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brickol

Coronavirus heroes: the doctors carrying an immense burden to care for us | World news ... - 0 views

  • Doctors across North America are bracing for a surge of critically ill patients, knowing that the more patients they see, the greater their risk of becoming infected with Covid-19.Their commitment to work comes with a heavy psychological burden that their many hours in hospitals could harm their families.
  • Five weeks ago, Dr Erin Bruce, an anesthesiologist, and her husband, Dr Michael Szava-Kovats, had their first child, a daughter. He agonizes over the thought of exposing his young daughter and wife to infection. He accepts that he may get coronavirus. The risks to his family are outside his comfort zone, he says.Last weekend, he moved into an empty condo owned by friends.
  • He worked five days in a row after his move. On his first day off, the sadness of their separation hit him. He feels a combination of guilt that he’s not there to help with a newborn and heartache that he missing out on the first months of his daughter’s life. He longs to be with his wife during an event that’s changing their lives and history.
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  • Drs Bonnie Larson and Alan Chu met at medical school and bonded over their shared interest in global health. They’re married with two children.Larson is a frontline physician working with the city’s homeless. She’s working to keep Covid-19 out of local shelters. Chu is leading online training for residents about coronavirus and airway management, but is readying for a crush of sick patients to arrive in the ICU.They wonder what it will be like for their kids, ages eight and 10, to go through the pandemic without at least one parent home all the time.
  • Dr Zara Mathews is 34 weeks pregnant and mother of a toddler. She plans to work for another week and half, keeping to the schedule that she set out months ago.Her home and work lives have never felt so intertwined, she says. Now there’s this question of whether doing what I need to at work is potentially going to put my family at risk “Normally, when I’m at work, my patients are my priority and when I’m at home, my family is my priority,” she says. “But now there’s this question of whether doing what I need to at work is potentially going to put my family at risk.”
  • Dr Mathews says her parents and husband worry about her, but she is more concerned for her kids and her patients. Most physicians feel the same, she said. Everyone has concerns about risks that they bring to our family but the primary focus is doing everything they can for our patients.
  • Dr Christine Carter Toevs, who has worked in medicine for more than 30 years, says she always worries about bringing home illnesses that could affect her husband. He has respiratory issues and diabetes. When he gets a cold, it lasts for ages.
  • She is concerned about what will happen if high numbers of staff get sick, or she gets sick. Even if one trauma surgeon becomes unable to work in a community of this size, it affects the hospital’s ability to provide care.
  • Everybody has a responsibility in this pandemic, she says. Non-essential workers have a social obligation to stay home to minimize the risk for everyone. Her responsibility is to care for patients. “I get up every day and make a commitment to take care of people. To sit at home and live in fear is a terrible way to live life.”
brickol

Trump's 'back-to-work' plan would only make things worse, experts say | US news | The G... - 0 views

  • New York, San Francisco, Los Angeles, Chicago – cities across the US are closing down because of the Covid-19 epidemic. The economic impact is already dire. Millions are probably already out of work, and economists are certain we are heading for recession. Donald Trump has a solution: get back to work. But it is a solution that many think will make matters worse, leading to the loss of even more lives and a deeper economic crisis.
  • The administration is now reportedly considering easing some physical distancing directives in order to halt the collapse of the economy.Many experts think that’s a terrible idea.The result would be “an open door to chaos”, said Professor Michael Greenberger, a former counselor to the United States attorney general and now director of the Center for Health and Homeland Security at the University of Maryland.
  • Greenberger said he could understand the desire to support the economy but that such short-term thinking could be devastating.“There are no two ways about this. The shutdown of the economy is damaging. It is a balancing of risks. I think we will be in worse shape in the public health sector and the financial sector if we just unthinkingly send people back to business as usual.”
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  • “There is no functioning economy unless we control the virus.”But Trump has pinned his re-election hopes on soaring stock markets and record lows in unemployment. Now with stock markets in freefall and jobs set to follow, he seems determined to press ahead and try to relax restrictions on business in an attempt to cure the economic crisis.
  • Gould said some people were likely not to return to work even if ordered to do so. Secondly, she said, it was clear that state governors – who have shut down so many cities – would resist any move from Trump that could worsen the escalating health crisis.Even in normal times, such a conflict would create a constitutional crisis. In the current situation it could be much worse.
  • Public health experts, including the senior official Dr Anthony Fauci, have said Americans will need to adhere to physical distancing restrictions for at least several more weeks to stop the spread of the virus.Such chaos would only exacerbate the problems in the wider economy. Stock markets have fallen even as the Federal Reserve pumps billions into the economy, interest rates are cut and the government works on a bailout plan that could end up costing close to $2tn.
  • Nevertheless, the short-term temptation for Trump to try and push for a return to a normal may prove insurmountable. Not least because as the economic crisis deepens it is clear that his administration made fundamental errors that have exacerbated the situation.Covid-19 can’t be blamed on Trump, but moves he made before the crisis and after it began have substantially worsened the situation – and with it the economy.
  • No matter how you view it, Greenberger argues, the fact is that the US was woefully unprepared for a pandemic that security agencies had reportedly recently warned it about. Trump has disputed those claims, but there is no disputing that shortly after Covid-19 hit the US it became clear the country was ill equipped to deal with it. Frontline health workers are begging for supplies.
Javier E

Spain's Coronavirus Crisis Accelerated as Warnings Went Unheeded - The New York Times - 0 views

  • Spain’s crisis has demonstrated that one symptom of the virus, by now as persistent as the fevers, aches and labored breathing it brings, has been the tendency of one government after another to ignore the experiences of countries where the virus has struck before it.
  • as in most nations, the Spanish authorities initially treated the virus as an external threat, rather than considering that their country could be the next domino to fall.
  • The epidemic has now forced Spaniards to confront the kind of struggle that could be recalled only by those old enough to have lived through the Spanish Civil War of the 1930s.
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  • “It’s been shocking for a society to face a situation only known to those who remember Spain coming out of the war,” said Cristina Monge, a professor of sociology at the University of Zaragoza. For many others, she added, “this kind of scenario was until now pure science fiction.”
  • As a result, the government of Prime Minister Pedro Sánchez has faced criticism for not prohibiting mass gatherings sooner, and for not stockpiling medical equipment as soon as the number of cases reached several hundred in northern Italy in late February.
  • Even as Italy locked down its northern regions on March 8, Spain’s first coronavirus cluster had already emerged among participants of a funeral service. Mr. Sánchez’s government did not put the country under the highest level of alert and impose a nationwide lockdown until March 14.
  • Italy, Britain and France, he noted, declared their own lockdowns only once they had more infections than Spain. He stressed that International Women’s Day, when 120,000 gathered in Madrid on March 8, had also been celebrated on the streets of Brussels, Berlin, Vienna and Paris.
  • The event has widely been blamed for catapulting the spread of the virus in the capital. Three Spanish government ministers who led the women’s rally later tested positive for the virus, as did Mr. Sánchez’s wife and mother.
  • the government’s response to the virus was complicated by the diffuse nature of Spain’s political system, in which the country’s 17 regions progressively gained more autonomy, including the management of hospitals, after Spain adopted a new Constitution in 1978.
  • The gap between regional and national decision-making also encouraged many wealthy Madrid residents to hurry to their seaside homes, once all Madrid schools had been shut, at the risk of further spreading a virus that was already firmly embedded in Spain’s capital.
  • “A new and fragmented government starts with a huge disadvantage in this kind of crisis situation, because it requires quick and forceful decisions to be taken without constantly worrying about whether somebody else is gaining a political advantage,”
  • As a measure of the difficulties, Quim Torra, the separatist leader in northeastern Catalonia, refused even to sign a joint declaration with Madrid on coordinating the lockdown with the national government.
  • an epidemiologist and university professor, said Spain should not be judged harshly over its response to a pandemic that every government had passively watched unfold in a neighboring country “as if watching a movie.”
  • Spain watched Italy, he acknowledged, but with the mitigating factor that many scientists believed until recently that asymptomatic people were probably not contagious.
  • Even so, Spain’s main neighbor has fared much better so far. Despite sharing a 750-mile border with Spain, Portugal passed 200 coronavirus deaths last week just as Spain reached 10,000.
  • There, another Socialist minority government leader, Prime Minister António Costa, has seen opposition politicians close ranks behind him. Mr. Costa has been warning that Portugal could face more pain, but Dr. Rodríguez Artalejo said that Portugal so far deserved admiration.
  • The same solidarity has been sorely missing in Spain. As Madrid accounted for half of the nationwide death toll, Salvador Illa, the health minister, made “a call for solidarity with the Madrid region.”
  • “I think each region has acted independently, and that makes any coordination or solidarity initiative very difficult,”
  • The procurement of emergency equipment has been especially dire. The problem was highlighted when the health ministry acquired, via an undisclosed Spanish intermediary, 640,000 test kits from a Chinese company whose initial shipment proved unusable.
  • Even so, about 15 percent of Spain’s population is estimated to already have been infected — by far the highest proportion among 11 European countries
  • The biggest victims of the confused response, beyond those left sickened or dead by the virus, are Spain’s doctors and nurses, who themselves have been infected in staggering numbers.
  • “This crisis is likely to strengthen the horizontal bonds in our society, between citizens who are making big sacrifices, while weakening further the vertical one with the leadership at the top,”
  • almost two-thirds of people accused the government of hiding information about the epidemic.
  • “No politician can be held responsible for creating this crisis,’’ Mr. Michavila said. “But some probably will be blamed for pouring oil rather than using a bucket of water to put out the fire.”
Javier E

Opinion | At Least 89 Coronavirus Vaccines Are Being Developed. It May Not Matter. - Th... - 0 views

  • The potential for outbreaks to spread uncontrollably is particularly high in low-income countries where inadequate public health systems are unable to effectively track and respond to new diseases or to treat people who are infected
  • These countries are also limited in their ability to pay for vaccines, which is why the organization I run, Gavi, the Vaccine Allianc
  • substantially more financial help will be required if large numbers of vulnerable people are to be vaccinated. Otherwise, reservoirs of the virus will remain and continue to spread
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  • The danger is that richer nations will buy up the supply for their own use or prevent exports of vaccines developed within their borders as countries scramble to protect their citizens or stockpile for future outbreaks
  • Another concern is that manufacturers might restrict sales to the highest bidder.
  • the Coalition for Epidemic Preparedness Innovations is trying to expedite the development of vaccines
  • The coalition has kick-started the development of at least nine coronavirus vaccines but needs to raise $2 billion to help up to three of these candidates make it through the regulatory and quality requirements and to complete efficacy trials. The world would then need to ensure funds to guarantee manufacturing capacity for global production to make billions of doses available within the next 18 to 24 months.
  • it is encouraging that the health ministers of the Group of 20 wealthy nations called for accelerating the development, manufacturing and equitable distribution of vaccines against the coronavirus at its April 19 meeting and that last Friday, more than 15 heads of state, the president of the European Union, the director general of the World Health Organization and leaders of other international institutions committed to join together to do the same.
  • to keep the global population safe, it must be done. Innovative financing mechanisms exist that can translate long-term government commitments into immediate funding by issuing bonds on capital markets. The Ebola vaccine we have today was made possible by such an approach.
  • Estimates put the cost of Covid-19 to the global economy at up to $2 trillion this year.
  • If we can advance the mass distribution of an effective vaccine or vaccines by as little as two weeks, not only would we would save countless lives, but the effort would almost pay for itself by getting the world back to work.
Javier E

The 'Great Repression' is here and it will make past downturns look tame, economist say... - 0 views

  • In the “base case” for the U.S. economy, published by his firm, Rosenberg Research, the economy “reopens” in May, in a staggered approach across industries and regions. There are “periodic setbacks in terms of COVID-19 case counts…sufficient to make people less comfortable and confident about spending than they did prior to the crisis. A vaccine is not developed in this forecast, but treatment that alleviates the worst respiratory symptoms” is developed within the next six months, he writes.
  • A 30% contraction in real gross domestic product in the second quarter, negative year-over-year consumer price growth for 5 quarters, and an unemployment rate of 14.2% by the end of 2020, averaging 13% throughout 2021.
  • Investors in high-yield debt run for the doors, leaving those bonds more than 700 basis points more expensive than Treasurys at the end of this year.
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  • Rosenberg assumes stocks sink 30% in the coming months, then spend most of the next 18 months grinding higher to valuations about 10% lower than today’s levels.
  • Rosenberg also lays out a “best case,” which depends on a vaccine or treatment emerging in the next six to 12 months. That outlook includes an unemployment rate averaging about 9% for the next two years, a stock-market bottom of 2,500 for the S&P 500 in Q2, and a cyclical low of 29 basis points for the 10-year note in 2021.
  • The “worst-case” scenario is grim. It involves no vaccine, no treatment, and a second wave coronavirus outbreak next winter that severely saps business and household confidence. In this outlook, the jobless rate hits 20% — and averages 17.5% through 2021.
  • Outright deflation takes hold. “Think about what years of no pricing power is going to do to those corporate cash flows in the future,” Rosenberg writes. “Even government intervention is capable of suffering from the laws of diminishing demand. Japan is a classic template.”
  • But there’s a lot more damage done to the stock market. The S&P 500 bottoms at 1,800 in the second quarter and averages only 2,200 throughout 2021.
Javier E

Economics of Good and Evil: The Quest for Economic Meaning from Gilgamesh to Wall Stree... - 2 views

  • Instead of self-confident and self-centered answers, the author humbly asks fundamental questions: What is economics? What is its meaning? Where does this new religion, as it is sometimes called, come from? What are its possibilities and its limitations and borders, if there are any? Why are we so dependent on permanent growing of growth and growth of growing of growth? Where did the idea of progress come from, and where is it leading us? Why are so many economic debates accompanied by obsession and fanaticism?
  • The majority of our political parties act with a narrow materialistic focus when, in their programs, they present the economy and finance first; only then, somewhere at the end, do we find culture as something pasted on or as a libation for a couple of madmen.
  • most of them—consciously or unconsciously—accept and spread the Marxist thesis of the economic base and the spiritual superstructure.
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  • He tries to break free of narrow specialization and cross the boundaries between scientific disciplines. Expeditions beyond economics’ borders and its connection to history, philosophy, psychology, and ancient myths are not only refreshing, but necessary for understanding the world of the twenty-first century.
  • Reality is spun from stories, not from material. Zdeněk Neubauer
  • “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.”
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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?
  • 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).
  • 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?
  • 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.
  • 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.”
  • The History of Animal Spirits: Dreams Never Sleep
  • 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.
  • 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 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.
  • 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.
  • 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
  • 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.
  • Even today, we often consider the domain of humanity (human relations, love, friendship, beauty, art, etc.) to be unproductive;
  • 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

Our Elites Still Don't Get It - The New York Times - 0 views

  • John Bowlby is the father of attachment theory, which explains how humans are formed by relationships early in life, and are given the tools to go out and lead their lives
  • “All of us, from cradle to grave, are happiest when life is organized as a series of excursions, long or short, from the secure base provided by our attachment figures.”
  • The relationships that form you are mostly things you didn’t choose: your family, hometown, ethnic group, religion, nation and genes.
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  • The things you do with your life are mostly chosen: your job, spouse and hobbies.
  • At our foundation, we were a society with strong covenantal attachments — to family, community, creed and faith. Then on top of them we built democracy and capitalism that celebrated liberty and individual rights.
  • The deep covenantal institutions gave people the capacity to use their freedom well. The liberal institutions gave them that freedom.
  • This delicate balance — liberal institutions built atop illiberal ones — is now giving way. The big social movements of the past half century were about maximizing freedom of choice. Right-wingers wanted to maximize economic choice and left-wingers lifestyle choice. Anything that smacked of restraint came to seem like a bad thing to be eliminated.
  • We’ll call this worldview — which is all freedom and no covenant — naked liberalism
  • The problem with naked liberalism is that it relies on individuals it cannot create.
  • Naked liberals of right and left assume that if you give people freedom they will use it to care for their neighbors, to have civil conversations, to form opinions after examining the evidence. But if you weaken family, faith, community and any sense of national obligation, where is that social, emotional and moral formation supposed to come from? How will the virtuous habits form?
  • Naked liberalism has made our society an unsteady tree. The branches of individual rights are sprawling, but the roots of common obligation are withering away.
  • Freedom without covenant becomes selfishness. And that’s what we see at the top of society, in our politics and the financial crisis
  • First, they will identify themselves according to race. They will become the racial essentialists you see on left and right
  • And that’s what we see at the bottom of society — frayed communities, broken families, opiate addiction.
  • Freedom without a unifying national narrative becomes distrust, polarization and permanent political war.
  • covenantal attachments they become fragile. Moreover, if you rob people of their good covenantal attachments, they will grab bad ones.
  • Freedom without connection becomes alienation.
  • Then they resort to tribalism. This is what Donald Trump provides. As Mark S. Weiner writes on the Niskanen Center’s blog, Trump is constantly making friend/enemy distinctions, exploiting liberalism’s thin conception of community and creating toxic communities based on in-group/out-group rivalry.
  • Trump offers people cultural solutions to their alienation problem. As history clearly demonstrates, people will prefer fascism to isolation, authoritarianism to moral anarchy.
  • If we are going to have a decent society we’re going to have to save liberalism from itself. We’re going to have to restore and re-enchant the covenantal relationships that are the foundation for the whole deal. The crucial battleground is cultural and prepolitical.
  • In my experience, most people under 40 get this. They sense the social and moral void at the core and that change has to come at the communal, emotional and moral level.
  • Many public intellectuals were trained in the social sciences and take the choosing individual as their mental starting point. They have trouble thinking about our shared social and moral formative institutions and how such institutions could be reconstituted.
  • Congressional Republicans think a successful tax bill will thwart populism. Mainstream Democrats think the alienation problem will go away if we redistribute the crumbs a bit more widely.
  • History is full of examples of nations that built new national narratives, revived family life, restored community bonds and shared moral culture: Britain in the early 19th century, Germany after World War II, America in the Progressive Era. The first step in launching our own revival is understanding that the problem is down in the roots.
Javier E

This American Land - The New York Times - 0 views

  • The biggest thing nature did was offer ideals. Different Americans came up with different character types for how to engage with nature. Each type offered a model for how to live an admirable life.
  • According to one type, character was forged by tilling the land; according to another it was forged by being tested by the land; and in another it was formed by being cleansed by the land. These types wove together to form the American mythos.
  • The first ideal was the Steward. This is the small yeoman farmer and craftsman who lives close to the soil — self-reliant, upright, humble before creation and bonded to his local community.
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  • The second ideal was the Pioneer. This is the person who pushes against the wilderness and develops skill, courage and virility
  • The third ideal was the Elevated Spirit. This is the person who slips off the conformist materialism of commercial society and is both purified and enlarged by nature’s grandeur
rerobinson03

Opinion | How Not to Panic About Inflation - The New York Times - 0 views

  • After the 2008 financial crisis plunged America into a deep recession, both the new Obama administration and the Federal Reserve tried to stimulate the economy, spending hundreds of billions on a variety of programs while buying trillions in bonds. There is now consensus among economists that these efforts were helpful, but it’s also widely believed that they were inadequate (as some of us strenuously argued at the time).
  • Reflecting this expectation, companies will mark prices up relative to what they would have been if they didn’t expect future inflation — and by so doing, will feed the very inflation they fear. In other words, once expectations of sustained inflation are embedded in the economy, inflation becomes self-perpetuating — and bringing it down can be extremely difficult. That’s what makes stagflation — inflation despite high unemployment — possible.
  • If they aren’t — and my bet is that they won’t be — then the lesson of 2010-2011 will remain: Don’t panic.Now as then there are people eager to denounce government attempts to help the economy. And it’s certainly possible that the American Rescue Plan will turn out, in retrospect, to have been too much of a good thing. But don’t let the usual suspects seize on a few months’ inflation data as evidence of looming disaster.
anonymous

Regal Cinemas To Reopen Its Theaters In April : NPR - 0 views

  • Regal Cinemas will reopen its theaters in the U.S. in April, six months after they closed amid the ongoing coronavirus pandemic.The reopening plans were announced by parent company Cineworld Group on Tuesday. Cineworld intends to reopen its theaters in the U.K. in May. Regal has more than 7,000 movie screens in 536 theaters in the United States.
  • Cineworld also announced a multiyear deal with Warner Bros. Pictures Group in the U.S. that will guarantee a period of exclusivity for movies in theaters before being released more widely, starting in 2022. But in 2021, Warner Bros.' new movie releases — including Godzilla vs. Kong and Mortal Kombat — will also be available to stream on HBO Max.
  • The theaters' reopening will coincide with a couple of big-ticket movie openings: Godzilla vs. Kong on April 2 and Mortal Kombat on April 16.
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  • Other companies, including Comcast NBCUniversal and Disney, opted last year to release films directly to online streaming as theaters were closed.Movie theater revenues were battered by the pandemic. A number of big movies have been delayed from 2020 or early 2021 openings, including Dune, Jurassic World: Dominion and the next James Bond installment, No Time to Die.
rerobinson03

If the Economy Overheats, How Will We Know? - The New York Times - 0 views

  • Some big-name economists argue that the economy will soon overheat because of the Biden administration’s $1.9 trillion pandemic relief and other spending measures.
  • When demand for goods and services expands faster than the supply of them, consumers simply bid up the price of finite goods, and businesses bid up wages to try to keep up. This begins a cycle of higher wages fueling higher prices, which in turn fuels higher wages.Such a process began in the mid-1960s and culminated in double-digit inflation in the 1970s. But there are important differences between then and now. For one thing, unions then were more powerful and demanded steep wage increases. For another, a series of one-off events made inflation worse, including the breakdown of the Bretton Woods international currency arrangements and oil embargoes that sent fuel prices soaring.
  • The overheating worriers, who include prominent Clinton-era policymakers and many conservatives, believe there is a more substantial chance that one of two more pessimistic scenarios will come true. As vast federal spending keeps coursing through the economy, they fear that high inflation will come to be seen as the new normal and that behavior will adjust accordingly.
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  • It turns out that the two sides — the overheating worriers and those who think those concerns are misplaced — agree on many points. They have common ground on what a bad outcome might look like, and agree that it will take some time to know whether a problematic form of inflation is really taking root. The differences are in how likely they consider it to happen.
  • He now assigns roughly equal odds to three possibilities: that everything goes according to plan, with inflation returning to normal after a one-time surge; that a cycle of ever-rising inflation develops; or that the Fed ultimately causes a steep downturn to prevent that inflationary cycle.
  • Michael Strain of the American Enterprise Institute also emphasized these inflation “break-evens,” which capture bond investors’ views of future inflation based on the gap between inflation-protected and regular securities. Like Mr. Mankiw, he said that break-evens suggesting 3 percent or higher annual inflation over the next five years would be worrying, as would 2.5 percent or higher inflation expected for the period five to 10 years from now.
anonymous

Boulder Shooting Suspect Makes 1st Court Appearance : NPR - 0 views

  • The suspect in the Boulder, Colo. grocery store shooting that left 10 people dead made his first appearance in court Thursday in a brief hearing that called for a mental health assessment. On Wednesday night, hundreds of people gathered to mourn the victims and support those affected by senseless gun violence.
  • Ahmad Al Aliwi Alissa, 21, is facing 10 counts of murder in the first degree and one count of attempted murder over the horrific attack at a King Soopers supermarket. The victims include a police officer who responded to calls for help. The ages of those who died range from 20 to 65.
  • Alissa appeared in court alongside his attorney, Kathryn Herold of the Colorado Public Defender's Office. Alissa wore a white face mask and what looked to be a purple hospital gown. Because of an injury to his leg, the suspect was seated in a wheelchair.
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  • Herold asked for a three-month delay before a preliminary hearing, noting the need to assess her client as well as the pending arrival of evidence and records from the ongoing investigation into the shooting — a discovery process she predicted will be "voluminous."
  • District Judge Thomas Mulvahill agreed to Herold's request after Boulder County District Attorney Michael Dougherty noted that his office will file additional charges against Alissa "in the next couple weeks." While Dougherty did not object to the delay for a mental health assessment, he asked for a shorter time frame, of a month and a half.
  • The judge did not set a bond for the suspect, meaning he will stay in jail as the case moves to the next steps. Speaking to reporters outside the courthouse after the hearing, Dougherty was asked if he believes a "fair" jury can be convened in Boulder.
  • Explaining the attempted murder charge Alissa is facing, the prosecutor said the charge refers to a police officer whom the suspect fired at but did not injure. Dougherty also noted that in Colorado, homicide cases commonly take at least a year to be tried to completion.
  • The case will be assigned to Chief Judge Ingrid Bakke; rather than set a date for the next hearing in the case, Mulvahill told the attorneys from both sides to be in touch with Bakke about the next proceeding.
  • The suspect is from Arvada, a suburb between Denver and Boulder. Before this week, Alissa had a criminal record that included a guilty plea to a misdemeanor assault charge in 2018. He paid a fine to resolve that case, according to court records.
  • Alissa surrendered to police after suffering a gunshot wound to his leg. That injury, a "through-and-through" wound, was treated at a hospital before Alissa was taken to the Boulder County Jail. He was taken into custody after removing most of his clothing – jeans, a long-sleeve shirt and a tactical vest – and walking backward toward police, according to an arrest warrant affidavit.
  • Along with Alissa's clothes, police recovered "a rifle (possible AR-15)" and a semiautomatic handgun, the court document states.The arrest warrant affidavit for Alissa said he purchased a gun less than a week before the King Soopers shooting, citing official databases that show he bought a Ruger AR-556 on March 16.
  • The weapon used in the shooting is legally classified as a "pistol" in the U.S., but many people would likely consider it to be a rifle — and the affidavit repeatedly refers to it as one. The gun has the same lower receiver, the shell-like piece that houses the trigger, as AR-15 rifles that have been used in many other mass shootings in the United States.
leilamulveny

Opinion | How Biden Funds His Next Bill: Shrink the $7.5 Trillion Tax Gap - The New Yor... - 0 views

  • With the passage of a deficit-financed $1.9 trillion relief bill just hours away, Democrats in Congress may soon pivot to new agenda items, including President Biden’s Build Back Better plan for infrastructure and other critical investments. And those lawmakers will inevitably face intense pressure from fiscal moderates to include tax “pay fors” in spending legislation. One of the best ways to raise plenty of revenue — and help honest taxpayers — is to effectively battle tax cheats. To do that, though, Mr. Biden and Congress must seize the chance to revamp and restore the federal government’s own infrastructure: the Internal Revenue Service.
  • That tax gap is projected to total about $7.5 trillion over this decade. Meanwhile, the I.R.S. answered fewer than a quarter of its phone calls from people seeking help with their taxes.
  • . It would help the overwhelming majority of Americans who want to pay whatever they owe. It would help honest businesses better thrive and compete. And restaffing the I.R.S. through restored funding would help fight corruption and strengthen the rule of law.
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  • Perhaps unsurprisingly, the wealthiest are the prime beneficiaries of the status quo. Estimates suggest that the top 1 percent of filers account for at least 28 percent and as much as 70 percent of the tax gap. The wealthiest households and largest businesses often use a complex maze of financial arrangements and offshore entities that make it incredibly hard and time-consuming for the I.R.S. to untangle what taxes are owed but not paid.
  • A Treasury Inspector General for Tax Administration report published last year found the I.R.S. had failed to follow up with more than 369,000 high-income households that simply did not file a tax return in prior years.
  • Multinational corporations being audited by the I.R.S. have shown they can outgun and outlast it, stalling their cases as long as possible to run out the clock on the statute of limitations. The number of cases brought by the agency’s criminal division has dropped by about a quarter since 2010. Many recent high-profile prosecutions for tax evasion — like those of Paul Manafort, Michael Cohen and Michael Avenatti — occurred only because federal investigators were investigating them for other reasons.
  • An increase in I.R.S. funding to reverse this decade of damage would also make good fiscal sense. Natasha Sarin, an assistant professor at the University of Pennsylvania law school, and Larry Summers, the Harvard economist, have a proposal to restore about $100 billion to the agency’s budget over the next 10 years.
  • For example, because the I.R.S. gets information on wage and salary income from workers’ tax returns and their employers — and because their taxes are often automatically withheld — compliance on this type of income is above 95 percent
  • Lawmakers have the opportunity to remedy that this year and finally secure the 21st-century tools and resources the I.R.S. needs. Because reforming the I.R.S. is compatible with the budget process that lets spending bills pass in the Senate with a simple majority, there’s little excuse for inaction.
mattrenz16

Kyle Rittenhouse Trial In Kenosha Killings Delayed Until November : NPR - 0 views

  • A Wisconsin judge on Wednesday delayed the murder trial of Kyle Rittenhouse, who is charged with fatally shooting Black Lives Matters protesters in Kenosha last summer.
  • Prosecutors as well as Rittenhouse's defense attorneys had asked for the postponement, arguing they needed more time to build their respective cases. Kenosha County Circuit Judge Bruce Schroeder also set a meeting for May, to ensure that the new timeline still works for the two legal teams.
  • Months after his release, Rittenhouse was spotted in a Wisconsin bar with possible members of the Proud Boys, an extremist group that federal prosecutors say played a critical role in storming the U.S. Capitol on Jan. 6.
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  • In February, Schroeder refused to issue a new arrest warrant or increase Rittenhouse's bail, after he failed to update his current address with the court. But he did prohibit the shooter from associating with white supremacists.
  • On Wednesday, Rittenhouse's lawyers said they needed extra time to finish up a public opinion poll "to get a feel for whether Rittenhouse can expect to get a fair trial in the county, or if there might be reason to seek a change of venue or a jury pool from another county," the Milwaukee Journal-Sentinel reported.
aidenborst

The world went on a debt binge last year. There could be a nasty hangover - CNN - 0 views

  • Desperate to save their economies from complete collapse, governments borrowed unprecedented amounts of money on the cheap to support workers and businesses during the pandemic. Now, with recovery in sight, a big risk looms: interest payments.
  • Spurred on by rock-bottom rates, governments issued $16.3 trillion in debt in 2020, and they're expected to borrow another $12.6 trillion this year, according to S&P Global Ratings. But fears are growing that an explosive economic comeback starting this summer could generate inflation, potentially forcing central banks to raise rates sooner than expected.
  • Should that happen, the cost of servicing mountains of sovereign debt will jump, eating up government funds that could otherwise be spent on essential services or rebuilding weakened economies.
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  • "A big jump in interest rates would be very costly," said Ugo Panizza, professor of international economics at the Graduate Institute in Geneva. "Central banks will face very, very complicated tradeoffs if inflation does go up."
  • The moves have been triggered in part by growing confidence about the next phase of the pandemic. As vaccination campaigns allow governments to lift some restrictions, consumers are expected to rush to restaurants and hop on planes. That could push up prices, which central banks have pledged to keep under control.
  • US lawmakers approved a mammoth $1.9 trillion stimulus package on Wednesday that could send prices higher and increase pressure on the Federal Reserve.
  • The Congressional Budget Office projects that publicly-held government debt in the United States will climb to nearly $22.5 trillion by the end of fiscal 2021. That's equivalent to 102% of annual gross domestic product. In Italy, the ratio stood at 154% at the end of September, while Greece was almost at 200%.
  • Interest costs are even more sensitive to inflation and rate hikes because of the pandemic response.The UK government borrowed £270.6 billion ($377 billion) between April 2020 and January 2021, and higher interest rates mean increased payments on that debt.
  • "Just as it would be irresponsible to withdraw [economic] support too soon, it would also be irresponsible to allow future borrowing and debt to be left unchecked," he said.
  • "It is a real concern," said Randall Kroszner, who served as a Federal Reserve governor from 2006 until 2009. If US debt payments suddenly go "from being quite low to being quite significant," that could weigh on the recovery and slow economic activity, he added.
  • Panizza said that Italy needs to refinance or extend the due date of about one-seventh of its debt every year. If interest rates were to go up by 2%, that would add about half a point of GDP, or roughly $9.9 billion, to debt servicing costs annually. That's a "substantial" amount, he emphasized.
  • "This is not something that we have a lot of experience with," Kroszner said.
aleija

Opinion | The Coronavirus Killed the Gospel of Small Government - The New York Times - 0 views

  • On March 1, 2020, Gov. Andrew Cuomo of New York announced the first confirmed case of Covid-19 in his state, after reports of local outbreaks up and down the West Coast in February. The avalanche began, with states across the country shutting down and caseloads surging into the thousands. American life had been upended.
  • On March 9, fearing a wave of corporate losses and bankruptcies, investors piled into government-backed paper, driving down the yield on 10-year Treasury bonds to just 0.54 percent. On March 15, the Federal Reserve announced that it would begin offering ultracheap emergency loans to banks, reviving the rescue mind-set during the 2008 financial crisis. The same day, it cut a key interest rate to near zero, reducing financing costs for businesses and consumers. Two days later, it resurrected another 2008-era program to provide cheap longer-term loans to big banks and securities dealers.
  • The United States once maintained a robust commitment to public investment in things like spaceflight, medical research, the interstate highway system and the development of the internet, backed by Republican and Democratic administrations alike.
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  • Yet despite this persistent inability to mobilize resources, the U.S. government proved reasonably adept at summoning and allocating money.
  • Congress salvaged thousands of small businesses with its $660 billion Paycheck Protection Program, while preserving the finances of millions of Americans by boosting unemployment benefits and writing checks to households.
  • Of course, expanded unemployment aid should have kept flowing through the final five months of last year. And aid to state and local governments to fight the pandemic was insufficient. But where the problem was a shortage of money, the government delivered. Cash constraints have not hindered its rescue efforts, at $5 trillion and counting. Even the loudest moderates of Joe Biden’s Democratic Party did not balk at the $1.9 trillion cost of the Covid-19 relief bill he signed into law Wednesday night.
Javier E

Corporations Are Not Friends, People - The Atlantic - 0 views

  • Corporations are people, my friend,” Romney replied. He was jeered in the crowd, and jeered even more by Democrats afterward. “I don’t care how many times you try to explain it,” Barack Obama said on the stump. “Corporations aren’t people. People are people.”
  • In arguing that companies should absolutely continue to donate money to politicians, but also that they should stay out of politics,
  • What these politicians are expressing is the fury of people who thought they had a deal, and have learned that they don’t, at least not on the old terms. The old arrangement was simple: The fiscally conservative wing of the Republican Party would push for lighter regulation, lower corporate taxes, and lower taxes on the high earners who ran corporations. In return, the corporations would cut generous checks to Republicans and remain circumspectly quiet about the culture-war issues that the social-conservative wing of the party cared about.
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  • McConnell embraced the tortured position that money, and only money, is speech—and that actual speech is not speech.  
  • The Kentuckian argued that money was speech, and limitations on donations—even requirements to disclose—infringed on free speech.
  • life—the peaceful transfer of power comes to mind—it is a casualty of the Trump era. In the early half of his presidency, Donald Trump pursued some projects that solidified the traditional bond between the GOP and business, such as slashing taxes, but also others that divided the old allies, including protectionist policies on trade and personally intervening to bully companies.
  • Last year, the U.S. Chamber of Commerce, usually a stalwart supporter of Republicans, endorsed some Democrats, and it forcefully condemned Trump’s attempt to overturn the 2020 election.
  • Meanwhile, a decades-long consensus that publicly held that companies should, above all, do whatever they could to maximize short-term shareholder value began to soften. In 2019, the Business Roundtable, a leading trade association, released new guidance that said corporations should “push for an economy that serves all Americans,” in Chairman Jamie Dimon’s words, by investing in communities and employees, dealing ethically with suppliers, and considering longer-term returns.
  • Now with voting laws at the center of national politics, corporations are speaking out. MLB moved the All-Star Game, Coca-Cola and Delta blasted the Georgia law, and other executives have objected to the law and other bills under consideration elsewhere. To critics, this is riskily divisive. Echoing a famous Michael Jordan line, McConnell complained that Republicans drink Coke and fly too.
  • But these companies are responsive to many groups, and just because their stances don’t directly affect revenue and profits, that doesn’t mean these aren’t business decisions. Corporations are balancing the demands of shareholders, customers, and employees, as well as the positions of their own executives,
  • Companies may also calculate that the long-term costs of being on the wrong side of social-justice issues, or the wrong side of an ascendant liberal, diverse population, outweigh the short-term risks of Republican backlash and boycotts.
  • In short, what McConnell calls “blackmail” is just free enterprise at work. These companies may or may not be acting in their long-term best interests—corporations make mistaken bets about the future all the time—but they are acting rationally.
  • The minority leader is realizing that the deal Republicans had with big corporations wasn’t personal; it was just business. A tax break can buy you a lot of things, but it doesn’t buy love.
  • In taking these stances on big social issues, these corporations are acting in a majoritarian manner. But no one should conclude that they are progressive. Even as big business enters into a temporary alliance with Democrats on voting rights, many of its captains are fighting back against the plan President Joe Biden announced Wednesday to raise corporate tax rates.
  • American government would probably be healthier if more politicians asked—for whatever reason—why they are so willing to accept corporations’ arguments on taxes, regulation, and antitrust. Corporations may be people, my friends. But corporations are not friends, people.
Javier E

Protect biodiversity to fight climate change - The Washington Post - 0 views

  • Giant kelp is among the best organisms on the planet for taking planet-warming gases out of the atmosphere. Buoyed by small, gas-filled bulbs called “bladders,” these huge algae grow toward the ocean surface at a pace of up to two feet per day. Their flexible stems and leafy blades form a dense underwater canopy that can store 20 times as much carbon as an equivalent expanse of terrestrial trees.
  • Yet this powerful force for planetary protection is under siege. Warming waters and worsening storms caused by climate change have weakened the kelp forests.
  • Most significantly, the demise of important predators such as otters and sea stars has led to an explosion in the population of sea urchins, which eat kelp.
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  • The Earth itself is our greatest ally in this effort. Ecosystems like California’s kelp forests absorb about half of the greenhouse gases humans emit, studies show. Without them, warming would be even worse. Nature shields us from the worst consequences of our own actions, forgiving the sins we refuse to repent.
  • If we hope to solve climate change, humanity must also address this biodiversity crisis — restoring ecosystems and the creatures that inhabit them.
  • One way to revitalize ecosystems: protect the ground they grow from.Think of the soft, spongy soil of an old-growth woodland. Here, a towering oak tree draws up water and nutrients via threadlike fungi attached to its roots. In exchange, the fungi take sugar from the oak, funneling carbon from the air into the ground.Now imagine a leaf from that oak drifting slowly to the forest floor. Perhaps it becomes food for an earthworm. Then microbes attack the earthworm’s droppings, breaking down the residue further still.Eventually, the carbon that was once a leaf can become trapped in clods of earth. Other atoms may form strong chemical bonds with minerals like iron, which prevents them from reacting with oxygen and returning to the air. Under the right conditions, carbon might stay locked away in dense, dark earth for centuries. Soils contain more carbon than the entire atmosphere and all the world’s plants combined.
  • This makes soil both a ticking time bomb and an overlooked climate solution
  • “And because soil is such an important reservoir,” Berhe said, “a small change in the release of that carbon can lead to a big change in the concentrations of greenhouse gases in the atmosphere.”
  • A 2020 analysis in the journal Nature Sustainability found that better soil stewardship could reduce emissions by at least 5.5 gigatons of carbon dioxide each year — about 15 percent of current annual emissions.
  • “Once that happens,” Berhe said, “it’s not just the carbon status of the soil that’s improved. The soil literally becomes softer. It holds more water and nutrients. It’s easier for plants to grow in … and serve as a home for the most abundant and diverse group of organisms that we know of.
  • Enhancing carbon in soils is just the beginning. In 2017, an international team of scientists set out to determine how much carbon the planet could pull out of the atmosphere, if humans would only give it a chance. In a study in the Proceedings of the National Academy of Sciences (PNAS), they concluded natural climate systems are capable of storing almost 24 gigatons of carbon dioxide per year — roughly two thirds of what people emit.
  • About half of that sequestration would be cost-effective, meaning enacting the necessary protections would cost less than the consequences of keeping that carbon in the air.
  • Of the climate solutions they studied, few delivered more carbon bang per buck than mangroves — lush systems of salt-tolerant shrubs and trees that thrive where freshwater rivers spill into the sea. Though these forests occupy just 0.5 percent of the Earth’s shorelines, they account for 10 percent of the coast’s carbon storage capacity.
  • But the unique ecosystems are too often dismissed as unproductive swamps, good for no one but the mosquitoes. In the past half-century, more than a quarter of the world’s mangroves have been destroyed — drained for development, converted for shrimp farms, poisoned by fertilizer and drowned by dammed-up streams.
  • Yet the Earth cannot compensate for all of humanity’s pollution, said William Schlesinger, former dean of Duke University’s School of the Environment and a co-author on the 2017 PNAS study. Unless people also reduce the amount of greenhouse gases we emit, no amount of ecological restoration will save us.
  • “The bottom line is we’ve got to get off of using fossil fuels in transportation and heating and lighting and everything else,”
  • In public talks, he puts it this way: “It’s easier to patch a hole in a bag than to pick up the marbles that fall out.”
  • Since the end of the last ice age, the frozen expanse at the top of the world has acted as a protective shield. During the summer, when the sun shines 24 hours a day, Arctic sea ice reflects about two-thirds of the light that hits it back into space. By contrast, the dark open ocean absorbs the majority of the sun’s heat.
  • If the Arctic loses its perpetual ice cover, it would add half a degree Celsius of warming to the global average temperature, studies suggest. The world is hurtling toward that milestone. Since 1979, the volume of ice left at the end of the summer has shrunk about 75 percent.
  • There is just one way to save it, she said: by stopping global warming. Only by ending the use of fossil fuels and eliminating greenhouse gas emissions can people prevent the Arctic from heating further and give the ice a chance to recover.
  • If we do nothing, models indicate, it will be a matter of decades before the summertime Arctic is ice-free for the first time in human history. Sea levels will surge, coastal communities will be deluged, and we will no longer have the planet’s air conditioning unit to help us cool our world down.
  • Our species evolved and our civilization was built under fairly stable climate conditions. When things changed, they changed slowly, giving us time to adapt.
  • The rapid transformation of our planet doesn’t just endanger ecosystems; humanity will suffer. People have never lived on a planet without mangroves, or peatlands, or summertime ice. We’ve never had to go without the benefits the Earth provides.
aidenborst

The Fed will start winding down a program that saved the economy - CNN - 0 views

  • The Federal Reserve announced Wednesday that it will begin winding down a program that purchased tens of billions of dollars of corporate assets to shore up the economy during the pandemic.
  • In a statement, the central bank said the facility was crucial to businesses during the depth of the recession.
  • The program "proved vital in restoring market functioning last year, supporting the availability of credit for large employers, and bolstering employment through the Covid-19 pandemic," the Fed said.
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  • The corporate assets are in addition to another $7 trillion worth of government debt that the Fed said it will continue to purchase to keep the economic recovery humming.
  • "Portfolio sales will be gradual and orderly, and will aim to minimize the potential for any adverse impact on market functioning," the Fed said.
  • The Fed currently holds $13.7 billion worth of corporate assets, including more than $5 billion of corporate bonds and another $8.5 billion worth of exchange-traded funds.
  • The Federal Reserve announced Wednesday that it will begin winding down a program that purchased tens of billions of dollars of corporate assets to shore up the economy during the pandemic.
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