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The first was Isabella, eldest daughter of cosovereigns Ferdinand and Isabella and widow of John II’s heir.

Manuel and Isabella became heirs to the Spanish crowns on her brother’s death. They visited Toledo and Saragossa to receive oaths of allegiance in 1498, but the possibility of the union of the crowns ended when Isabella died in the same year while giving birth to their son Miguel, who died in infancy.

Manuel married Eleanor of Austria, sister of the emperor Charles V, in 1518, and had one daughter by this marriage. He died at Lisbon in 1521 and was buried in the Jerónimos monastery.

Not only had Charles placed Sweden in a calamitous situation internationally but he had left behind him a legacy of domestic troubles. His usurpation of the throne had meant not only the expulsion of a Roman Catholic sovereign whose rule seemed to threaten Sweden’s Lutheranism but also the defeat of the aristocratic constitutionalism of the Council of State, and it had been followed by the execution of five leading members of the high aristocracy.

Charles IX had intervened in Russia to prevent the Poles from placing their own candidate on the Russian throne;

The king observed the spirit of the charter. The aristocracy found in Gustav a king favourable to their interests. He enlisted the nobility in the service of the state and thus provided them with numerous economic benefits.

The first decade of the reign, therefore, saw the creation of the Supreme Court (1614) and the establishment of the Treasury and the Chancery as permanent administrative boards (1618), and by the end of the reign an Admiralty and a War Office had been created—each presided over by one of the great officers of state.

And in the 1620s a thorough reform professionalized local government and placed it securely under the control of the crown. The Council of State became, for the first time, a permanent organ of government able to assume charge of affairs while the king was fighting overseas.

Thus, the fate of Europe was bound up with what happened in Livonia or Prussia. Protestant Europe was slow to appreciate the connection, but as the Protestant cause plunged to disaster in Germany, its leaders increasingly turned their eyes to Gustav as a possible saviour.

The disastrous defeat (1626) of Christian IV of Denmark, who had intervened in Germany without such an assurance, justified his caution, but it also made Swedish intervention inevitable.

Gustav landed in Germany without allies. Whatever the feelings of the Protestant populations, the Protestant princes resented Swedish interference, and the refusal of George William of Brandenburg to cooperate with the Swedes thwarted Gustav’s attempts to save Magdeburg from capture and sack at the hands of Tilly’s armies. In September John George of Saxony, provoked by violations of his neutrality, formally allied himself with Sweden.

the old security had become the new indemnity. Many Germans feared, and some Swedish diplomats now believed, that a final settlement must probably entail the deposition of the German emperor Ferdinand II and the election of Gustav as emperor in his place. It was a solution he must certainly have contemplated, but there is no firm evidence of his attitude; probably he considered it only as a last resort. Certainly it would have alienated those German allies who had no wish to exchange a Habsburg domination for a Swedish one.

His death came at a moment when it had already begun to appear that the victory he believed to be essential to the stability of Germany and the security of Sweden might be more difficult to achieve than he had imagined. But he had lived long enough to deflect the course of German history. His intervention in the Thirty Years’ War, at a moment when the armies of the Habsburg emperor and the German princes of the Catholic League controlled almost the whole of Germany, ensured the survival of German Protestantism against the onslaughts of the Counter-Reformation.

By supporting the German princes against the emperor, Gustav Adolf defeated the attempts of the Habsburgs to make their imperial authority a reality and thus played a part in delaying the emergence of a united Germany until the 19th century.

that this is in part because we have not spent enough time contemplating the scarier half of the distribution curve of possibilities, especially its brutal long tail, or the risks beyond sea-level rise;

that there is journalistic and public-interest value in spreading the news from the scientific community, no matter how unnerving it may be;

and that, when it comes to the challenge of climate change, public complacency is a far, far bigger problem than widespread fatalism — that many, many more people are not scared enough than are already “too scared.”

The science says climate change threatens nearly every aspect of human life on this planet, and that inaction will hasten the problems. In that context, I don’t think it’s a slur to call an article, or its writer, alarmist. I’ll accept that characterization. We should be alarmed.

It is, I promise, worse than you think. If your anxiety about global warming is dominated by fears of sea-level rise, you are barely scratching the surface of what terrors are possible, even within the lifetime of a teenager today.

what matters for equity valuations is which energy sources dominate the growth in demand, not which sources dominate the overall level of demand.

It is the marginal change in the composition of the German power market every year over the last decade rather than the annual system change in the composition of demand that explains why the German utilities E.ON and RWE have lost ~80% of their market capitalization since 2008.

In a mature market with a fast-growing, low-cost new entrant (renewables) the equity market will price in the decline of fossil-fuels far quicker than their market share will actually fall

the oil & gas (O&G) and Automotive sectors are increasingly exposed to the same kind of disruptive change that the German utilities have faced over the last decade.

Equities are priced on expected discounted cash-flows, and for energy companies expected future cash-flows depend on market expectations of future volumes sold and prices achieved. In the German power market up until 2008, the largest incumbent power generators, E.ON and RWE, had a diversified mix of conventional power plants consisting mainly of fossil-fuel (i.e. coal and gas) and nuclear capacity, but these incumbents were not investing in renewable energy at all over 2002-2008.

nearly all of the demand growth over 2002-08 has been captured by renewable energy sources. Indeed, and as can be seen in Figure 1, of the total 50TWh increase in demand over these six years, 47TWh was captured by renewables, and only 3TWh by conventional power sources. It also means that since 2008, as renewables have continued to grow relentlessly, the market share of conventional generation, including fossil fuels, has inexorably declined.

even after the last 15 years of spectacular growth in renewables, conventional generation – nuclear and fossil-fuel based capacity combined – still accounts for the lion’s share of generation, with 325TWh of total output in 2018 (60% of the market) versus 219TWh for renewables (40%). This is precisely why the German government is having to accelerate the phase-out of coal to help it achieve its longer-term emissions targets – the current rate of system change is simply not fast enough to meet those targets.

the equity market started to price in the end of conventional power generation in Germany as soon as it peaked 10 years ago, even though at that time it still accounted for over 80% of the market.

it would be of little consolation to shareholders in the oil majors if the share of oil and gas in the global energy mix in 2030 were still above 50% but demand had peaked before that and prices had started falling owing to the continuing rapid growth of low-cost renewables.

it is worth contemplating that in 2017, while fossil fuels still accounted for 85% of total system demand and renewables for only 3.6%, renewables already accounted for 30% of the growth in energy demand

At some job fairs in early March, major companies simply didn’t show up; now all those career events have been canceled.

The number of new job listings posted between mid-February and mid-March dropped 29 percent compared with the same period last year, according to data from the job marketplace ZipRecruiter. Postings for retail stores fell 14 percent, events jobs went down 20 percent and casino and hotel jobs dropped 23 percent.

The hiring situation will probably get worse over the next few months, as closures and cancellations ripple across the economy. “These are still early effects. The first wave of industries hit will not be the last,” said Julia Pollak, a labor economist at ZipRecruiter. “There will be a large human cost.”

Historically, college students who graduate into a recession have settled for lower-paying jobs at less prestigious companies than people who finished college even a year earlier. Economists have found that the impact of that bad luck can linger for as long as 10 or 15 years, leading to higher unemployment rates and lower salaries — a phenomenon known as “scarring.”

Whether the class of 2020 will face long-term consequences depends on a range of factors, including the length of the pandemic and the severity of the recession that seems certain to follow. But it doesn’t look good.

A severe downturn could also jeopardize the career prospects of students who graduate later this year or in 2021.

Some industries, like nursing, have even seen an increase in job listings, according to ZipRecruiter. The number of e-commerce listings rose 228 percent over the past four weeks compared to last year. Personal consulting jobs went up 26 percent.

Over the last few weeks, many job-hunting seniors have engaged in an awkward dance with recruiters in industries like law, journalism and technology, asking for updates while trying not to seem insensitive or selfish. All the traditional rules of engagement in a job hunt suddenly feel irrelevant. A meet-up for coffee is out of the question. A request for a networking call might seem invasive.

For some seniors, uncertainty about the economy has created outrage. Most of them were in fifth grade in 2008. But they remember the damage wrought by the Great Recession.

“This is the first pandemic that I have lived through, that my parents have lived through, but this isn’t the first time the economy has not been great,” said Amy Germano, a senior at James Madison University. “If we can get through the recession in 2008, I think we can get through this.”

if the UK’s GDP falls by more than 6.4% per person as a result of the lockdown, more years of life will be lost than saved.”

(there’s a great takedown of the argument here).

Let’s just agree nonetheless that in principle, at some point, there will be a crossover moment when quarantine and lockdown cease to have the net-positive impact they are now having. The question is simply when that cross-over occurs, and how we can get there soonest.

If we declare victory before we achieve it, we could have the worst of both worlds — a burst in new infections leading to a second shutdown, a collapse of faith in the authorities, more deaths, and a deeper depression.

Letting up on an epidemic before it has run its course can create a second wave, as in 1918, and as feared in China right now, that would take the country down in the fall of an election year.

At the same time, if quarantine and social distancing are stretched out too long, we could be losing more lives in the aggregate than we would be saving. We could also be risking ever-more extremist politics or even civil disorder

What matters is the timing. Getting that right is the single biggest challenge as we go forward. But that requires a huge amount of data we don’t yet have: specifically, a much better sense of just how widespread COVID-19 is in the broader population.

we need equipment we don’t yet have: tests for the virus that are quick and easy and ubiquitous; and, perhaps more importantly, serological tests, to see who is now immune and can return to work and normal life.

If we’re luckier still, we could get a breakthrough in treatments as doctors and nurses understand this disease better and we buy some time.

If we’re lucky and we find out more people have already gotten COVID-19 without the worst symptoms than we now believe, then the return to semi-normal could come more quickly

At best, we could get the virus to peak at a level that does not overwhelm our medical system and manage economically until a vaccine is available. At best.

The goal is not to “beat” the virus, because it can’t be beaten. Now that it’s a pandemic, it’s here to stay

The goal is not to fight it, or wage war on it.  COVID-19 is not a rival military. The goal is to find the optimal path to living with it.

I want Anthony Fauci making that decision. Right now, as complete a shutdown as possible is the only sane option.

if we make that collective pro-life decision — and, mercifully, we are — we are also saying something quite profound about who we are as Americans. We are saying that the lives of the elderly, and the poor, and the vulnerable matter more, when all is said and done, than our GDP.

In this century, the Evangelical right has embraced the cult of prosperity, the efficacy of torture, and the denial of health care to the poor. They upped the ante in 2016, of course, by embracing a pagan worshipper of Mammon, with a sideline in philandery, cruelty, gluttony, pride, deceit, envy, insatiable greed, and the foulest abuse of women

In an apparent attempt to defend a president who clearly dismissed and for too long ignored the greatest threat to the U.S. since 9/11, they’ve decided to embrace what they once called the “culture of death.”

The correct response to COVID-19, many pastors have declared, is to let it rip.

The elderly, instead of protecting themselves, should sacrifice what’s left of their lives to save the jobs of the young and to help Trump keep the economy going. Wealth, it appears, is far preferable to life — or at least when a Republican is president.

But if by ignoring “social distancing,” we individually and collectively guarantee someone’s death down the line, why is that not a kind of indirect killing?

Yes, Christians should not cower in constant fear of death. But we don’t have to embrace it either. I’m trying to think of a version of the Gospels where Jesus meets a leper and tells him not to worry, he’s going to die some day anyway, and make the best of it; or when he tells Martha and Mary to suck it up, and accept that Lazarus is dead, and move on. He didn’t. In fact, he risked and lost his own life by raising Lazarus from the dead.

We know now that touching things, being with other people and breathing the air in an enclosed space can be risky. How quickly that awareness recedes will be different for different people, but it can never vanish completely for anyone who lived through this year

The comfort of being in the presence of others might be replaced by a greater comfort with absence, especially with those we don’t know intimately

he paradox of online communication will be ratcheted up: It creates more distance, yes, but also more connection, as we communicate more often with people who are physically farther and farther away—and who feel safer to us because of that distance.

When all is said and done, perhaps we will recognize their sacrifice as true patriotism, saluting our doctors and nurses, genuflecting and saying, “Thank you for your service,” as we now do for military veterans. We will give them guaranteed health benefits and corporate discounts, and build statues and have holidays for this new class of people who sacrifice their health and their lives for ours. Perhaps, too, we will finally start to understand patriotism more as cultivating the health and life of your community, rather than blowing up someone else’s community. Maybe the de-militarization of American patriotism and love of community will be one of the benefits to come out of this whole awful mess.

Plagues drive change. Partly because our government failed us, gay Americans mobilized to build organizations, networks and know-how that changed our place in society and have enduring legacies today. The epidemic also revealed deadly flaws in the health care system, and it awakened us to the need for the protection of marriage—revelations which led to landmark reforms. I wouldn’t be surprised to see some analogous changes in the wake of coronavirus

The second reason is the “political shock wave” scenario. Studies have shown that strong, enduring relational patterns often become more susceptible to change after some type of major shock destabilizes them

But given our current levels of tension, this scenario suggests that now is the time to begin to promote more constructive patterns in our cultural and political discourse. The time for change is clearly ripening.

The COVID-19 crisis could change this in two ways. First, it has already forced people back to accepting that expertise matters. It was easy to sneer at experts until a pandemic arrived, and then people wanted to hear from medical professionals like Anthony Fauci. Second, it may—one might hope—return Americans to a new seriousness, or at least move them back toward the idea that government is a matter for serious people.

The coronavirus pandemic marks the end of our romance with market society and hyper-individualism. We could turn toward authoritarianism.

Religion in the time of quarantine will challenge conceptions of what it means to minister and to fellowship. But it will also expand the opportunities for those who have no local congregation to sample sermons from afar. Contemplative practices may gain popularity. And maybe—just maybe—the culture war that has branded those who preach about the common good with the epithet “Social Justice Warriors” may ease amid the very present reminder of our interconnected humanity.

The first is the “common enemy” scenario, in which people begin to look past their differences when faced with a shared external threat.

COVID-19 will sweep away many of the artificial barriers to moving more of our lives online. Not everything can become virtual, of course. But in many areas of our lives, uptake on genuinely useful online tools has been slowed by powerful legacy players, often working in collaboration with overcautious bureaucrats

The pandemic will shift the paradigm of where our healthcare delivery takes place. For years, telemedicine has lingered on the sidelines as a cost-controlling, high convenience system. Out of necessity, remote office visits could skyrocket in popularity as traditional-care settings are overwhelmed by the pandemic. There would also be containment-related benefits to this shift; staying home for a video call keeps you out of the transit system, out of the waiting room and, most importantly, away from patients who need critical care.

This crisis should unleash widespread political support for Universal Family Care—a single public federal fund that we all contribute to, that we all benefit from, that helps us take care of our families while we work, from child care and elder care to support for people with disabilities and paid family leave. Coronavirus has put a particular national spotlight on unmet needs of the growing older population in our country, and the tens of millions of overstretched family and professional caregivers they rely on. Care is and always has been a shared responsibility. Yet, our policy has never fully supported it. This moment, challenging as it is, should jolt us into changing that.

In the case of the coronavirus pandemic, however, some Republicans and conservative commentators have begun to make an argument more radical than “people will die.” It’s this: People should die.

Patrick apparently sees a dilemma—two options and no other choices: Either we try to save people now, including the elderly, and risk immense damage to the economy, or we get back to work immediately and get the economy moving again by letting the elderly die, perhaps even encouraging them to welcome death for the greater good.

Especially troubling is that some of the people who are making the case that we should intentionally concede lives to the coronavirus—especially the lives of the elderly, the disabled, the vulnerable, the infirm—are prominent figures in the pro-life movement

a number of people who have built their careers on being pro-life have abandoned that, converting to prosperity gospel by way of Bishop Trump.

Consider the argument posed by Rusty Reno in the pages of the magazine he edits, the largely conservative Catholic First Things. Reno criticizes New York governor Andrew Cuomo for saying “I did everything we could do. And if everything we do saves just one life, I’ll be happy.” To Reno, Cuomo’s statement represents a “disastrous sentimentalism” because “there are many things more precious than life.”

Responding to Reno’s article, Erick Erickson writes: It is sad to see a religious publication try to cast the extraordinary effort of stopping a global pandemic [as] “demonic.” But that is what it does. It cheapens the effort to save lives as sentimental and essentially advances a materialistic approach of wanting to make money and let people die because people are always going to die. Now, of course, the writer knows he is doing this so he chooses to denounce materialism while essentially advocating for it.

And in the liberal Catholic magazine Commonweal, Jared Lucky powerfully rebuts Reno’s argument, pointing out that “today’s quarantine restrictions complement centuries of Christian response to epidemics.

Few Christians would ask for this cup, but we must drink it—to serve God by serving our neighbors, and to grow closer to God through the contemplation of death. . . . Quarantine is . . . a costly act of service that meets the urgent human needs of our neighbors. That service may involve going to work—at a hospital or a testing center—or staying home. But make no mistake: these sacrifices are not a surrender to death. They are a sacrifice to the God who gives life.

you need not be a cynic to wonder whether it is mostly driven by a desire to protect the president.

Certainly the medical and economic stakes are, in Trump’s own mind, jumbled together with the political calculus for his re-election, as he made clear in a typically paranoid, anti-media tweet on Wednesday:

Thankfully, not everyone in the Republican leadership and conservative punditry has adopted the view that we should sacrifice the vulnerable by prematurely ending social distancing and getting back to work. Here, for example, is Wyoming representative Liz Cheney:

Old resentments and falling-outs will seem irrelevant. You will call people you had sworn never to talk to ever again, so as to ask them: “How are you doing?” Many women will be beaten in their homes

You will put on weight. You’ll look for online fitness training.

You’ll laugh. You’ll laugh a lot. You’ll flaunt a gallows humour you never had before. Even people who’ve always taken everything dead seriously will contemplate the absurdity of life, of the universe and of it all.

The true nature of the people around you will be revealed with total clarity. You will have confirmations and surprises.

“It is, therefore, ordered and adjudged that the said Donald John Trump be, and he is hereby, acquitted of the charges in said articles,” declared Chief Justice Roberts after the second article was defeated.

“The verdict of this kangaroo court will be meaningless,” Senator Chuck Schumer of New York, the Democratic leader, said moments before the vote. “By refusing the facts — by refusing witnesses and documents — the Republican majority has placed a giant asterisk, the asterisk of a sham trial, next to the acquittal of President Trump, written in permanent ink.”

At the Capitol earlier in the day, Chief Justice John G. Roberts Jr., who presided over the trial, put the question to senators shortly after 4 p.m.: “Senators how say you? Is the respondent, Donald John Trump, president of the United States guilty or not guilty?”

“Today, the sham impeachment attempt concocted by Democrats ended in the full vindication and exoneration of President Donald J. Trump,” said Stephanie Grisham, the White House press secretary. “As we have said all along, he is not guilty.”

But most argued that the conduct was not sufficiently dangerous to warrant the Senate removing a president from office for the first time in history — and certainly not with an election so near. Others dismissed Democrats’ arguments altogether, insisting their case was merely an attempt to dress up hatred for Mr. Trump and his policies as a constitutional case.

“There will be so many who will simply look at what I am doing today and say it is a profile in courage,” Mr. Jones said before the vote. “It is not. It is simply a matter of right and wrong.”

The possibility of impeachment has hung over Mr. Trump’s presidency virtually since it began, but Speaker Nancy Pelosi, Democrat of California, initially resisted it. After Robert S. Mueller III, the special counsel who investigated Russia’s election interference in 2016 and possible collaboration with the Trump campaign, found 10 instances of potential obstruction of justice by Mr. Trump, she said impeachment was too divisive a remedy to pursue.

Impeachment was seriously contemplated for a president only once in the first two centuries of the American republic; it now has been so three times since the 1970s, and two of the past four presidents have been impeached.

It helps, a little, to think in meteorological terms. View it as a major hurricane — one that still appears to be gathering force.

With a decline in American stocks of more than 20 percent from their peak, the 11-year American bull market died on Wednesday.

All on its own, that would be monumental. So would the virtual halt of major sporting events, the cancellation of conferences and the banning of flights, to say nothing of the great diaspora of office workers who have been sent home

Yet even these developments seem trivial in the face of the rising death toll, with mind-boggling predictions of millions of additional infections

Whether this event really turns out to be a storm from which the economy rebounds, or a cataclysm that wreaks far more consequential changes, cannot be easily answered.

Professor Rogoff estimates that a global recession is “at least 80 percent likely,” with China bearing much of the brunt and other emerging-market countries likely to be severely pounded.

“the financial power of the United States has grown in stature since the 2007-2009 financial crisis.”

That power would be wasted, Professor Rogoff said, if the United States did not use its resources both to aid other nations and provide succor to the impoverished people within its own borders.

some officials and scholars are contemplating even more radical experiments than the banks have engaged in over the last decade, like buying corporate debt in the United States or even issuing digital money that would pay variable interest rates, targeted to the borrower.

There is no shortage of solid suggestions. Providing paid sick leave and medical coverage to those who don’t have it, strengthening unemployment insurance “and generally repairing the frayed social safety net in the United States” are useful options,

the most important boon to the economy might come from something simpler: a general conviction that government, businesses, nonprofits and individuals are responding effectively, and that a semblance of normal life will soon resume.

But the epidemic’s relentless math, and the bumbling start to the recovery effort in the United States, suggest that we won’t be close to that moment for many weeks.

“Sanders’ political failings are his own, and black people are not here to channel the political yearnings of white progressives. We are not here to carry your water or clean up your mess. It’s not that black people don’t believe you… You quite literally need more people.”

Including white people. So far in 2020, Sanders has lost college-educated whites, badly. More surprising, he has hemorrhaged the same working-class whites he carried in 2016—which suggests that their transient adherence was driven more by aversion to Hillary Clinton than enthusiasm for Sanders himself.

[M]any progressive activists misread public opinion. Their answer to almost every question of political strategy is to insist that Americans are a profoundly progressive people who haven’t yet been inspired to vote the way they think… They are conflating our own opinions with smart political advice. They are choosing to believe what they want to believe.

Second, Sanders’ alternative turnout model was delusional.

Sanders claimed that he could fuse young people with the previously disengaged—people who rarely, if ever, vote—into a decisive bloc of new voters who would respond to him alone. Wrong. In primary upon primary, Sanders’ phantom army never materialized.

In an extensive study of non-voters by the Knight Foundation the authors conclude that “If they all voted in 2020, non-voters would add an almost equal share of votes to Democratic and Republican candidates.”

In sum Sanders, his campaign, and too many of his followers embraced an electoral strategy premised on magical thinking.

Finally, Sanders “democratic-socialist” agenda unnerved many voters.

Actual votes here tell the story. To succeed, Democrats must begin with their base—the coalition which Sander is losing by a wide margin. But they also need to add the votes of the same people who buoyed Democratic candidates in 2018: moderates, independents, persuadable Republicans, suburbanites, and college-educated women.

Sanders insists that his campaign is winning on the issues, and losing only because primary voters fear that he’s not electable. But this misses the point: Voters fear he’s unelectable because of his positions on the issues.

And doing his damnedest to help Biden become president.

Take his centerpiece proposal: single-payer healthcare. A recent poll by the Kaiser Family Foundation found that 60 percent of swing voters in the pivotal states of Minnesota, Pennsylvania, and Wisconsin consider it “a bad idea.” Without winning at least two of those states—and in reality they probably need all three —Democrats will lose to Trump.

To be sure, some of Sanders’ individual proposals are popular among Democrats. But Sanders should contemplate that the adverse verdict of primary voters implicates his overall agenda—and that, if anything, this judgement minimizes the misgivings among the electorate writ large.

Certain of Sanders’ fellow progressives get that. Here’s Alexandria Ocasio-Cortez on appealing to voters: “I come from the lens of an organizer, and if someone doesn’t do what you want, you don’t blame them—you ask why. And you don’t demand that answer of that person—you reflect. And that reflection is where you can grow.”

It’s one thing to criticize Biden on the issues. But if one worries about Trump beating Biden at such terrible cost to the globe, then it would be best not to call Uncle Joe, as Robinson has, “a sleazy dishonest person, the kind who should not be rewarded with a position of extreme trust like the presidency.”

that’s what comes of treating the Democratic party as the target of a hostile takeover—as Sanders himself so often does. Soon enough, for his acolytes the party itself becomes the enemy, along with everyone within it who disagrees with their leader

From there, it is but one step further to sabotaging Biden as an act of revenge. After the Michigan primary, pro-Sanders commentator Krystal Ball said: “The responsibility is placed solely on the voters to suck it up and vote Joe. I’m not buying it. If the choice is Donald Trump or Joe Biden, you can mark me down as officially undecided.”

The essential choice for Sanders in 2020 is between facilitating Trump’s second term, and helping Biden become a candidate more of his voters can accept.

That involves doing four hard things:

Nudging Biden closer to his position, but only in areas where Biden has room to move

Reminding his supporters that their campaign was a cause, not a suicide mission.

Denouncing the rancor through which principled advocacy becomes personal animus.

Overall, Sanders never reached large chunks of the Obama coalition – an essential predicate to any chance of long-term success.

Very soon Sanders and his supporters will have to stop fabricating fantastical excuses for losing to Biden, look in the mirror, and decide what to do about Donald Trump.

But will he?

Trump must be defeated,” Bernie Sanders insists, “and I will do everything in my power to make that happen.”

The AEI proposal is the closest thing to a middle path between these plans. It’s more testing, but nothing approaching Romer’s hopes. It’s more contact tracing, but it doesn’t envision an IT-driven panopticon. But precisely for that reason, what it’s really describing is a yo-yo between extreme lockdown and lighter forms of social distancing, continuing until a vaccine is reached.

The CAP and Harvard plans both foresee a digital pandemic surveillance state in which virtually every American downloads an app to their phone that geotracks their movements, so if they come into contact with anyone who later is found to have Covid-19, they can be alerted and a period of social quarantine can begin

o state the obvious: The technological and political obstacles are massive. While similar efforts have borne fruit in Singapore and South Korea, the US is a very different country, with a more mistrustful, individualistic culture. Already, polling shows that 70 percent of Republicans, and 46 percent of Democrats, strongly oppose using cellphone data to enforce quarantine orders.

The alternative to mass surveillance is mass testing. Romer’s proposal is to deploy testing on a scale no one else is contemplating — 22 million tests per day — so that the entire country is being tested every 14 days, and anyone who tests positive can be quickly quarantined

All of them then imagine a phase two, which relaxes — but does not end — social distancing while implementing testing and surveillance on a mass scale. This is where you must begin imagining the almost unimaginable.

This, too, requires some imagination. Will governors who’ve finally, at great effort, reopened parts of their economies really keep throwing them back into lockdown every time ICUs begin to fill? Will Trump have the stomach to push the country back into quarantine after he’s lifted social distancing guidelines?

even if the political hurdles could be cleared, it’s obvious, reading the AEI proposal, that there’ll be no “V-shaped recovery” of the economy. Scott Gottlieb, the former FDA commissioner who helped craft the plan, says he thinks something like 80 percent of the economy will return — that may sound like a lot, but it’s an economic collapse of Great Depression proportions.

As unlikely as these futures may be, I think the do-nothing argument is even less plausible: It imagines that we simply let a highly lethal virus kill perhaps millions of Americans, hospitalize tens of millions more, and crush the health system, while the rest of us go about our daily economic and social business.

That is, in my view, far less likely than the construction of a huge digital surveillance state. I care about my privacy, but not nearly so much as I care about my mother.

My point isn’t to criticize these plans when I have nothing better to offer. Indeed, my point isn’t to criticize them at all. It’s simply to note that these aren’t plans for returning to anything even approaching normal

They either envision life under a surveillance and testing state of dystopian (but perhaps necessary!) proportions, or they envision a long period of economic and public health pain, as we wrestle the disease down only to see it roar back, as seems to be happening in Singapore.

As of now, the White House has neither chosen nor begun executing on a plan of its own. That’s a terrible abdication of leadership, but reading through the various proposals, you can see why it’s happened. Imagine you’re the president of the United States in an election year. Which of these futures, with all its costs and risks and pain, would you want to try and sell to the American people?

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.”

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.

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).

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

How does this affect economics?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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