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Extensive survey data show that Republicans are much more right-leaning than they were twenty years ago, Democrats much more left-leaning, and both sides much more likely to see the other as a mortal threat to the nation’s welfare.

The polarization is personal: Fully 50 percent of Republicans would not want their child to marry a Democrat, and nearly a third of Democrats return the sentiment. Interparty marriage has taken the place of interracial marriage as a family taboo.

Finally the polarization is electronic and digital, as Americans increasingly inhabit the filter bubbles of news and social media that correspond to their ideological affinities. We no longer just have our own opinions. We also have our separate “facts,” often the result of what different media outlets consider newsworthy

the more we do it, the worse we’re at it. Our disagreements may frequently hoarsen our voices, but they rarely sharpen our thinking, much less change our minds.

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Most importantly, they are never based on a misunderstanding. On the contrary, the disagreements arise from perfect comprehension; from having chewed over the ideas of your intellectual opponent so thoroughly that you can properly spit them out.

What was it that one learned through a great books curriculum?

As I think about it, I’m not sure we were taught anything at all. What we did was read books that raised serious questions about the human condition, and which invited us to attempt to ask serious questions of our own. Education, in this sense, wasn’t a “teaching” with any fixed lesson. It was an exercise in interrogation.

To listen and understand; to question and disagree; to treat no proposition as sacred and no objection as impious; to be willing to entertain unpopular ideas and cultivate the habits of an open mind — this is what I was encouraged to do by my teachers at the University of Chicago.

It’s what used to be called a liberal education.

The University of Chicago showed us something else: that every great idea is really just a spectacular disagreement with some other great idea.

These quarrels are never personal. Nor are they particularly political, at least in the ordinary sense of politics. Sometimes they take place over the distance of decades, even centuries.

I got the gist — and the gist was that I’d better enroll in the University of Chicago and read the great books. That is what I did.

In other words, to disagree well you must first understand well. You have to read deeply, listen carefully, watch closely. You need to grant your adversary moral respect; give him the intellectual benefit of doubt; have sympathy for his motives and participate empathically with his line of reasoning. And you need to allow for the possibility that you might yet be persuaded of what he has to say.

Since the 1960s it had been the vogue in American universities to treat the so-called “Dead White European Males” of the Western canon as agents of social and political oppression. Allan Bloom insisted that, to the contrary, they were the best possible instruments of spiritual liberation.

He also insisted that to sustain liberal democracy you needed liberally educated people.

According to a new survey from the Brookings Institution, a plurality of college students today — fully 44 percent — do not believe the First Amendment to the U.S. Constitution protects so-called “hate speech,” when of course it absolutely does.

What’s clear is that the mis-education begins early. I was raised on the old-fashioned view that sticks and stones could break my bones but words would never hurt me. But today there’s a belief that since words can cause stress, and stress can have physiological effects, stressful words are tantamount to a form of violence. This is the age of protected feelings purchased at the cost of permanent infantilization.

Then we get to college, where the dominant mode of politics is identity politics, and in which the primary test of an argument isn’t the quality of the thinking but the cultural, racial, or sexual standing of the person making it.

In recent years, identity politics have become the moated castles from which we safeguard our feelings from hurt and our opinions from challenge. It is our “safe space.” But it is a safe space of a uniquely pernicious kind — a safe space from thought, rather than a safe space for thought, to borrow a line I recently heard from Salman Rushdie.

Another consequence of identity politics is that it has made the distance between making an argument and causing offense terrifyingly short. Any argument that can be cast as insensitive or offensive to a given group of people isn’t treated as being merely wrong. Instead it is seen as immoral, and therefore unworthy of discussion or rebuttal.

The result is that the disagreements we need to have — and to have vigorously — are banished from the public square before they’re settled.

One final point about identity politics: It’s a game at which two can play.

One of the more dismaying features of last year’s election was the extent to which “white working class” became a catchall identity for people whose travails we were supposed to pity but whose habits or beliefs we were not supposed to criticize. The result was to give the Trump base a moral pass it did little to earn.

So here’s where we stand: Intelligent disagreement is the lifeblood of any thriving society. Yet we in the United States are raising a younger generation who have never been taught either the how or the why of disagreement, and who seem to think that free speech is a one-way right: Namely, their right to disinvite, shout down or abuse anyone they dislike, lest they run the risk of listening to that person — or even allowing someone else to listen. The results are evident in the parlous state of our universities, and the frayed edges of our democracies.

Yes, we disagree constantly. But what makes our disagreements so toxic is that we refuse to make eye contact with our opponents, or try to see things as they might, or find some middle ground.

Instead, we fight each other from the safe distance of our separate islands of ideology and identity and listen intently to echoes of ourselves

The crucial prerequisite of intelligent disagreement — namely: shut up; listen up; pause and reconsider; and only then speak — is absent.

Perhaps the reason for this is that we have few obvious models for disagreeing well, and those we do have — such as the Intelligence Squared debates in New York and London or Fareed Zakaria’s show on CNN — cater to a sliver of elite tastes, like classical music.

Fox News and other partisan networks have demonstrated that the quickest route to huge profitability is to serve up a steady diet of high-carb, low-protein populist pap. Reasoned disagreement of the kind that could serve democracy well fails the market test

I do think there’s such a thing as private ownership in the public interest, and of fiduciary duties not only to shareholders but also to citizens

Journalism is not just any other business, like trucking or food services. Nations can have lousy food and exemplary government, as Great Britain demonstrated for most of the last century. They can also have great food and lousy government, as France has always demonstrated.

But no country can have good government, or a healthy public square, without high-quality journalism — journalism that can distinguish a fact from a belief and again from an opinion; that understands that the purpose of opinion isn’t to depart from facts but to use them as a bridge to a larger idea called “truth”; and that appreciates that truth is a large enough destination that, like Manhattan, it can be reached by many bridges of radically different designs.

In other words, journalism that is grounded in facts while abounding in disagreements.

that requires proprietors and publishers who understand that their role ought not to be to push a party line, or be a slave to Google hits and Facebook ads, or provide a titillating kind of news entertainment, or help out a president or prime minister who they favor or who’s in trouble.

Their role is to clarify the terms of debate by championing aggressive and objective news reporting, and improve the quality of debate with commentary that opens minds and challenges assumptions rather than merely confirming them.

This is journalism in defense of liberalism

In one study, all the participants were presented with a numerical summary, drawn from a panel of experts convened by the University of Chicago, of the range of expert opinion on certain economic issues

One group of participants, however, was presented not only with the numerical summary of expert opinion but also with an excerpted comment from one expert on either side of an issue

, being exposed to the conflicting comments made it more difficult for participants to distinguish the issues most experts agreed on (such as carbon tax) from those for which there was substantial disagreement (such as minimum wage).

This distorting influence affected not only the participants’ perception of the degree of consensus, but also their judgments of whether there was sufficient consensus to use it to guide public policy.

What explains this cognitive glitch? One possibility is that when we are presented with comments from experts on either side of an issue, we produce a mental representation of the disagreement that takes the form of one person on either side, which somehow contaminates our impression of the distribution of opinions in the larger population of experts

Another possibility is that we may just have difficulty discounting the weight of a plausible argument, even when we know it comes from an expert whose opinion is held by only a small fraction of his or her peers.

It’s also possible that the mere presence of conflict (in the form of contradictory expert comments) triggers a general sense of uncertainty in our minds, which in turn colors our perceptions of the accuracy of current expert understanding of an issue.

the implications are worrisome. Government action is guided in part by public opinion. Public opinion is guided in part by perceptions of what experts think. But public opinion may — and often does — deviate from expert opinion, not simply, it seems, because the public refuses to acknowledge the legitimacy of experts, but also because the public may not be able to tell where the majority of expert opinion lies.

Notice that the student position allows no room for civil disagreement.

In “The Coddling of the American Mind,” Greg Lukianoff and Jonathan Haidt argued that too many college students engage in “catastrophizing,” which is to say, turning common events into nightmarish trials or claiming that easily bearable events are too awful to bear. After citing examples, they concluded, “smart people do, in fact, overreact to innocuous speech, make mountains out of molehills, and seek punishment for anyone whose words make anyone else feel uncomfortable.”

As students saw it, their pain ought to have been the decisive factor in determining the acceptability of the Halloween email. They thought their request for an apology ought to have been sufficient to secure one. Who taught them that it is righteous to pillory faculty for failing to validate their feelings, as if disagreement is tantamount to disrespect? Their mindset is anti-diversity, anti-pluralism, and anti-tolerance, a seeming data-point in favor of April Kelly-Woessner’s provocative argument that “young people today are less politically tolerant than their parents’ generation.”

This notion that one’s existence can be invalidated by a fellow 18-year-old donning an offensive costume is perhaps the most disempowering notion aired at Yale.

It ought to be disputed rather than indulged for the sake of these students, who need someone to teach them how empowered they are by virtue of their mere enrollment; that no one is capable of invalidating their existence, full stop; that their worth is inherent, not contingent; that everyone is offended by things around them; that they are capable of tremendous resilience; and that most possess it now despite the disempowering ideology foisted on them by well-intentioned, wrongheaded ideologues encouraging them to imagine that they are not privileged.

Here’s one of the ways that white men at Yale are most privileged of all: When a white male student at an elite college says that he feels disempowered, the first impulse of the campus left is to show him the extent of his power and privilege. When any other students say they feel disempowered, the campus left’s impulse is to validate their statements. This does a huge disservice to everyone except white male students.

That isn’t to dismiss all complaints by Yale students. If contested claims that black students were turned away from a party due to their skin color are true, for example, that is outrageous. If any discrete group of students is ever discriminated against, or disproportionately victimized by campus crime, or graded more harshly by professors, then of course students should protest and remedies should be implemented.

On Monday morning, I saw on Twitter/X that New York magazine had just published a profile of and interview with the writer Ta-Nehisi Coates about his forthcoming book (partially) about the Israeli-Palestinian conflict. Coates makes very clear in the interview that he endorses from top to bottom the position advocated by the most militant pro-Palestinian activists: Israel is committing genocide and ethnic cleansing in Gaza; Palestinian resistance is equivalent in purity and righteousness to those who marched against Jim Crow in the American South during the 1950s and ’60s and against South African apartheid in the 1970s and ’80s—while Israel’s position is equivalent in wickedness to the brutalizing forces of racism and oppression in both contexts.

The standard explanation of this unhinging, repeated in graduate-school classrooms and in advice to politicians, is technological change.

This explanation, known as skill-biased technical change, is so common that economists just call it S.B.T.C. They use it to explain why everyone from the extremely rich to the just-kind-of rich are doing so much better than everyone else.

For all their disagreements, Autor and Mishel are allies of sorts. Both are Democrats who have advised President Barack Obama, and both agree that rampant inequality can undermine democracy and economic growth by fostering despair among workers and corruption among the wealthy

The change came around 1978, Mishel said, when politicians from both parties began to think of America as a nation of consumers, not of workers.

each administration and Congress have made choices — expanding trade, deregulating finance and weakening welfare — that helped the rich and hurt everyone else. Inequality didn’t just happen, Mishel argued. The government created it.

Computers and the Internet, Mishel argued, are just new examples on the continuum and cannot explain a development like extreme inequality, which is so recent. So what happened?

David Autor, one of the country’s most celebrated labor economists, took the stage, fumbled for his own PowerPoint presentation and then explained that there was plenty of evidence showing that technological change explained a great deal about the rise of income inequality. Computers, Autor says, are fundamentally different. Conveyor belts and massive steel furnaces made blue-collar workers comparatively wealthier and hurt more highly skilled crafts­people, like blacksmiths and master carpenters, whose talents were disrupted by mass production. The computer revolution, however, displaced millions of workers from clerical and production occupations, forcing them to compete in lower-paying jobs in the retail, fast-food and home health sectors. Meanwhile, computers and the Internet disproportionately helped people like doctors, engineers and bankers in information-intensive jobs. Inequality was merely a side effect of the digital revolution, Autor said; it didn’t begin and end in Washington.

Levy suggested seeing how inequality has played out in other countries

In Germany, the average worker might make less than an American, but the government has established an impressive apprenticeship system to keep blue-collar workers’ skills competitive.

For decades, the Finnish government has offered free education all the way through college. It may have led to high taxes, but many believe it also turned a fairly poor fishing economy into a high-income, technological nation.

On the other hand, Greece, Spain and Portugal have so thoroughly protected their workers that they are increasingly unable to compete

Inequality has risen almost everywhere, which, Levy says, means that Autor is right that inequality is not just a result of American-government decisions. But the fact that inequality has risen unusually quickly in the United States suggests that government does have an impact

Still, economists certainly cannot tell us which policy is the right one. What do we value more: growth or fairness? That’s a value judgment. And for better or worse, it’s up to us.

Swear words are swear words for a reason, and the urge to show that one is sophisticated and anti-puritanical sometimes leads to the false conclusion that they’re just words like any other, and don’t communicate anything special. They do, and it did.

Just ignore his words.

I have a hard time believing that anyone really thinks like this as a general proposition. Certainly conservatives who spent the postwar era reciting the mantra “ideas have consequences” didn’t think the words that carried political ideas were impotent

More recently, conservatives over the last ten years seemed to attribute totemic powers to words like “radical Islamic terrorism”—or, for that matter, “Merry Christmas.”

Words are so central to international affairs that they get their own special professional and legal category: diplomacy. We hope that speech, if it does not draw countries closer together, will at least allow clear communication about interests, demands, and the possibility of war.

People put up with being ruled, and those who carry out the ruling on others’ behalf put up with taking orders in light of their beliefs about legitimacy and political reasonableness, beliefs that depend on prior speech and persuasion.

Norms rest on beliefs which rest on persuasion, and institutions rest on norms.

Hannah Arendt treated political speech as the core of her special sense of “action,” the chief way in which we shape and constitute our life together.

one particular kind of Trump’s speech, his especially outrageous and transparent lies, are words that have shaped the world: demonstrations of power, attempts to undermine the existence of shared belief in truth and facts.

With his words threatening to subordinate the collective self-defense commitment of NATO

A large part of the population begins with a tribal sense of what team they’re on, which side they support, but relatively little information about the substantive policy views associated with that

Trump undermined the most longstanding pillar of American foreign policy.

America’s closest allies now have to believe that its treaty commitments are up for grabs in each election, and have to plan accordingly.

Coercion is expensive, and the in the postwar West the US has often been able to get its way without violence, as the widely-trusted anchor state in an order with a lot of perceived legitimacy

This is true in security, where the US is able to shape the world order to an outsized degree, cheaply, because of its network of alliances.

And it’s true in economics; the US benefits from the use of the dollar as a reserve currency, the international willingness to hold US debt, and the global system of trade that it created.

They leave because they hear and understand that they’re not wanted.

Trump called on Congress to allow Cabinet officials to “remove federal employees who undermine the public trust or fail the American people,” i.e., to fire civil servants on grounds of political disagreement, ending the century-old rule of a professional and apolitical civil service that stays on as political appointees come and go

Trump saying it matters. House Speaker Paul Ryan echoing the call for a “purge” at the FBI matters. Fox News’ constant public delegitimation of the civil service matters

it also matters more broadly for the character of the American state and bureaucracy. By discouraging professionals and encouraging politicization, Trump is already changing the civil service by his speech.

immigration enforcement is a domain in which there’s a lot of discretion on the ground

Trump’s demonization of immigrants and celebration of ICE change policy de facto. Trump’s words have sent the message of “anything goes” to ICE  and “you should be scared” to those who might be vulnerable to ICE. Both messages have been heard. ICE has become so aggressive in its tactics that a federal judge described it as “treatment we associate with regimes we revile as unjust, regimes where those who have long lived in a country may be taken without notice from streets, home, and work. And sent away.”

Immediate policy outcomes mainly have to do with coercion: who is taxed, regulated, expropriated, imprisoned, deported, conscripted, what wars are fought, who is kept out of the country by force of arms.

the Republican and conservative rank and file now have an unusually direct, unusually constant source of information about the things that people like us are supposed to believe and support. I think that we can see the effect of this in the rapid and dramatic swings in reported Republican opinion on questions from free trade to Russia policy

Trump’s stump speeches and unhinged tweets, and Fox News’ amplification of them, are changing what Republican voters think it means to be a Republican. He doesn’t speak for them; how many of them had a view about “the deep state” two years ago? He speaks to them, and it matters.

The delegitimation of the basic enterprise of independent journalism is something else, and something new to the US

In their important new book How Democracies Die, the political scientists Steven Levitsky and Daniel Ziblatt point to the delegitimation of the independent press as one of the key warning signs of a genuine would-be autocrat.

We don’t know how far Trump will be able to go in his attempts to suppress the media, but we know that he’s persuaded millions of Republicans to let him try.

Trump has successfully communicated to his voters that being on their team means not being on the FBI’s team. He’s changed what being a Republican means.

And he’s trying to change what being an American means

It’s also the power to channel and direct the dangerous but real desire for collective national direction and aspiration. Humans are tribal animals, and our tribal psychology is a political resource that can be directed to a lot of different ends

all those presidents put forward a public rhetorical face that was better than their worst acts. This inevitably drives political opponents crazy: they despise the hypocrisy and the halo that good speeches put on undeserving heads. I’ve had that reaction to, well, every previous president in my living memory, at one time or another. But there’s something important and valuable in the fact that they felt the need to talk about loftier ideal than they actually governed by

As with his embrace of white nationalism, Trump’s equation of opposition with crime and treason isn’t just “norm erosion,” a phrase we have seen a lot of in the last year. It’s norm inversion, aligning the aspiration to do right with substantive political wrong

When he tells us that there are “very fine people on both sides” as between the Klan and their critics, he turns the moral compass of American public discourse upside-down. He channels the desire for collective aspiration into an attempt to make us worse than we are.

a norm that was built up through speech, persuasion, and belief can be undermined the same way. Trump’s own racism, his embrace of white nationalist discourse, and his encouragement of the alt-right over the past two years have, through words, made a start on that transformation.

Much the same is true of his demonization of political opponents, from “lock her up!” chants on the campaign trail and telling Hillary Clinton that “you’d be in jail

In the long term, it tells a large portion of the country that it is patriotic and virtuous to reject political disagreement, to reject the basic legitimacy of the views of the majority of the electorate.

The business of prioritizing procedural norms, the rule of law, alternation in power, and electoral fairness is psychologically difficult

stating the norms out loud—in the U.S., affirming that they are central to the American system—helps to balance out the authoritarian and populist temptation

what populists and authoritarians do is to make a virtue out of the inclination to love our in-group and hate the out-group

In words, even if not in deeds, they championed a free and fair liberal democratic order, the protection of civil liberties, openness toward the world, rejection of racism at home, and defiance against tyranny abroad. And their words were part of the process of persuading each generation of Americans that those were constitutively American ideals.

“Ignore the tweets, ignore the language, ignore the words” is advice that affects a kind of sophistication: don’t get distracted by the circus, keep your eye on what’s going on behind the curtain. This is faux pragmatism, ignoring what is being communicated to other countries, to actors within the state, and to tens of millions of fellow citizens

when people are anxious about the future and worried about their loved ones, it’s much harder to forgive and forget. In the current situation, “we’re all feeling increasingly irritable and frustrated, lonely, anxious, and bored,” Kirmayer said. “So we then have less patience for those around us

In her group of eight close girlfriends, Stanley told me, only she and one other friend have been practicing social distancing. The other six have reportedly been driving together to Dunkin’ Donuts to drink coffee and then hanging out at one another’s houses.

Instead of enjoying the end of her senior year, Stanley is staying home and watching her friend group unravel from afar.

Of course, no disagreement over social distancing is just about following rules. In a pandemic, whether you follow the guidelines recommended by medical authorities has a direct bearing on whether others catch a deadly disease

ignoring public-health guidance can be especially disruptive to friendships, she explained. Social distancing works best if everyone does it; when you protect yourself, you’re protecting others; in turn, other people’s self-protection protects you. If some people opt out of the collective effort, you may feel like they’ve explicitly declined to have your back, even if you still have theirs. “Reciprocity is a core expectation of our friendships,” Kirmayer said.

when friends are at odds over social distancing, Kirmayer recommends preserving those friendships when possible, and using empathy rather than shaming to resolve the conflict.

She encourages her clients to avoid accusatory or blaming language like “You shouldn’t do that” or “I don’t like it that you do this,” and to start with an open-ended question like “What value is [this measure you don’t follow] conflicting with?”

And it’s important, she added, to emphasize that you’re concerned for your friend’s safety as well as your own.

Acknowledging the feelings that inform a friend’s opinions can make a conversation less confrontational.

Perhaps that means acknowledging circumstances that make coping with the pandemic harder, such as a friend who lives alone, or is single, or has lost income, or has a less-than-desirable home situation. “Those kinds of statements can really be disarming, and can help our friends to hear our message more clearly,”

actively help the friend in question with whatever it is that makes social distancing so hard for them. “Offer to do things to make it easier for a friend to take it seriously. Like, ‘Can I help? Can I support you in this in any way?’

In a pandemic, everyday life is harder by an order of magnitude because people can’t physically be together. But we can try to metaphorically meet our friends where they are.

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.

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

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

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

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

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

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

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

SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM

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

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

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

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

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

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

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

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

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

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

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

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

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,

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.

the message of the commandment on Saturday communicated that people were not primarily created for labor.

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…

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…