Skip to main content

Home/ History Readings/ Group items tagged abundance

Rss Feed Group items tagged

Filter: All | Bookmarks | Topics Simple Middle
17More

The age of fossil-fuel abundance is dead | The Economist - 0 views

www.economist.com/...21805253 politics economics
shared by woodlu on 05 Oct 21 - No Cached
  • FOR MUCH of the past half-decade, the operative word in the energy sector was “abundance”. An industry that had long sought to ration the production of fossil fuels to keep prices high suddenly found itself swamped with oversupply, as America’s shale boom lowered the price of oil around the world and clean-energy sources, such as wind and solar, competed with other fuels used for power generation, such as coal and natural gas.
  • In recent weeks, however, it is a shortage of energy, rather than an abundance of it, that has caught the world’s attention.
  • Britain’s miffed motorists are suffering from a shortage of lorry drivers to deliver petrol. Power cuts in parts of China partly stem from the country’s attempts to curb emissions. Dwindling coal stocks at power stations in India are linked to a surge in the price of imports of the commodity.
  • ...14 more annotations...
  • a slump in investment in oil wells, natural-gas hubs and coal mines. This is partly a hangover from the period of abundance, with years of overinvestment giving rise to more capital discipline.
  • A rule of thumb is that oil companies are supposed to allocate about four-fifths of their capital expenditure each year just to stopping their level of reserves from being depleted. Yet annual industry capex has fallen from $750bn in 2014 (when oil prices exceeded $100 a barrel) to an estimated $350bn this year
  • Oil crossed $81 a barrel after the Organisation of the Petroleum Exporting Countries (OPEC), and allies such as Russia who are part of the OPEC+ alliance, resisted calls to increase output at a meeting on October 4th.
  • But it may at least accelerate the shift to greener—and cheaper—sources of energy.
  • result of growing pressures to decarbonise.
  • over the same period, the number of years’ worth of current production held in reserves in some of the world’s biggest projects has fallen from 50 to about 25
  • The industry would usually respond to robust demand and higher prices by investing to drill more oil. But that is harder in an era of decarbonisation.
  • big private-sector oil companies, such as ExxonMobil and Royal Dutch Shell, are being pressed by investors to treat oil and gas investments like week-old fish
  • shareholders reckon that demand for oil will eventually peak, making long-term projects uneconomic, or because they prefer to hold stakes in companies that support the transition to clean energy
  • Another factor inhibiting oil investment is the behaviour of OPEC+ countries. The half-decade of relatively low prices during the “age of abundance”, which reached its nadir with a price collapse at the start of the pandemic, g
  • utted state coffers. That cut funding for investment. As prices recover, governments’ priority is not to ex
  • pand oil-production capacity but to shore up national budgets.
  • Investment in thermal coal is weakest of all. Even in China and India, which have big pipelines of new coal-fired power plants, the mood has swung against the dirtiest fossil fuel.
  • All this places fossil-fuel producers in something of a bind. A slump in investment could enable some oil, gas and coal investors to make out like bandits. But the longer prices stay high, the more likely it becomes that the transition to clean energy ultimately buries the fossil-fuel industry. Consumers, in the meantime, must brace for more shortages.
23More

What Elon Musk's 'Age of Abundance' Means for the Future of Capitalism - WSJ - 0 views

www.wsj.com/...-future-of-capitalism-7c0807df AI abundance utopia technology capitalism work employment basic income
shared by Javier E on 11 Nov 23 - No Cached
  • When it comes to the future, Elon Musk’s best-case scenario for humanity sounds a lot like Sci-Fi Socialism.
  • “We will be in an age of abundance,” Musk said this month.
  • Sunak said he believes the act of work gives meaning, and had some concerns about Musk’s prediction. “I think work is a good thing, it gives people purpose in their lives,” Sunak told Musk. “And if you then remove a large chunk of that, what does that mean?”
  • ...20 more annotations...
  • Part of the enthusiasm behind the sky-high valuation of Tesla, where he is chief executive, comes from his predictions for the auto company’s abilities to develop humanoid robots—dubbed Optimus—that can be deployed for everything from personal assistants to factory workers. He’s also founded an AI startup, dubbed xAI, that he said aims to develop its own superhuman intelligence, even as some are skeptical of that possibility. 
  • Musk likes to point to another work of Sci-Fi to describe how AI could change our world: a series of books by the late-, self-described-socialist author Iain Banks that revolve around a post-scarcity society that includes superintelligent AI. 
  • That is the question.
  • “We’re actually going to have—and already do have—a massive shortage of labor. So, I think we will have not people out of work but actually still a shortage of labor—even in the future.” 
  • Musk has cast his work to develop humanoid robots as an attempt to solve labor issues, saying there aren’t enough workers and cautioning that low birthrates will be even more problematic. 
  • Instead, Musk predicts robots will be taking jobs that are uncomfortable, dangerous or tedious. 
  • A few years ago, Musk declared himself a socialist of sorts. “Just not the kind that shifts resources from most productive to least productive, pretending to do good, while actually causing harm,” he tweeted. “True socialism seeks greatest good for all.”
  • “It’s fun to cook food but it’s not that fun to wash the dishes,” Musk said this month. “The computer is perfectly happy to wash the dishes.”
  • In the near term, Goldman Sachs in April estimated generative AI could boost the global gross domestic product by 7% during the next decade and that roughly two-thirds of U.S. occupations could be partially automated by AI. 
  • Vinod Khosla, a prominent venture capitalist whose firm has invested in the technology, predicted within a decade AI will be able to do “80% of 80%” of all jobs today.
  • “I believe the need to work in society will disappear in 25 years for those countries that adapt these technologies,” Khosla said. “I do think there’s room for universal basic income assuring a minimum standard and people will be able to work on the things they want to work on.” 
  • Forget universal basic income. In Musk’s world, he foresees something more lush, where most things will be abundant except unique pieces of art and real estate. 
  • “We won’t have universal basic income, we’ll have universal high income,” Musk said this month. “In some sense, it’ll be somewhat of a leveler or an equalizer because, really, I think everyone will have access to this magic genie.” 
  • All of which kind of sounds a lot like socialism—except it’s unclear who controls the resources in this Muskism society
  • “Digital super intelligence combined with robotics will essentially make goods and services close to free in the long term,” Musk said
  • “What is an economy? An economy is GDP per capita times capita.” Musk said at a tech conference in France this year. “Now what happens if you don’t actually have a limit on capita—if you have an unlimited number of…people or robots? It’s not clear what meaning an economy has at that point because you have an unlimited economy effectively.”
  • In theory, humanity would be freed up for other pursuits. But what? Baby making. Bespoke cooking. Competitive human-ing. 
  • “Obviously a machine can go faster than any human but we still have humans race against each other,” Musk said. “We still enjoy competing against other humans to, at least, see who was the best human.”
  • Still, even as Musk talks about this future, he seems to be grappling with what it might actually mean in practice and how it is at odds with his own life. 
  • “If I think about it too hard, it, frankly, can be dispiriting and demotivating, because…I put a lot of blood, sweat and tears into building companies,” he said earlier this year. “If I’m sacrificing time with friends and family that I would prefer but then ultimately the AI can do all these things, does that make sense?”“To some extent,” Musk concluded, “I have to have a deliberate suspension of disbelief in order to remain motivated.”
13More

Don't fall for the doomsday predictions - The Washington Post - 0 views

www.washingtonpost.com/...9-b6ad-9cfd62dbb0a8_story.html abundance index population prices carbon-pricing crisis
shared by Javier E on 26 Jun 19 - No Cached
  • few wrong ideas have been more persistent than the fear of too many people
  • In a famous 1980 wager, Simon bet an author of “The Population Bomb,” Stanford University’s Paul Ehrlich, that resources would actually become more plentiful, not less, as the population grew
  • he won the bet: In a little more than 10 years, the price of a representative set of commodities fell by more than half — a clear signal that supply was outstripping demand.
  • ...10 more annotations...
  • Gale L. Pooley and Marian L. Tupy extend the results of the bet a quarter-century to the latest data available, while offering a more sophisticated tool for measuring what they call the Simon Abundance Index.
  • In brief, they calculate the cost of commodities by how much time it takes a typical global worker to earn enough money to buy them. The index determines prosperity or shortage at ground level: in the lived experiences of actual human beings.
  • Measured by global average hourly income, the price of a representative basket of 50 key commodities — food, energy, minerals and so forth — fell by nearly two-thirds between when the bet was made and 2017
  • Measured by the time it takes to buy the basket, the Earth’s resources have become 380 percent more abundant as the human population grew by 69 percent.
  • resources grew “because” of the rise in population.
  • We think we know the limits of our resources until human brains discover ways to burst those limits.
  • Take, for example, the pressing issue of water supplies — a current concern of population catastrophists. In water-stressed places from Israel to Singapore to Las Vegas, human brains are deploying a wide variety of technologies to efficiently desalinate seawater or effectively recycle wastewater, thereby increasing the available resource
  • These advances don’t happen by magic. They happen through price signals. When a resource grows expensive, creative people figure out how to find more, create more or use less
  • Romer points us to the tremendous potential of a tax on carbon as the best available weapon against climate change. The tax — which could be refunded in the form of subsidies for green upgrades at home and work — is the necessary price signal to unleash the full creative powers of human ingenuity.
  • all around us, if we will look past fear to facts, we see evidence of abundance. And we can continue to have more of it for more people, if we treasure and nurture the most precious of our renewable resources: ourselves and our fellow human beings.
29More

Opinion | Yes, Nikki Haley, the Civil War Was About Slavery - The New York Times - 0 views

www.nytimes.com/...haley-civil-war-slavery.html civil war US slavery causes economics politics history
shared by Javier E on 03 Jan 24 - No Cached
  • Of course the Civil War was about slavery, and everyone knew it at the time. No, Nikki Haley, it wasn’t about states’ rights, except to the extent that Southern states were trying to force Northern states to help maintain slavery
  • it may be worth delving a bit deeper into the background here. Why did slavery exist in the first place? Why was it confined to only part of the United States? And why were slaveholders willing to start a war to defend the institution, even though abolitionism was still a fairly small movement and they faced no imminent risk of losing their chattels?
  • The American system of chattel slavery wasn’t motivated primarily by racism, but by greed. Slaveholders were racists, and they used racism both to justify their behavior and to make the enslavement of millions more sustainable, but it was the money and the inhumane greed that drove the racist system.
  • ...26 more annotations...
  • there’s little reason to enserf or enslave a worker (not quite the same thing, but let’s leave that aside) if labor is abundant and land is scarce, so that the amount that worker could earn if he ran away barely exceeds the cost of subsistence.
  • But if land becomes abundant and labor scarce, the ruling class will want to pin workers in place, so they can forcibly extract the difference between the value of what workers can produce — strictly speaking, their marginal product — and the cost of keeping them alive.
  • Yet serfdom wasn’t reimposed, for reasons that aren’t entirely clear. One thought, however, is that holding people captive in order to steal the fruits of their labor isn’t easy.
  • In fact, the real historical puzzle is why high wages didn’t always lead to widespread slavery or serfdom
  • serfdom in the West had more or less withered away by around 1300, because Western Europe was overpopulated given the technologies of the time, which in turn meant that landowners didn’t need to worry that their tenants and workers would leave in search of lower rents or higher wages.
  • But the Black Death caused populations to crash and wages to soar. In fact, for a while, real wages in Britain reached a level they wouldn’t regain until around 1870:
  • Labor was scarce in pre-Civil War America, so free workers earned high wages by European standards. Here are some estimates of real wages in several countries as a percentage of U.S. levels on the eve of the Civil War:
  • Indeed, slaveholders and their defenders lashed out at anyone who even suggested that slavery was a bad thing. As Abraham Lincoln said in his Cooper Union address, the slave interest in effect demanded that Northerners “cease to call slavery wrong, and join them in calling it right.”
  • Notice that Australia — another land-abundant, labor-scarce nation — more or less matched America; elsewhere, workers earned much less.
  • Landowners, of course, didn’t want to pay high wages. In the early days of colonial settlement, many Europeans came as indentured servants — in effect, temporary serfs
  • landowners quickly turned to African slaves, who offered two advantages to their exploiters: Because they looked different from white settlers, they found it hard to escape, and they received less sympathy from poor whites who might otherwise have realized that they had many interests in common. Of course, white southerners also saw slaves as property, not people, and so the value of slaves factored into the balance sheet of this greed-driven system.
  • again, the dynamic was one in which greedy slaveholders used and perpetuated racism to sustain their reign of exploitation and terror.
  • Because U.S. slavery was race-based, however, there was a limited supply of slaves, and it turned out that slaves made more for their masters in Southern agriculture than in other occupations or places
  • Black people in the North were sold down the river to Southern planters who were willing to pay more for them, so slavery became an institution peculiar to one part of the country.
  • As such, slaves became a hugely important financial asset to their owners. Estimates of the market value of slaves before the Civil War vary widely, but they were clearly worth much more than the land they cultivated, and may well have accounted for the majority of Southern wealth.
  • Inevitably, slaveholders became staunch defenders of the system underlying their wealth
  • Hence the rise of serfdom as Russia expanded east, and the rise of slavery as Europe colonized the New World.
  • But Northerners wouldn’t do that. There were relatively few Americans pushing for national abolition, but Northern states, one by one, abolished slavery in their own territories
  • This wasn’t as noble an act as it might have been if they had been confiscating slaveholders’ property, rather than in effect waiting until the slaves had been sold. Still, it’s to voters’ credit that they did find slavery repugnant.
  • And this posed a problem for the South
  • Anyone who believes or pretends to believe that the Civil War was about states’ rights should read Ulysses S. Grant’s memoirs, which point out that the truth was almost the opposite. In his conclusion, Grant noted that maintaining slavery was difficult when much of the nation consisted of free states, so the slave states in effect demanded control over free-state policies.
  • This should sound familiar. Since the Supreme Court overturned Roe v. Wade, states that have banned abortion have grown increasingly frantic over the ability of women to travel to states where abortion rights remain; it’s obvious that the right will eventually impose a national abortion ban if it can.
  • For a long time, the South actually did manage to exercise that kind of national control. But industrialization gradually shifted the balance of power within the United States away from the South to the North:
  • So did immigration, with very few immigrants moving to slave states.And the war happened because the increasingly empowered people of the North, as Grant wrote, “were not willing to play the role of police for the South” in protecting slavery.
  • So yes, the Civil War was about slavery — an institution that existed solely to enrich some men by depriving others of their freedom
  • And there’s no excuse for anyone who pretends that there was anything noble or even defensible about the South’s cause: The Civil War was fought to defend an utterly vile institution.
4More

FC89: The Comparative Geographies and Histories of Eastern and Western Europe - The Flo... - 1 views

www.flowofhistory.com/...FC89 western europe history eastern geography
shared by Javier E on 24 Oct 16 - No Cached
  • However, the critical difference between Eastern and Western Europe has to do with waterways.  Western Europe has an abundance of navigable rivers, coastlines, and harbors along the Atlantic Ocean and the Mediterranean, North, and Baltic Seas.  In the High Middle Ages, these fostered the revival of trade and the rise of towns, a money economy, and a middle class opposed to the feudal structure dominated by the nobles and Church.
  • Kings also opposed the nobles and the Church, so the middle class townsmen provided them with valuable allies and money.  With this money, kings could buy two things.  First of all, they could raise mercenary armies armed with guns to limit the power of the nobles.  Secondly, they could form professional bureaucracies staffed largely by their middle class allies who were both more efficient since they were literate and more loyal since they were the king's natural allies and dependant on him for their positions.  As a result, kings in Western Europe were able to build strong centralized nation-states by the 1600's.
  • Eastern Europe, in stark contrast to Western Europe, provided practically a mirror image of its historical development before 1600. Being further inland compared to Western Europe hurt Eastern Europe's trade, since the sea and river waterways vital to trade did not exist there in such abundance as they did in Western Europe. Factors limiting trade also limited the growth of a strong middle class in Eastern Europe.  This meant that kings had little in the way of money or allies to help them against the nobles.  That in turn meant that peasants had few towns where they could escape the oppression of the nobles.  Therefore, strong nobilities plus weak, and oftentimes elective, monarchies were the rule in Eastern Europe before 1600.  At the same time, the nobles ruled over peasants whose status actually was sliding deeper into serfdom rather than emerging from it.
  • ...1 more annotation...
  • However, there was one geographic factor that favored Eastern Europe's rulers after 1600.  That was the fact that Eastern Europe is next to Western Europe.  As a result, some influence from the West was able to filter in to the East.  In particular, Eastern European rulers would emulate their Western counterparts by adopting firearms, mercenary armies, and professional bureaucracies.  As a result, they were able to build strongly centralized states in the 1600's and 1700's.  This was especially true in three states: Austria-Hungary (the Hapsburg Empire), Brandenburg-Prussia in Germany, and Russia.
2More

Iraqi force enters southern oil city to disarm tribal fighters | Reuters - 0 views

www.reuters.com/...risis-iraq-basra-idUSKCN0UT0YM iraqi Shi'ite feuding
shared by blaise_glowiak on 15 Jan 16 - No Cached
  • Iraq has sent an armored army division and a police strike force into the southern oil city of Basra to disarm residents amid in
  • blaise_glowiak on 15 Jan 16
     
    Iraq has sent an armored army division and a police strike force into the southern oil city of Basra to disarm residents amid intensified feuding among rival Shi'ite Muslim tribes, local officials and security sources said on Friday. The tribal fighting and military response are a sign of the growing problems that could face foreign oil companies, even though they operate far from areas of conflict with Islamic State. "This security operation targets areas north of Basra that have an abundance of tribal clashes and will also include neighborhoods inside Basra city in the future," said Jabar al-Saadi, head of the security committee at the Basra provincial council.
8More

The Bus Is the Best Public Transit for Cities - The Atlantic - 0 views

www.theatlantic.com/...574399 public transit transportation urban city economics
shared by Javier E on 04 Nov 18 - No Cached
  • A city is a place where many people live close together. The problem of urban transportation is a problem of sharing space.
  • When you drive alone (or take Uber alone) in a gridlocked street or freeway, you are taking more than your fair share of the limited space. When stuck in traffic, you are blocking others from moving freely.
  • If cities want to move people faster than walking while allowing them to take up only their fair share of space, two options arise. One is to use a vehicle that’s not much bigger than the human body, such as bicycles and scooters. Those tools work well for certain people in particular circumstances, but not for everyone. The other option is to share the ride in a vehicle. If space is really scarce, that vehicle will have to carry lots of people. In most cases, riders will have to share a vehicle with strangers, people who are not traveling for the same purposes or even to the same places. That’s what public transit is.
  • ...5 more annotations...
  • So what technologies make sense in public transit? Efficient transit networks are made of many technologies, each the right one for its own situation. Rail is for high-capacity markets, where you need to move hundreds of people per vehicle. Ferries and aerial gondolas overcome certain obstacles. But everywhere else, the bus is the thing that’s easiest to make abundant. Because labor is the main limit on their quantity, they can be much more abundant after full automation.
  • Fixed public transit deploys large vehicles flowing along a set path, and riders gathering at stops to use them. That way, the vehicles can follow a fairly straight line, and they don’t need to stop once for every customer. That is what makes them worth walking to get to. It is one of the best ideas in the history of transportation
  • And walking is key to it. Out in low-density suburbs, residents can also drive to fixed-transit stops. But in the dense city, there’s no room for that. The microtransit promise of “service to your door” is a promise to abolish walking, and yet walking is the essence of how people share precious space.
  • If the buses are terrible in your city, you may think that buses are terrible in general. In truth, a city’s bus service is as good as its leaders and voters want it to be. Where voters have funded better bus services and cities have worked to give them priority, as in Seattle, ridership has soared.
  • The starvation of high-ridership public transit in America is a choice, one that Americans don’t have to make. I work in cities all over the developed world, but my U.S. clients always have the poorest transit budgets, requiring the most painful trade-offs. They can’t afford to run the frequent and reliable fixed-route services that would do well, so they are forced to run poor service, yielding low ridership, feeding the impression that transit is pointless
3More

Trump Administration Says New Drilling Won't Be Allowed Off Florida Coast - WSJ - 0 views

www.wsj.com/...py-political-waters-1515515503 oil us industrial revolution
shared by anonymous on 10 Jan 18 - No Cached
  • Trump administration told Florida’s governor it won’t consider new oil and gas drilling off the state’s coast, backtracking on plans to expand offshore drilling
  • Oil companies consider the waters off the state the most logical and prized options for new drilling, while the tourism industry has been Florida’s priority for decades.
  • anonymous on 10 Jan 18
     
    Relates to the oil use in the industrial revolution and how oil used to be used in abundance, but now we are trying to find alternate sources of fuel.
4More

5 congressmen -- including Trump's future chief of staff and lawmaker who shook Preside... - 0 views

www.cnn.com/...index.html
shared by katherineharron on 10 Mar 20 - No Cached
  • Three more members of Congress, including President Donald Trump's future chief of staff, have announced that they would self-quarantine after coming into contact with an individual who has been diagnosed with the novel coronavirus at the recent Conservative Political Action Conference.
  • "Rep. Meadows was advised this weekend that he may have come in contact with the CPAC attendee who tested positive for COVID-19, now 12 days ago. Out of an abundance of caution, Meadows received testing which came back negative," Williamson said in a statement. "While he's experiencing zero symptoms, under doctors' standard precautionary recommendations, he'll remain at home until the 14 day period expires this Wednesday."
  • Two other Republican lawmakers announced earlier in the day that they too would be in self-quarantine out of an abundance of caution after being in contact with the individual who tested positive for coronavirus at CPAC.
  • ...1 more annotation...
  • A fifth Republican member -- Rep. Louie Gohmert of Texas -- was told by officials over the weekend that he had been in proximity to the individual, but he is not planning to self-quarantine, a Gohmert aide tells CNN, details the congressman himself confirmed on Twitter on Monday evening.
300More

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

DIIGO_FILE_HOME/7ui9/74ec4c99e72deda4a64da10692a15bf6 economics history literature good evil theory philosophy philosophers Bible Gilgamesh Adam Smith
shared by Javier E on 15 Aug 19 - No Cached
  • Instead of self-confident and self-centered answers, the author humbly asks fundamental questions: What is economics? What is its meaning? Where does this new religion, as it is sometimes called, come from? What are its possibilities and its limitations and borders, if there are any? Why are we so dependent on permanent growing of growth and growth of growing of growth? Where did the idea of progress come from, and where is it leading us? Why are so many economic debates accompanied by obsession and fanaticism?
  • The majority of our political parties act with a narrow materialistic focus when, in their programs, they present the economy and finance first; only then, somewhere at the end, do we find culture as something pasted on or as a libation for a couple of madmen.
  • most of them—consciously or unconsciously—accept and spread the Marxist thesis of the economic base and the spiritual superstructure.
  • ...297 more annotations...
  • 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
41More

Ibram Kendi's Crusade against the Enlightenment - 0 views

glennloury.substack.com/...ram-kendis-crusade-against-the enlightenment BLM woke CRT anti-racism history crisis culture intellectual
shared by Javier E on 16 Oct 23 - No Cached
  • Over the last few days that question has moved me to do a deeper dive into Kendi’s work myself—both his two best-sellers, Stamped from the Beginning and How to Be and Antiracist, and an academic article written in praise of his PhD adviser, Molefi Kete Asante of Temple University.
  • That has, I think, allowed me to understand both the exact nature and implications of the positions that Kendi is taking and the reason that they have struck such a chord in American intellectual life. His influence in the US—which is dispiriting in itself—is a symptom of a much bigger problem.
  • In order to explain the importance of Asante’s creation of the nation’s first doctoral program in black studies, Kendi presents his own vision of the history of various academic disciplines. His analytical technique in “Black Doctoral Studies” is the same one he uses in Stamped from the Beginning. He strings together clearly racist quotes arguing for black racial inferiority from a long list of nineteenth- and twentieth-century scholars
  • ...38 more annotations...
  • Many of these scholars, he correctly notes, adopted the German model of the research university—but, he claims, only for evil purposes. “As racist ideas jumped off their scholarly pages,” he writes, “American scholars were especially enamored with the German ideal of the disinterested, unbiased pursuit of truth through original scholarly studies, and academic freedom to propagandize African inferiority and European superiority [sic].”
  • just as Kendi argues in Stamped from the Beginning that the racism of some of the founding fathers irrevocably and permanently brands the United States as a racist nation, he claims that these disciplines cannot be taken seriously because of the racism of some of their founders
  • Kendi complains in the autobiographical sections of How to Be an Antiracist that his parents often talked the same way to him. Nor does it matter to him that the abolitionists bemoaning the condition of black people under slavery were obviously blaming slavery for it. Any negative picture of any group of black people, to him, simply fuels racism.
  • Two critical ideas emerge from this article. The first is the rejection of the entire western intellectual tradition on the grounds that it is fatally tainted by racism, and the need for a new academic discipline to replace that tradition.
  • the second—developed at far greater length in Kendi’s other works—is that anyone who finds European and white North American culture to be in any way superior to the culture of black Americans, either slave or free, is a racist, and specifically a cultural racist or an “assimilationist” who believes that black people must become more like white people if they are to progress.
  • Kendi, in Stamped from the Beginning, designated Phyllis Wheatley, William Lloyd Garrison, Harriet Beecher Stowe, Sojourner Truth, W. E. B. DuBois, E. Franklin Frazier, Kenneth and Mamie Clark, and other black and white champions of abolition and equal rights as purveyors of racist views. At one time or another, each of them pointed to the backward state of many black people in the United States, either under slavery or in inner-city ghettos, and suggested that they needed literacy and, in some cases, better behavior to advance.
  • because racism is the only issue that matters to him, he assumes—wrongly—that it was the only issue that mattered to them, and that their disciplines were nothing more than exercises in racist propaganda.
  • This problem started, he says, “back in the so-called Age of Enlightenment.” Elsewhere he calls the word “enlightenment” racist because it contrasts the light of Europe with the darkness of Africa and other regions.
  • In fact, the western intellectual tradition of the eighteenth century—the Enlightenment—developed not as an attempt to establish the superiority of the white race, but rather to replace a whole different set of European ideas based on religious faith, the privilege of certain social orders, and the divine right of kings
  • many thinkers recognized the contradictions between racism and the principles of the Enlightenment—as well as its contradiction to the principles of the Christian religion—from the late eighteenth century onward. That is how abolitionist movements began and eventually succeeded.
  • Like the last movement of Beethoven’s Ninth Symphony—which has become practically the alternate national anthem of Japan—those principles are not based upon white supremacy, but rather on a universal idea of common humanity which is our only hope for living together on earth.
  • The western intellectual tradition is not his only target within modern life; he feels the same way about capitalism, which in his scheme has been inextricably bound together with racism since the early modern period.
  • “To love capitalism,” he says, “is to end up loving racism. To love racism is to end up loving capitalism.” He has not explained exactly what kind of economic system he would prefer, and his advocacy for reparations suggests that he would be satisfied simply to redistribute the wealth that capitalism has created.
  • Last but hardly least, Kendi rejects the political system of the United States and enlightenment ideas of democracy as well.
  • I am constantly amazed at how few people ever mention his response to a 2019 Politico poll about inequality. Here it is in full.
  • To fix the original sin of racism, Americans should pass an anti-racist amendment to the U.S. Constitution that enshrines two guiding anti-racist principals: Racial inequity is evidence of racist policy and the different racial groups are equals. The amendment would make unconstitutional racial inequity over a certain threshold, as well as racist ideas by public officials (with “racist ideas” and “public official”
  • The DOA would be responsible for preclearing all local, state and federal public policies to ensure they won’t yield racial inequity, monitor those policies, investigate private racist policies when racial inequity surfaces, and monitor public officials for expressions of racist ideas. The DOA would be empowered with disciplinary tools to wield over and against policymakers and public officials who do not voluntarily change their racist policy and ideas.
  • In other words, to undo the impact of racism as Kendi understands it, the United States needs a totalitarian government run by unaccountable “formally trained experts in racism”—that is, people like Ibram X. Kendi—who would exercise total power over all levels of government and private enterprise
  • Kendi evidently realizes that the American people acting through their elected representatives will never accept his antiracist program and equalize all rewards within our society, but he is so committed to that program that he wants to throw the American political system out and create a dictatorial body to implement it.
  • How did a man pushing all these ideas become so popular? The answer, I am sorry to say, is disarmingly simple. He is not an outlier in the intellectual history of the last half-century—quite the contrary.
  • The Enlightenment, in retrospect, made a bold claim that was bound to get itself into trouble sooner or later: that the application of reason and the scientific method to human problems could improve human life. That idea was initially so exciting and the results of its application for about two centuries were so spectacular that it attained a kind of intellectual hegemony, not only in Europe, but nearly all over the world.
  • As the last third of the twentieth century dawned, however, the political and intellectual regime it had created was running into new problems of its own. Science had allowed mankind to increase its population enormously, cure many diseases, and live a far more abundant life on a mass scale.
  • But it had also led to war on an undreamed-of scale, including the actual and potential use of nuclear weapons
  • As higher education expanded, the original ideas of the Enlightenment—the ones that had shaped the humanities—had lost their novelty and some of their ability to excite.
  • last but hardly least, the claimed superiority of reason over emotion had been pushed much too far. The world was bursting with emotions of many kinds that could no longer be kept in check by the claims of scientific rationality.
  • A huge new generation had grown up in abundance and security.
  • The Vietnam War, a great symbol of enlightenment gone tragically wrong, led not only to a rebellion against American military overreach but against the whole intellectual and political structure behind it.
  • The black studies movement on campuses that produced Molefi Kete Asante, who in turn gave us Ibram X. Kendi, was only one aspect of a vast intellectual rebellion
  • Some began to argue that the Enlightenment was simply a new means of maintaining male supremacy, and that women shared a reality that men could not understand. Just five years ago in her book Sex and Secularism, the distinguished historian Joan Wallach Scott wrote, “In fact, gender inequality was fundamental to the articulation of the separation of church and state that inaugurated Western modernity. . . .Euro-Atlantic modernity entailed a new order of women’s subordination” (emphasis in original). Gay and gender activists increasingly denied that any patterns of sexual behavior could be defined as normal or natural, or even that biology had any direct connection to gender. The average graduate of elite institutions, I believe, has come to regard all those changes as progress, which is why the major media and many large corporations endorse them.
  • Fundamentalist religion, apparently nearly extinct in the mid-twentieth century, has staged an impressive comeback in recent decades, not only in the Islamic world but in the United States and in Israe
  • Science has become bureaucratized, corrupted by capitalism, and often self-interested, and has therefore lost a good deal of the citizenry’s confidence.
  • One aspect of the Enlightenment—Adam Smith’s idea of free markets—has taken over too much of our lives.
  • in the academy, postmodernism promoted the idea that truth itself is an illusion and that every person has the right to her own morality.
  • The American academy lost its commitment to Enlightenment values decades ago, and journalism has now followed in its wake. Ju
  • Another aspect of the controversy hasn’t gotten enough attention either. Kendi is a prodigious fundraiser, and that made him a real catch for Boston University.
  • No matter what happens to Ibram X. Kendi now, he is not an anomaly in today’s intellectual world. His ideas are quite typical, and others will make brilliant careers out of them as well
  • We desperately need thinkers of all ages to keep the ideas of the Enlightenment alive, and we need some alternative institutions of higher learning to cultivate them once again. But they will not become mainstream any time soon. The last time that such ideas fell off the radar—at the end of the Roman Empire—it took about one thousand years for their renaissance to begin
  • We do not as individuals have to give into these new ideas, but it does no good to deny their impact. For the time being, they are here to stay.
14More

Opinion | We're in a Fossil Fuel War. Biden Should Say So. - The New York Times - 0 views

www.nytimes.com/...ossil-fuel-climate-change.html
shared by marvelgr on 24 Mar 22 - No Cached
  • Russia’s invasion of Ukraine is a war enabled and exacerbated by the world’s insatiable appetite for fossil fuels.
  • Russia is a petrostate — its economy and global influence are heavily reliant on its vast reserves of oil and natural gas — and Vladimir Putin its petromonarch, another in a line of unsavory characters whom liberal democracies keep doing business with because they’ve got something we can’t live without.
  • The way out of this bind would also appear obvious and urgent. By accelerating our transition to cheap and abundant renewable fuels, we can address two grave threats to the planet at once: the climate-warming, air-polluting menace of hydrocarbons and the dictators who rule their supply.
  • ...11 more annotations...
  • yet American politicians on the left sure seem incapable of drawing out this connection
  • In his State of the Union address shortly after Russia’s invasion, President Biden whiffed on a major opportunity to revive his stalled climate change agenda by underlining the geopolitical dangers of fossil fuels. His references to climate change — what he has previously called an “existential threat” to the planet — were buried under, rather than connected to, his comments about the war.
  • “This narrative has not been out there — that this war is why we need to get off of fossil fuels,”
  • This could have been a moment for moral clarity on the dangers of fossil fuels — but so far, Democrats have fumbled that message.
  • pundits on the right have had a field day with the notion that Russia’s invasion somehow points up the folly of focusing on climate change. The Wall Street Journal’s editorial board blamed “the Biden Administration’s obsession with climate” for making “the U.S. and Europe vulnerable to Mr. Putin’s energy blackmail” and wrote that “the climate lobby has made Mr. Putin more powerful.”
  • “More groups need to be connecting the dots, making the case that true energy independence is about running on sunshine, because sunshine is free and abundant and cannot be controlled by dictators.
  • such a message is likely to resonate with people. A study she and a co-author published online in 2017 examined the political factors that led to clean energy policies. “What we found was, overwhelmingly, these policies were passed during energy crises,”
  • the Democrats have yet to aggressively make the case for their proposals in the new context of war — to point out that climate policy is not unrelated to foreign policy, and that freeing ourselves from other people’s fuels is the best long-term solution to skyrocketing energy prices.
  • the ways in which fossil fuels make energy prices far more volatile and put us at the behest of powers and leaders that can act in ways that are dangerous and unjust” has rarely been more obvious.
  • “I started to think about the parallels between climate change and this war and it’s clear that the roots of both these threats to humanity are found in fossil fuels,” Krakovska said in the interview. “Burning oil, gas and coal is causing warming and impacts we need to adapt to
  • And Russia sells these resources and uses the money to buy weapons. Other countries are dependent upon these fossil fuels; they don’t make themselves free of them. This is a fossil fuel war. It’s clear we cannot continue to live this way; it will destroy our civilization.”
33More

Opinion | What Democrats Need to Do Now - The New York Times - 0 views

www.nytimes.com/...aga-trump-vance-democrats.html Democratic party dynamism MAGA class struggle struggle class security 2024 platform culture politics policy
shared by Javier E on 19 Jul 24 - No Cached
  • Over the last eight years, think tankers, activists and politicians have developed MAGA into a worldview, a worldview that now transcends Donald Trump.
  • It has its roots in Andrew Jackson-style populism, but it is updated and more comprehensive. It is the worldview that represents one version of working-class interests and offers working-class voters respect.
  • J.D. Vance is the embodiment and one of the developers of this worldview — with his suspicion of corporate power, foreign entanglements, free trade, cultural elites and high rates of immigration.
  • ...30 more annotations...
  • MAGA has replaced Reaganism as the chief operating system of the Republican Party.
  • If Democrats hope to win in the near future they have to take the MAGA worldview seriously, and respectfully make the case, especially to working-class voters, for something better.
  • In a volatile world, MAGA offers people security. It promises secure borders and secure neighborhoods. It offers protection from globalization, from the creative destruction of modern capitalism. It offers protection from an educated class that looks down on you and indoctrinates your children in school. It offers you protection from corporate predators.
  • the problem with MAGA — and here is where the Democratic opportunity lies — is that it emerges from a mode of consciousness that is very different from the traditional American consciousness.
  • Americans have a zeal for continual self-improvement, a “need tirelessly to tinker, improve everything and everybody, never leave anything alone.”
  • “the Spirit of America is best known in Europe by one of its qualities — energy.”
  • we saw ourselves, as the dynamic nation par excellence. We didn’t have a common past, but we dreamed of a common futur
  • Americans can’t be secure if the world is in flames. That’s why America has to be active abroad in places like Ukraine, keeping wolves like Vladimir Putin at bay.
  • Through most of our history, we were not known for our profundity or culture but for living at full throttle.
  • MAGA, on the other hand, emerges from a scarcity consciousness, a zero-sum mentality: If we let in tons of immigrants they will take all our jobs; if America gets browner, “they” will replace “us.”
  • MAGA is based on a series of victim stories: The elites are out to screw us. Our allies are freeloading off us. Secular America is oppressing Christian America.
  • MAGA looks less like an American brand of conservatism and more like a European brand of conservatism. It resembles all those generations of Russian chauvinists who argued that the Russian masses embody all that is good but they are threatened by aliens from the outside
  • MAGA looks like a kind of right-wing Marxism, which assumes that class struggle is the permanent defining feature of politics.
  • MAGA is a fortress mentality, but America has traditionally been defined by a pioneering mentality. MAGA offers a strong shell, but not much in the way of wings needed to soar.
  • If Democrats are to thrive, they need to tap into America’s dynamic cultural roots and show how they can be applied to the 21st century
  • My favorite definition of dynamism is adapted from the psychologist John Bowlby: All of life is a series of daring explorations from a secure base. If Democrats are to thrive, they need to offer people a vision both of the secure base and of the daring explorations.
  • The American consciousness has traditionally been an abundance consciousness.
  • Americans can’t be secure if the border is in chaos. Popular support for continued immigration depends on a sense that the government has things under control.
  • Americans can’t be secure if a single setback will send people to the depths of crushing poverty. That’s why the social insurance programs that Democrats largely built are so important.
  • offer people a vision of the daring explorations that await them. That’s where the pessimistic post-Reagan Republicans can’t compete
  • champion the abundance agenda that people like Derek Thompson and my colleague Ezra Klein have been writing about. We need to build things. Lots of new homes. Supersonic airplanes and high-speed trains.
  • If Republicans are going to double down on class war rhetoric — elites versus masses — Democrats need to get out of that business
  • They need to stand up to protectionism, not join the stampede.
  • Democrats need to throttle back the regulators who have been given such free rein that they’ve stifled innovation.
  • Democrats need to take on their teachers’ unions and commit to dynamism in the field of education.
  • tap back into the more traditional American aspiration: We are not sentenced to a permanent class-riven future but can create a fluid, mobile society.
  • The economist Michael Strain of the American Enterprise Institute has offered a telling psychic critique of MAGA economic thinking: “The economics of grievance is ineffective, counterproductive and corrosive, eroding the foundations of prosperity. Messages matter. Tell people that the system is rigged, and they will aspire to less
  • Champion personal responsibility, and they will lift their aspirations. Promoting an optimistic vision of economic life can increase risk tolerance, ambition, effort and dynamism.”
  • t aspiration is not like a brick that just sits there. Aspiration is more like a flame that can be fed or dampened
  • “The problem is desire. We need to *want* these things. The problem is inertia. We need to want these things more than we want to prevent these things.”
22More

David Stockman: Mitt Romney and the Bain Drain - Newsweek and The Daily Beast - 1 views

www.thedailybeast.com/...romney-and-the-bain-drain.html finance ROmney private equity LBO investment
shared by Javier E on 16 Oct 12 - No Cached
  • Is Romney really a job creator? Ronald Reagan’s budget director, David Stockman, takes a scalpel to the claims.
  • Bain Capital is a product of the Great Deformation. It has garnered fabulous winnings through leveraged speculation in financial markets that have been perverted and deformed by decades of money printing and Wall Street coddling by the Fed. So Bain’s billions of profits were not rewards for capitalist creation; they were mainly windfalls collected from gambling in markets that were rigged to rise.
  • Mitt Romney claims that his essential qualification to be president is grounded in his 15 years as head of Bain Capital, from 1984 through early 1999. According to the campaign’s narrative, it was then that he became immersed in the toils of business enterprise, learning along the way the true secrets of how to grow the economy and create jobs. The fact that Bain’s returns reputedly averaged more than 50 percent annually during this period is purportedly proof of the case
  • ...19 more annotations...
  • Except Mitt Romney was not a businessman; he was a master financial speculator who bought, sold, flipped, and stripped businesses. He did not build enterprises the old-fashioned way—out of inspiration, perspiration, and a long slog in the free market fostering a new product, service, or process of production. Instead, he spent his 15 years raising debt in prodigious amounts on Wall Street so that Bain could purchase the pots and pans and castoffs of corporate America, leverage them to the hilt, gussy them up as reborn “roll-ups,” and then deliver them back to Wall Street for resale—the faster the better.
  • That is the modus operandi of the leveraged-buyout business, and in an honest free-market economy, there wouldn’t be much scope for it because it creates little of economic value. But we have a rigged system—a regime of crony capitalism—where the tax code heavily favors debt and capital gains, and the central bank purposefully enables rampant speculation by propping up the price of financial assets and battering down the cost of leveraged finance.
  • So the vast outpouring of LBOs in recent decades has been the consequence of bad policy, not the product of capitalist enterprise. I know this from 17 years of experience doing leveraged buyouts at one of the pioneering private-equity houses, Blackstone, and then my own firm. I know the pitfalls of private equity. The whole business was about maximizing debt, extracting cash, cutting head counts, skimping on capital spending, outsourcing production, and dressing up the deal for the earliest, highest-profit exit possible. Occasionally, we did invest in genuine growth companies, but without cheap debt and deep tax subsidies, most deals would not make economic sense.
  • In truth, LBOs are capitalism’s natural undertakers—vulture investors who feed on failing businesses. Due to bad policy, however, they have now become monsters of the financial midway that strip-mine cash from healthy businesses and recycle it mostly to the top 1 percent.
  • Accordingly, Bain’s returns on the overwhelming bulk of the deals—67 out of 77—were actually lower than what a passive S&P 500 indexer would have earned even without the risk of leverage or paying all the private-equity fees. Investor profits amounted to a prosaic 0.7X the original investment on these deals and, based on its average five-year holding period, the annual return would have computed to about 12 percent—well below the 17 percent average return on the S&P in this period.
  • having a trader’s facility for knowing when to hold ’em and when to fold ’em has virtually nothing to do with rectifying the massive fiscal hemorrhage and debt-burdened private economy that are the real issues before the American electorate
  • Indeed, the next president’s overriding task is restoring national solvency—an undertaking that will involve immense societywide pain, sacrifice, and denial and that will therefore require “fairness” as a defining principle. And that’s why heralding Romney’s record at Bain is so completely perverse. The record is actually all about the utter unfairness of windfall riches obtained under our anti-free market regime of bubble finance.
  • When Romney opened the doors to Bain Capital in 1984, the S&P 500 stood at 160. By the time he answered the call to duty in Salt Lake City in early 1999, it had gone parabolic and reached 1270. This meant that had a modern Rip Van Winkle bought the S&P 500 index and held it through the 15 years in question, the annual return (with dividends) would have been a spectacular 17 percent. Bain did considerably better, of course, but the reason wasn’t business acumen.
  • The credentials that Romney proffers as evidence of his business acumen, in fact, mainly show that he hung around the basket during the greatest bull market in recorded history.
  • The Wall Street Journal examined 77 significant deals completed during that period based on fundraising documents from Bain, and the results are a perfect illustration of bull-market asymmetry. Overall, Bain generated an impressive $2.5 billion in investor gains on $1.1 billion in investments. But 10 of Bain’s deals accounted for 75 percent of the investor profits.
  • The secret was leverage, luck, inside baseball, and the peculiar asymmetrical dynamics of the leveraged gambling carried on by private-equity shops. LBO funds are invested as equity at the bottom of a company’s capital structure, which means that the lenders who provide 80 to 90 percent of the capital have no recourse to the private-equity sponsor if deals go bust. Accordingly, LBO funds can lose 1X (one times) their money on failed deals, but make 10X or even 50X on the occasional “home run.” During a period of rising markets, expanding valuation multiples, and abundant credit, the opportunity to “average up” the home runs with the 1X losses is considerable; it can generate a spectacular portfolio outcome.
  • By contrast, the 10 home runs generated profits of $1.8 billion on investments of only $250 million, yielding a spectacular return of 7X investment. Yet it is this handful of home runs that both make the Romney investment legend and also seal the indictment: they show that Bain Capital was a vehicle for leveraged speculation that was gifted immeasurably by the Greenspan bubble. It was a fortunate place where leverage got lucky, not a higher form of capitalist endeavor or training school for presidential aspirants.
  • The startling fact is that four of the 10 Bain Capital home runs ended up in bankruptcy, and for an obvious reason: Bain got its money out at the top of the Greenspan boom in the late 1990s and then these companies hit the wall during the 2000-02 downturn, weighed down by the massive load of debt Bain had bequeathed them. In fact, nearly $600 million, or one third of the profits earned by the home-run companies, had been extracted from the hide of these four eventual debt zombies.
  • The bankruptcy forced the closure of about 250—or 40 percent—of the company’s stores and the loss of about 5,000 jobs. Yet the moral of the Stage Stores saga is not simply that in this instance Bain Capital was a jobs destroyer, not a jobs creator. The larger point is that it is actually a tale of Wall Street speculators toying with Main Street properties in defiance of sound finance—an anti-Schumpeterian project that used state-subsidized debt to milk cash from stores that would not have otherwise survived on the free market.
  • Ironically, the businesses and jobs that Staples eliminated were the office-supply counterparts of the cracker-box stores selling shoes, shirts, and dresses that Bain kept on artificial life-support at Stage Stores Inc. At length, Wal-Mart eliminated these jobs and replaced them with back-of–the-store automation and front-end part-timers, as did Staples, which now has 40,000 part-time employees out of its approximate 90,000 total head count. The pointless exercise of counting jobs won and lost owing to these epochal shifts on the free market is obviously irrelevant to the job of being president, but the fact that Bain made $15 million from the winner and $175 million from the loser is evidence that it did not make a fortune all on its own. It had considerable help from the Easy Button at the Fed.
  • The lesson is that LBOs are just another legal (and risky) way for speculators to make money, but they are dangerous because when they fail, they leave needless economic disruption and job losses in their wake. That’s why LBOs would be rare in an honest free market—it’s only cheap debt, interest deductions, and ludicrously low capital-gains taxes that artifically fuel them.
  • The larger point is that Romney’s personal experience in the nation’s financial casinos is no mark against his character or competence. I’ve made money and lost it and know what it is like to be judged. But that experience doesn’t translate into answers on the great public issues before the nation, either. The Romney campaign’s feckless narrative that private equity generates real economic efficiency and societal wealth is dead wrong.
  • The Bain Capital investments here reviewed accounted for $1.4 billion or 60 percent of the fund’s profits over 15 years, by my calculations. Four of them ended in bankruptcy; one was an inside job and fast flip; one was essentially a massive M&A brokerage fee; and the seventh and largest gain—the Italian Job—amounted to a veritable freak of financial nature.
  • In short, this is a record about a dangerous form of leveraged gambling that has been enabled by the failed central banking and taxing policies of the state. That it should be offered as evidence that Mitt Romney is a deeply experienced capitalist entrepreneur and job creator is surely a testament to the financial deformations of our times.
2More

Dark matter may be source of exotic space particles, physicist says - The Washington Post - 0 views

www.washingtonpost.com/...2-a941-a19bce7af755_story.html dark matter particles universe
shared by Javier E on 03 Apr 13 - No Cached
  • The AMS sorts through these particles, measuring their momentum and charge.The device can discern whether a particle is a positron, which is a form of antimatter. It is the antiparticle of the electron, identical but with the opposite charge. Our universe has largely been swept clean of antimatter, because when matter and antimatter collide, they are mutually annihilated
  • new bits of antimatter can be created within our galaxy in certain kinds of events. One way is if two particles of dark matter collide.Dark matter emits and absorbs no light, and interacts with ordinary matter in a ghostly fashion, primarily through gravity. Dark matter affects the way galaxies move; they rotate in a manner that suggests that they are carrying some unseen load of matter.In the past two decades, other experiments and detectors have bolstered the notion that dark matter is far more abundant than ordinary matter. What it is, exactly, remains unclear. The AMS, however, has picked up signals from more than 400,000 positrons, and they came into the detector from all directions, with no variation over time. That is consistent with the idea that they are coming from collisions of particles of dark matter that saturate the galaxy.The other possible origin is that positrons are emitted by rapidly rotating, ultra-dense stars called pulsars, which are scattered throughout the galaxy. Ting said Wednesday that his results cannot rule out that possibility.
8More

Common Ancestor of Mammals Plucked From Obscurity - NYTimes.com - 0 views

www.nytimes.com/...ls-plucked-from-obscurity.html ancestor mammals evolution genetics research
shared by Javier E on 09 Feb 13 - No Cached
  • Humankind’s common ancestor with other mammals may have been a roughly rat-size animal that weighed no more than a half a pound, had a long furry tail and lived on insects.
  • In a comprehensive six-year study of the mammalian family tree, scientists have identified and reconstructed what they say is the most likely common ancestor of the many species on the most abundant and diverse branch of that tree — the branch of creatures that nourish their young in utero through a placenta. The work appears to support the view that in the global extinctions some 66 million years ago, all non-avian dinosaurs had to die for mammals to flourish.
  • a combination of genetic and anatomical data established that the ancestor emerged within 200,000 to 400,000 years after the great dying at the end of the Cretaceous period. At the time, the meek were rapidly inheriting the earth from hulking predators like T. rex.
  • ...5 more annotations...
  • Within another two million to three million years, Dr. O’Leary said, the first members of modern placental orders appeared in such profusion that researchers have started to refer to the explosive model of mammalian evolution
  • Although some small primitive mammals had lived in the shadow of the great Cretaceous reptiles, the scientists could not find evidence supporting an earlier hypothesis that up to 39 placental mammalian lineages survived to enter the post-extinction world. Only the stem lineage to Placentalia, they said, appeared to hang on through the catastrophe, generally associated with climate change after an asteroid crashed into Earth.
  • the “power of 4,500 characters” enabled the scientists to look “at all aspects of mammalian anatomy, from the skull and skeleton, to the teeth, to internal organs, to muscles and even fur patterns” to determine what the common ancestor possibly looked like.
  • this formidable new systematic data-crunching capability might reshape mammal research but that it would probably not immediately resolve the years of dispute between fossil and genetic partisans over when placental mammals arose. Paleontologists looking for answers in skeletons and anatomy have favored a date just before or a little after the Cretaceous extinction. Those who work with genetic data to tell time by “molecular clocks” have arrived at much earlier origins.
  • the post-Cretaceous date for the placentals “will surely be controversial, as this is much younger than estimates based on molecular clocks, and implies the compression of very long molecular branches at the base of the tree.”
24More

Gun Violence in America: The 13 Key Questions (With 13 Concise Answers) - Jonathan Stra... - 0 views

www.theatlantic.com/...272727 guns facts violence statistics history
shared by Javier E on 27 Jun 13 - No Cached
  • There were 8,583 homicides by firearms in 2011, out of 12,664 homicides total, according to the FBI. This means that more than two-thirds of homicides involve a firearm
  • Gun violence also affects more than its victims. In areas where it is prevalent, just the threat of violence makes neighborhoods poorer. It's very difficult to quantify the total harm caused by gun violence, but by asking many people how much they would pay to avoid this threat -- a technique called contingent valuation -- researchers have estimated a cost to American society of $100 billion dollars.
  • 19,392 of 38,264 suicides in 2010 involved a gun (50%), according to the CDC.
  • ...21 more annotations...
  • There were 606 firearm-related accidents in the same year -- about 5% of the number of intentional gun deaths.
  • There are about 310 million guns in the country. About 40% of households have them, a fraction that has been slowly declining over the last few decades, down from about 50% in the 1960s.
  • gun ownership has gotten much more concentrated among fewer households: if you own one gun, you probably own several
  • The most comprehensive public list of U.S. mass shootings is the spreadsheet of 62 incidents from 1982-2012, compiled by Mother Jones. Their list shows:
  • Mass shootings happen all over the country. Killers used a semi-automatic handgun in 75% of incidents, which is about the same percentage as the 72% in overall gun violence. Killers used an assault weapon in 40% of incidents. This is much higher than overall assault weapon use in crimes, estimated at less than 2%. The guns were obtained legally in 79% of mass shootings. Many of the shooters showed signs of mental illness, but in only two cases was there a prior diagnosis. There were no cases where an armed civilian fired back.
  • they account for only a small fraction of gun violence in the United States.
  • It's also possible that gun ownership is a deterrent to crime, because criminals must consider the possibility that their intended victim is armed.
  • . In 2010, different researchers re-examined Lott's work, the NRC report, and additional data up through 2006, and reaffirmed that there is no evidence that right-to-carry laws reduce crime.
  • The most comprehensive estimate is that a 10% reduction in U.S. households with guns would result in a 3% reduction in homicides.
  • current federal gun regulation (see above) contains an enormous loophole: While businesses that deal in guns are required to keep records and run background checks, guns can be transferred between private citizens without any record. This makes straw purchases easy.
  • There's abundant evidence that under the current system, guns flow easily between legal and illegal markets.
  • guns are used to commit a crime about 10 times as often as they are used for self-defense.
  • Won't criminals kill with other weapons if they don't have guns? The crux of this question is whether most homicides are planned, or whether killers more often confront their victims with no clear intention. In the second case, adding a gun could result in a fatal shooting that would otherwise have been avoided.
  • In 1968, Franklin Zimring examined cases of knife assaults versus gun assaults in Chicago. The gun attacks were five times more deadly
  • Here are some approaches that don't seem to work, at least not by themselves, or in the ways they've been tried so far: Stiffer prison sentences for gun crimes. Gun buy-backs: In a country with one gun per person, getting a few thousand guns off the street in each city may not mean very much. Safe storage laws and public safety campaigns.
  • We don't really have good enough evidence to evaluate these strategies: Background checks, such as the Brady Act requires. Bans on specific weapons types, such as the expired 1994 assault weapons ban or the handgun bans in various cities.
  • These policies do actually seem to reduce gun violence, at least somewhat or in some cases: More intensive probation strategies: increased contact with police, probation officers and social workers. Changes in policing strategies, such increased patrols in hot spots. Programs featuring cooperation between law enforcement, community leaders, and researchers, such as Project Safe Neighborhoods.
  • Removing legal restrictions that prevent the Centers for Disease Control and other agencies from tracking and researching gun violence is also a sensible idea, and follows a long history of calls from scientists (see: what don't we know).
  • We lack some of the most basic information we need to have a sensible gun policy debate, partially because researchers have been prevented by law from collecting it. The 2004 National Research Council report discussed above identified several key types of missing data: systematic reporting of individual gun incidents and injuries, gun ownership at the local level, and detailed information on the operation of firearms markets. We don't even have reliable data on the number of homicides in each county.
  • Centers for Disease Control, the main U.S. agency that tracks and studies American injuries and death, has been effectively prevented from studying gun violence, due to a law passed by Congress in 1996.
  • anonymized hospital reporting systems are the main ways we know about many other types of injuries, but the Affordable Care Act prevents doctors from gathering information about their patients' gun use. A 2011 law restricts gun violence research at the National Institutes of Health. The legal language prevents these agencies from using any money "to advocate or promote gun control."
16More

How Netflix Is Deepening Our Cultural Echo Chambers - The New York Times - 0 views

www.nytimes.com/...ur-cultural-echo-chambers.html echo chamber culture TV history
shared by Javier E on 11 Jan 17 - No Cached
  • The shows are separated by 40 years of technological advances — a progression from the over-the-air broadcast era in which Mr. Lear made it big, to the cable age of MTV and CNN and HBO, to, finally, the modern era of streaming services like Netflix. Each new technology allowed a leap forward in choice, flexibility and quality; the “Golden Age of TV” offers so much choice that some critics wonder if it’s become overwhelming.
  • It’s not just TV, either. Across the entertainment business, from music to movies to video games, technology has flooded us with a profusion of cultural choice.
  • offers a chance to reflect on what we have lost in embracing tech-abetted abundance. Last year’s presidential election and its aftermath were dominated by discussions of echo chambers and polarization; as I’ve argued before, we’re all splitting into our own self-constructed bubbles of reality.
  • ...13 more annotations...
  • What’s less discussed is the polarization of culture, and the new echo chambers within which we hear about and experience today’s cultural hits
  • There’s just about nothing as popular today as old sitcoms were; the only bits of shared culture that come close are periodic sporting events, viral videos, memes and occasional paroxysms of political outrage (see Meryl Streep’s Golden Globes speech and the aftermath).
  • we’re returning to the cultural era that predated radio and TV, an era in which entertainment was fragmented and bespoke, and satisfying a niche was a greater economic imperative than entertaining the mainstream.
  • “We’re back to normal, in a way, because before there was broadcasting, there wasn’t much of a shared culture,
  • Because it featured little choice, TV offered something else: the raw material for a shared culture. Television was the thing just about everyone else was watching at the same time as you. In its enforced similitude, it became a kind of social glue, stitching together a new national identity across a vast, growing and otherwise diverse nation.
  • “For most of the history of civilization, there was nothing like TV. It was a really odd moment in history to have so many people watching the same thing at the same time.”
  • As the broadcast era morphed into one of cable and then streaming, TV was transformed from a wasteland into a bubbling sea of creativity. But it has become a sea in which everyone swims in smaller schools.
  • Only around 12 percent of television households, or about 14 million to 15 million people, regularly tuned into “NCIS” and “The Big Bang Theory,” the two most popular network shows of the 2015-16 season, according to Nielsen. Before 2000, those ratings would not even have qualified them as Top 10 shows
  • HBO’s “Game of Thrones” is the biggest prestige drama on cable, but its record-breaking finale drew only around nine million viewers
  • Netflix’s biggest original drama last year, “Stranger Things,” was seen by about 14 million adults in the month after it first aired. “Fuller House,” Netflix’s reboot of the broadcast sitcom “Full House,” attracted an audience of nearly 16 million. (These numbers are for the entire season, not for single episodes.)
  • For perspective, during much of the 1980s, a broadcast show that attracted 14 million to 16 million would have been in danger of cancellation.
  • As people pull back from broadcast and cable TV and jump deeper into streaming, we’re bound to see more shows with smaller audiences.
  • It’s possible we’re not at the end of the story. Some youngsters might argue that the internet has produced its own kind of culture, one that will become a fount of shared references for years to come. What if “Chewbacca Mom” and the blue and black/white and gold dress that broke the internet one day become part of our library of globally recognized references
16More

The Revenge of Karl Marx - The Atlantic - 0 views

www.theatlantic.com/...307317 marx economics politics history
shared by Cecilia Ergueta on 14 Jan 17 - No Cached
  • As I write this, every newspaper informs me of frantic efforts by merchants to unload onto the consumer, at almost any price, the vast surplus of unsold commodities that have accumulated since the credit crisis began to take hold. The phrase crisis of over-production, which I learned so many long winters ago in “agitational” meetings, recurs to my mind.
  • On other pages, I learn that the pride of American capitalism has seized up and begun to rust, and that automobiles may cease even to be made in Detroit as a consequence of insane speculation in worthless paper “derivatives.” Did I not once read somewhere about the bitter struggle between finance capital and industrial capital?
  • The lines of jobless and hungry begin to lengthen, and what more potent image of those lines do we possess than that of the “reserve army” of the unemployed—capital’s finest weapon in beating down the minimum wage and increasing the hours of the working week?
  • ...13 more annotations...
  • A disturbance in a remote corner of the world market leads to chaos and panic at the very center of the system (and these symptoms are given a multiplier effect when the pangs begin at the center itself), and John Micklethwait and Adrian Wooldridge, doughty champions of capitalism at The Economist, admit straightforwardly in their book on the advantages of globalization that Marx, “as a prophet of the ‘universal interdependence of nations,’ as he called globalization … can still seem startlingly relevant … His description of globalization remains as sharp today as it was 150 years ago.
  • The falling rate of profit, the tendency to monopoly … how wrong could that old reading-room attendant have been?
  • Marx is so embedded in our Western cast of thought that few people are even aware of their debt to him. Everybody I know now believes that their attitudes are to an extent a creation of their material circumstances … “that, on the contrary, their social being determines their consciousness”, as Marx wrote—and that changes in the way things are produced profoundly affect the affairs of humanity even outside the workshop or factory.
  • “It’s the economy, stupid.”
  • What he postulated, and what made him different from any previous theorist of materialism whether historical or dialectical, was a sharp distinction between the forces and the relations of production. Within the integument of one system of exploitation, in other words, was contained a systemic conflict that, if not resolved, would lead to stagnation and decline but, if properly confronted, might lead to a higher synthesis of abundance and equality.
  • there was an underlying love-hate relationship between Marx and capitalism. As early as the Manifesto, he had written of capitalism’s operations with a sort of awe, describing how the bourgeoisie had revolutionized all human and social and economic relations, and had released productive capacities of a sort undreamed-of in feudal times.
  • In my opinion, therefore, the most powerful Marxist book of the past four decades was Rudolf Bahro’s The Alternative, which showed how and why the East German state and economy were certain to implode. Communism, said Bahro—one of its former functionaries—was compelled to educate and train people up to a certain level. But beyond that level, it forbade them to think, or to inquire, or to use their initiative. Thus, while it created a vast amount of “surplus consciousness,” it could find no way of employing this energy except by squandering and dissipating and ultimately repressing it. The conflict between the forces and relations of production in the eastern part of the homeland of Karl Marx thus became a locus classicus of the sort of contradiction he had originally identified.
  • Marx was a keen admirer of that other great Victorian Charles Darwin, and according to Engels he wanted to do for the economic system what the author of The Origin of Species had done for the natural order: lay bare its objective laws of motion and thus make it possible at last to dispense with subjective and idealist interpretations.
  • The term exploitation, for example, should be not a moralizing one but a cold measure of the difference between use value and exchange value, or between the wages earned at the coal face and the real worth of that labor to the mine owner
  • (War between competitive capitalist states, for example, would be an instance of the negative. Seizure of power by an educated working class that understood and could transcend the logic of private ownership would be an example of human progress.
  • it does not quite explain Marx’s later failure, in Capital, to grasp quite how revolutionary capitalist innovation really was. (The chapter on new industrial machinery opens with a snobbish quotation from John Stuart Mill’s Principles of Political Economy: “It is questionable if all the mechanical inventions yet made have lightened the day’s toil of any human being.” This must have seemed absurd even at the time, and it appears preposterous after the third wave of technological revolution and rationalization that modern capitalism has brought in its train.
  • There’s also the not-inconsiderable question of capitalism’s ability to decide, if not on the value of a commodity, at least on some sort of price for the damn thing. Eugen von Böhm-Bawerk and the other members of the Austrian school were able to point out this critical shortcoming of Capital—no pricing policy—during Marx’s lifetime
  • John Cassidy wrote of Marx, “His books will be worth reading as long as capitalism endures.” That would appear to mean that Marxism and capitalism are symbiotic, and that neither can expect to outlive the other,
41More

Woodward and Bernstein: 40 years after Watergate, Nixon was far worse than we thought -... - 0 views

www.washingtonpost.com/...gJQAlsi0NV_story.html nixon watergate history crisis politics criminal power
shared by Javier E on 20 Feb 17 - No Cached
  • At its most virulent, Watergate was a brazen and daring assault, led by Nixon himself, against the heart of American democracy: the Constitution, our system of free elections, the rule of law.
  • an abundant record provides unambiguous answers and evidence about Watergate and its meaning. This record has expanded continuously over the decades with the transcription of hundreds of hours of Nixon’s secret tapes, adding detail and context to the hearings in the Senate and House of Representatives; the trials and guilty pleas of some 40 Nixon aides and associates who went to jail; and the memoirs of Nixon and his deputies.
  • Such documentation makes it possible to trace the president’s personal dominance over a massive campaign of political espionage, sabotage and other illegal activities against his real or perceived opponents.
  • ...38 more annotations...
  • In the course of his five-and-a-half-year presidency, beginning in 1969, Nixon launched and managed five successive and overlapping wars — against the anti-Vietnam War movement, the news media, the Democrats, the justice system and, finally, against history itself.
  • All reflected a mind-set and a pattern of behavior that were uniquely and pervasively Nixon’s: a willingness to disregard the law for political advantage, and a quest for dirt and secrets about his opponents as an organizing principle of his presidency.
  • Long before the Watergate break-in, gumshoeing, burglary, wiretapping and political sabotage had become a way of life in the Nixon White House.
  • What was Watergate? It was Nixon’s five wars.
  • In 1970, he approved the top-secret Huston Plan, authorizing the CIA, the FBI and military intelligence units to intensify electronic surveillance of individuals identified as “domestic security threats.” The plan called for, among other things, intercepting mail and lifting restrictions on “surreptitious entry” — that is, break-ins or “black bag jobs.”
  • On June 17, 1971 — exactly one year before the Watergate break-in — Nixon met in the Oval Office with his chief of staff, H.R. “Bob” Haldeman, and national security adviser Henry Kissinger. At issue was a file about former president Lyndon Johnson’s handling of the 1968 bombing halt in Vietnam.
  • “You can blackmail Johnson on this stuff, and it might be worth doing,” Haldeman said, according to the tape of the meeting. “Yeah,” Kissinger said, “but Bob and I have been trying to put the damn thing together for three years.” They wanted the complete story of Johnson’s actions.
  • “Huston swears to God there’s a file on it at Brookings,” Haldeman said. “Bob,” Nixon said, “now you remember Huston’s plan? Implement it. . . . I mean, I want it implemented on a thievery basis. God damn it, get in and get those files. Blow the safe and get it.”
  • Though Ellsberg was already under indictment and charged with espionage, the team headed by Hunt and Liddy broke into the office of his psychiatrist, seeking information that might smear Ellsberg and undermine his credibility in the antiwar movement.
  • “You can’t drop it, Bob,” Nixon told Haldeman on June 29, 1971. “You can’t let the Jew steal that stuff and get away with it. You understand?”
  • In a July 3, 1971, conversation with Haldeman, he said: “The government is full of Jews. Second, most Jews are disloyal. You know what I mean? You have a Garment [White House counsel Leonard Garment] and a Kissinger and, frankly, a Safire [presidential speechwriter William Safire], and, by God, they’re exceptions. But Bob, generally speaking, you can’t trust the bastards. They turn on you.”
  • In a tape from the Oval Office on Feb. 22, 1971, Nixon said, “In the short run, it would be so much easier, wouldn’t it, to run this war in a dictatorial way, kill all the reporters and carry on the war.”
  • John N. Mitchell, Nixon’s campaign manager and confidante, met with Liddy at the Justice Department in early 1972, when Mitchell was attorney general. Liddy presented a $1 million plan, code-named “Gemstone,” for spying and sabotage during the upcoming presidential campaign.
  • In Nixon’s third war, he took the weapons in place — the Plumbers, wiretapping and burglary — and deployed them against the Democrats challenging his reelection.
  • Operation Diamond would neutralize antiwar protesters with mugging squads and kidnapping teams; Operation Coal would funnel cash to Rep. Shirley Chisholm, a black congresswoman from Brooklyn seeking the Democratic presidential nomination, in an effort to sow racial and gender discord in the party;
  • Operation Opal would use electronic surveillance against various targets, including the headquarters of Democratic presidential candidates Edmund Muskie and George McGovern; Operation Sapphire would station prostitutes on a yacht, wired for sound, off Miami Beach during the Democratic National Convention.
  • Mitchell approved a $250,000 version, according to Jeb Magruder, the deputy campaign manager. It included intelligence-gathering on the Democrats through wiretaps and burglaries.
  • They discussed a secret $350,000 stash of cash kept in the White House, the possibility of using priests to help hide payments to the burglars, “washing” the money though Las Vegas or New York bookmakers, and empaneling a new grand jury so everyone could plead the Fifth Amendment or claim memory failure. Finally, they decided to send Mitchell on an emergency fundraising mission.
  • On Oct. 10, 1972, we wrote a story in The Post outlining the extensive sabotage and spying operations of the Nixon campaign and White House, particularly against Muskie, and stating that the Watergate burglary was not an isolated event. The story said that at least 50 operatives had been involved in the espionage and sabotage, many of them under the direction of a young California lawyer named Donald Segretti; several days later, we reported that Segretti had been hired by Dwight Chapin, Nixon’s appointments secretary. (The Senate Watergate committee later found more than 50 saboteurs, including 22 who were paid by Segretti.)
  • A favored dirty trick that caused havoc at campaign stops involved sweeping up the shoes that Muskie aides left in hotel hallways to be polished, and then depositing them in a dumpster.
  • In a memo to Haldeman and Mitchell dated April 12, 1972, Patrick Buchanan and another Nixon aide wrote: “Our primary objective, to prevent Senator Muskie from sweeping the early primaries, locking up the convention in April, and uniting the Democratic Party behind him for the fall, has been achieved.”
  • “I’d really like to get Kennedy taped,” Nixon told Haldeman in April 1971. According to Haldeman’s 1994 book, “The Haldeman Diaries,” the president also wanted to have Kennedy photographed in compromising situations and leak the images to the press.
  • On Sept. 8, 1971, Nixon ordered Ehrlichman to direct the Internal Revenue Service to investigate the tax returns of all the likely Democratic presidential candidates, as well as Kennedy. “Are we going after their tax returns?” Nixon asked. “You know what I mean? There’s a lot of gold in them thar hills.”
  • The arrest of the Watergate burglars set in motion Nixon’s fourth war, against the American system of justice. It was a war of lies and hush money, a conspiracy that became necessary to conceal the roles of top officials and to hide the president’s campaign of illegal espionage and political sabotage, including the covert operations that Mitchell described as “the White House horrors” during the Watergate hearings: the Huston Plan, the Plumbers, the Ellsberg break-in, Liddy’s Gemstone plan and the proposed break-in at Brookings.
  • In a June 23, 1972, tape recording, six days after the arrests at the Watergate, Haldeman warned Nixon that “on the investigation, you know, the Democratic break-in thing, we’re back in the problem area, because the FBI is not under control . . . their investigation is now leading into some productive areas, because they’ve been able to trace the money.”
  • Haldeman said Mitchell had come up with a plan for the CIA to claim that national security secrets would be compromised if the FBI did not halt its Watergate investigation.
  • Nixon approved the scheme and ordered Haldeman to call in CIA Director Richard Helms and his deputy Vernon Walters. “Play it tough,” the president directed. “That’s the way they play it, and that’s the way we are going to play it.”
  • On March 21, 1973, in one of the most memorable Watergate exchanges caught on tape, Nixon met with his counsel, John W. Dean, who since the break-in had been tasked with coordinating the coverup. “We’re being blackmailed” by Hunt and the burglars, Dean reported, and more people “are going to start perjuring themselves.” “How much money do you need?” Nixon asked.
  • “I would say these people are going to cost a million dollars over the next two years,” Dean replied. “And you could get it in cash,” the president said. “I, I know where it could be gotten. I mean, it’s not easy, but it could be done.”
  • Mitchell later denied approving the plan. He testified that he told Magruder: “We don’t need this. I’m tired of hearing it.” By his own account, he did not object on the grounds that the plan was illegal.
  • Nixon’s final war, waged even to this day by some former aides and historical revisionists, aims to play down the significance of Watergate and present it as a blip on the president’s record. Nixon lived for 20 years after his resignation and worked tirelessly to minimize the scandal.
  • In his 1978 memoir “RN,” Nixon addressed his role in Watergate: “My actions and omissions, while regrettable and possibly indefensible, were not impeachable.” Twelve years later, in his book “In the Arena,” he decried a dozen “myths” about Watergate and claimed that he was innocent of many of the charges made against him. One myth, he said, was that he ordered the payment of hush money to Hunt and others. Yet, the March 21, 1973, tape shows that he ordered Dean to get the money 12 times.
  • Even now, there are old Nixon hands and defenders who dismiss the importance of Watergate or claim that key questions remain unanswered.
  • By August, Nixon’s impending impeachment in the House was a certainty, and a group of Republicans led by Sen. Barry Goldwater banded together to declare his presidency over. “Too many lies, too many crimes,” Goldwater said. On Aug. 7, the group visited Nixon at the White House. How many votes would he have in a Senate trial? the president asked. “I took kind of a nose count today,” Goldwater replied, “and I couldn’t find more than four very firm votes, and those would be from older Southerners. Some are very worried about what’s been going on, and are undecided, and I’m one of them.”
  • In his last remarks about Watergate as a senator, 77-year-old Sam Ervin, a revered constitutionalist respected by both parties, posed a final question: “Why was Watergate?” The president and his aides, Ervin answered, had “a lust for political power.” That lust, he explained, “blinded them to ethical considerations and legal requirements; to Aristotle’s aphorism that the good of man must be the end of politics.”
  • Nixon had lost his moral authority as president. His secret tapes — and what they reveal — will probably be his most lasting legacy. On them, he is heard talking almost endlessly about what would be good for him, his place in history and, above all, his grudges, animosities and schemes for revenge. The dog that never seems to bark is any discussion of what is good and necessary for the well-being of the nation.
  • By the time he was forced to resign, Nixon had turned his White House, to a remarkable extent, into a criminal enterprise.
  • “Always remember,” he said, “others may hate you, but those who hate you don’t win unless you hate them, and then you destroy yourself.” His hatred had brought about his downfall. Nixon apparently grasped this insight, but it was too late. He had already destroyed himself.
1 - 20 of 96 Next › Last »
Showing 20▼ items per page