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Opinion | What Can Biden's Plan Do for Poverty? Look to Bangladesh. - The New York Times - 0 views

  • One of the great moral stains on the United States is that the richest and most powerful country in history has accepted staggering levels of child poverty. With final legislative approval of President Biden’s $1.9 trillion American Rescue Plan on Wednesday, the United States has decided to scrub at that stain.
  • But then the government and civic organizations promoted education, including for girls. Today, 98 percent of children in Bangladesh complete elementary school. Still more astonishing for a country with a history of gender gaps, there are now more girls in high school in Bangladesh than boys.
  • I was right that Bangladesh faces huge challenges, not least climate change. But over all my pessimism was dead wrong, for Bangladesh has since enjoyed three decades of extraordinary progress.
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  • Life expectancy in Bangladesh is 72 years. That’s longer than in quite a few places in the United States, including in 10 counties in Mississippi. Bangladesh may have once epitomized hopelessness, but it now has much to teach the world about how to engineer progress.
  • That’s what Biden’s attack on child poverty may be able to do, and why its central element, a refundable child tax credit, should be made permanent. Bangladesh reminds us that investing in marginalized children isn’t just about compassion, but about helping a nation soar.
  • As Bangladesh educated and empowered its girls, those educated women became pillars of Bangladesh’s economy. The nation’s garment factories have given women better opportunities, and that shirt you’re wearing right now may have been made by one of them, for Bangladesh is now the world’s largest garment exporter, after China.
  • This represents a revolution in American policy and a belated recognition that all society has a stake in investing in poor kids. To understand the returns that are possible, let’s look to lessons from halfway around the world.
  • Educated women also filled the ranks of nonprofits like Grameen and Brac, another highly regarded development organization. They got children vaccinated. They promoted toilets. They taught villagers how to read. They explained contraception. They discouraged child marriage
  • As that nation turns 50, its surprising success offers lessons about investing in the most marginalized.
  • Bangladesh was born 50 years ago this month amid genocide, squalor and starvation. Henry Kissinger famously referred to Bangladesh then as a “basket case,” and horrifying photos from a famine in 1974 sealed the country’s reputation as hopeless.
  • In the early 1980s, fewer than one-third of Bangladeshis completed elementary school. Girls in particular were rarely educated and contributed negligibly to the economy.
  • Granted, factories in Bangladesh pay poorly by Western standards, have problems with abuse and sexual harassment, and pose fire risks and other safety problems; a factory collapse in 2013 killed more than 1,100 workers. But the workers themselves say that such jobs are still better than marrying at 14 and working in a rice paddy, and unions and civil society pushed for and won huge though incomplete improvements in worker safety.
  • In short, Bangladesh invested in its most underutilized assets — its poor, with a focus on the most marginalized and least productive, because that’s where the highest returns would be. And the same could be true in America. We’re not going to squeeze much more productivity out of our billionaires, but we as a country will benefit hugely if we can help the one in seven American children who don’t even graduate from high school.
mattrenz16

Opinion: What happens next in Congress will determine future of country, writes Bernie ... - 0 views

  • In this pivotal moment in American history, Democrats in the US House of Representatives and US Senate, working with the White House, have proposed several pieces of legislation which can strengthen working families, protect the planet and save American democracy from right-wing extremism.
  • We can create millions of good paying union jobs rebuilding our crumbling roads, bridges, water systems and constructing the millions of units of affordable housing we desperately need. We can also end starvation wages in America by raising the federal minimum wage to $15 an hour. At a time when real wages for American workers have been stagnant for decades, these actions will be a major step forward in improving the standard of living of a declining middle class.
  • Further, we can create millions more jobs by taking the global leadership in combating climate change -- the existential threat to our planet -- and transforming our energy system away from fossil fuels.
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  • By extending the child tax credit, we can cut childhood poverty nearly in half and end the international embarrassment of the US having one of the highest rates of childhood poverty in the industrialized world.Read More
Javier E

Opinion | America and the Coronavirus: 'A Colossal Failure of Leadership' - The New Yor... - 0 views

  • One of the most lethal leadership failures in modern times unfolded in South Africa in the early 2000s as AIDS spread there under President Thabo Mbeki.Mbeki scorned science, embraced conspiracy theories, dithered as the disease spread and rejected lifesaving treatments. His denialism cost about 330,000 lives, a Harvard study found
  • “We’re unfortunately in the same place,” said Anne Rimoin, an epidemiologist at U.C.L.A. “Mbeki surrounded himself with sycophants and cost his country hundreds of thousands of lives by ignoring science, and we’re suffering the same fate.”
  • “I see it as a colossal failure of leadership,” said Larry Brilliant, a veteran epidemiologist who helped eliminate smallpox in the 1970s. “Of the more than 200,000 people who have died as of today, I don’t think that 50,000 would have died if it hadn’t been for the incompetence.”
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  • There’s plenty of blame to go around, involving Democrats as well as Republicans, but Trump in particular “recklessly squandered lives,” in the words of an unusual editorial this month in the New England Journal of Medicine. Death certificates may record the coronavirus as the cause of death, but in a larger sense vast numbers of Americans died because their government was incompetent.
  • As many Americans are dying every 10 days of Covid-19 as U.S. troops died during 19 years of war in Iraq and Afghanistan
  • The paradox is that a year ago, the United States seemed particularly well positioned to handle this kind of crisis. A 324-page study by Johns Hopkins found last October that the United States was the country best prepared for a pandemic.
  • Then there’s an immeasurable cost in soft power as the United States is humbled before the world.
  • “It’s really sad to see the U.S. presidency fall from being the champion of global health to being the laughingstock of the world,”
  • in terms of destruction of American lives, treasure and well-being, this pandemic may be the greatest failure of governance in the United States since the Vietnam War.
  • the economists David Cutler and Lawrence Summers estimate that the economic cost of the pandemic in the United States will be $16 trillion, or about $125,000 per American household — far more than the median family’s net worth.
  • It’s true that the Obama administration did not do enough to refill the national stockpile with N95 masks, but Republicans in Congress wouldn’t provide even the modest sums that Obama requested for replenishment. And the Trump administration itself did nothing in its first three years to rebuild stockpiles.
  • The Obama administration updated this playbook and in the presidential transition in 2016, Obama aides cautioned the Trump administration that one of the big risks to national security was a contagion. Private experts repeated similar warnings. “Of all the things that could kill 10 million people or more, by far the most likely is an epidemic,” Bill Gates warned in 2015.
  • Credit for that goes to President George W. Bush, who in the summer of 2005 read an advance copy of “The Great Influenza,” a history of the 1918 flu pandemic. Shaken, Bush pushed aides to develop a strategy to prepare for another great contagion, and the result was an excellent 396-page playbook for managing such a health crisis.
  • Trump argues that no one could have anticipated the pandemic, but it’s what Bush warned about, what Obama aides tried to tell their successors about, and what Joe Biden referred to in a blunt tweet in October 2019 lamenting Trump’s cuts to health security programs and adding: “We are not prepared for a pandemic.”
  • When the health commission of Wuhan, China, announced on Dec. 31 that it had identified 27 cases of a puzzling pneumonia, Taiwan acted with lightning speed. Concerned that this might be an outbreak of SARS, Taiwan dispatched health inspectors to board flights arriving from Wuhan and screen passengers before allowing them to disembark. Anyone showing signs of ill health was quarantined.
  • If either China or the rest of the world had shown the same urgency, the pandemic might never have happened.
  • In hindsight, two points seem clear: First, China initially covered up the scale of the outbreak. Second, even so, the United States and other countries had enough information to act as Taiwan did. The first two countries to impose travel restrictions on China were North Korea and the Marshall Islands, neither of which had inside information.
  • That first half of January represents a huge missed opportunity for the world. If the United States, the World Health Organization and the world media had raised enough questions and pressed China, then perhaps the Chinese central government would have intervened in Wuhan earlier. And if Wuhan had been locked down just two weeks earlier, it’s conceivable that this entire global catastrophe could have been averted.
  • the C.D.C. devised a faulty test, and turf wars in the federal government prevented the use of other tests. South Korea, Germany and other countries quickly developed tests that did work, and these were distributed around the world. Sierra Leone in West Africa had effective tests before the United States did.
  • It’s true that local politicians, Democrats and Republicans alike, made disastrous decisions, as when Mayor Bill de Blasio of New York City urged people in March to “get out on the town despite coronavirus.” But local officials erred in part because of the failure of testing: Without tests, they didn’t know what they faced.
  • t’s unfair to blame the testing catastrophe entirely on Trump, for the failures unfolded several pay grades below him. Partly that’s because Trump appointees, like Robert Redfield, director of the C.D.C., simply aren’t the A team.
  • In any case, presidents set priorities for lower officials. If Trump had pushed aides as hard to get accurate tests as he pushed to repel refugees and migrants, then America almost certainly would have had an effective test by the beginning of February and tens of thousands of lives would have been saved.
  • Still, testing isn’t essential if a country gets backup steps right. Japan is a densely populated country that did not test much and yet has only 2 percent as many deaths per capita as the United States. One reason is that Japanese have long embraced face masks, which Dr. Redfield has noted can be at least as effective as a vaccine in fighting the pandemic. A country doesn’t have to do everything, if it does some things right.
  • Trump’s missteps arose in part because he channeled an anti-intellectual current that runs deep in the United States, as he sidelined scientific experts and responded to the virus with a sunny optimism apparently meant to bolster the financial markets.
  • Yet in retrospect, Trump did almost everything wrong. He discouraged mask wearing. The administration never rolled out contact tracing, missed opportunities to isolate the infected and exposed, didn’t adequately protect nursing homes, issued advice that confused the issues more than clarified them, and handed responsibilities to states and localities that were unprepared to act.
  • The false reassurances and dithering were deadly. One study found that if the United States had simply imposed the same lockdowns just two weeks earlier, 83 percent of the deaths in the early months could have been prevented.
  • A basic principle of public health is the primacy of accurate communications based on the best science. Chancellor Angela Merkel of Germany, who holds a doctorate in physics, is the global champion of that approach
  • Trump was the opposite, sowing confusion and conspiracy theories; a Cornell study found that “the President of the United States was likely the largest driver of the Covid-19 misinformation.”
  • A conservative commentariat echoed Trump in downplaying the virus and deriding efforts to stay safe.
  • A University of Chicago study found that watching the Sean Hannity program correlated to less social distancing, so watching Fox News may well have been lethal to some of its fans.
  • Americans have often pointed to the Soviet Union as a place where ideology trumped science, with disastrous results. Stalin backed Trofim Lysenko, an agricultural pseudoscientist who was an ardent Communist but scorned genetics — and whose zealous incompetence helped cause famines in the Soviet Union. Later, in the 1980s, Soviet leaders were troubled by data showing falling life expectancy — so they banned the publication of mortality statistics
  • It was in the same spirit that Trump opposed testing for the coronavirus in the hope of holding down the number of reported cases.
  • Most striking, Trump still has never developed a comprehensive plan to fight Covid-19. His “strategy” was to downplay the virus and resist business closures, in an effort to keep the economy roaring — his best argument for re-election.
  • This failed. The best way to protect the economy was to control the virus, not to ignore it, and the spread of Covid-19 caused economic dislocations that devastated even homes where no one was infected.
  • Eight million Americans have slipped into poverty since May, a Columbia University study found, and about one in seven households with children have reported to the census that they didn’t have enough food to eat in the last seven days.
  • More than 40 percent of adults reported in June that they were struggling with mental health, and 13 percent have begun or increased substance abuse, a C.D.C. study found
  • More than one-quarter of young adults said they have seriously contemplated suicide
  • So in what is arguably the richest country in the history of the world, political malpractice has resulted in a pandemic of infectious disease followed by pandemics of poverty, mental illness, addiction and hunger.
  • The rejection of science has also exacerbated polarization and tribalism
  • An old school friend shared this conspiracy theory on Facebook:Create a VIRUS to scare people. Place them in quarantine. Count the number of dead every second of every day in every news headline. Close all businesses …. Mask people. Dehumanize them. Close temples and churches …. Empty the prisons because of the virus and fill the streets with criminals. Send in Antifa to vandalize property as if they are freedom fighters. Undermine the law. Loot …. And, in an election year, have Democrats blame all of it on the President. If you love America, our Constitution, and the Rule of Law, get ready to fight for them.
  • During World War II, American soldiers died at a rate of 9,200 a month, less than one-third the pace of deaths from this pandemic, but the United States responded with a massive mobilization
  • Yet today we can’t even churn out enough face masks; a poll of nurses in late July and early August found that one-third lacked enough N95 masks
  • Trump and his allies have even argued against mobilization. “Don’t be afraid of Covid,” Trump tweeted this month. “Don’t let it dominate your life.”
  • It didn’t have to be this way. If the U.S. had worked harder and held the per capita mortality rate down to the level of, say, Germany, we could have saved more than 170,000 lives
  • And if the U.S. had responded urgently and deftly enough to achieve Taiwan’s death rate, fewer than 100 Americans would have died from the virus.
  • “It is a slaughter,” Dr. William Foege, a legendary epidemiologist who once ran the C.D.C., wrote to Dr. Redfield. Dr. Foege predicted that public health textbooks would study America’s response to Covid-19 not as a model of A-plus work but as an example of what not to do.
Javier E

Population panic lets rich people off the hook for the climate crisis they are fuelling... - 0 views

  • Next week the BirthStrike movement – founded by women who, by announcing their decision not to have children, seek to focus our minds on the horror of environmental collapse – will dissolve itself, because its cause has been hijacked so virulently and persistently by population obsessives. The founders explain that they had “underestimated the power of ‘overpopulation’ as a growing form of climate breakdown denial”.
  • It is true that, in some parts of the world, population growth is a major driver of particular kinds of ecological damage, such as the expansion of small-scale agriculture into rainforests, the bushmeat trade and local pressure on water and land for housing. But its global impact is much smaller than many people claim.
  • The formula for calculating people’s environmental footprint is simple, but widely misunderstood: Impact = Population x Affluence x Technology (I = PAT).
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  • The global rate of consumption growth, before the pandemic, was 3% a year. Population growth is 1%. Some people assume this means that the rise in population bears one-third of the responsibility for increased consumption
  • But population growth is overwhelmingly concentrated among the world’s poorest people, who have scarcely any A or T to multiply their P. The extra resource use and greenhouse gas emissions caused by a rising human population are a tiny fraction of the impact of consumption growth.
  • Yet it is widely used as a blanket explanation of environmental breakdown.
  • Panic about population growth enables the people most responsible for the impacts of rising consumption (the affluent) to blame those who are least responsible.
  • At this year’s World Economic Forum in Davos, the primatologist Dame Jane Goodall, who is a patron of the charity Population Matters, told the assembled pollutocrats, some of whom have ecological footprints thousands of times greater than the global average: “All these things we talk about wouldn’t be a problem if there was the size of population that there was 500 years ago.”
  • If we had the global population of 500 years ago (around 500 million), and if it were composed of average UK plane passengers, our environmental impact would probably be greater than that of the 7.8 billion alive today.
  • he proposed no mechanism by which her dream might come true. This could be the attraction. The very impotence of her call is reassuring to those who don’t want change. If the answer to environmental crisis is to wish other people away, we might as well give up and carry on consuming.
  • how do we distinguish proportionate concerns about these harms from deflection and racism? Well, we know that the strongest determinant of falling birth rates is female emancipation and education. The major obstacle to female empowerment is extreme poverty. Its effect is felt disproportionately by women.
  • Winston Churchill blamed the Bengal famine of 1943, that he helped to cause through the mass export of India’s rice, on the Indians “breeding like rabbits”. In 2013 Sir David Attenborough, also a patron of Population Matters, wrongly blamed famines in Ethiopia on “too many people for too little land”, and suggested that sending food aid was counter-productive.
  • Malthusianism slides easily into racism.
  • Most of the world’s population growth is happening in the poorest countries, where most people are black or brown. The colonial powers justified their atrocities by fomenting a moral panic about “barbaric”, “degenerate” people “outbreeding” the “superior races”
  • These claims have been revived today by the far right, who promote conspiracy theories about “white replacement” and “white genocide”. When affluent white people wrongly transfer the blame for their environmental impacts on to the birthrate of much poorer brown and black people, their finger-pointing reinforces these narratives. It is inherently racist.
  • The far right now uses the population argument to contest immigration into the US and the UK
  • Since the clergymen Joseph Townsend and Thomas Malthus wrote their tracts in the 18th century, poverty and hunger have been blamed not on starvation wages, war, misrule and wealth extraction by the rich, but on the reproduction rates of the poor.
  • So a good way of deciding whether someone’s population concerns are genuine is to look at their record of campaigning against structural poverty.
  • Have they contested the impossible debts poor nations are required to pay? Have they argued against corporate tax avoidance, or extractive industries that drain wealth from poorer countries, leaving almost nothing behind
  • Or have they simply sat and watched as people remain locked in poverty, then complained about their fertility?
  • Before long, this reproductive panic will disappear. Nations will soon be fighting over immigrants: not to exclude them, but to attract them, as the demographic transition leaves their ageing populations with a shrinking tax base and a dearth of key workers.
clairemann

How US sanctions are fueling Afghanistan's humanitarian crisis - Vox - 0 views

  • More than five months after the fall of Kabul, the Afghan economy is on the brink of collapse, leaving millions of people at risk of extreme poverty or starvation. One major culprit: the US decision to halt aid to the country and freeze billions in Afghan government funds.
  • “virtually every man, woman and child in Afghanistan could face acute poverty”
  • The organization is requesting more than $5 billion in aid to help the Afghan people, both inside the country and in refugee camps in bordering nations like Uzbekistan and Pakistan.
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  • The US and the UN have made some concessions to allow humanitarian aid to operate outside the auspices of the Taliban; the Treasury Department’s Office of Foreign Asset Control (OFAC) granted some licenses to aid groups to operate in Afghanistan without running afoul of of financial restrictions on certain individuals and institutions in the country.
  • In the aftermath of the US withdrawal, many Afghans working as interpreters, aid workers, prosecutors, professors, and journalists suddenly lost their positions and their incomes, and many have been forced into hiding, further hampering their ability to provide even the most basic necessities — blankets, food, fuel, and medicine — for their families.
  • Many of Afghanistan’s current problems are intimately connected to the US withdrawal from the country last year, and the Taliban’s ensuing takeover of the central government. Since then, US sanctions and an abrupt end to international aid have wrecked Afghanistan’s economy and sent it spiraling into crisis.
  • Now, much of the country is facing poverty and starvation: In December, the World Food Program (WFP) found that 98 percent of Afghans aren’t getting enough to eat, and Guterres warned this month that “we are in a race against time to help the Afghan people.”
  • “Sanctions are intended to have a chilling effect, in that sanctions will always go beyond the face of the text,”
  • So far, however, no policy shift has been forthcoming. As of earlier this month, the US has pledged an additional $308 million in humanitarian aid to Afghanistan, but the Afghan central bank reserves remain frozen.
  • And while Afghanistan’s current crisis isn’t wholly caused by external factors — even without sanctions by the US and its allies, the Taliban’s inability to manage the bureaucracy of government would have created issues, as would the pandemic and a severe drought that began in June last year — US actions do play a substantial role.
  • The chilling effect of sanctions is keeping businesses and banks from actually engaging with the economy. As House Democrats pointed out in their letter last month, relatively simple steps — like issuing letters to international businesses assuring them that they are not violating US sanctions — could help alleviate the crisis and shore up the Afghan private sector, but Treasury has yet to do so.
  • In the meantime, however, the Taliban will hold talks this coming week with Western nations, including Norway, Britain, the US, Italy, France, and Germany, about humanitarian aid. The talks should not be seen as a legitimization of Taliban rule, Norwegian Foreign Minister Anniken Huitfeldt stressed to AFP on Friday, “but we must talk to the de facto authorities in the country. We cannot allow the political situation to lead to an even worse humanitarian disaster.”
Javier E

The Kids Are (Not) All Right-NYT - 0 views

  • According to a Unicef report issued last week — “Child Well-Being in Rich Countries” — the United States once again ranked among the worst wealthy countries for children, coming in 26th place of 29 countries included. Only Lithuania, Latvia and Romania placed lower, and those were among the poorest countries assessed in the study.
  • let’s start with the good news, or what little there is to glean from the report: the United States has one of the lowest rates of children reporting that they smoke regularly or have been drunk at least twice, and our children are among the most likely to exercise daily. We also have one of the lowest levels of air pollution.
  • the United States has the second highest share of children living under the relative poverty line, defined as 50 percent of each country’s median income, and the second largest “child poverty gap” (the distance between the poverty line and the median incomes of those below the line).
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  • The United States ranked 25th out of 29 in the percentage of people 15 to 19 years old who were enrolled in schools and colleges and 23rd in the percentage of people in that cohort not participating in either education, employment or training.
  • We have the highest teen fertility rate, and among the highest infant mortality rates. We have one of the lowest child immunization rates and lowest average birth weights.
  • Although our children were among the most likely to exercise, they were also the most overweight.
  • American children were in the bottom third when ranking their own level of “life satisfaction.” Our children were 28th out of 29 countries in ranking the quality of their relationships (the French were dead last). Only 56 percent of children in the United States find their classmates “kind and helpful,” 73 percent find it “easy to talk” to their mothers and 59 percent find it “easy to talk” to their fathers.
  • We have the third highest homicide rate among developed countries,
  • a third of parents fear for their children’s physical safety at school,
Javier E

What Drives Success? - NYTimes.com - 0 views

  • It may be taboo to say it, but certain ethnic, religious and national-origin groups are doing strikingly better than Americans overall.
  • These facts don’t make some groups “better” than others, and material success cannot be equated with a well-lived life. But willful blindness to facts is never a good policy.
  • Comprehensive data published by the Russell Sage Foundation in 2013 showed that the children of Chinese, Korean and Vietnamese immigrants experienced exceptional upward mobility regardless of their parents’ socioeconomic or educational background.
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  • The most comforting explanation of these facts is that they are mere artifacts of class — rich parents passing on advantages to their children — or of immigrants arriving in this country with high skill and education levels. Important as these factors are, they explain only a small part of the picture.
  • Take New York City’s selective public high schools like Stuyvesant and Bronx Science, which are major Ivy League feeders. For the 2013 school year, Stuyvesant High School offered admission, based solely on a standardized entrance exam, to nine black students, 24 Hispanics, 177 whites and 620 Asians. Among the Asians of Chinese origin, many are the children of restaurant workers and other working-class immigrants.
  • Merely stating the fact that certain groups do better than others — as measured by income, test scores and so on — is enough to provoke a firestorm in America today, and even charges of racism.
  • The irony is that the facts actually debunk racial stereotypes.
  • Nigerians make up less than 1 percent of the black population in the United States, yet in 2013 nearly one-quarter of the black students at Harvard Business School were of Nigerian ancestry; over a fourth of Nigerian-Americans have a graduate or professional degree, as compared with only about 11 percent of whites.
  • By 1990, United States-born Cuban children — whose parents had arrived as exiles, many with practically nothing — were twice as likely as non-Hispanic whites to earn over $50,000 a year. All three Hispanic United States senators are Cuban-Americans.
  • Meanwhile, some Asian-American groups — Cambodian- and Hmong-Americans, for example — are among the poorest in the country, as are some predominantly white communities in central Appalachia.
  • MOST fundamentally, groups rise and fall over time.
  • while Asian-American kids overall had SAT scores 143 points above average in 2012 — including a 63-point edge over whites — a 2005 study of over 20,000 adolescents found that third-generation Asian-American students performed no better academically than white students.
  • The fact that groups rise and fall this way punctures the whole idea of “model minorities” or that groups succeed because of innate, biological differences. Rather, there are cultural forces at work.
  • the strikingly successful groups in America today share three traits that, together, propel success
  • The first is a superiority complex — a deep-seated belief in their exceptionality. The second appears to be the opposite — insecurity, a feeling that you or what you’ve done is not good enough. The third is impulse control.
  • research shows that some groups are instilling them more frequently than others, and that they are enjoying greater success.
  • Ironically, each element of the Triple Package violates a core tenet of contemporary American thinking.
  • it’s precisely this unstable combination that generates drive: a chip on the shoulder, a goading need to prove oneself. Add impulse control — the ability to resist temptation — and the result is people who systematically sacrifice present gratification in pursuit of future attainment.
  • We know that group superiority claims are specious and dangerous, yet every one of America’s most successful groups tells itself that it’s exceptional in a deep sense.
  • That insecurity should be a lever of success is another anathema in American culture. Feelings of inadequacy are cause for concern or even therapy; parents deliberately instilling insecurity in their children is almost unthinkable. Yet insecurity runs deep in every one of America’s rising groups; and consciously or unconsciously, they tend to instill it in their children.
  • Numerous studies, including in-depth field work conducted by the Harvard sociologist Vivian S. Louie, reveal Chinese immigrant parents frequently imposing exorbitant academic expectations on their children (“Why only a 99?”), making them feel that “family honor” depends on their success.
  • In a study of thousands of high school students, Asian-American students reported the lowest self-esteem of any racial group, even as they racked up the highest grades.
  • Moreover, being an outsider in a society — and America’s most successful groups are all outsiders in one way or another — is a source of insecurity in itself. Immigrants worry about whether they can survive in a strange land, often communicating a sense of life’s precariousness to their children.
  • Finally, impulse control runs against the grain of contemporary culture as well. Countless books and feel-good movies extol the virtue of living in the here and now, and people who control their impulses don’t live in the moment.
  • The dominant culture is fearful of spoiling children’s happiness with excessive restraints or demands. By contrast, every one of America’s most successful groups takes a very different view of childhood, inculcating habits of discipline from a very early age
  • Needless to say, high-achieving groups don’t instill these qualities in all their members. They don’t have to
  • At the same time, if members of a group learn not to trust the system, if they don’t think people like them can really make it, they will have little incentive to engage in impulse control.
  • success comes at a price. Each of the three traits has its own pathologies
  • Even when it functions relatively benignly as an engine of success, the combination of these three traits can still be imprisoning — precisely because of the kind of success it tends to promote. Individuals striving for material success can easily become too focused on prestige and money, too concerned with external measures of their own worth.
  • Only in combination do these qualities generate drive and what Tocqueville called the “longing to rise.”
  • It’s just much harder when you have to do it on your own, when you can’t draw on the cultural resources of a broader community, when you don’t have role models or peer pressure on your side, and instead are bombarded daily with negative images of your group in the media.
  • But it would be ridiculous to suggest that the lack of an effective group superiority complex was the cause of disproportionate African-American poverty. The true causes barely require repeating
  • Nor does the lack of a group superiority narrative prevent any given individual African-American from succeeding. It simply creates an additional psychological and cultural hurdle that America’s most successful groups don’t have to overcome.
  • Culture is never all-determining. Individuals can defy the most dominant culture and write their own scripts
  • The same factors that cause poverty — discrimination, prejudice, shrinking opportunity — can sap from a group the cultural forces that propel success. Once that happens, poverty becomes more entrenched.
  • Disappearing blue-collar jobs and greater returns to increasingly competitive higher education give a tremendous edge to groups that disproportionately produce individuals driven, especially at a young age, to excel and to sacrifice present satisfactions for long-term gains.
  • THE good news is that it’s not some magic gene generating these groups’ disproportionate success. Nor is it some 5,000-year-old “education culture” that only they have access to. Instead their success is significantly propelled by three simple qualities open to anyone.
  • The way to develop this package of qualities — not that it’s easy, or that everyone would want to — is through grit.
  • It requires turning the ability to work hard, to persevere and to overcome adversity into a source of personal superiority. This kind of superiority complex isn’t ethnically or religiously exclusive. It’s the pride a person takes in his own strength of will.
  • research shows that perseverance and motivation can be taught, especially to young children.
  • The United States itself was born a Triple Package nation, with an outsize belief in its own exceptionality, a goading desire to prove itself to aristocratic Europe (Thomas Jefferson sent a giant moose carcass to Paris to prove that America’s animals were bigger than Europe’s) and a Puritan inheritance of impulse control.
  • But prosperity and power had their predictable effect, eroding the insecurity and self-restraint that led to them. By 2000, all that remained was our superiority complex, which by itself is mere swagger, fueling a culture of entitlement and instant gratification.
  • the trials of recent years — the unwon wars, the financial collapse, the rise of China — have, perversely, had a beneficial effect: the return of insecurity.
Javier E

Billionaires' Row and Welfare Lines - NYTimes.com - 0 views

  • The stock market is hitting record highs.
  • Bank profits have reached their highest levels in years.
  • in August, “Sales of homes priced at more than $1 million jumped an average 37 percent in 2013’s first half from a year earlier to the highest level since 2007,
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  • developers are turning 57th Street in Manhattan into “Billionaires’ Row,” with apartments selling for north of $90 million each.
  • Forbes’s list of the world’s billionaires has added more than 200 names since 2012 and is now at 1,426. The United States once again leads the list, with 442 billionaires.
  • Measure of America, a project of the Social Science Research Council, recently released a study finding that a staggering 5.8 million young people nationwide — one in seven of those ages 16 to 24 — are disconnected, meaning not employed or in school, “adrift at society’s margins,” as the group put it.
  • “In 2012, real median household income was 8.3 percent lower than in 2007, the year before the most recent recession.”
  • “During the first two years of the nation’s economic recovery, the mean net worth of households in the upper 7 percent of the wealth distribution rose by an estimated 28 percent, while the mean net worth of households in the lower 93 percent dropped by 4 percent.”
  • “The 1,168,354 homeless students enrolled by U.S. preschools and K-12 schools in the 2011-2012 school year is the highest number on record, and a 10 percent increase over the previous school year. The number of homeless children in public schools has increased 72 percent since the beginning of the recession.”
  • “These new poverty estimates released on Sept. 19, 2013, suggest that child poverty plateaued in the aftermath of the Great Recession, but there is no evidence of any reduction in child poverty even as we enter the fourth year of ‘recovery.’ ”
  • the number of households living on $2 or less in income per person per day in a given month increased from about 636,000 in 1996 to about 1.46 million households in early 2011, a percentage growth of 130 percent.”
  • “Cash assistance benefits for the nation’s poorest families with children fell again in purchasing power in 2013 and are now at least 20 percent below their 1996 levels in 37 states, after adjusting for inflation.”
  • The number of Americans now enrolled in the Supplemental Nutrition Assistance Program (SNAP) is near record highs, and yet both houses of Congress have passed bills to cut funding to the program. The Senate measure would cut about $4 billion, while the House measure would cut roughly ten times as much, dropping millions of Americans from the program.
Javier E

Championing Environment, Francis Takes Aim at Global Capitalism - The New York Times - 0 views

  • Francis’ embrace of the issue of climate change, and his broader critique of global capitalism, stem from his signature economic concern: eradicating poverty.
  • In the encyclical, Francis writes of “the intimate relationship between the poor and the fragility of the planet,” and says, “Both everyday experience and scientific research show that the gravest effects of all attacks on the environment are suffered by the poorest.”
  • He added, “As the effects of climate change worsen, we know that escaping poverty will become even more difficult.”
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  • “The pope’s ideas will be jarring to a modern reader at first. He says that people should not ascribe to the market magical qualities that can solve all problems.”
  • “Humanity is called to recognize the need for changes of lifestyle, production and consumption, in order to combat this warming or at least the human causes which produce or aggravate it,” the pope wrote. “At one extreme, we find those who doggedly uphold the myth of progress and tell us that ecological problems will solve themselves simply with the application of new technology and without any need for ethical considerations or deep change.”
  • “He’s rather brilliantly brought back a concept that has been lost for 30 years or so, since the beginning of the Reagan administration — he says profit-making can’t be the sole criteria for decision-making,
  • While the pope’s arguments against markets are likely to play poorly in Washington, they could play well in Latin American nations, especially Brazil. That nation, one of the world’s largest polluters, has a majority Roman Catholic population and has resisted devising an aggressive climate change policy, in part because of its struggles with poverty.
  • The pope said several times that developed economies owed a debt to poor nations. “A true ‘ecological debt’ exists, particularly between the global north and south, connected to commercial imbalances with effects on the environment, and the disproportionate use of natural resources by certain countries over long periods of time,”
katyshannon

The Supreme Court Will Review Texas' Law Restricting Abortion Access - 0 views

  • If upheld, Planned Parenthood says the decision would leave 5.4 million Texan women of reproductive age with only 10 abortion providers in their state.
  • This decreased access would be especially detrimental to already marginalized groups and those with limited economic resources. Forty-two percent of the women who have abortions fall below the federal poverty line, according to the Guttmacher Institute. Denying women abortion access only increases the risk of falling into poverty, ThinkProgress reported in 2012.
  • providers disproportionately affects Latina women, according to Jessica González-Rojas, executive director of the National Latina Institute for Reproductive Health. "While this politically-motivated attack threatens all Texas women, it's particularly harmful for the 40% of Texas women who are Latina," González-Rojas said in an emailed statement. "Latinas are twice as likely to experience unintended pregnancies as non-Latina white women and are more likely to be of reproductive age.
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  • In Texas, lack of
  • This particular case has implications for women across the United States, according to Ilyse Hogue, president of NARAL Pro-Choice America.
  • "This case represents the greatest threat to women's reproductive freedom since the Supreme Court decided Roe vs. Wade over 40 years ago."
  • The Guttmacher Institute estimates that 1 in 3 women will have an abortion in her lifetime. Lawmakers have passed a record-breaking 231 abortion restriction laws in the last four years, and more than 100 anti-abortion bills have been introduced in 28 state legislatures so far this year.
Javier E

History News Network | 4 Things We Believed a Century Ago - And Need to Remember Now - 0 views

  • We are not the first – or the last – to feel that markets beyond our ken and beyond our control shape the realities of our lives, draw in the horizons of our aspirations.
  • We live in an impoverished age. Not a poverty of money, but a poverty of ideas, a poverty of possibilities. A century ago, anything was possible, but today we have convinced ourselves that nothing can be done.
  • A generation has come of age, and come to power, which can hardly remember when government was not the problem. We need new policies, based on new values if we hope to exert democratic control over the complex economic activity that governs our lives.
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  • But they are not all that new, and to find these policies and values, we need new histories. Here are four things people believed a century ago, before our impoverished era:
  • 1) People in a democracy have a right to control the parameters of economic activity that shapes their lives. Debate about this could be framed as a debate about where to draw lines in the economy between things that are tightly governed and things that are not
  • 2) People in a democracy have a right to gather information about businesses and use that information in the regulation of business.
  • he aspects of business that touch upon the public lives of the people they come into contact with must not be hidden if we are to govern business fairly. Even such simple things as who owns a company, how much money it earns, how much (and how) it pays its employees and investors, how much (or whether) it pays in taxes are routinely hidden, guarded by lawyers and phrases such as “commercial sensitivity.”
  • 3) There is no such thing as an abstract “market” separate from government. Ever since kings issued royal charters, markets have operated in public spaces under the control of government.
  • 4) Not all business is bad. In almost any sector, in almost any time, there are examples of good practice, of business operating fairly, openly, legally, to the benefit of its employees, its investors, and the public at large. All too often, such companies are at a disadvantage compared to those less scrupulous. Without good governance, it is a race to the bottom.
  • These are not new ideas. They were articulated, argued over, and implemented long ago, in the Progressive Era. They were the basis of decades of prosperity and the greatest advances in democracy and equality the United States has seen. We need to reread our own history.
maddieireland334

The Lonely Poverty of America's White Working Class - The Atlantic - 0 views

  • Between 1998 and 2013, Case and Deaton argue, white Americans across multiple age groups experienced large spikes in suicide and fatalities related to alcohol and drug abuse—spikes that were so large that, for whites aged 45 to 54, they overwhelmed the dependable modern trend of steadily improving life expectancy.
  • A Pew study released last month found that the size of the middle class—defined by a consistent income range across generations—has shrunk over the last several decades.
  • The study builds on other recent research that finds that almost all the good jobs created since the recession have gone to college graduates.
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  • The workers I interviewed after the recession for my book on unemployment—less-educated factory workers—offer some tentative clues about what might be driving the disquieting trends described by the Case and Deaton study.
  • This is one of the groups hit hardest by the rising inequality and greater risk of unemployment and financial insecurity that have become features of today’s economy, and their experiences put in concrete terms how the economy and culture have become more hostile to workers not lucky enough to be working in posh offices on Wall Street or in Silicon Valley.
  • When it comes to explaining American economic trends, it is important to remember how critical a role manufacturing and unions have played in the building—and now dismantling—of a strong middle class.
  • or generations, factories provided good jobs to people who never went to college, allowing families—first white ethnic immigrants, and then others—to be upwardly mobile.
  • But in the late ’90s—the beginning of the crisis period that Case and Deaton identify—the number of manufacturing jobs in the U.S. dropped dramatically.
  • Political leaders, bankrolled by the wealthy, rolled back the interventionist policies of the New Deal and postwar period.
  • Corporations, once relatively tolerant of unions, tapped a cottage industry of anti-union consultants and adopted unseemly tactics to crush any organizing drives in their workplaces.
  • the two-thirds of Americans over the age of 25 who don’t have a bachelor’s degree
  • Certainly, it cannot be said enough that African Americans and Latinos continue to fare significantly worse than whites in terms of their overall rates of death and disease, even if the racial gap has narrowed.
  • . In the decades after World War II, racial minorities were denied many of the jobs, loans, and other resources that allowed the white majority to buy homes and accrue wealth.
  • If the gains of economic growth have gone largely to the rich in recent years, in that earlier period the white working class could count on hefty rises in living standards from generation to generation, and they grew accustomed to that upward trajectory of growing prosperity.
  • For example, while the disappearance of high-paying jobs for those with little education is a large part of the overall story of a shrinking middle class, it can’t wholly account for the uptick of mortality identified in the Case and Deaton study.
  • Likewise, the groups that have been affected most viciously by these market trends in the U.S., African Americans and Latinos, have not suffered the dramatic increases in death by suicide or substance abuse that whites have.
  • hite Americans, for instance, are more likely to see success as the result of individual effort than African Americans are (though not Hispanics). The less educated, particularly less-educated whites, also share this view to a disproportionate degree.
  • As scholars of family life as politically distinct as Andrew Cherlin and Charles Murray have stressed, college graduates and the less educated have greatly diverged in terms of when and how they partner up and have kids.
  • Nowadays, well-educated couples are much more likely to marry, stay married, and have children within marriage than those with less schooling.
  • A large part of the explanation for this must be that society’s attitudes about the sanctity and permanence of marriage have changed. But it’s important to note that there is an economic dimension to these trends, too—as the frequent separations and divorces I saw among the long-term unemployed made plain to me.
  • Those struggling financially are less likely to follow the traditional path of first comes marriage, then comes a baby.
  • The waning of religious belief may be another trend aggravating the modern malaise of the white working class. Since the ’90s, the number of Americans who declare no religious preference on surveys has almost tripled—from 8 percent at the beginning of that decade, to 21 percent in 2014.
  • Many said their faith was helping them get through their ongoing troubles, yet they rarely or never went to church. Some felt ashamed to be around people because they were out of work.
  • For others, their religious belief was somewhat a source of self-help, rather than a source of community.
  • The larger context of this isolation and alienation is America’s culture of individualism. It, too, can worsen the despair. Taken to an extreme, self-reliance becomes a cudgel: Those who falter and fail have only themselves to blame.
  • America’s frontier spirit of rugged individualism is strong, and it manifests itself differently by race and education level, too.
  • When asked in national surveys about the people with whom they discussed “important matters” in the past six months, those with just a high-school education or less are likelier to say no one (this percentage has risen over the years for college graduates, too).
  • To this day, the supreme value of education remains one of the few things that Americans of all persuasions (presidential candidates included) can agree on.
  • Some of the analysis of the Case and Deaton article has focused rightly on recent developments in this country’s drug crisis—namely, the surge in abuse of prescription opioids, and the resurgence in heroin use, notably among whites.
  • There is clearly a pressing need to deal more vigorously with this drug problem and the epidemic of fatal overdoses and liver disease that has affected the poor and working class in particular.
  • At the same time, it should be said that risky individual behaviors are shaped by broader social conditions. As the researchers Bruce Link and Jo Phelan have argued, effective health interventions need to consider the underlying factors that put people “at risk of risks”—specifically, socioeconomic status and social support.
  • One parting observation, then, is that policies to keep people from sinking into poverty and long-term unemployment can make a huge difference.
johnsonma23

Rural Oregon's Lost Prosperity Gives Standoff a Distressed Backdrop - The New York Times - 0 views

  • Rural Oregon’s LostProsperity Gives Standoffa Distressed Backdrop
  • a lifelong resident who has lost his job twice and has filed for bankruptcy once, said that was not the case anymore. He now works for the state as a prison guard, a job he said he hated.
  • “You do what you have to do to stay alive,”
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  • Times were once very good out here on the high desert of east-central Oregon, and a place like Burns — remote and obscure until a group of armed protesters took over a nearby federal wildlife sanctuary early this month
  • These days, cities like Portland, Salt Lake City and Boise, Idaho, are gobbling up more of the jobs than ever, especially the good ones.
  • Half the jobs in Oregon, for example, are now clustered in just three counties in and around Portland, according to a study by Headwaters Economics, a nonprofit research group in Bozeman, Mont
  • So the population grows ever older, poorer and less educated, and opportunities continue to dry up: The county has 10 percent fewer jobs than it did in 1979, according to state figures.
  • The pattern of poverty has shifted nationally as we
  • poverty rates fell or remained stable across the Northeast, South and Midwest — but rose significantly across the West, a Pew Research Center study said in 2014
  • What happened was a steep downturn, especially in the timber industry, which has all but disappeared
  • Changes in the wood industry were clearly also having an effect over those years, with more wood buyers shopping in Canada and more mills becoming automated, but many people here also said they thought the United States Forest Service
  • . Comparatively speaking, there are now much higher numbers of people in their prime working-age years whose incomes are below the federal poverty measure for a family.
  • But the role of government in what happened here is also more nuanced and complex than the black-hat-white-hat imagery presented by Mr. Bundy and his companions.
  • Government paychecks, like the one Mr. Ward earns at his job at the prison, have helped keep Harney County afloat as private jobs have declined
  • People like the Wards said that when environmental groups filed lawsuits and applied pressure at the State Capitol in Salem or in Washington, D.C.,
  • Some residents and local officials say they believe the history and relationship between the people and the government is being distorted by the protesters,
  • “People feel powerless,” said State Representative Cliff Bentz, a Republican whose district covers much of eastern Oregon, includ Harney County. “As the rural areas grow more and more poor and urban areas grow more and more wealthy, there’s a shift in power.”
Javier E

Opinion | The Virtue of Radical Honesty - The New York Times - 0 views

  • I’m asking students around the country: Who are your heroes? There’s always a long pause after I ask. But eventually one of the students suggested Steven Pinker. Another chimed in Jonathan Haidt. There was general nodding around the table.
  • Both men are psychology professors, at Harvard and N.Y.U., who bravely stand against what can be the smothering orthodoxy that inhibits thought on campus, but not from the familiar conservative position.
  • One way Pinker does it is by refusing to be pessimistic.
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  • Pinker refuses to do this. In his new book, “Enlightenment Now,” he argues that this pose is dishonest toward the facts.
  • Pinker contends that we should not be nostalgic for the economy of the 1950s, when jobs were plentiful and unions strong. A third of American children lived in poverty. Sixty percent of seniors had incomes below $1,000 a year. Only half the population had any savings in the bank at all.
  • Between 1979 and 2014, meanwhile, the percentage of poor Americans dropped to 20 percent from 24 percent. The percentage of lower-middle-class Americans dropped to 17 from 24. The percentage of Americans who were upper middle class (earning $100,000 to $350,000) shot upward to 30 percent from 13 percent.
  • There’s a fair bit of social mobility. Half of all Americans wind up in the top 10 percent of earners at at least one point in their career. One in nine spend some time in the top 1 percent
  • “When poverty is defined in terms of what people consume rather than what they earn, we find that the American poverty rate has declined by 90 percent since 1960,” Pinker writes
  • Our numbers look bad because so much of our health care spending is funneled through employers, but when you add this private social spending to state social spending, America has the second-highest level of such spending of the 35 nations in the Organization for Economic Cooperation and Development, after France.
  • He calls himself an Enlightenment man, but he’s really a scientific rationalist. He puts tremendous emphasis on the value of individual reason. The key to progress is information — making ourselves better informed. The key sin in the world is a result either of entropy, the randomness that is built into any system, or faith — dogma clouding reason.
  • The big problem with his rationalistic worldview is that while he charts the way individuals have benefited over the centuries, he spends barely any time on the quality of the relationships between individuals.
  • Pinker doesn’t spend much time on the decline of social trust, the breakdown of family life, the polarization of national life, the spread of tribal mentalities, the rise of narcissism, the decline of social capital, the rising alienation from institutions or the decline of citizenship and neighborliness.
  • It’s simply impossible to tell any good-news story when looking at the data from these moral, social and emotional spheres.
  • today’s situation reminds us of the weakness of the sort Cartesian rationalism Pinker champions and represents. Conscious reason can get you only so far when tribal emotions have been aroused, when existential fears rain down, when narcissistic impulses have been given free rein, when spiritual longings have nowhere healthy to go, when social trust has been devastated, when all the unconscious networks that make up 99 percent of our thinking are aflame and disordered.
Javier E

The Curse of Econ 101 - The Atlantic - 1 views

  • Poverty in the midst of plenty exists because many working people simply don’t make very much money. This is possible because the minimum wage that businesses must pay is low: only $7.25 per hour in the United States in 2016 (although it is higher in some states and cities). At that rate, a person working full-time for a whole year, with no vacations or holidays, earns about $15,000—which is below the poverty line for a family of two, let alone a family of four.
  • A minimum-wage employee is poor enough to qualify for food stamps and, in most states, Medicaid. Adjusted for inflation, the federal minimum is roughly the same as in the 1960s and 1970s, despite significant increases in average living standards over that period.
  • At first glance, it seems that raising the minimum wage would be a good way to combat poverty.
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  • The United States currently has the lowest minimum wage, as a proportion of its average wage, of any advanced economy,
  • The argument against increasing the minimum wage often relies on what I call “economism”—the misleading application of basic lessons from Economics 101 to real-world problems, creating the illusion of consensus and reducing a complex topic to a simple, open-and-shut case.
  • The minimum wage has been a hobgoblin of economism since its origins
  • Think tanks including Cato, Heritage, and the Manhattan Institute have reliably attacked the minimum wage for decades, all the while emphasizing the key lesson from Economics 101: Higher wages cause employers to cut jobs.
  • In today’s environment of increasing economic inequality, the minimum wage is a centerpiece of political debate
  • The real impact of the minimum wage, however, is much less clear than these talking points might indicate.
  • In 1994, David Card and Alan Krueger evaluated an increase in New Jersey’s minimum wage by comparing fast-food restaurants on both sides of the New Jersey-Pennsylvania border. They concluded, “Contrary to the central prediction of the textbook model ... we find no evidence that the rise in New Jersey’s minimum wage reduced employment at fast-food restaurants in the state.”
  • Card and Krueger’s findings have been vigorously contested across dozens of empirical studies. Today, people on both sides of the debate can cite papers supporting their position, and reviews of the academic research disagree on what conclusions to draw.
  • economists who have long argued against the minimum wage, reviewed more than one hundred empirical papers in 2006. Although the studies had a wide range of results, they concluded that the “preponderance of the evidence” indicated that a higher minimum wage does increase unemployment.
  • On the other hand, two recent meta-studies (which pool together the results of multiple analyses) have found that increasing the minimum wage does not have a significant impact on employment.
  • The profession as a whole is divided on the topic: When the University of Chicago Booth School of Business asked a panel of prominent economists in 2013 whether increasing the minimum wage to $9 would “make it noticeably harder for low-skilled workers to find employment,” the responses were split down the middle.
  • The idea that a higher minimum wage might not increase unemployment runs directly counter to the lessons of Economics 101
  • there are several reasons why the real world does not behave so predictably.
  • Although the standard model predicts that employers will replace workers with machines if wages increase, additional labor-saving technologies are not available to every company at a reasonable cost
  • At the other extreme, very large employers may have enough market power that the usual supply-and-demand model doesn’t apply to them. They can reduce the wage level by hiring fewer workers
  • In the above examples, a higher minimum wage will raise labor costs. But many companies can recoup cost increases in the form of higher prices; because most of their customers are not poor, the net effect is to transfer money from higher-income to lower-income families.
  • In addition, companies that pay more often benefit from higher employee productivity, offsetting the growth in labor costs.
  • why higher wages boost productivity: They motivate people to work harder, they attract higher-skilled workers, and they reduce employee turnover, lowering hiring and training costs, among other things
  • If fewer people quit their jobs, that also reduces the number of people who are out of work at any one time because they’re looking for something better. A higher minimum wage motivates more people to enter the labor force, raising both employment and output
  • Finally, higher pay increases workers’ buying power. Because poor people spend a relatively large proportion of their income, a higher minimum wage can boost overall economic activity and stimulate economic growth
  • Even if a higher minimum wage does cause some people to lose their jobs, that cost has to be balanced against the benefit of greater earnings for other low-income workers.
  • In short, whether the minimum wage should be increased (or eliminated) is a complicated question. The economic research is difficult to parse, and arguments often turn on sophisticated econometric details. Any change in the minimum wage would have different effects on different groups of peop
  • Nevertheless, when the topic reaches the national stage, it is economism’s facile punch line that gets delivered, along with its all-purpose dismissal: people who want a higher minimum wage just don’t understand economics (although, by that standard, several Nobel Prize winners don’t understand economics
  • This conviction that the minimum wage hurts the poor is an example of economism in action
  • one particular result of one particular model is presented as an unassailable economic theorem.
  • A recent study by researchers at the Cornell School of Hotel Administration, however, found that higher minimum wages have not affected either the number of restaurants or the number of people that they employ, contrary to the industry’s dire predictions, while they have modestly increased workers’ pay.
  • The fact that this is the debate already demonstrates the historical influence of economism
  • Low- and middle-income workers’ reduced bargaining power is a major reason why their wages have not kept pace with the overall growth of the economy. According to an analysis by the sociologists Bruce Western and Jake Rosenfeld, one-fifth to one-third of the increase in inequality between 1973 and 2007 results from the decline of unions.
  • With unions only a distant memory for many people, federal minimum-wage legislation has become the best hope for propping up wages for low-income workers. And again, the worldview of economism comes to the aid of employers by abstracting away from the reality of low-wage work to a pristine world ruled by the “law” of supply and demand.
Javier E

The Profound Social Cost of American Exceptionalism - The New York Times - 0 views

  • The United States is one of the richest, most technologically advanced nations in the history of humanity. And yet it accepts — proudly defends, even — a degree of social dysfunction that would be intolerable in any other rich society.
  • My first column pondered why Americans didn’t care more about the nation’s income gap, so much starker than that of any other advanced democracy. I suggested that my compatriots might come to a consensus that inequality is harmful when they realized how vast inequities could gum up the cogs of economic and social mobility
  • You can bet it has gone higher, given the bull run in the stock market since then. And Republicans just passed another round of tax cuts to offer a helping hand to the upper crust.
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  • Most interestingly, Americans still don’t care that much. Sure, two-thirds say they are dissatisfied with the way income and wealth are distributed, according to Gallup. Still, more than three out of five — compared with just over half six years ago — are satisfied with “the opportunity for a person in this nation to get ahead by working hard.”
  • As my column has aimed to highlight, too many Americans are, well, sinking. Seventeen percent of Americans are poor by international standards — living on less than half the nationwide median income. That’s more than twice the share of poor people in France, Iceland or the Netherlands.
  • Unequipped to cope with the demands of a labor market in furious transformation, they will give “social mobility” a new, all-American meaning: the tendency to move in and out of prison. It’s hard to believe any country could waste so many resources and prosper.
  • Forget about income, though. It’s hard to square Americans’ belief in their society’s greatness with the life expectancy of its newborn girls and boys. It is shorter than in Australia, Austria, Belgium, Britain, Canada, Chile, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Israel, Italy, Japan, Luxembourg, the Netherlands, New Zealand, Norway, Portugal, Slovenia, South Korea, Spain, Sweden, Switzerland and probably a few other countries I missed.
  • The impact of the nation’s fundamental paradox mostly fails the nonwhite and the poor. Black males born in the United States today will probably live shorter lives than boys born in Mexico, China or Turkey.
  • The children of poverty who survive will most likely hobble through life with mediocre educations — lagging their more affluent peers even before their first day in school and then falling farther behind, deprived of the resources that disadvantaged children in other advanced nations routinely enjoy.
  • Or let’s measure our progress in terms of infant deaths. Scientists in the United States invented many of the technologies used around the world to keep vulnerable babies alive. So how come our infant mortality rate is higher than that of every nation in the Organization for Economic Cooperation and Development with the exceptions of Mexico, Chile and Turkey?
  • America is doubling down on its exceptionalism. The rich got a tax break. Bankers got a break from the pesky rules written in the shadow of the financial crisis to protect the little guy. The poor and near poor were freed from their ability to afford health insurance.
  • populism — understood as a political movement shaped around giving the working class a “fair shake” — is pretty much dead.
Javier E

Taxi Driver Suicides Are a Warning to All of Us - The Atlantic - 0 views

  • As of 2016, 91 percent of the city’s professional drivers were immigrants, many of whom hail from the world’s poorest countries. Half of all drivers of non-app-based for-hire vehicles, traditionally the most lucrative slice of the market, hail from the Dominican Republic. Almost a quarter of taxi drivers, meanwhile, are originally from Bangladesh.
  • n an interview with Vincent Barone of am New York, Bhairavi Desai, executive director of the New York Taxi Workers Alliance, insisted that something must be done about the resulting labor glut: “We now have a saturation of tens of thousands of workers, even after working 10-, 12-, 14-hour shifts, [who] are talking about hunger and poverty, and that’s not acceptable.”
  • Usually, the notion that new low-skill immigrants represent competition for those who already live among us is airily dismissed on the grounds that the labor market is dynamic, and so too are low-skill workers.
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  • When faced with new competition, New York City’s immigrant drivers are supposed to learn new skills—they’re supposed to enroll in their local coding academy at night, or enroll in master’s programs in social-media marketing or food-truck management—and allow newcomers to take their place on the bottom rung. But what if climbing the ladder isn’t quite as easy as it sounds?
  • One of the reasons younger Americans are so optimistic about immigration, I suspect, is that many of us are the children of newcomers who, in earlier eras, were fortunate enough to make the transition from working-class service jobs to jobs that offered a bit more pay, status, and stability
  • To allow for the possibility that low-skill immigration has different implications today, when the prospects for upward mobility among low-skill workers are almost universally acknowledged to be bleaker than in years past, before a cavalcade of social and technological changes greatly reduced their power, seems almost sacrilegious. It smacks of dishonoring one’s parents or grandparents. And so piety wins out
  • We badly want to believe that we still live in a non-zero-sum nation, in which good-paying jobs for low-skill workers are abundant, and opportunities for advancement are always just around the corner
  • And all this is unfolding at a moment when the labor market is the tightest it has been since the turn of the century, and before the potential of labor-displacing automation is close to being fully realized.
  • What we are seeing in certain corners of New York City is not a story pitting scrappy immigrants against hateful nativists who resent their rivals for being culturally different or for the color of their skin. It is more like a desperate contest between people who are trying and failing to escape the pull of American poverty and others for whom American poverty still feels like deliverance from something much worse
  • This story does not compute for those who worship at the altar of Emma Lazarus, and who congratulate themselves for tipping their immigrant drivers generously or, better still, who deign to praise them for their marvelous work ethic. What they won’t do is stop to consider that we as a country are creating a new underclass for their convenience, and that the desperation of this new underclass might one day cause serious ructions that they won’t be able to ignore.
Javier E

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

  • Instead of self-confident and self-centered answers, the author humbly asks fundamental questions: What is economics? What is its meaning? Where does this new religion, as it is sometimes called, come from? What are its possibilities and its limitations and borders, if there are any? Why are we so dependent on permanent growing of growth and growth of growing of growth? Where did the idea of progress come from, and where is it leading us? Why are so many economic debates accompanied by obsession and fanaticism?
  • The majority of our political parties act with a narrow materialistic focus when, in their programs, they present the economy and finance first; only then, somewhere at the end, do we find culture as something pasted on or as a libation for a couple of madmen.
  • most of them—consciously or unconsciously—accept and spread the Marxist thesis of the economic base and the spiritual superstructure.
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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.”
  • Outside of our history, we have nothing more.
  • The study of the history of a certain field is not, as is commonly held, a useless display of its blind alleys or a collection of the field’s trials and errors (until we got it right), but history is the fullest possible scope of study of a menu that the given field can offer.
  • History of thought helps us to get rid of the intellectual brainwashing of the age, to see through the intellectual fashion of the day, and to take a couple of steps back.
  • Almost all of the key concepts by which economics operates, both consciously and unconsciously, have a long history, and their roots extend predominantly outside the range of economics, and often completely beyond that of science.
  • That is the reason for this book: to look for economic thought in ancient myths and, vice versa, to look for myths in today’s economics.
  • stories; Adam Smith believed. As he puts it in The Theory of Moral Sentiments, “the desire of being believed, or the desire of persuading, of leading and directing other people, seems to be one of the strongest of all our natural desires.”
  • “The human mind is built to think in terms of narratives … in turn, much of human motivation comes from living through a story of our lives, a story that we tell to ourselves and that creates a framework of our motivation. Life could be just ‘one damn thing after another’ if it weren’t for such stories. The same is true for confidence in a nation, a company, or an institution. Great leaders are foremost creators of stories.”
  • contrary to what our textbooks say, economics is predominantly a normative field. Economics not only describes the world but is frequently about how the world should be (it should be effective, we have an ideal of perfect competition, an ideal of high-GDP growth in low inflation, the effort to achieve high competitiveness …). To this end, we create models, modern parables,
  • I will try to show that mathematics, models, equations, and statistics are just the tip of the iceberg of economics; that the biggest part of the iceberg of economic knowledge consists of everything else; and that disputes in economics are rather a battle of stories and various metanarratives than anything else.
  • Before it was emancipated as a field, economics lived happily within subsets of philosophy—ethics, for example—miles away from today’s concept of economics as a mathematical-allocative science that views “soft sciences” with a scorn born from positivistic arrogance. But our thousand-year “education” is built on a deeper, broader, and oftentimes more solid base. It is worth knowing about.
  • is a paradox that a field that primarily studies values wants to be value-free. One more paradox is this: A field that believes in the invisible hand of the market wants to be without mysteries.
  • mathematics at the core of economics, or is it just the icing of the cake, the tip of the iceberg of our field’s inquiry?
  • we seek to chart the development of the economic ethos. We ask questions that come before any economic thinking can begin—both philosophically and, to a degree, historically. The area here lies at the very borders of economics—and often beyond. We may refer to this as protoeconomics (to borrow a term from protosociology) or, perhaps more fittingly, metaeconomics (to borrow a term from metaphysics).
  • In this sense, “the study of economics is too narrow and too fragmentary to lead to valid insight, unless complemented and completed by a study of metaeconomics.”17
  • The more important elements of a culture or field of inquiry such as economics are found in fundamental assumptions that adherents of all the various systems within the epoch unconsciously presuppose. Such assumptions appear so obvious that people do not know what they are assuming, because no other way of putting things has ever occurred to them, as the philosopher Alfred Whitehead notes in Adventures of Ideas.
  • I argue that economic questions were with mankind long before Adam Smith. I argue that the search for values in economics did not start with Adam Smith but culminated with him.
  • We should go beyond economics and study what beliefs are “behind the scenes,” ideas that have often become the dominant yet unspoken assumptions in our theories. Economics is surprisingly full of tautologies that economists are predominantly unaware of. I
  • argue that economics should seek, discover, and talk about its own values, although we have been taught that economics is a value-free science. I argue that none of this is true and that there is more religion, myth, and archetype in economics than there is mathematics.
  • In a way, this is a study of the evolution of both homo economicus and, more importantly, the history of the animal spirits within him. This book tries to study the evolution of the rational as well as the emotional and irrational side of human beings.
  • I argue that his most influential contribution to economics was ethical. His other thoughts had been clearly expressed long before him, whether on specialization, or on the principle of the invisible hand of the market. I try to show that the principle of the invisible hand of the market is much more ancient and developed long before Adam Smith. Traces of it appear even in the Epic of Gilgamesh, Hebrew thought, and in Christianity, and it is expressly stated by Aristophanes and Thomas Aquinas.
  • This is not a book on the thorough history of economic thought. The author aims instead to supplement certain chapters on the history of economic thought with a broader perspective and analysis of the influences that often escape the notice of economists and the wider public.
  • Progress (Naturalness and Civilization)
  • The Economy of Good and Evil
  • from his beginnings, man has been marked as a naturally unnatural creature, who for unique reasons surrounds himself with external possessions. Insatiability, both material and spiritual, are basic human metacharacteristics, which appear as early as the oldest myths and stories.
  • the Hebrews, with linear time, and later the Christians gave us the ideal (or amplified the Hebrew ideal) we now embrace. Then the classical economists secularized progress. How did we come to today’s progression of progress, and growth for growth’s sake?
  • The Need for Greed: The History of Consumption and Labor
  • Metamathematics From where did economics get the concept of numbers as the very foundation of the world?
  • All of economics is, in the end, economics of good and evil. It is the telling of stories by people of people to people. Even the most sophisticated mathematical model is, de facto, a story, a parable, our effort to (rationally) grasp the world around us.
  • idea that we can manage to utilize our natural egoism, and that this evil is good for something, is an ancient philosophical and mythical concept. We will also look into the development of the ethos of homo economicus, the birth of “economic man.”
  • The History of Animal Spirits: Dreams Never Sleep
  • Masters of the Truth
  • Originally, truth was a domain of poems and stories, but today we perceive truth as something much more scientific, mathematical. Where does one go (to shop) for the truth? And who “has the truth” in our epoch?
  • Our animal spirits (something of a counterpart to rationality) are influenced by the archetype of the hero and our concept of what is good.
  • The entire history of ethics has been ruled by an effort to create a formula for the ethical rules of behavior. In the final chapter we will show the tautology of Max Utility, and we will discuss the concept of Max Good.
  • The History of the Invisible Hand of the Market and Homo Economicus
  • We understand “economics” to mean a broader field than just the production, distribution, and consumption of goods and services. We consider economics to be the study of human relations that are sometimes expressible in numbers, a study that deals with tradables, but one that also deals with nontradables (friendship, freedom, efficiency, growth).
  • When we mention economics in this book, we mean the mainstream perception of it, perhaps as best represented by Paul Samuelson.
  • By the term homo economicus, we mean the primary concept of economic anthropology. It comes from the concept of a rational individual, who, led by narrowly egotistical motives, sets out to maximize his benefit.
  • the Epic of Gilgamesh bears witness to the opposite—despite the fact that the first written clay fragments (such as notes and bookkeeping) of our ancestors may have been about business and war, the first written story is mainly about great friendship and adventure.
  • there is no mention of either money or war; for example, not once does anyone in the whole epic sell or purchase something.5 No nation conquers another, and we do not encounter a mention even of the threat of violence.
  • Gilgamesh becomes a hero not only due to his strength, but also due to discoveries and deeds whose importance were in large part economic—direct gaining of construction materials in the case of felling the cedar forest, stopping Enkidu from devastating Uruk’s economy, and discovering new desert routes during his expeditions.
  • Even today we live in Gilgamesh’s vision that human relations—and therefore humanity itself—are a disturbance to work and efficiency; that people would perform better if they did not “waste” their time and energy on nonproductive things.
  • is a story of nature and civilization, of heroism, defiance, and the battle against the gods, and evil; an epic about wisdom, immortality, and also futility.
  • But labour is unlike any other commodity. The work environment is of no concern for steel; we do not care about steel’s well-being.16
  • But it is in friendship where—often by-the-way, as a side product, an externality—ideas and deeds are frequently performed or created that together can altogether change the face of society.19 Friendship can go against an ingrained system in places where an individual does not have the courage to do so himself or herself.
  • As Joseph Stiglitz says, One of the great “tricks” (some say “insights”) of neoclassical economics is to treat labour like any other factor of production. Output is written as a function of inputs—steel, machines, and labour. The mathematics treats labour like any other commodity, lulling one into thinking of labour like an ordinary commodity, such as steel or plastic.
  • Even the earliest cultures were aware of the value of cooperation on the working level—today we call this collegiality, fellowship, or, if you want to use a desecrated term, comradeship. These “lesser relationships” are useful and necessary for society and for companies because work can be done much faster and more effectively if people get along with each other on a human level
  • But true friendship, which becomes one of the central themes of the Epic of Gilgamesh, comes from completely different material than teamwork. Friendship, as C. S. Lewis accurately describes it, is completely uneconomical, unbiological, unnecessary for civilization, and an unneeded relationship
  • Here we have a beautiful example of the power of friendship, one that knows how to transform (or break down) a system and change a person. Enkidu, sent to Gilgamesh as a punishment from the gods, in the end becomes his faithful friend, and together they set out against the gods. Gilgamesh would never have gathered the courage to do something like that on his own—nor would Enkidu.
  • Due to their friendship, Gilgamesh and Enkidu then intend to stand up to the gods themselves and turn a holy tree into mere (construction) material they can handle almost freely, thereby making it a part of the city-construct, part of the building material of civilization, thus “enslaving” that which originally was part of wild nature. This is a beautiful proto-example of the shifting of the borders between the sacred and profane (secular)—and to a certain extent also an early illustration of the idea that nature is there to provide cities and people with raw material and production resources.
  • started with Babylonians—rural nature becomes just a supplier of raw materials, resources (and humans the source of human resources). Nature is not the garden in which humans were created and placed, which they should care for and which they should reside in, but becomes a mere reservoir for natural (re)sources.
  • Even today, we often consider the domain of humanity (human relations, love, friendship, beauty, art, etc.) to be unproductive;
  • Both heroes change—each from opposite poles—into humans. In this context, a psychological dimension to the story may be useful: “Enkidu (…) is Gilgamesh’s alter ego, the dark, animal side of his soul, the complement to his restless heart. When Gilgamesh found Enkidu, he changed from a hated tyrant into the protector of his city. (…)
  • To be human seems to be somewhere in between, or both of these two. We
  • this moment of rebirth from an animal to a human state, the world’s oldest preserved epic implicitly hints at something highly important. Here we see what early cultures considered the beginning of civilization. Here is depicted the difference between people and animals or, better, savages. Here the epic quietly describes birth, the awakening of a conscious, civilized human. We are witnesses to the emancipation of humanity from animals,
  • The entire history of culture is dominated by an effort to become as independent as possible from the whims of nature.39 The more developed a civilization is, the more an individual is protected from nature and natural influences and knows how to create around him a constant or controllable environment to his liking.
  • The price we pay for independence from the whims of nature is dependence on our societies and civilizations. The more sophisticated a given society is as a whole, the less its members are able to survive on their own as individuals, without society.
  • The epic captures one of the greatest leaps in the development of the division of labor. Uruk itself is one of the oldest cities of all, and in the epic it reflects a historic step forward in specialization—in the direction of a new social city arrangement. Because of the city wall, people in the city can devote themselves to things other than worrying about their own safety, and they can continue to specialize more deeply.
  • Human life in the city gains a new dimension and suddenly it seems more natural to take up issues going beyond the life span of an individual. “The city wall symbolizes as well as founds the permanence of the city as an institution which will remain forever and give its inhabitants the certainty of unlimited safety, allowing them to start investing with an outlook reaching far beyond the borders of individual life.
  • The wall around the city of Uruk is, among other things, a symbol of an internal distancing from nature, a symbol of revolts against submission to laws that do not come under the control of man and that man can at most discover and use to his benefit.
  • “The chief thing which the common-sense individual wants is not satisfactions for the wants he had, but more, and better wants.”47
  • If a consumer buys something, theoretically it should rid him of one of his needs—and the aggregate of things they need should be decreased by one item. In reality, though, the aggregate of “I want to have” expands together with the growing aggregate of “I have.”
  • can be said that Enkidu was therefore happy in his natural state, because all of his needs were satiated. On the other hand, with people, it appears that the more a person has, the more developed and richer, the greater the number of his needs (including the unsaturated ones).
  • the Old Testament, this relationship is perceived completely differently. Man (humanity) is created in nature, in a garden. Man was supposed to care for the Garden of Eden and live in harmony with nature and the animals. Soon after creation, man walks naked and is not ashamed, de facto the same as the animals. What is characteristic is that man dresses (the natural state of creation itself is not enough for him), and he (literally and figuratively) covers52 himself—in shame after the fall.53
  • Nature is where one goes to hunt, collect crops, or gather the harvest. It is perceived as the saturator of our needs and nothing more. One goes back to the city to sleep and be “human.” On the contrary, evil resides in nature. Humbaba lives in the cedar forest, which also happens to be the reason to completely eradicate it.
  • Symbolically, then, we can view the entire issue from the standpoint of the epic in the following way: Our nature is insufficient, bad, evil, and good (humane) occurs only after emancipation from nature (from naturalness), through culturing and education. Humanity is considered as being in civilization.
  • The city was frequently (at least in older Jewish writings) a symbol of sin, degeneration, and decadence—nonhumanity. The Hebrews were originally a nomadic nation, one that avoided cities. It is no accident that the first important city57 mentioned in the Bible is proud Babylon,58 which God later turns to dust.
  • is enough, for example, to read the Book of Revelation to see how the vision of paradise developed from the deep Old Testament period, when paradise was a garden. John describes his vision of heaven as a city—paradise is in New Jerusalem, a city where the dimensions of the walls(!) are described in detail, as are the golden streets and gates of pearl.
  • Hebrews later also chose a king (despite the unanimous opposition of God’s prophets) and settled in cities, where they eventually founded the Lord’s Tabernacle and built a temple for Him. The city of Jerusalem later gained an illustrious position in all of religion.
  • this time Christianity (as well as the influence of the Greeks) does not consider human naturalness to be an unambiguous good, and it does not have such an idyllic relationship to nature as the Old Testament prophets.
  • If a tendency toward good is not naturally endowed in people, it must be imputed from above through violence or at least the threat of violence.
  • If we were to look at human naturalness as a good, then collective social actions need a much weaker ruling hand. If people themselves have a natural tendency (propensity) toward good, this role does not have to be supplied by the state, ruler, or, if you wish, Leviathan.
  • How does this affect economics?
  • us return for the last time to the humanization of the wild Enkidu, which is a process we can perceive with a bit of imagination as the first seed of the principle of the market’s invisible hand, and therefore the parallels with one of the central schematics of economic thinking.
  • Sometimes it is better to “harness the devil to the plow” than to fight with him. Instead of summoning up enormous energy in the fight against evil, it is better to use its own energy to reach a goal we desire; setting up a mill on the turbulent river instead of futile efforts to remove the current. This is also how Saint Prokop approached it in one of the oldest Czech legends.
  • Enkidu caused damage and it was impossible to fight against him. But with the help of a trap, trick, this evil was transformed into something that greatly benefited civilization.
  • By culturing and “domesticating” Enkidu, humanity tamed the uncontrollable wild and chaotic evil
  • Enkidu devastated the doings (the external, outside-the-walls) of the city. But he was later harnessed and fights at the side of civilization against nature, naturalness, the natural state of things.
  • A similar motif appears a thousand years after the reversal, which is well known even to noneconomists as the central idea of economics: the invisible hand of the market.
  • A similar story (reforming something animally wild and uncultivated in civilizational achievement) is used by Thomas Aquinas in his teachings. Several centuries later, this idea is fully emancipated in the hands of Bernard Mandeville and his Fable of the Bees: or, Private Vices, Publick Benefits. The economic and political aspects of this idea are—often incorrectly—ascribed to Adam Smith.
  • Here the individual does not try anymore to maximize his goods or profits, but what is important is writing his name in human memory in the form of heroic acts or deeds.
  • immortality, one connected with letters and the cult of the word: A name and especially a written name survives the body.”77
  • After this disappointment, he comes to the edge of the sea, where the innkeeper Siduri lives. As tonic for his sorrow, she offers him the garden of bliss, a sort of hedonistic fortress of carpe diem, where a person comes to terms with his mortality and at least in the course of the end of his life maximizes earthly pleasures, or earthly utility.
  • In the second stage, after finding his friend Enkidu, Gilgamesh abandons the wall and sets out beyond the city to maximalize heroism. “In his (…) search of immortal life, Gilgamesh
  • The hero refuses hedonism in the sense of maximizing terrestrial pleasure and throws himself into things that will exceed his life. In the blink of an eye, the epic turns on its head the entire utility maximization role that mainstream economics has tirelessly tried to sew on people as a part of their nature.81
  • It is simpler to observe the main features of our civilization at a time when the picture was more readable—at a time when our civilization was just being born and was still “half-naked.” In other words, we have tried to dig down to the bedrock of our written civilization;
  • today remember Gilgamesh for his story of heroic friendship with Enkidu, not for his wall, which no longer reaches monumental heights.
  • the eleventh and final tablet, Gilgamesh again loses what he sought. Like Sisyphus, he misses his goal just before the climax
  • is there something from it that is valid today? Have we found in Gilgamesh certain archetypes that are in us to this day?
  • The very existence of questions similar to today’s economic ones can be considered as the first observation. The first written considerations of the people of that time were not so different from those today. In other words: The epic is understandable for us, and we can identify with it.
  • We have also been witnesses to the very beginnings of man’s culturing—a great drama based on a liberation and then a distancing from the natural state.
  • Let us take this as a memento in the direction of our restlessness, our inherited dissatisfaction and the volatility connected to it. Considering that they have lasted five thousand years and to this day we find ourselves in harmony with a certain feeling of futility, perhaps these characteristics are inherent in man.
  • Gilgamesh had a wall built that divided the city from wild nature and created a space for the first human culture. Nevertheless, “not even far-reaching works of civilization could satisfy human desire.”
  • Friendship shows us new, unsuspected adventures, gives us the opportunity to leave the wall and to become neither its builder nor its part—to not be another brick in the wall.
  • with the phenomenon of the creation of the city, we have seen how specialization and the accumulation of wealth was born, how holy nature was transformed into a secular supplier of resources, and also how humans’ individualistic ego was emancipated.
  • to change the system, to break down that which is standing and go on an expedition against the gods (to awaken, from naïveté to awakening) requires friendship.
  • For small acts (hunting together, work in a factory), small love is enough: Camaraderie. For great acts, however, great love is necessary, real love: Friendship. Friendship that eludes the economic understanding of quid pro quo. Friendship gives. One friend gives (fully) for the other. That is friendship for life and death,
  • The thought that humanity comes at the expense of efficiency is just as old as humanity itself—as we have shown, subjects without emotion are the ideal of many tyrants.
  • The epic later crashes this idea through the friendship of Gilgamesh and Enkidu. Friendship—the biologically least essential love, which at first sight appears to be unnecessary
  • less a civilized, city person is dependent on nature, the more he or she is dependent on the rest of society. Like Enkidu, we have exchanged nature for society; harmony with (incalculable) nature for harmony with (incalculable) man.
  • human nature good or evil? To this day these questions are key for economic policy: If we believe that man is evil in his nature, therefore that a person himself is dog eat dog (animal), then the hard hand of a ruler is called for. If we believe that people in and of themselves, in their nature, gravitate toward good, then it is possible to loosen up the reins and live in a society that is more laissez-faire.
  • For a concept of historical progress, for the undeification of heroes, rulers, and nature, mankind had to wait for the Hebrews.
  • Because nature is not undeified, it is beyond consideration to explore it, let alone intervene in it (unless a person was a two-thirds god like Gilgamesh). It
  • They practiced money lending, traded in many assets (…) and especially were engaged in the trading of shares on capital markets, worked in currency exchange and frequently figured as mediators in financial transactions (…), they functioned as bankers and participated in emissions of all possible forms.
  • As regards modern capitalism (as opposed to the ancient and medieval periods) … there are activities in it which are, in certain forms, inherently (and completely necessarily) present—both from an economic and legal standpoint.7
  • As early as the “dark” ages, the Jews commonly used economic tools that were in many ways ahead of their time and that later became key elements of the modern economy:
  • Gilgamesh’s story ends where it began. There is a consistency in this with Greek myths and fables: At the end of the story, no progress occurs, no essential historic change; the story is set in indefinite time, something of a temporal limbo.
  • Jews believe in historical progress, and that progress is in this world.
  • For a nation originally based on nomadism, where did this Jewish business ethos come from? And can the Hebrews truly be considered as the architects of the values that set the direction of our civilization’s economic thought?
  • Hebrew religiosity is therefore strongly connected with this world, not with any abstract world, and those who take pleasure in worldly possessions are not a priori doing anything wrong.
  • PROGRESS: A SECULARIZED RELIGION One of the things the writers of the Old Testament gave to mankind is the idea and notion of progress. The Old Testament stories have their development; they change the history of the Jewish nation and tie in to each other. The Jewish understanding of time is linear—it has a beginning and an end.
  • The observance of God’s Commandments in Judaism leads not to some ethereal other world, but to an abundance of material goods (Genesis 49:25–26, Leviticus 26:3–13, Deuteronomy 28:1–13) (…) There are no accusing fingers pointed at
  • There are no echoes of asceticism nor for the cleansing and spiritual effect of poverty. It is fitting therefore, that the founders of Judaism, the Patriarchs Abraham, Isaac and Jacob, were all wealthy men.12
  • about due to a linear understanding of history. If history has a beginning as well as an end, and they are not the same point, then exploration suddenly makes sense in areas where the fruits are borne only in the next generation.
  • What’s more, economic progress has almost become an assumption of modern functional societies. We expect growth. We take it automatically. Today, if nothing “new” happens, if GDP does not grow (we say it stagnates) for several quarters, we consider it an anomaly.
  • however, the idea of progress itself underwent major changes, and today we perceive it very differently. As opposed to the original spiritual conceptions, today we perceive progress almost exclusively in an economic or scientific-technological sense.
  • Because care for the soul has today been replaced by care for external things,
  • This is why we must constantly grow, because we (deep down and often implicitly) believe that we are headed toward an (economic) paradise on Earth.
  • Only since the period of scientific-technological revolution (and at a time when economics was born as an independent field) is material progress automatically assumed.
  • Jewish thought is the most grounded, most realistic school of thought of all those that have influenced our culture.17 An abstract world of ideas was unknown to the Jews. To this day it is still forbidden to even depict God, people, and animals in symbols, paintings, statues, and drawings.
  • economists have become key figures of great importance in our time (Kacířské eseje o filosofii dějin [Heretical Essays in the Philosophy of History]). They are expected to perform interpretations of reality, give prophetic services (macroeconomic forecasts), reshape reality (mitigate the impacts of the crisis, speed up growth), and, in the long run, provide leadership on the way to the Promised Land—paradise on Earth.
  • REALISM AND ANTIASCETICISM Aside from ideas of progress, the Hebrews brought another very fundamental contribution to our culture: The desacralization of heroes, nature, and rulers.
  • Voltaire writes: “It certain fact is, that in his public laws he [Moses] never so much as once made mention of a life to come, limiting all punishments and all rewards to the present life.”21
  • As opposed to Christianity, the concept of an extraterrestrial paradise or heaven was not developed much in Hebrew thought.19 The paradise of the Israelites—Eden—was originally placed on Earth at a given place in Mesopotamia20 and at a given time,
  • The Hebrews consider the world to be real—not just a shadow reflection of a better world somewhere in the cloud of ideas, something the usual interpretation of history ascribes to Plato. The soul does not struggle against the body and is not its prisoner, as Augustine would write later.
  • The land, the world, the body, and material reality are for Jews the paramount setting for divine history, the pinnacle of creation. This idea is the conditio sine qua non of the development of economics, something of an utterly earthly making,
  • The mythology of the hero-king was strongly developed in that period, which Claire Lalouette summarizes into these basic characteristics: Beauty (a perfect face, on which it is “pleasant to look upon,” but also “beauty,” expressed in the Egyptian word nefer, not only means aesthetics, but contains moral qualities as well),
  • THE HERO AND HIS UNDEIFICATION: THE DREAM NEVER SLEEPS The concept of the hero is more important than it might appear. It may be the remote origin of Keynes’s animal spirits, or the desire to follow a kind of internal archetype that a given individual accepts as his own and that society values.
  • This internal animator of ours, our internal mover, this dream, never sleeps and it influences our behavior—including economic behavior—more than we want to realize.
  • manliness and strength,28 knowledge and intelligence,29 wisdom and understanding, vigilance and performance, fame and renown (fame which overcomes enemies because “a thousand men would not be able to stand firmly in his presence”);30 the hero is a good shepherd (who takes care of his subordinates), is a copper-clad rampart, the shield of the land, and the defender of heroes.
  • Each of us probably has a sort of “hero within”—a kind of internal role-model, template, an example that we (knowingly or not) follow. It is very important what kind of archetype it is, because its role is dominantly irrational and changes depending on time and the given civilization.
  • The oldest was the so-called Trickster—a fraudster; then the culture bearer—Rabbit; the musclebound hero called Redhorn; and finally the most developed form of hero: the Twins.
  • the Egyptian ruler, just as the Sumerian, was partly a god, or the son of a god.31
  • Jacob defrauds his father Isaac and steals his brother Esau’s blessing of the firstborn. Moses murders an Egyptian. King David seduces the wife of his military commander and then has him killed. In his old age, King Solomon turns to pagan idols, and so on.
  • Anthropology knows several archetypes of heroes. The Polish-born American anthropologist Paul Radin examined the myths of North American Indians and, for example, in his most influential book, The Trickster, he describes their four basic archetypes of heroes.
  • The Torah’s heroes (if that term can be used at all) frequently make mistakes and their mistakes are carefully recorded in the Bible—maybe precisely so that none of them could be deified.32
  • We do not have to go far for examples. Noah gets so drunk he becomes a disgrace; Lot lets his own daughters seduce him in a similar state of drunkenness. Abraham lies and (repeatedly) tries to sell his wife as a concubine.
  • the Hebrew heroes correspond most to the Tricksters, the Culture Bearers, and the Twins. The divine muscleman, that dominant symbol we think of when we say hero, is absent here.
  • To a certain extent it can be said that the Hebrews—and later Christianity—added another archetype, the archetype of the heroic Sufferer.35 Job
  • Undeification, however, does not mean a call to pillage or desecration; man was put here to take care of nature (see the story of the Garden of Eden or the symbolism of the naming of the animals). This protection and care of nature is also related to the idea of progress
  • For the heroes who moved our civilization to where it is today, the heroic archetypes of the cunning trickster, culture bearer, and sufferer are rather more appropriate.
  • the Old Testament strongly emphasizes the undeification of nature.37 Nature is God’s creation, which speaks of divinity but is not the domain of moody gods
  • This is very important for democratic capitalism, because the Jewish heroic archetype lays the groundwork much better for the development of the later phenomenon of the hero, which better suits life as we know it today. “The heroes laid down their arms and set about trading to become wealthy.”
  • in an Old Testament context, the pharaoh was a mere man (whom one could disagree with, and who could be resisted!).
  • RULERS ARE MERE MEN In a similar historical context, the Old Testament teachings carried out a similar desacralization of rulers, the so-called bearers of economic policy.
  • Ultimately the entire idea of a political ruler stood against the Lord’s will, which is explicitly presented in the Torah. The Lord unequivocally preferred the judge as the highest form of rule—an
  • The needs of future generations will have to be considered; after all humankind are the guardians of God’s world. Waste of natural resources, whether privately owned or nationally owned is forbidden.”39
  • Politics lost its character of divine infallibility, and political issues were subject to questioning. Economic policy could become a subject of examination.
  • 44 God first creates with the word and then on individual days He divides light from darkness, water from dry land, day from night, and so forth—and He gives order to things.45 The world is created orderly— it is wisely, reasonably put together. The way of the world is put together at least partially46 decipherably by any other wise and reasonable being who honors rational rules.
  • which for the methodology of science and economics is very important because disorder and chaos are difficult to examine scientifically.43 Faith in some kind of rational and logical order in a system (society, the economy) is a silent assumption of any (economic) examination.
  • THE PRAISE OF ORDER AND WISDOM: MAN AS A PERFECTER OF CREATION The created world has an order of sorts, an order recognizable by us as people,
  • From the very beginning, when God distances Himself from the entire idea, there is an anticipation that there is nothing holy, let alone divine, in politics. Rulers make mistakes, and it is possible to subject them to tough criticism—which frequently occurs indiscriminately through the prophets in the Old Testament.
  • Hebrew culture laid the foundations for the scientific examination of the world.
  • Examining the world is therefore an absolutely legitimate activity, and one that is even requested by God—it is a kind of participation in the Creator’s work.51 Man is called on to understand himself and his surroundings and to use his knowledge for good.
  • I was there when he set heavens in place, when he marked out the horizon on the face of the deep (…) Then I was the craftsman at his side.47
  • There are more urgings to gain wisdom in the Old Testament. “Wisdom calls aloud in the street (…): ‘How long will you simple ones love your simple ways?’”49 Or several chapters later: “Wisdom is supreme; therefore get wisdom. Though it cost all you have, get understanding.”50
  • examination is not forbidden. The fact that order can be grasped by human reason is another unspoken assumption that serves as a cornerstone of any scientific examination.
  • then, my sons, listen to me; blessed are those who keep my ways (…) Blessed is the man who listens to me, watching daily at my doors, waiting at my doorway. For whoever finds me finds life and receives favor from the Lord.
  • the rational examination of nature has its roots, surprisingly, in religion.
  • The Lord brought me forth as the first of his works, before his deeds of old. I was appointed from eternity, from the beginning, before the world began. When there were no oceans, I was given birth, when there were no springs abounding with water, before the mountains were settled in place,
  • The Book of Proverbs emphasizes specifically several times that it was wisdom that was present at the creation of the world. Wisdom personified calls out:
  • The last act, final stroke of the brush of creation, naming of the animals—this act is given to a human, it is not done by God, as one would expect. Man was given the task of completing the act of creation that the Lord began:
  • MAN AS A FINISHER OF CREATION The creation of the world, as it is explained in Jewish teachings, is described in the Book of Genesis. Here God (i) creates, (ii) separates, and (iii) names [my emphasis]:
  • Naming is a symbolic expression. In Jewish culture (and also in our culture to this day), the right to name meant sovereign rights and belonged, for example, to explorers (new places), inventors (new principles), or parents (children)—that is, to those who were there at the genesis, at the origin. This right was handed over by God to mankind.
  • The Naming itself (the capital N is appropriate) traditionally belongs to the crowning act of the Creator and represents a kind of grand finale of creation, the last move of the brush to complete the picture—a signature of the master.
  • Without naming, reality does not exist; it is created together with language. Wittgenstein tightly names this in his tractatus—the limits of our language are the limits of our world.53
  • He invented (fictitiously and completely abstractly!) a framework that was generally accepted and soon “made into” reality. Marx invented similarly; he created the notion of class exploitation. Through his idea, the perception of history and reality was changed for a large part of the world for nearly an entire century.
  • Reality is not a given; it is not passive. Perceiving reality and “facts” requires man’s active participation. It is man who must take the last step, an act (and we
  • How does this relate to economics? Reality itself, our “objective” world, is cocreated, man himself participates in the creation; creation, which is somewhat constantly being re-created.
  • Our scientific models put the finishing touches on reality, because (1) they interpret, (2) they give phenomena a name, (3) they enable us to classify the world and phenomena according to logical forms, and (4) through these models we de facto perceive reality.
  • When man finds a new linguistic framework or analytical model, or stops using the old one, he molds or remolds reality. Models are only in our heads; they are not “in objective reality.” In this sense, Newton invented (not merely discovered!) gravity.
  • A real-ization act on our part represents the creation of a construct, the imputation of sense and order (which is beautifully expressed by the biblical act of naming, or categorization, sorting, ordering).
  • Keynes enters into the history of economic thought from the same intellectual cadence; his greatest contribution to economics was precisely the resurrection of the imperceptible—for example in the form of animal spirits or uncertainty. The economist Piero Mini even ascribes Keynes’s doubting and rebellious approach to his almost Talmudic education.63
  • God connects man with the task of guarding and protecting the Garden of Eden, and thus man actually cocreates the cultural landscape. The Czech philosopher Zdeněk Neubauer also describes this: “Such is reality, and it is so deep that it willingly crystallizes into worlds. Therefore I profess that reality is a creation and not a place of occurrence for objectively given phenomena.”61
  • in this viewpoint it is possible to see how Jewish thought is mystical—it admits the role of the incomprehensible. Therefore, through its groundedness, Jewish thought indulges mystery and defends itself against a mechanistic-causal explanation of the world: “The Jewish way of thinking, according to Veblen, emphasizes the spiritual, the miraculous, the intangible.
  • The Jews believed the exact opposite. The world is created by a good God, and evil appears in it as a result of immoral human acts. Evil, therefore, is induced by man.66 History unwinds according to the morality of human acts.
  • What’s more, history seems to be based on morals; morals seem to be the key determining factors of history. For the Hebrews, history proceeds according to how morally its actors behave.
  • The Sumerians believed in dualism—good and evil deities exist, and the earth of people becomes their passive battlefield.
  • GOOD AND EVIL IN US: A MORAL EXPLANATION OF WELL-BEING We have seen that in the Epic of Gilgamesh, good and evil are not yet addressed systematically on a moral level.
  • This was not about moral-human evil, but rather a kind of natural evil. It is as if good and evil were not touched by morality at all. Evil simply occurred. Period.
  • the epic, good and evil are not envisaged morally—they are not the result of an (a)moral act. Evil was not associated with free moral action or individual will.
  • Hebrew thought, on the other hand, deals intensively with moral good and evil. A moral dimension touches the core of its stories.65
  • discrepancy between savings and investment, and others are convinced of the monetary essence
  • The entire history of the Jewish nation is interpreted and perceived in terms of morality. Morality has become, so to speak, a mover and shaker of Hebrew history.
  • sunspots. The Hebrews came up with the idea that morals were behind good and bad years, behind the economic cycle. But we would be getting ahead of ourselves. Pharaoh’s Dream: Joseph and the First Business Cycle To
  • It is the Pharaoh’s well-known dream of seven fat and seven lean cows, which he told to Joseph, the son of Jacob. Joseph interpreted the dream as a macroeconomic prediction of sorts: Seven years of abundance were to be followed by seven years of poverty, famine, and misery.
  • Self-Contradicting Prophecy Here, let’s make several observations on this: Through taxation74 on the level of one-fifth of a crop75 in good years to save the crop and then open granaries in bad years, the prophecy was de facto prevented (prosperous years were limited and hunger averted—through a predecessor of fiscal stabilization).
  • The Old Testament prophesies therefore were not any deterministic look into the future, but warnings and strategic variations of the possible, which demanded some kind of reaction. If the reaction was adequate, what was prophesied would frequently not occur at all.
  • This principle stands directly against the self-fulfilling prophecy,80 the well-known concept of social science. Certain prophecies become self-fulfilling when expressed (and believed) while others become self-contradicting prophecies when pronounced (and believed).
  • If the threat is anticipated, it is possible to totally or at least partially avoid it. Neither Joseph nor the pharaoh had the power to avoid bounty or crop failure (in this the dream interpretation was true and the appearance of the future mystical), but they avoided the impacts and implications of the prophecy (in this the interpretation of the dream was “false”)—famine did not ultimately occur in Egypt, and this was due to the application of reasonable and very intuitive economic policy.
  • Let us further note that the first “macroeconomic forecast” appears in a dream.
  • back to Torah: Later in this story we will notice that there is no reason offered as to why the cycle occurs (that will come later). Fat years will simply come, and then lean years after them.
  • Moral Explanation of a Business Cycle That is fundamentally different from later Hebrew interpretations, when the Jewish nation tries to offer reasons why the nation fared well or poorly. And those reasons are moral.
  • If you pay attention to these laws and are careful to follow them, then the Lord your God will keep his covenant of love with you, as he swore to your forefathers. He will love you and bless you and increase your numbers.
  • Only in recent times have some currents of economics again become aware of the importance of morals and trust in the form of measuring the quality of institutions, the level of justice, business ethics, corruption, and so forth, and examining their influence on the economy,
  • From today’s perspective, we can state that the moral dimension entirely disappeared from economic thought for a long time, especially due to the implementation of Mandeville’s concept of private vices that contrarily support the public welfare
  • Without being timid, we can say this is the first documented attempt to explain the economic cycle. The economic cycle, the explanation of which is to this day a mystery to economists, is explained morally in the Old Testament.
  • But how do we consolidate these two conflicting interpretations of the economic cycle: Can ethics be responsible for it or not? Can we influence reality around us through our acts?
  • it is not within the scope of this book to answer that question; justice has been done to the question if it manages to sketch out the main contours of possible searches for answers.
  • THE ECONOMICS OF GOOD AND EVIL: DOES GOOD PAY OFF? This is probably the most difficult moral problem we could ask.
  • Kant, the most important modern thinker in the area of ethics, answers on the contrary that if we carry out a “moral” act on the basis of economic calculus (therefore we carry out an hedonistic consideration; see below) in the expectation of later recompense, its morality is lost. Recompense, according to the strict Kant, annuls ethics.
  • Inquiring about the economics of good and evil, however, is not that easy. Where would Kant’s “moral dimension of ethics” go if ethics paid? If we do good for profit, the question of ethics becomes a mere question of rationality.
  • Job’s friends try to show that he must have sinned in some way and, in doing so, deserved God’s punishment. They are absolutely unable to imagine a situation in which Job, as a righteous man, would suffer without (moral) cause. Nevertheless, Job insists that he deserves no punishment because he has committed no offense: “God has wronged me and drawn his net around me.”94
  • But Job remains righteous, even though it does not pay to do so: Though he slay me, yet will I hope in him.95 And till I die, I will not deny my integrity I will maintain my righteousness and never let go of it; my conscience will not reproach me as long as I live.96
  • He remains righteous, even if his only reward is death. What economic advantage could he have from that?
  • morals cannot be considered in the economic dimension of productivity and calculus. The role of the Hebrews was to do good, whether it paid off or not. If good (outgoing) is rewarded by incoming goodness, it is a bonus,99 not a reason to do outgoing good. Good and reward do not correlate to each other.
  • This reasoning takes on a dimension of its own in the Old Testament. Good (incoming) has already happened to us. We must do good (outgoing) out of gratitude for the good (incoming) shown to us in the past.
  • So why do good? After all, suffering is the fate of many biblical figures. The answer can only be: For good itself. Good has the power to be its own reward. In this sense, goodness gets its reward, which may or may not take on a material dimension.
  • the Hebrews offered an interesting compromise between the teachings of the Stoics and Epicureans. We will go into it in detail later, so only briefly
  • constraint. It calls for bounded optimalization (with limits). A kind of symbiosis existed between the legitimate search for one’s own utility (or enjoyment of life) and maintaining rules, which are not negotiable and which are not subject to optimalization.
  • In other words, clear (exogenously given) rules exist that must be observed and cannot be contravened. But within these borders it is absolutely possible, and even recommended, to increase utility.
  • the mining of enjoyment must not come at the expense of exogenously given rules. “Judaism comes therefore to train or educate the unbounded desire … for wealth, so that market activities and patterns of consumption operate within a God-given morality.”102
  • The Epicureans acted with the goal of maximizing utility without regard for rules (rules developed endogenously, from within the system, computed from that which increased utility—this was one of the main trumps of the Epicurean school; they did not need exogenously given norms, and argued that they could “calculate” ethics (what to do) for every given situation from the situation itself).
  • The Stoics could not seek their enjoyment—or, by another name, utility. They could not in any way look back on it, and in no way could they count on it. They could only live according to rules (the greatest weakness of this school was to defend where exogenously the given rules came from and whether they are universal) and take a indifferent stand to the results of their actions.
  • To Love the Law The Jews not only had to observe the law (perhaps the word covenant would be more appropriate), but they were to love it because it was good.
  • Their relationship to the law was not supposed to be one of duty,105 but one of gratitude, love. Hebrews were to do good (outgoing), because goodness (incoming) has already been done to them.
  • This is in stark contrast with today’s legal system, where, naturally, no mention of love or gratefulness exists. But God expects a full internalization of the commandments and their fulfillment with love, not as much duty. By no means was this on the basis of the cost-benefit analyses so widespread in economics today, which determines when it pays to break the law and when not to (calculated on the basis of probability of being caught and the amount of punishment vis-à-vis the possible gain).
  • And now, O Israel, what does the Lord your God ask of you but to fear the Lord your God, to walk in all his ways, to love him, to serve the Lord your God with all your heart and with all your soul, and to observe the Lord’s commands and decrees that I am giving you today for your own good? To the Lord your God belong the heavens, even the highest heavens, the earth and everything in it. Yet the Lord set his affection on your forefathers and loved them….
  • the principle of doing good (outgoing) on the basis of a priori demonstrated good (incoming) was also taken over by the New Testament. Atonement itself is based on an a priori principle; all our acts are preceded by good.
  • The Hebrews, originally a nomadic tribe, preferred to be unrestrained and grew up in constant freedom of motion.
  • Human laws, if they are in conflict with the responsibilities given by God, are subordinate to personal responsibility, and a Jew cannot simply join the majority, even if it is legally allowed. Ethics, the concept of good, is therefore always superior to all local laws, rules, and customs:
  • THE SHACKLES OF THE CITY Owing to the Hebrew’s liberation from Egyptian slavery, freedom and responsibility become the key values of Jewish thought.
  • Laws given by God are binding for Jews, and God is the absolute source of all values,
  • The Hebrew ideal is represented by the paradise of the Garden of Eden, not a city.116 The despised city civilization or the tendency to see in it a sinful and shackling way of life appears in glimpses and allusions in many places in the Old Testament.
  • The nomadic Jewish ethos is frequently derived from Abraham, who left the Chaldean city of Ur on the basis of a command:
  • In addition, they were aware of a thin two-way line between owner and owned. We own material assets, but—to a certain extent—they own us and tie us down. Once we become used to a certain material
  • This way of life had understandably immense economic impacts. First, such a society lived in much more connected relationships, where there was no doubt that everyone mutually depended on each other. Second, their frequent wanderings meant the inability to own more than they could carry; the gathering up of material assets did not have great weight—precisely because the physical weight (mass) of things was tied to one place.
  • One of Moses’s greatest deeds was that he managed to explain to his nation once and for all that it is better to remain hungry and liberated than to be a slave with food “at no cost.”
  • SOCIAL WELFARE: NOT TO ACT IN THE MANNER OF SODOM
  • regulations is developed in the Old Testament, one we hardly find in any other nation of the time. In Hebrew teachings, aside from individual utility, indications of the concept of maximalizing utility societywide appear for the first time as embodied in the Talmudic principle of Kofin al midat S´dom, which can be translated as “one is compelled not to act in the manner of Sodom” and to take care of the weaker members of society.
  • In a jubilee year, debts were to be forgiven,125 and Israelites who fell into slavery due to their indebtedness were to be set free.126
  • Such provisions can be seen as the antimonopoly and social measures of the time. The economic system even then had a clear tendency to converge toward asset concentration, and therefore power as well. It would appear that these provisions were supposed to prevent this process
  • Land at the time could be “sold,” and it was not sale, but rent. The price (rent) of real estate depended on how long there was until a forgiveness year. It was about the awareness that we may work the land, but in the last instance we are merely “aliens and strangers,” who have the land only rented to us for a fixed time. All land and riches came from the Lord.
  • These provisions express a conviction that freedom and inheritance should not be permanently taken away from any Israelite. Last but not least, this system reminds us that no ownership lasts forever and that the fields we plow are not ours but the Lord’s.
  • Glean Another social provision was the right to glean, which in Old Testament times ensured at least basic sustenance for the poorest. Anyone who owned a field had the responsibility not to harvest it to the last grain but to leave the remains in the field for the poor.
  • Tithes and Early Social Net Every Israelite also had the responsibility of levying a tithe from their entire crop. They had to be aware from whom all ownership comes and, by doing so, express their thanks.
  • “Since the community has an obligation to provide food, shelter, and basic economic goods for the needy, it has a moral right and duty to tax its members for this purpose. In line with this duty, it may have to regulate markets, prices and competition, to protect the interests of its weakest members.”135
  • In Judaism, charity is not perceived as a sign of goodness; it is more of a responsibility. Such a society then has the right to regulate its economy in such a way that the responsibility of charity is carried out to its satisfaction.
  • With a number of responsibilities, however, comes the difficulty of getting them into practice. Their fulfillment, then, in cases when it can be done, takes place gradually “in layers.” Charitable activities are classified in the Talmud according to several target groups with various priorities, classified according to, it could be said, rules of subsidiarity.
  • Do not mistreat an alien or oppress him, for you were aliens in Egypt.140 As one can see, aside from widows and orphans, the Old Testament also includes immigrants in its area of social protection.141 The Israelites had to have the same rules apply for them as for themselves—they could not discriminate on the basis of their origin.
  • ABSTRACT MONEY, FORBIDDEN INTEREST, AND OUR DEBT AGE If it appears to us that today’s era is based on money and debt, and our time will be written into history as the “Debt age,” then it will certainly be interesting to follow how this development occurred.
  • Money is a social abstractum. It is a social agreement, an unwritten contract.
  • The first money came in the form of clay tablets from Mesopotamia, on which debts were written. These debts were transferable, so the debts became currency. In the end, “It is no coincidence that in English the root of ‘credit’ is ‘credo,’ the Latin for ‘I believe.’”
  • To a certain extent it could be said that credit, or trust, was the first currency. It can materialize, it can be embodied in coins, but what is certain is that “money is not metal,” even the rarest metal, “it is trust inscribed,”
  • Inseparably, with the original credit (money) goes interest. For the Hebrews, the problem of interest was a social issue: “If you lend money to one of my people among you who is needy, do not be like a moneylender; charge him no interest.”
  • there were also clearly set rules setting how far one could go in setting guarantees and the nonpayment of debts. No one should become indebted to the extent that they could lose the source of their livelihood:
  • In the end, the term “bank” comes from the Italian banci, or the benches that Jewish lenders sat on.157
  • Money is playing not only its classical roles (as a means of exchange, a holder of value, etc.) but also a much greater, stronger role: It can stimulate, drive (or slow down) the whole economy. Money plays a national economic role.
  • In the course of history, however, the role of loans changed, and the rich borrowed especially for investment purposes,
  • Today the position and significance of money and debt has gone so far and reached such a dominant position in society that operating with debts (fiscal policy) or interest or money supply (monetary policy) means that these can, to a certain extent, direct (or at least strongly influence) the whole economy and society.
  • In such a case a ban on interest did not have great ethical significance. Thomas Aquinas, a medieval scholar (1225-1274), also considers similarly; in his time, the strict ban on lending with usurious interest was loosened, possibly due to him.
  • As a form of energy, money can travel in three dimensions, vertically (those who have capital lend to those who do not) and horizontally (speed and freedom in horizontal or geographic motion has become the by-product—or driving force?—of globalization). But money (as opposed to people) can also travel through time.
  • money is something like energy that can travel through time. And it is a very useful energy, but at the same time very dangerous as well. Wherever
  • Aristotle condemned interest162 not only from a moral standpoint, but also for metaphysical reasons. Thomas Aquinas shared the same fear of interest and he too argued that time does not belong to us, and that is why we must not require interest.
  • MONEY AS ENERGY: TIME TRAVEL AND GROSS DEBT PRODUCT (GDP)
  • Due to this characteristic, we can energy-strip the future to the benefit of the present. Debt can transfer energy from the future to the present.163 On the other hand, saving can accumulate energy from the past and send it to the present.
  • labor was not considered degrading in the Old Testament. On the contrary, the subjugation of nature is even a mission from God that originally belonged to man’s very first blessings.
  • LABOR AND REST: THE SABBATH ECONOMY
  • The Jews as well as Aristotle behaved very guardedly toward loans. The issue of interest/usury became one of the first economic debates. Without having an inkling of the future role of economic policy (fiscal and monetary), the ancient Hebrews may have unwittingly felt that they were discovering in interest a very powerful weapon, one that can be a good servant, but (literally) an enslaving master as well.
  • It’s something like a dam. When we build one, we are preventing periods of drought and flooding in the valley; we are limiting nature’s whims and, to a large extent, avoiding its incalculable cycles. Using dams, we can regulate the flow of water to nearly a constant. With it we tame the river (and we can also gain
  • But if we do not regulate the water wisely, it may happen that we would overfill the dam and it would break. For the cities lying in the valley, their end would be worse than if a dam were never there.
  • If man lived in harmony with nature before, now, after the fall, he must fight; nature stands against him and he against it and the animals. From the Garden we have moved unto a (battle)field.
  • Only after man’s fall does labor turn into a curse.168 It could even be said that this is actually the only curse, the curse of the unpleasantness of labor, that the Lord places on Adam.
  • Both Plato and Aristotle consider labor to be necessary for survival, but that only the lower classes should devote themselves to it so that the elites would not have to be bothered with it and so that they could devote themselves to “purely spiritual matters—art, philosophy, and politics.”
  • Work is also not only a source of pleasure but a social standing; It is considered an honor. “Do you see a man skilled in his work? He will serve before kings.”170 None of the surrounding cultures appreciate work as much. The idea of the dignity of labor is unique in the Hebrew tradition.
  • Hebrew thinking is characterized by a strict separation of the sacred from the profane. In life, there are simply areas that are holy, and in which it is not allowed to economize, rationalize, or maximize efficiency.
  • good example is the commandment on the Sabbath. No one at all could work on this day, not even the ones who were subordinate to an observant Jew:
  • the message of the commandment on Saturday communicated that people were not primarily created for labor.
  • Paradoxically, it is precisely this commandment out of all ten that is probably the most violated today.
  • Aristotle even considers labor to be “a corrupted waste of time which only burdens people’s path to true honour.”
  • we have days when we must not toil connected (at least lexically) with the word meaning emptiness: the English term “vacation” (or emptying), as with the French term, les vacances, or German die Freizeit, meaning open time, free time, but also…
  • Translated into economic language: The meaning of utility is not to increase it permanently but to rest among existing gains. Why do we learn how to constantly increase gains but not how to…
  • This dimension has disappeared from today’s economics. Economic effort has no goal at which it would be possible to rest. Today we only know growth for growth’s sake, and if our company or country prospers, that does not…
  • Six-sevenths of time either be dissatisfied and reshape the world into your own image, man, but one-seventh you will rest and not change the creation. On the seventh day, enjoy creation and enjoy the work of your hands.
  • the purpose of creation was not just creating but that it had an end, a goal. The process was just a process, not a purpose. The whole of Being was created so…
  • Saturday was not established to increase efficiency. It was a real ontological break that followed the example of the Lord’s seventh day of creation. Just as the Lord did not rest due to tiredness or to regenerate strength; but because He was done. He was done with His work, so that He could enjoy it, to cherish in His creation.
  • If we believe in rest at all today, it is for different reasons. It is the rest of the exhausted machine, the rest of the weak, and the rest of those who can’t handle the tempo. It’s no wonder that the word “rest…
  • Related to this, we have studied the first mention of a business cycle with the pharaoh’s dream as well as seen a first attempt (that we may call…
  • We have tried to show that the quest for a heaven on Earth (similar to the Jewish one) has, in its desacralized form, actually also been the same quest for many of the…
  • We have also seen that the Hebrews tried to explain the business cycle with morality and ethics. For the Hebrews,…
  • ancient Greek economic ethos, we will examine two extreme approaches to laws and rules. While the Stoics considered laws to be absolutely valid, and utility had infinitesimal meaning in their philosophy, the Epicureans, at least in the usual historical explanation, placed utility and pleasure in first place—rules were to be made based on the principle of utility.
  • CONCLUSION: BETWEEN UTILITY AND PRINCIPLE The influence of Jewish thought on the development of market democracy cannot be overestimated. The key heritage for us was the lack of ascetic perception of the world, respect to law and private…
  • We have tried to show how the Torah desacralized three important areas in our lives: the earthly ruler, nature,…
  • What is the relationship between the good and evil that we do (outgoing) and the utility of disutility that we (expect to) get as a reward (incoming)? We have seen…
  • The Hebrews never despised material wealth; on contrary, the Jewish faith puts great responsibility on property management. Also the idea of progress and the linear perception of time gives our (economic)…
  • the Hebrews managed to find something of a happy compromise between both of these principles.
  • will not be able to completely understand the development of the modern notion of economics without understanding the disputes between the Epicureans and the Stoics;
  • poets actually went even further, and with their speech they shaped and established reality and truth. Honor, adventure, great deeds, and the acclaim connected with them played an important role in the establishment of the true, the real.
  • those who are famous will be remembered by people. They become more real, part of the story, and they start to be “realized,” “made real” in the lives of other people. That which is stored in memory is real; that which is forgotten is as if it never existed.
  • Today’s scientific truth is founded on the notion of exact and objective facts, but poetic truth stands on an interior (emotional) consonance with the story or poem. “It is not addressed first to the brain … [myth] talks directly to the feeling system.”
  • “epic and tragic poets were widely assumed to be the central ethical thinkers and teachers of Greece; nobody thought of their work as less serious, less aimed at truth, than the speculative prose treatises of historians and philosophers.”5 Truth and reality were hidden in speech, stories, and narration.
  • Ancient philosophy, just as science would later, tries to find constancy, constants, quantities, inalterabilities. Science seeks (creates?) order and neglects everything else as much as it can. In their own experiences, everyone knows that life is not like that,
  • Just as scientists do today, artists drew images of the world that were representative, and therefore symbolic, picturelike, and simplifying (but thus also misleading), just like scientific models, which often do not strive to be “realistic.”
  • general? In the end, poetry could be more sensitive to the truth than the philosophical method or, later, the scientific method. “Tragic poems, in virtue of their subject matter and their social function, are likely to confront and explore problems about human beings and luck that a philosophical text might be able to omit or avoid.”8
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