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He tries to break free of narrow specialization and cross the boundaries between scientific disciplines. Expeditions beyond economics’ borders and its connection to history, philosophy, psychology, and ancient myths are not only refreshing, but necessary for understanding the world of the twenty-first century.

Reality is spun from stories, not from material. Zdeněk Neubauer

“The separation between the history of a science, its philosophy, and the science itself dissolves into thin air, and so does the separation between science and non-science; differences between the scientific and unscientific are vanishing.”

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…

ancient Greek economic ethos, we will examine two extreme approaches to laws and rules. While the Stoics considered laws to be absolutely valid, and utility had infinitesimal meaning in their philosophy, the Epicureans, at least in the usual historical explanation, placed utility and pleasure in first place—rules were to be made based on the principle of utility.

CONCLUSION: BETWEEN UTILITY AND PRINCIPLE The influence of Jewish thought on the development of market democracy cannot be overestimated. The key heritage for us was the lack of ascetic perception of the world, respect to law and private…

poets actually went even further, and with their speech they shaped and established reality and truth. Honor, adventure, great deeds, and the acclaim connected with them played an important role in the establishment of the true, the real.

those who are famous will be remembered by people. They become more real, part of the story, and they start to be “realized,” “made real” in the lives of other people. That which is stored in memory is real; that which is forgotten is as if it never existed.

“epic and tragic poets were widely assumed to be the central ethical thinkers and teachers of Greece; nobody thought of their work as less serious, less aimed at truth, than the speculative prose treatises of historians and philosophers.”5 Truth and reality were hidden in speech, stories, and narration.

general? In the end, poetry could be more sensitive to the truth than the philosophical method or, later, the scientific method. “Tragic poems, in virtue of their subject matter and their social function, are likely to confront and explore problems about human beings and luck that a philosophical text might be able to omit or avoid.”8

Hamzah Khan grew up in a suburban American home with pretty shrubs out front and a basketball hoop in the back yard. He earned a Presidential Physical Fitness Award in the eighth grade and loved Naruto, the Japanese manga. He volunteered at his local mosque and represented Argentina in the National Model United Nations.

The process is often called “cocooning” — shielding children from as much American culture as possible by banning TV, the Internet and newspapers and sending them to Islamic schools.

Omer Mozaffar, a Muslim community leader who teaches theology at Loyola University Chicago and the University of Chicago, said many Muslim families appear to have sheltered their children from the culture around them.

When Hamzah Khan was about 8 years old, the family got rid of the TV, because by then they had a computer with Internet access, which the parents carefully monitored. The children were allowed to watch cartoons and read news online, but they were not allowed to browse the Internet by themselves. “We didn’t want to expose them to adult stuff,” Zarine Khan said. “We wanted to preserve their innocence. We wanted to channel their intelligence into their studies and to becoming good human beings.”

He said that since the 1991 Persian Gulf War and especially since the attacks of Sept. 11, 2001, some Muslims have felt “under siege” in the U.S. communities where they live. “There’s a defensiveness that compels parents to pull their kids out of everything,” Mozaffar said. “A lot of parents feel overwhelmed and don’t know what to do, so they try to isolate their children.”

“Parents send them less for the Islamic tutelage and more for the sense of protecting them,” Mozaffar said. “They think ‘American’ equals ‘immoral,’ and there’s a common belief that if it’s more strict, it’s more pious. This is something I have to preach against all the time.”

The result is often that American Muslim children find themselves caught between two worlds. They are American, but they feel their parents and their religious leaders trying to steer them away from American culture.

That can leave them vulnerable to those who promise something better, a place where they are celebrated for their religion. And, recently, that message has often come in the form of the network of anonymous, persuasive recruiters on social media who lure youth to join the Islamic State. Quadri calls them “Sheik Google.”

The evening before the teens tried to fly away forever, Zarine Khan said, she and her daughter sat together putting henna dye on each other in celebration of the upcoming Eid al-Adha holiday.

The only two countries who currently supply more fighters are Tunisia, with an estimated 6,000, and Saudi Arabia, with 2,500.

Russian President Vladimir Putin said a task force would be established to strengthen the borders of former Soviet republic states

Putin said between 5,000 to 7,000 people from Russia and the former Soviet states had joined the Islamic State.

Through its own investigation, the Soufan Group found that in total between 27,000 and 31,000 people have traveled to Syria and Iraq to join the Islamic State

Joe Peyronnin, a professor of journalism at N.Y.U., was an early president of Fox News, in the mid-nineties. “I’ve never seen anything like it before,” he says of Fox. “It’s as if the President had his own press organization. It’s not healthy.”

Kristol contends that Shine’s White House appointment is a scandal. “It’s been wildly under-covered,” he said. “It’s astounding that Shine—the guy who covered up Ailes’s horrible behavior—is the deputy chief of staff!”

Jennifer Rubin, another conservative Never Trumper, used to appear on the network, but wouldn’t do so now. “Fox was begun as a good-faith effort to counter bias, but it’s morphed into something that is not even news,” she says. “It’s simply a mouthpiece for the President, repeating what the President says, no matter how false or contradictory.

Sean Hannity has told colleagues that he speaks to the President virtually every night, after his show ends, at 10 P.M. According to the Washington Post, White House advisers have taken to calling Hannity the Shadow Chief of Staff. A Republican political expert who has a paid contract with Fox News told me that Hannity has essentially become a “West Wing adviser,” attributing this development, in part, to the “utter breakdown of any normal decision-making in the White House.” The expert added, “The place has gone off the rails. There is no ordinary policy-development system.” As a result, he said, Fox’s on-air personalities “are filling the vacuum.”

Trump has told confidants that he has ranked the loyalty of many reporters, on a scale of 1 to 10. Bret Baier, Fox News’ chief political anchor, is a 6; Hannity a solid 10. Steve Doocy, the co-host of “Fox & Friends,” is so adoring that Trump gives him a 12.

Kushner now has an almost filial status with Murdoch, who turns eighty-eight this month, and numerous sources told me that they communicate frequently. “Like, every day,” one said.

Ailes told Murdoch, “Trump gets great ratings, but if you’re not careful he’s going to end up totally controlling Fox News.”

In private, Murdoch regarded Trump with disdain, seeing him as a real-estate huckster and a shady casino operator. But, for all their differences, the two men had key traits in common. They both inherited and expanded family enterprises—an Australian newspaper; an outer-borough New York City real-estate firm—but felt looked down upon by people who were richer and closer to the centers of power.

both men have tapped into anti-élitist resentment to connect with the public and to increase their fortunes. Trump and Murdoch also share a transactional approach to politics, devoid of almost any ideology besides self-interest.

In 1994, Murdoch laid out an audacious plan to Reed Hundt, the chairman of the Federal Communications Commission under President Bill Clinton

Murdoch led him outside to take in the glittering view of the Los Angeles Basin, and confided that he planned to launch a radical new television network. Unlike the three established networks, which vied for the same centrist viewers, his creation would follow the unapologetically lowbrow model of the tabloids that he published in Australia and England, and appeal to a narrow audience that would be entirely his. His core viewers, he said, would be football fans; with this aim in mind, he had just bought the rights to broadcast N.F.L. games. Hundt told me, “What he was really saying was that he was going after a working-class audience. He was going to carve out a base—what would become the Trump base.

he had entered our country and was saying, ‘I’m going to break up the three-party oligopoly that has governed the most important medium of communication for politics and policy in this country since the Second World War.’ It was like a scene from ‘Faust.’ What came to mind was Mephistopheles.”

“Fox’s great insight wasn’t necessarily that there was a great desire for a conservative point of view.” More erudite conservatives, he says, such as William F. Buckley, Jr., and Bill Kristol, couldn’t have succeeded as Fox has. Levin observes, “The genius was seeing that there’s an attraction to fear-based, anger-based politics that has to do with class and race.”

In 1996, Murdoch hired Roger Ailes to create a conservative TV news outlet. Ailes, who died in 2017, was a master of attack politics and wedge issues, having been a media consultant on several of America’s dirtiest and most divisive campaigns, including those of Richard Nixon. Ailes invented programming, Levin argues, “that confirmed all your worst instincts—Fox News’ fundamental business model is driving fear.

As Hundt sees it, “Murdoch didn’t invent Trump, but he invented the audience. Murdoch was going to make a Trump exist. Then Trump comes along, sees all these people, and says, ‘I’ll be the ringmaster in your circus!’ ”

Until then, the network had largely mocked birtherism as a conspiracy theory. O’Reilly called its promoters “unhinged,” and Glenn Beck, who at the time also hosted a Fox show, called them “idiots.” But Trump gave birtherism national exposure, and, in a sign of things to come, Hannity fanned the flames. Hannity began saying that, although he thought that Obama had been born in the United States, the circumstances surrounding his birth certificate were “odd.”

In certain instances, however, Fox executives enforced journalistic limits.

Such niceties no longer apply. In November, Hannity joined Trump onstage at a climactic rally for the midterm elections. Afterward, Fox issued a limp statement saying that it didn’t “condone any talent participating in campaign events” and that the “unfortunate distraction” had “been addressed.”

For all of Ailes’s faults, Van Susteren argues, he exerted a modicum of restraint. She believes that he would have insisted on at least some distance from President Trump, if only to preserve the appearance of journalistic respectability embodied in the motto Ailes devised for Fox: “Fair and Balanced.

Fox News was hardly fair and balanced under his leadership. Gabriel Sherman, in his biography, “The Loudest Voice in the Room,” reports that Ailes was so obsessed with bringing down Obama in 2012 that he declared to colleagues, “I want to elect the next President.”

Don’t kid yourself about his support for immigration,” she said of Murdoch. “Rupert is first about the bottom line. They’re all going out to play to their crowd, whether it’s Fox or MSNBC.” (After leaving Fox, Van Susteren was for a short time a host on MSNBC.) Fox’s mile-by-mile coverage of the so-called “migrant caravan” was an enormous hit: ratings in October, 2018, exceeded those of October, 2016—the height of the Presidential campaign.

Ailes and Trump were friendly. “They spoke all the time,” a former Fox executive says. They had lunch shortly before Trump announced his candidacy, and Ailes gave Trump political tips during the primaries. Ken LaCorte contends that Ailes took note of “Trump’s crazy behavior”; but Trump’s growing political strength was also obvious. According to the former Fox executive, Trump made Ailes “nervous”: “He thought Trump was a wild card. Someone Ailes could not bully or intimidate.”

in 2016 that the network’s executives “made a business decision” to give on-air stars “slack” to choose their candidates. Hannity was an early Trump supporter; O’Reilly was neutral; Megyn Kelly remained skeptical

Kelly kept pressing Trump: “You once told a contestant on ‘Celebrity Apprentice’ it would be a pretty picture to see her on her knees. Does that sound to you like the temperament of a man we should elect President?” But he’d already won over Republican viewers. (Fox received a flood of e-mails, almost all of them anti-Kelly.) The showdown helped shape Trump’s image as shamelessly unsinkable.

Fox, however, may have given Trump a little help. A pair of Fox insiders and a source close to Trump believe that Ailes informed the Trump campaign about Kelly’s question. Two of those sources say that they know of the tipoff from a purported eyewitness. In addition, a former Trump campaign aide says that a Fox contact gave him advance notice of a different debate question, which asked the candidates whether they would support the Republican nominee, regardless of who won. The former aide says that the heads-up was passed on to Trump, who was the only candidate who said that he wouldn’t automatically support the Party’s nominee—a position that burnished his image as an outsider.

Ailes, meanwhile, joined Trump’s debate team, further erasing the line between Fox and conservative politicians. Ailes also began developing a plan to go into business with Trump. The Sunday before the election, Ailes called Steve Bannon, Trump’s campaign chairman, and said that he’d been talking with Trump about launching Trump TV, a nationalist competitor to Fox. Ailes was so excited that he was willing to forfeit his severance payment from Fox, which was attached to a non-compete agreement. He asked Bannon to join the venture and to start planning it as soon as Trump lost the election.

Any hopes that Fox would clean house after Ailes’s departure vanished on August 12, 2016, when Fox named two Ailes loyalists as co-presidents: Jack Abernethy, an executive who managed Fox’s local stations, and Bill Shine. The opinion side of Fox News, which Shine had run, had won out, as had his friend Sean Hannity.

For years, Ailes had been the focus of liberal complaints, and so when Fox pushed him out many people thought that the channel would change. They were right. The problem, Fox’s critics say, is that it’s become a platform for Trump’s authoritarianism. “I know Roger Ailes was reviled,” Charlie Black, the lobbyist, said. “But he did produce debates of both sides. Now Fox is just Trump, Trump, Trump.” Murdoch may find this development untroubling: in 1995, he told this magazine, “The truth is—and we Americans don’t like to admit it—that authoritarian societies can work.

News of Trump’s payoffs to silence Daniels, and Cohen’s criminal attempts to conceal them as legal fees, remained unknown to the public until the Wall Street Journal broke the story, a year after Trump became President.

Murdoch “was gone a lot,” adding, “He’s old. He likes the idea that he’s running it, but the lunatics took over the asylum.”

Falzone’s story didn’t run—it kept being passed off from one editor to the next. After getting one noncommittal answer after another from her editors, Falzone at last heard from LaCorte, who was then the head of FoxNews.com. Falzone told colleagues that LaCorte said to her, “Good reporting, kiddo. But Rupert wants Donald Trump to win. So just let it go.” LaCorte denies telling Falzone this, but one of Falzone’s colleagues confirms having heard her account at the time.

” The celebrity opinion-show hosts who drive the ratings became unbridled and unopposed. Hannity, as the network’s highest-rated and highest-paid star, was especially empowered—and, with him, so was Trump.

Richie told me, “Fox News was culpable. I voted for Trump, and I like Fox, but they did their own ‘catch and kill’ on the story to protect him.” He said that he’d worked closely with Falzone on the article, and that “she did her homework—she had it.” He says he warned her that Fox would never run it, but “when they killed it she was devastated.” Richie believes that the story “would have swayed the election.

Shine became “an expert in collecting and enforcing soft power,” adding, “He was responsible for on-air contributors to programs, so ultimately you were auditioning for Bill Shine. He was the one who would give you the lucrative contract. He controlled the narrative that way.

some people at Fox called him Bill the Butler, because he was so subservient to Ailes. A former Fox co-host says, “He’s perfect for the White House job. He’s a yes-man.” Another Fox alumnus said, “His only talent was following orders, sucking up to power, and covering up for people.”

Ailes and a small group kept a close eye on internal talent. “We had a file on pretty much everyone,” the former Fox executive said, adding that Ailes talked about “putting hits” in the media on anyone who “got out of line.”

If a woman complained about being sexually harassed, he said, Shine or other supervisors intimidated her into silence, reduced her air time, or discontinued her contract. The former executive recalls, “Shine would talk to the woman with a velvet glove, saying, ‘Don’t worry about it’—and, if that didn’t work, he’d warn her it would ruin her career.”

Judd Burstein, an attorney whose client was interviewed by prosecutors, told me, “I don’t think someone can be a serial sexual abuser in a large organization without enablers like Shine.”

Two months after Shine left Fox, Hannity became a matchmaker, arranging a dinner with the President at the White House, attended by himself, Shine, and Scaramucci, at that time Trump’s communications director. Hannity proposed Shine as a top communications official, or even as a deputy chief of staff. A year later, Shine was both.

Murdoch appears to have been wise in securing a rapprochement. Telecommunications is a highly regulated industry, and under Trump the government has consistently furthered Murdoch’s business interests, to the detriment of his rivals. Hundt, the former F.C.C. chairman, told me that “there have been three moves that have taken place in the regulatory and antitrust world” involving telecommunications “that are extremely unusual, and the only way to explain them is that they’re pro-Fox, pro-Fox, and pro-Fox.”

Last June, after only six months of deliberation, the Trump Administration approved Fox’s bid to sell most of its entertainment assets to Disney, for seventy-one billion dollars. The Murdoch family will receive more than two billion dollars in the deal, and will become a major stockholder in the combined company

In July, the F.C.C. blocked Sinclair Broadcast Group, a conservative rival to Fox, from combining with the Tribune Media Company. The F.C.C. argued that the deal would violate limits on the number of TV stations one entity can own, upending Sinclair’s hope of becoming the next Fox.

The Justice Department, meanwhile, went to court in an effort to stop A. T. & T.’s acquisition of Time Warner, which owns CNN

“There may be innocent explanations.” But, he adds, “Trump famously said you’re going to get sick and tired of winning, and that may not be true for the rest of America, but it sure is true of Murdoch.” He says of Murdoch, “He’s an incredibly cunning political player. He leaves no fingerprints. He’s been in the game of influencing government behavior to his benefit longer than most of us have been alive.”

Ann Coulter, who has been feuding with Trump over his immigration policy, said that the President told her that “Murdoch calls me every day.” She recalled that, “back when Trump was still speaking to me,” she complained to him that Fox was no longer inviting her to appear. She said that Trump told her, “Do you want me to call Murdoch and tell him to put you on?” Coulter accepted Trump’s offer. He may have called Hannity, not Murdoch, she says, but in any case she was invited back on Fox “within twelve hours.”

“Fox’s most important role since the election has been to keep Trump supporters in line.” The network has provided a non-stop counternarrative in which the only collusion is between Hillary Clinton and Russia; Robert Mueller, the special counsel, is perpetrating a “coup” by the “deep state”; Trump and his associates aren’t corrupt, but America’s law-enforcement officials and courts are; illegal immigration isn’t at a fifteen-year low, it’s “an invasion”; and news organizations that offer different perspectives are “enemies of the American people.”

Benkler’s assessment is based on an analysis of millions of American news stories that he and two co-authors, Robert Faris and Hal Roberts, undertook for their 2018 book, “Network Propaganda: Manipulation, Disinformation and Radicalization in American Politics.” Benkler told me that he and his co-authors had expected to find “symmetric polarization” in the left-leaning and the right-leaning media outlets. Instead, they discovered that the two poles of America’s media ecosystem function very differently. “It’s not the right versus the left,” Benkler says. “It’s the right versus the rest.”

Most American news outlets try to adhere to facts. When something proves erroneous, they run corrections, or, as Benkler and his co-authors write, “they check each other.” Far-left Web sites post as many bogus stories as far-right ones do, but mainstream and liberal news organizations tend to ignore suspiciously extreme material.

Conservative media outlets, however, focus more intently on confirming their audience’s biases, and are much more susceptible to disinformation, propaganda, and outright falsehoods (as judged by neutral fact-checking organizations such as PolitiFact). Case studies conducted by the authors show that lies and distortions on the right spread easily from extremist Web sites to mass-media outlets such as Fox, and only occasionally get corrected

Sometimes such pushback has a salutary effect. Recently, Chris Wallace told Sarah Sanders that her claim that “nearly four thousand known or suspected terrorists come into our country illegally” every year was wildly inaccurate. Showing Fox’s clout, the White House has dropped the talking point.

Unlike Glenn Beck, Hannity has been allowed to spew baseless conspiracy theories with impunity. For more than a year, Hannity and other hosts spread the lie that the hacking of Democratic Party e-mails during the 2016 campaign was an inside job. Hannity claimed that the hacking had been committed not by Russian cyber-warfare agents, as the U.S. intelligence community concluded, but by a Democratic staffer named Seth Rich, who had been murdered by unknown assailants on a D.C. street. Benkler and his co-authors studied Fox’s coverage, and found that not only did the channel give the Seth Rich lie a national platform; it also used the conspiracy story as a distraction, deploying it as a competing narrative when developments in Mueller’s investigation showed Trump in a bad light. In 2017, after Rich’s parents demanded an apology and advertisers began shunning the network, Fox finally ran a retraction, and Hannity dropped the story.

By then, Fox hosts had begun pushing a different conspiracy: the “Uranium One” story, which Hannity called “the biggest scandal ever involving Russia.” On an October, 2017, broadcast, Hannity claimed that Hillary Clinton, when she was Secretary of State, had given “to Vladimir Putin and Russia twenty per cent of America’s uranium, which is the foundational material to make nuclear weapons.” Ostensibly, the deal was in exchange for giant payments to the Clinton Foundation. Hannity also claimed that “the corrupt, lying mainstream media” was withholding this “bombshell” from Americans, because it was “complicit” in a “huge coverup.”

other reporting had poked holes in it, revealing that multiple government agencies had approved the deal, and that the quantity of uranium was insignificant. Yet Fox kept flogging it as the real national-security scandal involving Russia.

Alisyn Camerota was a co-host on “Fox & Friends” for years before joining CNN, in 2014

 ‘Fox & Friends’ was a fun show, but it was not a news show,” she says. “It regularly broke the rules of journalism. It was basically Roger’s id on TV. He’d wake up in the morning with some bee in his bonnet, spout it off to Bill Shine, and Shine would tell us to put it on TV.” She says that the show’s producers would “cull far-right, crackpot Web sites” for content, and adds, “Never did I hear anyone worry about getting a second source. The single phrase I heard over and over was ‘This is going to outrage the audience!’ You inflame the viewers so that no one will turn away. Those were the standards.”

Fox co-host Kimberly Guilfoyle often prepared for “The Five” by relying on information provided to her by an avid fan: a viewer from Georgia named David Townsend, who had no affiliation either with Fox News or with journalism.

Aki Peritz, a former C.I.A. analyst who is an adjunct professor at American University, has written that Fox News has become an inviting target for foreign spy agencies, because “it’s what the President sees.

a source who spoke to me about Guilfoyle and Townsend says, “It’s even worse than a conspiracy of the dark Web, or something trying to manipulate Fox. It was just a guy in his underwear in Georgia who had influence over Fox News! And Fox News influences the President!”

Judging from the timing of Trump’s tweets, Gertz believes that the President records “Fox & Friends” and views it from the beginning, often with a slight delay. As Trump watches, he frequently posts about points that he agrees with. Since August, 2018, Media Matters has tallied more than two hundred instances of Trump disseminating Fox News items to his fifty-eight million Twitter followers. “Trump serves as a carnival barker for Fox,” Levin says, giving invaluable promotional help to the channel.

Fox hosts sometimes reverse their opinions in order to toe the Trump line: Hannity, who in the Obama era called negotiations with North Korea “disturbing,” now calls such efforts a “huge foreign-policy win.” But Gertz has come to believe that Fox drives Trump more than Trump drives Fo

White House aides confirm that Trump has repeatedly walked away from compromises at the last moment because Fox hosts and guests opposed the deals.

According to a Senate staffer, one high-profile Republican senator claims that his preferred way of getting the President’s ear is by going on Fox. He calls a friendly host and offers to appear on the air; usually, before he’s taken his makeup off in the greenroom Trump is calling him

Fox hosts played a key part in driving Trump’s recent shutdown of the government and his declaration of a national emergency on the southern border. Hannity and Dobbs urged Trump nightly on their shows to make these moves; according to press reports, they also advised Trump personally to do so.

For the next thirty-five days, Hannity and the other Fox hosts kept cheering Trump on, even as polls showed that the American public was increasingly opposed to the shutdown. Oliver Darcy, of CNN, says that Democrats, rather than negotiating with Trump, “might as well call Sean Hannity and get him on the phone,” adding, “It seems we sort of elected Sean Hannity when we elected Trump.”

“The President’s world view is being specifically shaped by what he sees on Fox News, but Fox’s goals are ratings and money, which they get by maximizing rage. It’s not a message that is going to serve the rest of the country.

Trump and Fox are employing the same risky model: inflaming the base and intensifying its support, rather than building a broader coalition. Narrowcasting may generate billions of dollars for a cable channel, but as a governing strategy it inevitably alienates the majority. The problem for Trump, as one former Fox host puts it, is that “he can’t afford to lose Fox, because it’s all he’s got.”

Similarly, Fox has a financial incentive to make Trump look good. Cable ratings at both Fox and MSNBC dip when the news is bad for their audience’s side. Van Susteren likens the phenomenon to audiences turning away when their sports team is losing

A source close to Trump says that the President has been complaining that Shine hasn’t been aggressive enough. Late last year, Trump told the source, “Shine promised me my press coverage would get better, but it’s gotten worse.” The source says, “Trump thought he was getting Roger Ailes but instead he got Roger Ailes’s gofer.”

Shine has practically ended White House press briefings. Trump prefers to be his own spokesman. “He always thought he did it the best,” a former senior White House official says. “But the problem is that you lose deniability. It’s become a trapeze act with no net, 24/7. The shutdown messaging was a crisis. There was no exit strategy.”

“It was always clear that this wasn’t just another news organization,” Rosenberg told me. “But when Ailes departed, and Trump was elected, the network changed. They became more combative, and started treating me like an enemy, not an opponent.” With Shine joining Trump at the White House, he said, “it’s as if the on-air talent at Fox now have two masters—the White House and the audience.” In his view, the network has grown so allied with the White House in the demonization of Trump’s critics that “Fox is no longer conservative—it’s anti-democratic.”

For two years, the network has been priming its viewers to respond with extraordinary anger should the country’s law-enforcement authorities close in on the President. According to Media Matters, in the first year after Mueller was appointed Hannity alone aired four hundred and eighty-six segments attacking the federal criminal investigation into Russian interference in the 2016 election; thirty-eight per cent of those segments claimed that law-enforcement officials had broken the law.

Hannity has spoken of “a coup,” and a guest on Laura Ingraham’s program, the lawyer Joseph diGenova, declared, “It’s going to be total war. And, as I say to my friends, I do two things—I vote and I buy guns.”

“In a hypothetical world without Fox News, if President Trump were to be hit hard by the Mueller report, it would be the end of him. But, with Fox News covering his back with the Republican base, he has a fighting chance, because he has something no other President in American history has ever had at his disposal—a servile propaganda operation.”

THE AMERICAN EXPERIMENT rests on three political ideas—“these truths,” Thomas Jefferson called them—political equality, natural rights, and the sovereignty of the people.

After Benjamin Franklin read Jefferson’s draft, he picked up his quill, scratched out the words “sacred & undeniable,” and suggested that “these truths” were, instead, “self-evident.” This was more than a quibble. Truths that are sacred and undeniable are God-given and divine, the stuff of religion. Truths that are self-evident are laws of nature, empirical and observable, the stuff of science. This divide has nearly rent the Republic apart.

The real dispute is between “these truths” and the course of events: Does American history prove these truths, or does it belie them?

The United States rests on a dedication to equality, which is chiefly a moral idea, rooted in Christianity, but it rests, too, on a dedication to inquiry, fearless and unflinching. Its founders agreed with the Scottish philosopher and historian David Hume, who wrote, in 1748, that “Records of Wars, Intrigues, Factions, and Revolutions are so many Collections of Experiments.”9 They believed that truth is to be found in ideas about morality but also in the study of history.

understanding history as a form of inquiry—not as something easy or comforting but as something demanding and exhausting—was central to the nation’s founding. This, too, was new.

A new kind of historical writing, less memorial and more unsettling, only first emerged in the fourteenth century. “History is a philosophical science,” the North African Muslim scholar Ibn Khaldun wrote in 1377, in the prologue to his history of the world, in which he defined history as the study “of the causes and origins of existing things.”11

Only by fits and starts did history become not merely a form of memory but also a form of investigation, to be disputed, like philosophy, its premises questioned, its evidence examined, its arguments countered.

Declaring independence was itself an argument about the relationship between the present and the past, an argument that required evidence of a very particular kind: historical evidence. That’s why most of the Declaration of Independence is a list of historical claims. “To prove this,” Jefferson wrote, “let facts be submitted to a candid world.”

In an attempt to solve this problem, the earliest historians of the United States decided to begin their accounts with Columbus’s voyage, stitching 1776 to 1492. George Bancroft published his History of the United States from the Discovery of the American Continent to the Present in 1834, when the nation was barely more than a half-century old, a fledgling, just hatched. By beginning with Columbus, Bancroft made the United States nearly three centuries older than it was, a many-feathered old bird.

In 1787, then, when Alexander Hamilton asked “whether societies of men are really capable or not of establishing good government from reflection and choice, or whether they are forever destined to depend for their political constitutions on accident and force,” that was the kind of question a scientist asks before beginning an experiment. Time alone would tell. But time has passed. The beginning has come to an end. What, then, is the verdict of history?

In deciding what to leave in and what to leave out, I’ve confined myself to what, in my view, a people constituted as a nation in the early twenty-first century need to know about their own past, mainly because this book is meant to double as an old-fashioned civics book, an explanation of the origins and ends of democratic institutions, from the town meeting to the party system, from the nominating convention to the secret ballot, from talk radio to Internet polls. This book is chiefly a political

Aside from being a brief history of the United States and a civics primer, this book aims to be something else, too: it’s an explanation of the nature of the past. History isn’t only a subject; it’s also a method.

The truths on which the nation was founded are not mysteries, articles of faith, never to be questioned, as if the founding were an act of God, but neither are they lies, all facts fictions, as if nothing can be known, in a world without truth.

Between reverence and worship, on the one side, and irreverence and contempt, on the other, lies an uneasy path, away from false pieties and petty triumphs over people who lived and died and committed both their acts of courage and their sins and errors long before we committed ours. “We cannot hallow this ground,” Lincoln said at Gettysburg. We are obliged, instead, to walk this ground, dedicating ourselves to both the living and the dead.

studying history is like that, looking into one face and seeing, behind it, another, face after face after face. “Know whence you came,” Baldwin told his nephew.17 The past is an inheritance, a gift and a burden. It can’t be shirked. You carry it everywhere. There’s nothing for it but to get to know it.

Nature takes one toll, malice another. History is the study of what remains, what’s left behind, which can be almost anything, so long as it survives the ravages of time and war: letters, diaries, DNA, gravestones, coins, television broadcasts, paintings, DVDs, viruses, abandoned Facebook pages, the transcripts of congressional hearings, the ruins of buildings. Some of these things are saved by chance or accident, like the one house that, as if by miracle, still stands after a hurricane razes a town. But most of what historians study survives because it was purposely kept—placed

As nation-states emerged, they needed to explain themselves, which they did by telling stories about their origins, tying together ribbons of myths, as if everyone in the “English nation,” for instance, had the same ancestors, when, of course, they did not. Very often, histories of nation-states are little more than myths that hide the seams that stitch the nation to the state.15

When the United States declared its independence in 1776, plainly, it was a state, but what made it a nation? The fiction that its people shared a common ancestry was absurd on its face; they came from all over, and, having waged a war against England, the very last thing they wanted to celebrate was their Englishness.

Facts, knowledge, experience, proof. These words come from the law. Around the seventeenth century, they moved into what was then called “natural history”: astronomy, physics, chemistry, geology. By the eighteenth century they were applied to history and to politics, too. These truths: this was the language of reason, of enlightenment, of inquiry, and of history.

Against conquest, slaughter, and slavery came the urgent and abiding question, “By what right?”

Yet the origins of the United States date to 1492 for another, more troubling reason: the nation’s founding truths were forged in a crucible of violence, the products of staggering cruelty, conquest and slaughter, the assassination of worlds.

Locke, spurred both by a growing commitment to religious toleration and by a desire to distinguish English settlement from Spanish conquest, stressed the lack of cultivation as a better justification for taking the natives’ land than religious difference, an emphasis with lasting consequences.

Unlike Polo and Mandeville, Columbus did not make a catalogue of the ways and beliefs of the people he met (only later did he hire Pané to do that). Instead, he decided that the people he met had no ways and beliefs. Every difference he saw as an absence.22 Insisting that they had no faith and no civil government and were therefore infidels and savages who could not rightfully own anything, he claimed possession of their land, by the act of writing. They were a people without truth; he would make his truth theirs. He would tell them where the dead go.

It became commonplace, inevitable, even, first among the Spanish, and then, in turn, among the French, the Dutch, and the English, to see their own prosperity and good health and the terrible sicknesses suffered by the natives as signs from God. “Touching these savages, there is a thing that I cannot omit to remark to you,” one French settler wrote: “it appears visibly that God wishes that they yield their place to new peoples.” Death convinced them at once of their right and of the truth of their faith. “The natives, they are all dead of small Poxe,” John Winthrop wrote when he arrived in New England in 1630: “the Lord hathe cleared our title to what we possess.”

In much of New Spain, the mixed-race children of Spanish men and Indian women, known as mestizos, outnumbered Indians; an intricate caste system marked gradations of skin color, mixtures of Europeans, Native Americans, and Africans, as if skin color were like dyes made of plants, the yellow of sassafras, the red of beets, the black of carob. Later, the English would recognize only black and white, a fantasy of stark and impossible difference, of nights without twilight and days without dawns. And yet both regimes of race, a culture of mixing or a culture of pretending not to mix, pressed upon the brows of every person of the least curiosity the question of common humanity: Are all peoples one?

Elizabeth’s best defender argued that if God decided “the female should rule and govern,” it didn’t matter that women were “weake in nature, feable in bodie, softe in courage,” because God would make every right ruler strong. In any case, England’s constitution abided by a “rule mixte,” in which the authority of the monarch was checked by the power of Parliament; also, “it is not she that ruleth but the lawes.” Elizabeth herself called on yet another authority: the favor of the people.48 A mixed constitution, the rule of law, the will of the people: these were English ideas that Americans would one day make their own, crying, “Liberty!”

In the brutal, bloody century between Columbus’s voyage and John White’s, an idea was born, out of fantasy, out of violence, the idea that there exists in the world a people who live in an actual Garden of Eden, a state of nature, before the giving of laws, before the forming of government. This imagined history of America became an English book of genesis, their new truth. “In the beginning,” the Englishman John Locke would write, “all the world was America.” In America, everything became a beginning.

England’s empire would have a different character than that of either Spain or France. Catholics could make converts by the act of baptism, but Protestants were supposed to teach converts to read the Bible; that meant permanent settlements, families, communities, schools, and churches. Also, England’s empire would be maritime—its navy was its greatest strength. It would be commercial. And, of greatest significance for the course of the nation that would grow out of those settlements, its colonists would be free men, not vassals, guaranteed their “English liberties.”

Beginning with the Virginia charter, the idea of English liberties for English subjects was planted on American soil and, with it, the king’s claim to dominion, a claim that rested on the idea that people like Powhatan and his people lived in darkness and without government, no matter that the English called their leaders kings.

Twenty Englishmen were elected to the House of Burgesses. Twenty Africans were condemned to the house of bondage. Another chapter opened in the American book of genesis: liberty and slavery became the American Abel and Cain.

To build his case against the king, Coke dusted off a copy of an ancient and almost entirely forgotten legal document, known as Magna Carta (literally, the “great charter”), in which, in the year 1215, King John had pledged to his barons that he would obey the “law of the land.” Magna Carta wasn’t nearly as important as Coke made it out to be, but by arguing for its importance, he made it important, not only for English history, but for American history, too, tying the political fate of everyone in England’s colonies to the strange doings of a very bad king from the Middle Ages.

Magna Carta explains a great deal about how it is that some English colonists would one day come to believe that their king had no right to rule them and why their descendants would come to believe that the United States needed a written constitution. But Magna Carta played one further pivotal role, the role it played in the history of truth—a history that had taken a different course in England than in any other part of Europe.

The most crucial right established under Magna Carta was the right to a trial by jury.