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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

Much higher tax rates on the highest earners can generate revenue to pay for new programs, and they can encourage a more equal distribution of pretax income. But these two objectives are in tension with each other — the more Mr. Saez is right that high rates will discourage ultrahigh incomes, the less revenue Mr. Sanders will get from his new taxes on ultrahigh earners.

Sanders’s plan would push rates near the revenue maximizing level: His plan would result in an all-in tax rate of just over 65 percent on income between $500,000 and $2 million.

Mr. Sanders’s 73 percent rate would apply only to ordinary income and only to people making over $10 million a year, which is not very many people.

Like much research about the interaction between taxes and the economy, theories about the revenue-maximizing tax rate are subject to high levels of both controversy and uncertainty. Some claims can be identified as clearly wrong — see, for example, the Tax Foundation’s claim that large across-the-board tax cuts proposed by Marco Rubio would cause revenues to be higher within a decade — but the range of possibly correct answers about what tax changes will do to pretax incomes remains large.

Mr. Saez and Mr. Diamond report a range of uncertainty around their own estimate of 73 percent as the revenue-maximizing top rate, which depends on the open question of how elastic taxable income is — that is, how much it declines when you tax people more.

Joel Slemrod, a collaborator of Mr. Saez’s, told The Washington Post in 2010 that the revenue-maximizing rate was “60 percent or higher.” Some conservative economists argue for lower rates by expressing concern that the revenue-maximizing rate will decline over time.

noted that most existing research on revenue-maximizing tax rates looks at the years immediately after a tax change, and therefore could miss long-run effects on taxpayer behavior. What if a high tax rate not only encourages people to work less, but also discourages them from going into certain high-paying fields in the first place? A result could be that revenues would first go up, and then down

The problem with this theory is that it is very difficult to test. Lots of factors besides tax rates affect incomes and economic growth, so looking over a long time range and figuring out which changes to incomes were caused by tax changes is very har

“There are no truly convincing estimates of the long-run elasticity,”

it is a good thing that Mr. Sanders’s plan does not rely mostly on these high-earner taxes. More than 80 percent of his proposed tax increases to pay for his health plan come from broad-based income and payroll taxes that would apply to nearly all

A corollary of the iron law is that institutions will tend to be controlled by the folks most focused on maximizing internal rather than external power — and already this month, progressives have scored several major victories

My former boss, James Bennet, resigned as a top editor at the New York Times over an op-ed he oversaw from Sen. Tom Cotton (R-Ark.) expressing an opinion that at least one poll suggested was shared by many and possibly most voters. A University of California at Los Angeles sociology professor was investigated for reading Martin Luther King Jr. aloud without bowdlerizing the n-word, and a political consultant no longer has a job after tweet-linking a paper — authored by a black professor — suggesting that violent protest may be politically counterproductive.

A few weeks ago, these were not firing offenses. Overnight, firing became necessary for the same reason that academia, the media and Hollywood have been offering more and more overtly political content recently: as a counterweight to the outrages of a Trumpish right..

Why, though, does fighting Trump necessitate destroying the moderate wing of your own side?

Our cause is under existential threat, and we cannot compromise with evil, so if you are not with us, you are against us.

conservatives saw tech employees being fired for opposing gay marriage, bakeries shut down by civil rights commissions, and their own employers “inviting” them to publicly declare themselves allies of various social justice causes, removing even the option of keeping tactfully quiet on the job.

they demanded to know what all that power was for, if not to protect them from this sort of thing.

Thus, instead of a moderate conservative who would defer to liberal sensibilities on touchy issues such as immigration, they chose a champion whose superpowers were reflexive belligerence and utter indifference to social mores.

The civil war that ensued saw Schwarz’s iron law working in both directions: Both the #NeverTrumpers and the Trumpists were willing to lose the election before they’d allow the other side to run the party.

It seems likely that the iron law will remain in force, because the purer your own side gets, the more terrifyingly alien are the people who remain outside your carefully constructed defensive perimeter

That part we know. That’s the business model. But in a different way they are driven by goals and drives of this one guy, Mark Zuckerberg

my read is that it was more the ‘winning’ part than the money, though of course the two become somewhat indistinguishable. So Zuckerberg is a near free speech absolutist, as the story conveys. Except when it might mean going dark in a medium-to-large-sized country.

One interesting anecdote in the article comes out of Vietnam, where Facebook is estimated to make about $1 billion a year. A few years ago Vietnam demanded that Facebook start censoring anti-government posts or really any criticism of the government or be taken off line in the country. Essentially Vietnam insisted that Facebook delegate content moderation within Vietnam to the government of Vietnam. Zuckerberg personally made the decision to agree to the demands.

He apparently justified this on the reasoning that Facebook disappearing in Vietnam would take away the speech rights of more people than the censorship would. If that sounds like self-justifying nonsense thank you for reading closely.

his article and much else makes pretty clear that it really is still Mark Zuckerberg that runs the show. And what drives him? This article and much else suggests that what shapes Zuckerberg’s goals are perhaps three things in descending order: 1) to win (in all its dimensions), 2) to maximize profits and 3) to cater to the complaints of the right which is most effective and aggressive about complaining about purported mistreatment.

this is just too much power for one person to have. But it’s more that the win, win, win!!! mentality which certainly lots of CEOS and especially Founder-CEOS have in spades is here harnessed to an engine that does a lot of damage.

Back in 2018 I wrote about a distinct but related issue. No big tech company has been worse at launching off on new ventures or ideas, having whole cottage industries grow up around those ventures, and then shifting gears and having countless partner businesses go belly up

there is a related indifference or oblivious to the impact or social costs of what Facebook does, if in many case only because of its sheer scale.

This isn’t just corporate culture, or perhaps Zuckerberg himself. A lot of it is tied to Facebook’s relationship to the rest of the web. Google is structurally much more connected to and reliant on the open web. Facebook is much more a closed system which remains highly profitable regardless of the chaos it may create around it.

The financial cost, while vast, is impossible to calculate. In late December, Russia’s Communications Ministry reported that 10 percent of the country’s IT workers had left in 2022 and not returned.

those remaining in the depleted political opposition also faced a choice this year: prison or exile. Most chose exile. Activists and journalists are now clustered in cities such as Berlin and the capitals of Lithuania, Latvia and Georgia.

“This exodus is a terrible blow for Russia,” said Tamara Eidelman, a Russian historian who moved to Portugal after the invasion. “The layer that could have changed something in the country has now been washed away.”

the influx of Russians into countries such as Kazakhstan and Kyrgyzstan, which have long sent immigrants to Russia, set off political tremors, straining ties between Moscow and the other former Soviet states. Real estate prices in those countries have shot up, causing tensions with local populations.

For many Russians choosing to flee, Armenia was a rare easy option. It is one of five ex-Soviet countries that allow Russians to enter with just a national ID — making it a popular destination for former soldiers, political activists and others needing a quick escape.

Given the shared religion and use of language, Russians typically do not face animosity or social stigma in Armenia. Obtaining residency permits is also straightforward, and living costs are lower than in the European Union.

Yerevan has attracted thousands of IT workers, young creatives and working-class people, including families with children, from across Russia. They have established new schools, bars, cafes and robust support networks.

n the courtyard of the “Free School” for Russian children, established in April, Maxim, a construction company manager, was waiting for his 8-year-old son, Timofey. The school started with 40 students in an apartment. Now, there are nearly 200 in a multistory building in the city center.

“I did not want to be a murderer in this criminal war,” said Andrei, who is being identified by his first name for safety reasons

Like the White Russian emigres of the Bolshevik era and the post-Soviet immigrants of the 1990s, many of those leaving Russia because of the war in Ukraine are probably gone for good.

The family has adapted seamlessly to Yerevan. Everyone around them speaks Russian. Maxim works remotely on projects in Russia. Timofey likes his school and is learning Armenian. Maxim said he is sure the family will not return to Russia.

Tanya Raspopova, 26, arrived in Yerevan last March, with her husband but without a plan, overwhelmed and frightened.Then she heard that another emigre was seeking partners to set up a bar, a space where Russian expats could come together, and she wanted to help. Tuf, named after the pink volcanic rock common throughout Yerevan, opened its doors within a month.

They started with a neon-lit bar and kitchen on the ground floor, which soon expanded into a small courtyard. Then they opened up a second floor, then a third. Upstairs there is now a recording studio, a clothing boutique and a tattoo parlor. On a Wednesday night in January, the place was packed with young Russians and Armenians singing karaoke, drinking cocktails and playing ping-pong. “We have since created such a big community, a big family,” Raspopova said. “Tuf is our new home.”

Thousands have chosen the UAE, which did not join Western sanctions and still has direct flights to Moscow, as their new home. Russians enjoy visa-free travel for 90 days, and it is relatively easy to get a national ID, through business or investment, for a longer stay.

The high cost of living means there are no activists or journalists. Dubai is a haven, and the go-to playground, for Russian tech founders, billionaires under sanctions, unpenalized millionaires, celebrities, and influencers.

Shortly after the invasion, conversations in Moscow’s affluent Patriarch Ponds neighborhood turned to the best Dubai real estate deals, said Natalia Arkhangelskaya, who writes for Antiglyanets, a snarky and influential Telegram blog focused on Russia’s elite. A year later, Russians have ousted Brits and Indians as Dubai’s top real estate buyers, Russian-owned yachts dock at the marina, and private jets zigzag between Dubai and Moscow.

Russians can still buy apartments, open bank accounts and snag designer leather goods they previously shopped for in France.

The UAE’s embrace of foreign business has lured a stream of Russian IT workers seeking to cut ties with Russia and stay linked to global markets. Start-ups seek financing from state-supported accelerators. Larger firms pursue clients to replace those lost to sanctions.

About a dozen people arrived to discuss opportunities in India, which has maintained ties with Russia despite the war. Most expressed bitterness about the Kremlin’s politics and a longing for Moscow when it was an aspiring global hub.

“The most important thing for me is to be able to develop international projects and to integrate my kids into a global community, so they grow up in a free environment,”

Andrei works as a delivery driver and shares a modest room with two other men in a shelter set up by Kovcheg, a support organization for Russian emigrants. “Before the war, I never followed politics, but after the invasion, I started reading about everything,” Andrei said. “I feel so ashamed about what Russia has done.”

“Every extra month leads people to get used to a different country,” she said. “They get a job there, their children go to school, they begin to speak a different language. The longer the war lasts — the longer the dictatorship in the country continues — the fewer people will return.”

the expats could become “a repository of relevant skills for a better, freer, modern Russia.” For now, though, Rojansky said, the outflow sends a clear message.

We act as the top-level aggregator of all this great material, and the service hubs do an amazing job of normalizing the metadata and bringing in this content from thousands of sites across the United States.

we're going to provide some really unique services that will help supplement what's going on in public and research libraries. For instance, that map interface is a way to browse the collections. That's not generally an interface that you see on your local public library's website.

I hope that the DPLA can act, in some senses, as a market maker. I hope we can bring a huge audience to content, and when that happens, you might have, for instances, authors or publishers becoming very interested in how they might be able to put materials into DPLA to attract new readers and researchers.

What is worth noting is how this pattern is rooted in the zero-sum mentality which informs every aspect of Trump’s world. That applies to everything from ‘deals’ and how he treats people to the extreme preference for bullying bilateral trade agreements over the more rules-based treaty systems which have been the focus of US foreign policy for three-quarters of century.

One of the most illuminating concepts I ever learned about international relations came from my friend Steve Clemons who spoke about “high trust” versus “high fear” international environments. Broadly agreed rules, norms, transparency, frameworks for arbitration, conciliation over aggression each build environments of relative trust in contrast to high fear environments in which force, duplicity and advantage play decisive role

The key is that these environments build on themselves and perpetuate themselves. In a high fear environment, secrecy, force and seeking maximum advantage in every case become rational choices. They become critical to self-preservation

Trump’s White House is simply a microcosm of this dark and self-defeating worldview: a system of aggression, betrayal, unpredictable behavior and dishonesty, all of which foster and encourage similar behavior from everyone who enters it.

even for relatively normal people, he creates an environment in which his values and behaviors become rational. It a classic Hobbesian world, the war against all against all – a comic dystopia Trump is building in the White House and aspires to create worldwide.

“During the run-up to the election, the Trump and Clinton campaigns bid ruthlessly for the same online real estate in front of the same swing-state voters. But because Trump used provocative content to stoke social-media buzz, and he was better able to drive likes, comments, and shares than Clinton, his bids received a boost from Facebook’s click model, effectively winning him more media for less money,” García Martínez continues. “In essence, Clinton was paying Manhattan prices for the square footage on your smartphone’s screen, while Trump was paying Detroit prices. Facebook users in swing states who felt Trump had taken over their news feeds may not have been hallucinating.”

And yet, in the context of the 2016 Presidential Election, this way of auctioning advertising—originally developed by Google and normalized in the pre-Trump age—can seem strange, unfair, and possibly even against the rules that govern election advertising.

From Facebook’s perspective, their platform is “neutral,” in the sense that it provides all advertisers with an equal opportunity to maximize their reach and minimize their costs. “The auction system works the same for everybody,” says Andy Stone, a Facebook spokesperson. “It affords equality of opportunity.”

Their personal politics mattered far less than the politics of the system that they half-wittingly created. While the clickbait candidate this last round was Donald Trump, future elections could just as easily feature a left-wing ideologue with an equally engaging style.

The University of Virginia media-studies professor Siva Vaidhyanathan, who has a book coming out on Facebook in September—Antisocial Media: How Facebook Disconnects Us and Undermines Democracy—had a stark response, especially with the midterms six months away. “There is no reform. The problem with Facebook is Facebook,” he told me. “When you marry a friction-free social network of 2 billion people to a powerful, precise, cheap ad system that runs on user profiling you get this mess. And no one can switch it off. So we are screwed.”

The things you do with your life are mostly chosen: your job, spouse and hobbies.

At our foundation, we were a society with strong covenantal attachments — to family, community, creed and faith. Then on top of them we built democracy and capitalism that celebrated liberty and individual rights.

The deep covenantal institutions gave people the capacity to use their freedom well. The liberal institutions gave them that freedom.

This delicate balance — liberal institutions built atop illiberal ones — is now giving way. The big social movements of the past half century were about maximizing freedom of choice. Right-wingers wanted to maximize economic choice and left-wingers lifestyle choice. Anything that smacked of restraint came to seem like a bad thing to be eliminated.

We’ll call this worldview — which is all freedom and no covenant — naked liberalism

The problem with naked liberalism is that it relies on individuals it cannot create.

Naked liberals of right and left assume that if you give people freedom they will use it to care for their neighbors, to have civil conversations, to form opinions after examining the evidence. But if you weaken family, faith, community and any sense of national obligation, where is that social, emotional and moral formation supposed to come from? How will the virtuous habits form?

Naked liberalism has made our society an unsteady tree. The branches of individual rights are sprawling, but the roots of common obligation are withering away.

Freedom without covenant becomes selfishness. And that’s what we see at the top of society, in our politics and the financial crisis

First, they will identify themselves according to race. They will become the racial essentialists you see on left and right

And that’s what we see at the bottom of society — frayed communities, broken families, opiate addiction.

Freedom without a unifying national narrative becomes distrust, polarization and permanent political war.

covenantal attachments they become fragile. Moreover, if you rob people of their good covenantal attachments, they will grab bad ones.

Freedom without connection becomes alienation.

Then they resort to tribalism. This is what Donald Trump provides. As Mark S. Weiner writes on the Niskanen Center’s blog, Trump is constantly making friend/enemy distinctions, exploiting liberalism’s thin conception of community and creating toxic communities based on in-group/out-group rivalry.

Trump offers people cultural solutions to their alienation problem. As history clearly demonstrates, people will prefer fascism to isolation, authoritarianism to moral anarchy.

If we are going to have a decent society we’re going to have to save liberalism from itself. We’re going to have to restore and re-enchant the covenantal relationships that are the foundation for the whole deal. The crucial battleground is cultural and prepolitical.

In my experience, most people under 40 get this. They sense the social and moral void at the core and that change has to come at the communal, emotional and moral level.

Many public intellectuals were trained in the social sciences and take the choosing individual as their mental starting point. They have trouble thinking about our shared social and moral formative institutions and how such institutions could be reconstituted.

Congressional Republicans think a successful tax bill will thwart populism. Mainstream Democrats think the alienation problem will go away if we redistribute the crumbs a bit more widely.

History is full of examples of nations that built new national narratives, revived family life, restored community bonds and shared moral culture: Britain in the early 19th century, Germany after World War II, America in the Progressive Era. The first step in launching our own revival is understanding that the problem is down in the roots.