTube, and a few other large platforms unwittingly dissolved the mortar of trust, belief in institutions, and shared stories that had held a large and diverse secular democracy together.
  • I think we can date the fall of the tower to the years between 2011 (Gurri’s focal year of “nihilistic” protests) and 2015, a year marked by the “great awokening” on the left and the ascendancy of Donald Trump on the right.
  • Twitter can overpower all the newspapers in the country, and stories cannot be shared (or at least trusted) across more than a few adjacent fragments—so truth cannot achieve widespread adherence.
  • fter Babel, nothing really means anything anymore––at least not in a way that is durable and on which people widely agree.
  • Politics After Babel
  • “Politics is the art of the possible,” the German statesman Otto von Bismarck said in 1867. In a post-Babel democracy, not much may be possible.
  • The ideological distance between the two parties began increasing faster in the 1990s. Fox News and the 1994 “Republican Revolution” converted the GOP into a more combative party.
  • So cross-party relationships were already strained before 2009. But the enhanced virality of social media thereafter made it more hazardous to be seen fraternizing with the enemy or even failing to attack the enemy with sufficient vigor.
  • What changed in the 2010s? Let’s revisit that Twitter engineer’s metaphor of handing a loaded gun to a 4-year-old. A mean tweet doesn’t kill anyone; it is an attempt to shame or punish someone publicly while broadcasting one’s own virtue, brilliance, or tribal loyalties. It’s more a dart than a bullet
  • from 2009 to 2012, Facebook and Twitter passed out roughly 1 billion dart guns globally. We’ve been shooting one another ever since.
  • “devoted conservatives,” comprised 6 percent of the U.S. population.
  • the warped “accountability” of social media has also brought injustice—and political dysfunction—in three ways.
  • First, the dart guns of social media give more power to trolls and provocateurs while silencing good citizens.
  • a small subset of people on social-media platforms are highly concerned with gaining status and are willing to use aggression to do so.
  • Across eight studies, Bor and Petersen found that being online did not make most people more aggressive or hostile; rather, it allowed a small number of aggressive people to attack a much larger set of victims. Even a small number of jerks were able to dominate discussion forums,
  • Additional research finds that women and Black people are harassed disproportionately, so the digital public square is less welcoming to their voices.
  • Second, the dart guns of social media give more power and voice to the political extremes while reducing the power and voice of the moderate majority.
  • The “Hidden Tribes” study, by the pro-democracy group More in Common, surveyed 8,000 Americans in 2017 and 2018 and identified seven groups that shared beliefs and behaviors.
  • Social media has given voice to some people who had little previously, and it has made it easier to hold powerful people accountable for their misdeeds
  • The group furthest to the left, the “progressive activists,” comprised 8 percent of the population. The progressive activists were by far the most prolific group on social media: 70 percent had shared political content over the previous year. The devoted conservatives followed, at 56 percent.
  • These two extreme groups are similar in surprising ways. They are the whitest and richest of the seven groups, which suggests that America is being torn apart by a battle between two subsets of the elite who are not representative of the broader society.
  • they are the two groups that show the greatest homogeneity in their moral and political attitudes.
  • likely a result of thought-policing on social media:
  • political extremists don’t just shoot darts at their enemies; they spend a lot of their ammunition targeting dissenters or nuanced thinkers on their own team.
  • Finally, by giving everyone a dart gun, social media deputizes everyone to administer justice with no due process. Platforms like Twitter devolve into the Wild West, with no accountability for vigilantes.
  • Enhanced-virality platforms thereby facilitate massive collective punishment for small or imagined offenses, with real-world consequences, including innocent people losing their jobs and being shamed into suicide
  • we don’t get justice and inclusion; we get a society that ignores context, proportionality, mercy, and truth.
  • Since the tower fell, debates of all kinds have grown more and more confused. The most pervasive obstacle to good thinking is confirmation bias, which refers to the human tendency to search only for evidence that confirms our preferred beliefs
  • search engines were supercharging confirmation bias, making it far easier for people to find evidence for absurd beliefs and conspiracy theorie
  • The most reliable cure for confirmation bias is interaction with people who don’t share your beliefs. They confront you with counterevidence and counterargument.
  • In his book The Constitution of Knowledge, Jonathan Rauch describes the historical breakthrough in which Western societies developed an “epistemic operating system”—that is, a set of institutions for generating knowledge from the interactions of biased and cognitively flawed individuals
  • English law developed the adversarial system so that biased advocates could present both sides of a case to an impartial jury.
  • Newspapers full of lies evolved into professional journalistic enterprises, with norms that required seeking out multiple sides of a story, followed by editorial review, followed by fact-checking.
  • Universities evolved from cloistered medieval institutions into research powerhouses, creating a structure in which scholars put forth evidence-backed claims with the knowledge that other scholars around the world would be motivated to gain prestige by finding contrary evidence.
  • Part of America’s greatness in the 20th century came from having developed the most capable, vibrant, and productive network of knowledge-producing institutions in all of human history
  • But this arrangement, Rauch notes, “is not self-maintaining; it relies on an array of sometimes delicate social settings and understandings, and those need to be understood, affirmed, and protected.”
  • This, I believe, is what happened to many of America’s key institutions in the mid-to-late 2010s. They got stupider en masse because social media instilled in their members a chronic fear of getting darted
  • it was so pervasive that it established new behavioral norms backed by new policies seemingly overnight
  • Participants in our key institutions began self-censoring to an unhealthy degree, holding back critiques of policies and ideas—even those presented in class by their students—that they believed to be ill-supported or wrong.
  • The stupefying process plays out differently on the right and the left because their activist wings subscribe to different narratives with different sacred values.
  • The “Hidden Tribes” study tells us that the “devoted conservatives” score highest on beliefs related to authoritarianism. They share a narrative in which America is eternally under threat from enemies outside and subversives within; they see life as a battle between patriots and traitors.
  • they are psychologically different from the larger group of “traditional conservatives” (19 percent of the population), who emphasize order, decorum, and slow rather than radical change.
  • The traditional punishment for treason is death, hence the battle cry on January 6: “Hang Mike Pence.”
  • Right-wing death threats, many delivered by anonymous accounts, are proving effective in cowing traditional conservatives
  • The wave of threats delivered to dissenting Republican members of Congress has similarly pushed many of the remaining moderates to quit or go silent, giving us a party ever more divorced from the conservative tradition, constitutional responsibility, and reality.
  • The stupidity on the right is most visible in the many conspiracy theories spreading across right-wing media and now into Congress.
  • The Democrats have also been hit hard by structural stupidity, though in a different way. In the Democratic Party, the struggle between the progressive wing and the more moderate factions is open and ongoing, and often the moderates win.
  • The problem is that the left controls the commanding heights of the culture: universities, news organizations, Hollywood, art museums, advertising, much of Silicon Valley, and the teachers’ unions and teaching colleges that shape K–12 education. And in many of those institutions, dissent has been stifled:
  • Liberals in the late 20th century shared a belief that the sociologist Christian Smith called the “liberal progress” narrative, in which America used to be horrifically unjust and repressive, but, thanks to the struggles of activists and heroes, has made (and continues to make) progress toward realizing the noble promise of its founding.
  • It is also the view of the “traditional liberals” in the “Hidden Tribes” study (11 percent of the population), who have strong humanitarian values, are older than average, and are largely the people leading America’s cultural and intellectual institutions.
  • when the newly viralized social-media platforms gave everyone a dart gun, it was younger progressive activists who did the most shooting, and they aimed a disproportionate number of their darts at these older liberal leaders.
  • Confused and fearful, the leaders rarely challenged the activists or their nonliberal narrative in which life at every institution is an eternal battle among identity groups over a zero-sum pie, and the people on top got there by oppressing the people on the bottom. This new narrative is rigidly egalitarian––focused on equality of outcomes, not of rights or opportunities. It is unconcerned with individual rights.
  • The universal charge against people who disagree with this narrative is not “traitor”; it is “racist,” “transphobe,” “Karen,” or some related scarlet letter marking the perpetrator as one who hates or harms a marginalized group.
  • The punishment that feels right for such crimes is not execution; it is public shaming and social death.
  • anyone on Twitter had already seen dozens of examples teaching the basic lesson: Don’t question your own side’s beliefs, policies, or actions. And when traditional liberals go silent, as so many did in the summer of 2020, the progressive activists’ more radical narrative takes over as the governing narrative of an organization.
  • This is why so many epistemic institutions seemed to “go woke” in rapid succession that year and the next, beginning with a wave of controversies and resignations at The New York Times and other newspapers, and continuing on to social-justice pronouncements by groups of doctors and medical associations
  • The problem is structural. Thanks to enhanced-virality social media, dissent is punished within many of our institutions, which means that bad ideas get elevated into official policy.
  • In a 2018 interview, Steve Bannon, the former adviser to Donald Trump, said that the way to deal with the media is “to flood the zone with shit.” He was describing the “firehose of falsehood” tactic pioneered by Russian disinformation programs to keep Americans confused, disoriented, and angry.
  • artificial intelligence is close to enabling the limitless spread of highly believable disinformation. The AI program GPT-3 is already so good that you can give it a topic and a tone and it will spit out as many essays as you like, typically with perfect grammar and a surprising level of coherence.
  • Renée DiResta, the research manager at the Stanford Internet Observatory, explained that spreading falsehoods—whether through text, images, or deep-fake videos—will quickly become inconceivably easy. (She co-wrote the essay with GPT-3.)
  • American factions won’t be the only ones using AI and social media to generate attack content; our adversaries will too.
  • In the 20th century, America’s shared identity as the country leading the fight to make the world safe for democracy was a strong force that helped keep the culture and the polity together.
  • In the 21st century, America’s tech companies have rewired the world and created products that now appear to be corrosive to democracy, obstacles to shared understanding, and destroyers of the modern tower.
  • What changes are needed?
  • I can suggest three categories of reforms––three goals that must be achieved if democracy is to remain viable in the post-Babel era.
  • We must harden democratic institutions so that they can withstand chronic anger and mistrust, reform social media so that it becomes less socially corrosive, and better prepare the next generation for democratic citizenship in this new age.
  • Harden Democratic Institutions
  • we must reform key institutions so that they can continue to function even if levels of anger, misinformation, and violence increase far above those we have today.
  • Reforms should reduce the outsize influence of angry extremists and make legislators more responsive to the average voter in their district.
  • One example of such a reform is to end closed party primaries, replacing them with a single, nonpartisan, open primary from which the top several candidates advance to a general election that also uses ranked-choice voting
  • A second way to harden democratic institutions is to reduce the power of either political party to game the system in its favor, for example by drawing its preferred electoral districts or selecting the officials who will supervise elections
  • These jobs should all be done in a nonpartisan way.
  • Reform Social Media
  • Social media’s empowerment of the far left, the far right, domestic trolls, and foreign agents is creating a system that looks less like democracy and more like rule by the most aggressive.
  • it is within our power to reduce social media’s ability to dissolve trust and foment structural stupidity. Reforms should limit the platforms’ amplification of the aggressive fringes while giving more voice to what More in Common calls “the exhausted majority.”
  • the main problem with social media is not that some people post fake or toxic stuff; it’s that fake and outrage-inducing content can now attain a level of reach and influence that was not possible before
  • Perhaps the biggest single change that would reduce the toxicity of existing platforms would be user verification as a precondition for gaining the algorithmic amplification that social media offers.
  • One of the first orders of business should be compelling the platforms to share their data and their algorithms with academic researchers.
  • Prepare the Next Generation
  • Childhood has become more tightly circumscribed in recent generations––with less opportunity for free, unstructured play; less unsupervised time outside; more time online. Whatever else the effects of these shifts, they have likely impeded the development of abilities needed for effective self-governance for many young adults
  • Depression makes people less likely to want to engage with new people, ideas, and experiences. Anxiety makes new things seem more threatening. As these conditions have risen and as the lessons on nuanced social behavior learned through free play have been delayed, tolerance for diverse viewpoints and the ability to work out disputes have diminished among many young people
  • Students did not just say that they disagreed with visiting speakers; some said that those lectures would be dangerous, emotionally devastating, a form of violence. Because rates of teen depression and anxiety have continued to rise into the 2020s, we should expect these views to continue in the generations to follow, and indeed to become more severe.
  • The most important change we can make to reduce the damaging effects of social media on children is to delay entry until they have passed through puberty.
  • The age should be raised to at least 16, and companies should be held responsible for enforcing it.
  • et them out to play. Stop starving children of the experiences they most need to become good citizens: free play in mixed-age groups of children with minimal adult supervision
  • while social media has eroded the art of association throughout society, it may be leaving its deepest and most enduring marks on adolescents. A surge in rates of anxiety, depression, and self-harm among American teens began suddenly in the early 2010s. (The same thing happened to Canadian and British teens, at the same time.) The cause is not known, but the timing points to social media as a substantial contributor—the surge began just as the large majority of American teens became daily users of the major platforms.
  • What would it be like to live in Babel in the days after its destruction? We know. It is a time of confusion and loss. But it is also a time to reflect, listen, and build.
  • In recent years, Americans have started hundreds of groups and organizations dedicated to building trust and friendship across the political divide, including BridgeUSA, Braver Angels (on whose board I serve), and many others listed at BridgeAlliance.us. We cannot expect Congress and the tech companies to save us. We must change ourselves and our communities.
  • when we look away from our dysfunctional federal government, disconnect from social media, and talk with our neighbors directly, things seem more hopeful. Most Americans in the More in Common report are members of the “exhausted majority,” which is tired of the fighting and is willing to listen to the other side and compromise. Most Americans now see that social media is having a negative impact on the country, and are becoming more aware of its damaging effects on children.
Javier E

The Class Politics of Instagram Face - Tablet Magazine - 0 views

www.tabletmag.com/...class-politics-instagram-face

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shared by Javier E on 10 Apr 23 - No Cached
  • by approaching universality, Instagram Face actually secured its role as an instrument of class distinction—a mark of a certain kind of woman. The women who don’t mind looking like others, or the conspicuousness of the work they’ve had done
  • Instagram Face goes with implants, middle-aged dates and nails too long to pick up the check. Batting false eyelashes, there in the restaurant it orders for dinner all the food groups of nouveau riche Dubai: caviar, truffle, fillers, foie gras, Botox, bottle service, bodycon silhouettes. The look, in that restaurant and everywhere, has reached a definite status. It’s the girlfriend, not the wife.
  • Does cosmetic work have a particular class? It has a price tag, which can amount to the same thing, unless that price drops low enough.
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  • Before the introduction of Botox and hyaluronic acid dermal fillers in 2002 and 2003, respectively, aesthetic work was serious, expensive. Nose jobs and face lifts required general anesthesia, not insignificant recovery time, and cost thousands of dollars (in 2000, a facelift was $5,416 on average, and a rhinoplasty $4,109, around $9,400 and $7,000 adjusted).
  • In contrast, the average price of a syringe of hyaluronic acid filler today is $684, while treating, for example, the forehead and eyes with Botox will put you out anywhere from $300 to $600
  • We copied the beautiful and the rich, not in facsimile, but in homage.
  • In 2018, use of Botox and fillers was up 18% and 20% from five years prior. Philosophies of prejuvenation have made Botox use jump 22% among 22- to 37-year-olds in half a decade as well. By 2030, global noninvasive aesthetic treatments are predicted to triple.
  • The trouble is that a status symbol, without status, is common.
  • Beauty has always been exclusive. When someone strikes you as pretty, it means they are something that everyone else is not.
  • It’s a zero-sum game, as relative as our morals. Naturally, we hoard of beauty what we can. It’s why we call grooming tips “secrets.”
  • Largely the secrets started with the wealthy, who possess the requisite money and leisure to spare on their appearances
  • Botox and filler only accelerated a trend that began in the ’70s and ’80s and is just now reaching its saturation point.
  • we didn’t have the tools for anything more than emulation. Fake breasts and overdrawn lips only approximated real ones; a birthmark drawn with pencil would always be just that.
  • Instagram Face, on the other hand, distinguishes itself by its sheer reproducibility. Not only because of those new cosmetic technologies, which can truly reshape features, at reasonable cost and with little risk.
  • built in to the whole premise of reversible, low-stakes modification is an indefinite flux, and thus a lack of discretion.
  • Instagram Face has replicated outward, with trendsetters giving up competing with one another in favor of looking eerily alike. And obviously it has replicated down.
  • Eva looks like Eva. If she has procedures in common with Kim K, you couldn’t tell. “I look at my features and I think long and hard of how I can, without looking different and while keeping as natural as possible, make them look better and more proportional. I’m against everything that is too invasive. My problem with Instagram Face is that if you want to look like someone else, you should be in therapy.”
  • natural looks have always been, and still are, more valuable than artificial ones. Partly because of our urge to legitimize in any way we can the advantages we have over other people. Hotness is a class struggle.
  • As more and more women post videos of themselves eating, sleeping, dressing, dancing, and Only-Fanning online, in a logical bid for economic ascendance, the women who haven’t needed to do that gain a new status symbol.
  • Privacy. A life which is not a ticketed show. An intimacy that does not admit advertisers. A face that does not broadcast its insecurity, or the work undergone to correct it.
  • Upper class, private women get discrete work done. The differences aren’t in the procedures themselves—they’re the same—but in disposition
  • Eva, who lives between central London, Geneva, and the south of France, says: “I do stuff, but none of the stuff I do is at all in my head associated with Instagram Face. Essentially you do similar procedures, but the end goal is completely different. Because they are trying to get the result of looking like another human being, and I’m just beautifying myself.”
  • But the more rapidly it replicates, and the clearer our manuals for quick imitation become, the closer we get to singularity—that moment Kim Kardashian fears unlike any other: the moment when it becomes unclear whether we’re copying her, or whether she is copying us.
  • what he restores is complicated and yet not complicated at all. It’s herself, the fingerprint of her features. Her aura, her presence and genealogy, her authenticity in space and time.
  • Dr. Taktouk’s approach is “not so formulaic.” He aims to give his patients the “better versions of themselves.” “It’s not about trying to be anyone else,” he says, “or creating a conveyor belt of patients. It’s about working with your best features, enhancing them, but still looking like you.”
  • “Vulgar” says that in pursuing indistinguishability, women have been duped into another punishing divide. “Vulgar” says that the subtlety of his work is what signals its special class—and that the women who’ve obtained Instagram Face for mobility’s sake have unwittingly shut themselves out of it.
  • While younger women are dissolving their gratuitous work, the 64-year-old Madonna appeared at the Grammy Awards in early February, looking so tragically unlike herself that the internet launched an immediate postmortem.
  • The folly of Instagram Face is that in pursuing a bionic ideal, it turns cosmetic technology away from not just the reality of class and power, but also the great, poignant, painful human project of trying to reverse time. It misses the point of what we find beautiful: that which is ephemeral, and can’t be reproduced
  • Age is just one of the hierarchies Instagram Face can’t topple, in the history of women striving versus the women already arrived. What exactly have they arrived at?
  • Youth, temporarily. Wealth. Emotional security. Privacy. Personal choices, like cosmetic decisions, which are not so public, and do not have to be defended as empowered, in the defeatist humiliation of our times
  • Maybe they’ve arrived at love, which for women has never been separate from the things I’ve already mentioned.
  • I can’t help but recall the time I was chatting with a plastic surgeon. I began to point to my features, my flaws. I asked her, “What would you do to me, if I were your patient?” I had many ideas. She gazed at me, and then noticed my ring. “Nothing,” she said. “You’re already married.”
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