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Javier E

Opinion | The Millionaires Are Fleeing. Maybe You Should, Too. - The New York Times - 0 views

www.nytimes.com/...onaires-fleeing-migration.html

rich capital flight emigrants resident

shared by Javier E on 03 Jun 18 - No Cached
  • When a country begins to fall into economic and political difficulty, wealthy people are often the first to ship their money to safer havens abroad. The rich don’t always emigrate along with their money, but when they do, it is an even more telling sign of trouble.
  • Since 2013, New World Wealth, a research outfit based in South Africa, has been tracking millionaire migrations by culling property records, visa programs, news media reports and information from travel agents and others who cater to the wealthy.
  • In a global population of 15 million people each worth more than $1 million in net assets, nearly 100,000 changed their country of residence last year.
  • ...11 more annotations...
  • In most countries it is fair to assume that any millionaire exodus is composed mainly of locals, and not foreign investors, because the wealthy classes will be dominated by citizens or longtime residents.
  • In 2017, the largest exoduses came out of Turkey (where a stunning 12 percent of the millionaire population emigrated) and Venezuela. As if on cue, the Turkish lira is now in a free fall.
  • matched the flight from the stagnant and sanction-battered economy of Russia, which also lost 2 percent of its millionaire population.
  • Until 2016, Britain had a sizable influx of millionaires every year, but the flow suddenly reversed last year with a net exodus of 3,000, amid fears that as Britain exits the European Union, London will fade as a financial capital. It did not help that in 2017 the government raised taxes on foreigners who buy property.
  • On the flip side, slowing outflows can be a welcome sign, and in 2017 the biggest shift for the better came in that caldron of anti-rich hostility, France.
  • Stunningly, India in 2017 suffered a net loss of 7,000 members, or 2 percent, of its millionaire population. That exodus came despite global optimism about India’s growth prospects
  • France had long been seen as the anti-Britain, a left-leaning bastion of prying bureaucrats and high taxes that scared off the wealthy, despite the charms of Paris. But the growing exodus of millionaires peaked in 2016 with a net outflow of 12,000, then slowed sharply to just 4,000 last year.
  • n the worst cases, bouts of capital flight can gain momentum until the value of the currency collapses, plunging the nation into crisis. Balance of payments records show that 10 of the last 12 major currency crises, dating back to the Mexican peso meltdown of 1994, began when residents started sending money abroad, which was typically two years before the currency collapsed
  • Right now, this forensic accounting offers clear evidence of looming financial difficulty in only one major country: Turkey. Starting early last year, affluent Turks began effectively moving large sums of money out of the country
  • The losses for India, Russia and Turkey were gains for havens like Canada and Australia
  • joined lately by the United Arab Emirates. Owing largely to the stability and glitter of the most famous emirate, Dubai, the United Arab Emirates in 2017 had a net inflow of 5,000 millionaires, increasing the size of its affluent population by 6 percent, the largest gain in the world
Javier E

Growing List of Countries Agree on Net-Zero Emissions Goal | Time - 0 views

time.com/...ssions-new-york-european-union

climate change net-zero emissions goal 2050

shared by Javier E on 04 Jul 19 - No Cached
  • As lawmakers around the world debate how best to fight climate change, one goal is rapidly becoming standard: net-zero emissions by 2050.
  • That means that greenhouse gases would be dramatically reduced — most likely by using a combination of switching from coal and gas to wind and solar, becoming more energy-efficient and putting taxes or fees on carbon — and whatever remains would be offset by planting trees or using budding technology to pull carbon dioxide out of the air.
  • two key problems remain: the worst polluters, including the United States, haven’t yet signed on, and most places still need to figure out the details of how they will reach their goal.
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  • “We are in a very dangerous position now where action could go forward or backward,” Climate Analytics CEO Bill Hare told reporters Wednesday. “The next 12 months or so will really tell.”
  • Research from Climate Analytics released in early 2015, for example, suggested that global greenhouse emissions would need to hit zero by 2100 at the latest to have a good chance of keeping temperatures from rising more than 2°C by the end of the century
  • “Ambitious plans are very good but not enough,” says Niklas Höhne, a founding partner of NewClimate Institute. “They need to be cast in stone with laws and regulation.”
  • There’s an even bigger elephant in the room: such bold climate proposals are not on the table for the world’s three biggest emitters, the U.S., China and India
  • Global emissions rose last year at the fastest rate in years thanks in large part to a spike in those countries even as emissions fell in the European Union, Japan and elsewhere.
  • Prior to Donald Trump’s election, the U.S. federal government had suggested the country could implement policies to reduce emissions 80% by 2050, which would have been a significant move in direction of a net-zero target
  • Trump has not only done away with long-term thinking to reduce the country’s emissions but targeted a slew of environmental rules for rollback. Carbon emissions rose last year more than 3% even as cities and states continued their own pushes to reduce emissions.
  • China has reversed a ban on the construction of new coal-fired power plants while India is projected to continue to grow its use of that fossil fuel. Others including Brazil and Australia are also backtracking on their climate change commitments.
malonema1

Americans' Net Worth Hits All-Time High as Debt Rises | Economy | US News - 0 views

www.usnews.com/...ts-all-time-high-as-debt-rises

US economy

shared by malonema1 on 10 Jun 17 - No Cached
  • Americans' Net Worth Hits All-Time High as Debt Rises Household Net worth hit nearly $95 trillion in the first quarter, but debt levels are also on the rise.
  • The Federal Reserve on Thursday afternoon reported Americans' net worth climbed to $94.8 trillion in January, February and March – a 2.5 percent jump from the fourth quarter of 2016
sarahbalick

Turkish PM Davutoğlu resigns as President Erdoğan tightens grip | World news | The Guardian - 0 views

www.theguardian.com/...turkish-prime-minister-balance

turkish president

shared by sarahbalick on 05 May 16 - No Cached
  • Turkish PM Davutoğlu resigns as President Erdoğan tightens grip
  • The Turkish prime minister, Ahmet Davutoğlu, has announced his resignation after 20 months in office, consolidating Recep Tayyip Erdoğan’s position as Turkey’s unrivalled political leader and highlighting concerns about the country turning increasingly authoritarian.
  • “After consultations with the president I decided that it would be more appropriate for the unity of [the AKP] to change the chairman,”
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  • “I have no sense of failure or regret in taking that decision.”
  • The announcement came one day after intense talks between Erdoğan and Davutoğlu, during which they did not manage to smooth out their differences. Tension had been simmering since shortly after Davutoğlu replaced Erdoğan as prime minister in August 2014 but recently intensified. Analysis Turkey-EU refugees deal may be biggest casualty of Erdoğan supremacy Forced departure of pro-EU PM comes at particularly bad time for Syria and will add to EU unease with strongman president Read more
  • The author, thought to be a journalist with close ties to Erdoğan, accused Davutoğlu of conspiring with Turkey’s enemies and western powers to sideline the president.
  • Erdoğan’s honour is my honour,” he said. “I will not accept any speculation concerning my relationship with President Erdoğan. We have always stood shoulder to shoulder.”
  • “This is a catastrophic situation,” said Levent Gültekin, a writer and columnist. “This is a decisive step towards one-man rule in Turkey. From now on the only Turkey we will be able to see is the Turkey of Recep Tayyip Erdoğan.”
  • “Erdoğan does not want anyone in the party who does not fully agree with him, or anyone who would have their own opinion on any topic,” Gültekin explained. “Davutoğlu was one of the last AK party politicians who would make suggestions of change to Erdoğan’s policies.”
katyshannon

Europe-U.S. data transfer deal used by many firms ruled invalid | Reuters - 0 views

www.reuters.com/...-privacy-idUSKCN0S00NT20151007

data transfer deal firms u.s. europe

shared by katyshannon on 07 Oct 15 - No Cached
  • The EU's highest court struck down a deal that allows thousands of companies to easily transfer personal data from Europe to the United States, in a landmark ruling on Tuesday that follows revelations of mass U.S. government snooping.
  • Many companies, both U.S. and European, use the Safe Harbor system to help them get around cumbersome checks to transfer data between offices on both sides of the Atlantic. That includes payroll and human resources information as well as lucrative data used for online advertising, which is of particular importance to tech companies.
  • But the decision by the Court of Justice of the European Union (ECJ) sounds the death knell for the system, set up by the European Commission 15 years ago. It is used by over 4,000 firms including IBM (IBM.N), Google (GOOGL.O) and Ericsson (ERICb.ST).The court said Safe Harbor did not sufficiently protect EU citizens' personal data since the requirements of American national security, public interest and law enforcement trumped the privacy safeguards contained in the framework.
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  • EU citizens have no means of legal recourse against the misuse of their data in the United States, the court said. A bill is currently winding its way through the U.S. Congress to give Europeans the right to legal redress.
  • ECJ in its ruling referred to revelations from former National Security Agency contractor Edward Snowden, which included that the Prism program allowed U.S. authorities to harvest private information directly from big tech companies such as Apple (AAPL.O), Facebook (FB.O) and Google.
  • IBM (IBM.N) said it created commercial uncertainty and jeopardized the flow of data across borders.
  • katyshannon on 07 Oct 15
     
    Europe-U.S. data transfer deal ruled invalid by European courts, cited Edward Snowden in ruling
Javier E

Inequality And The Right - The Daily Dish | By Andrew Sullivan - 0 views

andrewsullivan.theatlantic.com/...inequality-and-the-right.html

income inequality social economic stability justice

shared by Javier E on 08 Mar 11 - No Cached
  • The Atlantic Home todaysDate();Monday, March 7, 2011Monday, March 7, 2011 Go Follow the Atlantic » Politics Presented by The Rise and Fall of John Ensign Chris Good Sarah Palin Feud Watch Tina Dupuy In Wisconsin, the Mood Turns Against Compromise Natasha Vargas-Cooper Business Presented by Credit Card Balances Resume Their Decline Daniel Indiviglio 5 Ways the Value of College Is Growing Derek Thompson America's 401(k)'s Are a Mess, Are Its Pensions? Megan McArdle Culture Presented By 'Spy' Magazine's Digital Afterlife Bill Wyman http://as
  • To many on the right, this inequality is a non-issue, and in an abstract sense, I agree. Penalizing people for their success does not help the less successful. But at a time of real sacrifice, it does seem to me important for conservatives not to ignore the dangers of growing and vast inequality - for political, not economic, reasons. And by political, I don't mean partisan. I mean a genuine concern for the effects of an increasingly unequal society.
  • it increasingly seems wrong to me to exempt the very wealthy from sacrifice, in the context of their gains in the last three decades, if we are to ask it of everyone else. It's not about fairness. It isn't even really about redistribution, as we once understood that from the hard left. It's about political stability and cohesion and coherence. Without a large and strong middle class, we can easily become more divided, more bitter and more unstable. Concern about that is a legitimate conservative issue. And if someone on the right does not find a way to address it, someone on the left may well be empowered to over-reach.
Javier E

A Big Safety Net and Strong Job Market Can Coexist. Just Ask Scandinavia. - NYTimes.com - 0 views

www.nytimes.com/...-leap-in-employment-rate-.html

safety net work subsidies transport children education scandinavia employment economics

shared by Javier E on 18 Dec 14 - No Cached
  • It is a simple idea supported by both economic theory and most people’s intuition: If welfare benefits are generous and taxes high, fewer people will work. Why bother being industrious, after all, if you can get a check from the government for sitting around
  • The idea may be backward.
  • The United States and many other nations with relatively low taxes and a smaller social safety net actually have substantially lower rates of employment.
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  • Some of the highest employment rates in the advanced world are in places with the highest taxes and most generous welfare systems, namely Scandinavian countries.
  • In Scandinavian countries, working parents have the option of heavily subsidized child care. Leave policies make it easy for parents to take off work to care for a sick child. Heavily subsidized public transportation may make it easier for a person in a low-wage job to get to and from work. And free or inexpensive education may make it easier to get the training to move from the unemployment rolls to a job.
  • In short, more people may work when countries offer public services that directly make working easier, such as subsidized care for children and the old; generous sick leave policies; and cheap and accessible transportation. If the goal is to get more people working, what’s important about a social welfare plan may be more about what the money is spent on than how much is spent.
  • , it could mean that more direct aid to the working poor could help coax Americans into the labor force more effectively than the tax credits that have been a mainstay for compromise between Republicans and Democrats for the last generation.
  • In Denmark, someone who enters the labor force at an average salary loses 86 percent of earnings to a combination of taxes and lost eligibility for welfare benefits; that number is only 37 percent in the United States. Yet the percentage of Danes between the ages of 20 and 59 with a job is 10 percentage points higher than in the United States.
  • In the United States, the major policies aimed at helping the working poor are devised around tax subsidies that put more cash in people’s pockets so long as they work, most notably through the Earned-income tax credit and Child Tax Credit.
  • There is a solid correlation, by Mr. Kleven’s calculations, between what countries spend on employment subsidies — like child care, preschool and care for older adults — and what percentage of their working-age population is in the labor force.
  • Collectively, these policies and subsidies create flexibility such that a person on the fence between taking a job versus staying at home to care for children or parents may be more likely to take a job.
  • The employment subsidies Mr. Kleven cites surely help coax more Scandinavians into the work force, Mr. Greenstein agrees, but shouldn’t be viewed in isolation.
  • wages for entry-level work are much higher in the Nordic countries than in the United States, reflecting a higher minimum wage, stronger labor unions and cultural norms that lead to higher pay
  • There are countless differences between Northern European countries and the rest of the world beyond child care policies and the like. The Scandinavian countries may have cultures that encourage more people to work, especially women.
  • Every country has a mix of taxes, welfare benefits and policies to promote work that reflects its politics and culture. In the large, diverse United States, there is deep skepticism of social welfare programs and direct government spending, along with a greater commitment to keeping taxes low.
Javier E

For Poorer and Richer - NYTimes.com - 0 views

www.nytimes.com/...hat-for-poorer-and-richer.html

inequality culture values permissiveness nurture

shared by Javier E on 15 Mar 15 - No Cached
  • lower-income Americans have more money, experience less poverty, and receive far more safety-net support than their grandparents ever did. Over all, material conditions have improved, not worsened, across the period when their communities have come apart.
  • Between 1979 and 2010, for instance, the average after-tax income for the poorest quintile of American households rose from $14,800 to $19,200; for the second-poorest quintile, it rose from $29,900 to $39,100.
  • Meanwhile, per-person antipoverty spending at the state and federal level increased sixfold between 1968 and 2008
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  • the basic point is this: In a substantially poorer American past with a much thinner safety net, lower-income Americans found a way to cultivate monogamy, fidelity, sobriety and thrift to an extent that they have not in our richer, higher-spending present.
  • So however much money matters, something else is clearly going on.
  • The post-1960s cultural revolution isn’t the only possible “something else.” But when you have a cultural earthquake that makes society dramatically more permissive and you subsequently get dramatic social fragmentation among vulnerable populations, denying that there is any connection looks a lot like denying the nose in front of your face.
  • recognizing that culture shapes behavior and that moral frameworks matter doesn’t require thundering denunciations of the moral choices of the poor.
  • our upper class should be judged first — for being too solipsistic to recognize that its present ideal of “safe” permissiveness works (sort of) only for the privileged, and for failing to take any moral responsibility (in the schools it runs, the mass entertainments it produces, the social agenda it favors) for the effects of permissiveness on the less-savvy, the less protected, the kids who don’t have helicopter parents turning off the television or firewalling the porn.
katyshannon

Lebanon arrests nine over deadly Beirut bombings - Al Jazeera English - 0 views

www.aljazeera.com/...-bombings-151115145052707.html

politics crisis lebanon bombing beirut syrians

shared by katyshannon on 16 Nov 15 - No Cached
  • Lebanese security forces have arrested nine people, most of them Syrian nationals, over their alleged involvement in last week's twin bombings in Beirut that killed at least 44 people, the interior minister said.
  • The Islamic State of Iraq and the Levant (ISIL) group claimed responsibility for the attacks last Thursday, which hit a busy shopping street in Burj al-Barajneh.
  • The initial plan was apparently to send five suicide bombers to a hospital in the neighbourhood, he said, but heavy security forced them to change the target to a densely populated area.
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  • "The whole suicide bombing network and its supporters were arrested in the 48 hours following the explosion," Mashnuq said.
  • Beirut-based political analyst Ali Rizk told Al Jazeera that the bombings signal a shift in ISIL's tactics.
  • "The Beirut bombing is also an indication that the idea of Islamic caliphate, as envisioned by ISIL, is facing major reality checks, and is failing apart," he added, explaining that the attacks on foreign lands are because the group is failing to maintain power in its previous strongholds in Syria and Iraq.
  • "Those killed in the Beirut bombing, many of whom were children and the elderly, have paid an unnecessary price," Meqdad said. "ISIL is engaged in terrorism only to defame the good name of Islam and it is serving only those who wish to keep Islam stigmatised by the terrorism label."
katyshannon

Paris Terror Attacks: Officials Searching for Man Involved in Deadly Massacre - NBC News - 0 views

www.nbcnews.com/...ogether-assailants-ids-n463716

paris terror attacks officials searching massacre nbc news crisis history isis suicide bombers france belgium

shared by katyshannon on 16 Nov 15 - No Cached
  • French authorities were racing Sunday to hunt down any potential accomplices to the wave of terror attacks unleashed in Paris as the investigation widened beyond this nation's borders.
  • A French man believed to be directly involved in Friday's massacre in Paris is on the run and the subject of an international manhunt, French security officials said Sunday evening.
  • Investigators said the man rented a Belgian-registered black Volkswagen Polo, which was allegedly used and abandoned by the hostage-takers who killed at least 89 people inside a Paris concert hall. advertisement He was identified by officials as Salah Abdeslam, 26, from Brussels.
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  • Abdeslam is allegedly the brother of another suspect currently in custody and being questioned — and of one of the deceased attackers, officials said.
  • French officials were working with authorities in Belgium, Spain and Serbia in an attempt to shed more light on the attack, which ISIS claimed responsibility for and which French President Francois Hollande described as an "act of war."
  • Less than two days after the attacks Sunday, French warplanes conducted raids in Syria, targeting ISIS' stronghold in Raqqa, the defense ministry said. Reuters reported that the operation was France's biggest strike against ISIS in Syria to date.
  • "The raid ... including 10 fighter jets, was launched simultaneously from the United Arab Emirates and Jordan. Twenty bombs were dropped," the ministry said in a statement.
  • The airstrikes, which were carried out in coordination with the U.S., hit a command post, a jihadist recruitment center, a munitions depot and a militant training camp, the statement said.
  • Paris Prosecutor Francois Molins said seven terrorists died in the attack on Friday. Officials initially said there were eight attackers — as did ISIS. It seems now Abdeslam is believed to be the eighth attacker.
  • A French prosecutor also said officials have identified two more assailants, whose names were not released to NBC News — a 20-year-old who was part of the attack on the Stade de France and a 31-year-old who was part of the attack on one of the restaurants in the 10th arrondissement. Both were French nationals living in Belgium.
  • "We consider this means they have a network," Francoise Shepmans, mayor of the town of Molenbeek where the individuals were detained, told Belgium's TV RTBF.
Javier E

High-Net-Worth Chinese Nervous About China's Economy - Barron's - 0 views

www.barrons.com/...out-chinas-economy-01547762984

china economy confidence rich migration

shared by Javier E on 21 Jan 19 - No Cached
  • Among the 465 respondents who have a net worth of at least 10 million RMB (about US$1.5 million), 14% said they “lack confidence” in China’s economy, rising from 8% in 2017. It also marks the highest level in 15 years since Hurun, known for its annual rankings of China’s rich, began the survey.Those who were “strongly confident” in the country’s economic prospects dropped 12 percentage points to 34%, the lowest on record. Nearly half of respondents said they were “somewhat confident,” according to the Hurun Chinese Luxury Consumer Survey 2019.
  • About 53% of high-net-worth individuals surveyed said they had no plans to emigrate to other countries, while 38% said they were considering a move abroad. Nearly 9% said they had non-Chinese citizenship or were in the process of application.The top destination for rich Chinese to emigrate was Europe, with 30% of respondents picking the region. Australia and the U.S. tied on the second spot (28%), followed by Canada (27%) and Singapore (11%).
oliviaodon

Why Trump's Attack on the Time Warner Merger Is Dangerous for the Press - The Atlantic - 0 views

www.theatlantic.com/...546623

russia press

shared by oliviaodon on 15 Jan 18 - No Cached
  • There are several reasons the Trump administration move to block a proposed merger between AT&T and Time Warner raised eyebrows. It was without recent precedent, and was contradicted, within just a day, by the cancellation of so-called net-neutrality regulations, undermining the administration’s argument about protecting the little guy.
  • The relatives merits of allowing the merger—and of blocking it—have been argued extensively by better-versed minds.
  • This has gotten some worried attention, but not nearly enough. This should be a wake-up call for American journalists.
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  • I have seen this play out so many times before—in Russia, that scary place portrayed as one with no press freedom and dead journalists stacked like cords of wood. I have spent most of my professional life writing about Russia, and whenever I have lived there or travel there, Americans ask me, “Aren’t you afraid to report there?” Whenever my Russian journalist friends meet Americans, they get asked the same thing, “Aren’t you afraid for your life?”
  • No one died, no one was arrested, but the channel, suddenly strapped for cash, had to fire half its staff.
  • Or take the example of RBC, Russia’s rough equivalent of Bloomberg. It is owned by Russian billionaire Mikhail Prokhorov, who also owns part of the Brooklyn Nets.
  • There are too many other examples to enumerate, but the death of independent Russian media—and it is in its death throes—did not come about through mass murder.
  • Russian journalists are watching us right now, and they’re mystified. After Trump shut down CNN’s Jim Acosta at his first press conference as president, the Russian journalist Alexey Kovalev offered Putin’s press conferences as a warning.
runlai_jiang

Trump Bucks Republican Orthodoxy on Guns - Washington Wire - WSJ - 0 views

blogs.wsj.com/...capital-journal-guns-thursd

gun control

shared by runlai_jiang on 04 Mar 18 - No Cached
  • Photo: iStock/Getty Images By Joshua Jamerson Mar 1, 2018 7:18 am ET 0 COMMENTS Save Article Save Remove View Saved Articles <circ
  • He also dashed conservative hopes that he would support a move now for gun owners who legally carry concealed firearms in one state to carry them in the other 49 states, a long-sought goal of the National Rifle Association.
  • he bucked Republican orthodoxy by suggesting the swift removal of guns from people who are potentially mentally ill,
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  • he continued to seek a legislative response to the deaths of 17 people at a Parkland, Fla., high school two weeks ago
  • His comments came the same day&nbsp;Walmart and Dick’s Sporting Goods–two of the country’s biggest gun sellers–said they both would no longer sell guns to anyone under 21 years old.
  • with Democrats saying they doubted the president’s words would yield immediate results, and several key Republicans saying they remained opposed to the Manchin-Toomey legislation that the president said he favored.&nbsp;
  • Mr. Trump has staked out positions on controversial issues in the past, only to surprise some lawmakers with an apparent change of heart later.
  • &nbsp;For more than 20 years, federal law has effectively halted the government’s ability to research gun violence. Now,&nbsp; a bipartisan group of lawmakers&nbsp;is taking another look at the restrictions…C
  • Hope Hicks, the longtime Trump confidant and White House communications director, is resigning. Ms. Hicks, 29 years old, told the president in recent weeks that she wanted to leave the White House to explore outside opportunities, Rebecca Ballhaus and Peter Nicholas report.
  • The bipartisan legislation would relax dozens of rules for small to medium-size banks, shaking up the banking sector with policy changes that could encourage deal-making and make it easier for banks to exp
  • several banks for information about their relationships with Jared Kushner and his finances, Emily Glazer, Erica Orden a
  • News of federal inquiries concerning Kushner Cos. has emerged in recent months, including by prosecutors at the U.S. attorney’s office in Brooklyn and by the Securities and Exchange Commission report
  • The Pentagon is pushing to make the F-35 combat jet cheaper and will take over some repair work to prevent the world’s most expensive military program from becoming unaffordable.
  • runlai_jiang on 04 Mar 18
     
    Trump promised to restrict gun purchase but the reliability is still a question mark
Javier E

Economics of Good and Evil: The Quest for Economic Meaning from Gilgamesh to Wall Street (Tomas Sedlacek and Vaclav Havel) - 2 views

DIIGO_FILE_HOME/7ui9/74ec4c99e72deda4a64da10692a15bf6

economics history literature good evil theory philosophy philosophers Bible Gilgamesh Adam Smith

shared by Javier E on 15 Aug 19 - No Cached
  • 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
Javier E

The Internet Is Dying. Repealing net Neutrality Hastens That Death. - The New York Times - 0 views

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  • Because net neutrality shelters start-ups — which can’t easily pay for fast-line access — from internet giants that can pay, the rules are just about the last bulwark against the complete corporate takeover of much of online life.
  • When the rules go, the internet will still work, but it will look like and feel like something else altogether — a network in which business development deals, rather than innovation, determine what you experience, a network that feels much more like cable TV than the technological Wild West that gave you Napster and netflix.
  • The five most valuable American companies — Amazon, Apple, Facebook, Google and Microsoft — control much of the online infrastructure, from app stores to operating systems to cloud storage to nearly all of the online ad business. A handful of broadband companies — AT&amp;T, Charter, Comcast and Verizon, many of which are also aiming to become content companies, because why not — provide virtually all the internet connections to American homes and smartphones.
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  • the state of digital competition is already pretty sorry. As I’ve argued regularly, much of the tech industry is at risk of getting swallowed by giants. Today’s internet is lousy with gatekeepers, tollbooths and monopolists.
  • They have turned a network whose very promise was endless innovation into one stuck in mud, where every start-up is at the tender mercy of some of the largest corporations on the planet.
  • the order “would put small and medium-sized businesses at a disadvantage and prevent innovative new ones from even getting off the ground.” This, they said, was “the opposite of the open market, with a few powerful cable and phone companies picking winners and losers instead of consumers.”
  • The internet’s singular power, in its early gold-rush days, was its flexibility. People could imagine a dazzling array of new uses for the network, and as quick as that, they could build and deploy them
  • You didn’t need permission for any of this stuff; some of these innovations ruined traditional industries, some fundamentally altered society, and many were legally dubious. But the internet meant you could just put it up, and if it worked, the rest of the world would quickly adopt it.
  • The new F.C.C. order would undo the idea completely; companies would be allowed to block or demand payment for certain traffic as they liked, as long as they disclosed the arrangements.
  • a vibrant network doesn’t die all at once. It takes time and neglect; it grows weaker by the day, but imperceptibly, so that one day we are living in a digital world controlled by giants and we come to regard the whole thing as normal.It’s not normal. It wasn’t always this way. The internet doesn’t have to be a corporate playground. That’s just the path we’ve chosen.
Conner Armstrong

Russia's Capital Outflows at Whopping $63 Billion in 2013 - Emerging Europe Real Time - WSJ - 0 views

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  • Russia’s central bank forecast that net capital outflows would shrink in line with the country’s current account surplus. But the bank now says a net sum of $63 billion flowed out of the country last year, even as the surplus—money from trade, money transactions and investment revenues—more than halved.
  • Analysts say it was because state oil firm OAO Rosneft’s acquisition of TNK-BP for some $60 billion boosted the number, although it’s not clear what part of the complex deal was counted as outflows.
  • The Economy Ministry has forecast that net capital outflows will fall this year to $30 billion.
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  • Meanwhile, the current account surplus fell to $33 billion in 2013 from $72 billion.
  • Demand for foreign currencies plays a role as Russians travel abroad more and more each year, said Mr. Pantyushin. Higher payments for corporate loans obtained abroad also contributed to the capital flight.
Javier E

F.C.C., in a Shift, Backs Fast Lanes for Web Traffic - NYTimes.com - 0 views

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net-neutrality

shared by Javier E on 24 Apr 14 - No Cached
  • the regulations could radically reshape how Internet content is delivered to consumers. For example, if a gaming company cannot afford the fast track to players, customers could lose interest and its product could fail.
  • The rules are also likely to eventually raise prices as the likes of Disney and Netflix pass on to customers whatever they pay for the speedier lanes,
  • “Americans were promised, and deserve, an Internet that is free of toll roads, fast lanes and censorship — corporate or governmental.”
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  • big, rich companies with the money to pay large fees to Internet service providers would be favored over small start-ups with innovative business models — stifling the birth of the next Facebook or Twitter.
  • Under the proposal, broadband providers would have to disclose how they treat all Internet traffic and on what terms they offer more rapid lanes, and would be required to act “in a commercially reasonable manner,” agency officials said. That standard would be fleshed out as the agency seeks public comment.
  • The proposed rules would also require Internet service providers to disclose whether in assigning faster lanes, they have favored their affiliated companies that provide content.
  • Opponents of the new proposed rules said they appeared to be full of holes, particularly in seeking to impose the “commercially reasonable” standard.
  • “The very essence of a ‘commercial reasonableness’ standard is discrimination,” Michael Weinberg, a vice president at Public Knowledge, a consumer advocacy group, said in a statement. “And the core of net neutrality is nondiscrimination.”
  • it could be commercially reasonable for a broadband provider to charge a content company higher rates for access to consumers because that company’s service was competitively threatening.
katyshannon

Catalan elections: secessionists claim victory - as it happened | World news | The Guardian - 0 views

www.theguardian.com/...talonia-goes-to-the-polls-live

elections world news the guardian spain vs. catalonia

shared by katyshannon on 28 Sep 15 - No Cached
  • Catalonia has handed a clear majority to parties actively seeking the region’s secession from Spain.
  • An agreement will have to be reached between the two main pro-independence parties in order to secure that absolute majority and the central government in Madrid has promised to fight tooth and nail to prevent secession.
  • A: Catalonia has, for centuries, treasured its own language and culture. But, during Franco’s dictatorship, its language was banned. The recent surge in independence sentiment stems from June 2010, when Spain’s highest court struck down key parts of a charter that would have granted Catalonia more autonomy and recognised it as a nation within Spain.
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  • Prime minister Mariano Rajoy’s government has made it clear it will use all legal methods to prevent the independence of Catalonia, which accounts for nearly a fifth of Spain’s economic output.
  • katyshannon on 28 Sep 15
     
    Catalonia considering secession from spain
Javier E

Book Review: The End of Byzantium - WSJ.com - 0 views

online.wsj.com/...4615504576172512424600444.html

Byzantine history historiography

shared by Javier E on 01 Apr 11 - No Cached
  • Byzantium used to call to mind a sterile, bureaucratic and yet violent society, corrupted by fatuous complexities. The worst failings in our own societies would be described as "Byzantine."
  • a new generation of scholars has emerged, re-evaluating the very idea of Roman decline or Dark Ages and arguing that the barbarian forces that occupied the empire's western provinces adopted, adapted and thus perpetuated many of the Roman methods of administration. The term "Late Antiquity" embodies this long period of transition, which transformed the Roman world while integrating aspects of Latin culture with the Christian hierarchy of bishops and monks, who were themselves often recruited from the senatorial classes. At the same time, the recent emergence of an Islamic challenge to the West has urged our engagement with the Christian power that first withstood Muslim attacks and defended Europe's eastern frontier for centuries.
  • The excellence of Byzantine administration—hardly Byzantine at all by our usage—is nowhere clearer than in the power of the Byzantine standard gold coin, the solidus (known as the bezant in medieval Europe). First issued by Constantine I in the early fourth century, it retained its 24-carat value and was the coin of choice in international trade for more than 700 years. It took a self-conscious and creative government to manage this extraordinary achievement: one that puts to shame our present devalued currencies and monetary instability.
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  • From the beginning, Byzantium manifested highly creative and original impulses to re-fashion rich, pre-existing traditions. Its inner Greek fire came from a unique combination of traits. When Constantine created his new capital, he brought together Roman administrative skills, law and military traditions; the Hellenic wisdom long sustained by ancient Greek education; and the dynamic new Christian belief (which later became the state's driving force).
  • The city quickly generated a highly sophisticated work force. Its artisans produced the Mediterranean world's most elegant silks, carved ivories and gold enamels. Its engineers constructed the immense walls that kept all enemies out of Constantinople until 1204. The recent excavations of the harbor of Theodosius (today Yenikapi) have yielded more than 30 boats and their cargoes and shown how the capital attracted traders and craftsmen from across the Mediterranean. Venice, Genoa and Pisa established quarters within the city, while Syrian and Russian merchants stayed in particular residences when they came to trade. In the 1090s, as the western forces of the First Crusade arrived at Constantinople, they were overcome with awe at the wealth and sophistication of the eastern capital, the like of which they had not even imagined. The city was larger than any in Western Europe, with a population of about 500,000— a level not attained by Paris until the 17th century.
  • The Byzantines knew that negotiating peace terms was infinitely preferable to risking the loss of highly trained and hard-to-replace fighting forces. By developing a trained service of diplomats—a typical embassy would comprise a general, a bishop and a high-ranking eunuch, accompanied by secretaries with records of past negotiations—the empire nurtured the skills we associate with a modern state.
  • historians established, half a century ago, how difficult Byzantium's position was between aggressive states east and west.
  • Both Peter Heather's "Empires and Barbarians " (2009), although it only treats the first millennium A.D., and John Darwin's "After Tamerlane: The Rise and Fall of Global Empires, 1400-2000 " (2007) consider Byzantium in such a comparative perspective.
  • it always had to balance the two very distant fronts with the immense lines of communication and logistical support extending from the Caucasus to the Adriatic.
  • The last phase of Byzantine power, from 1261 to 1453, was marked by military failure and shrinking control but also by a great cultural explosion.
  • Mr. Harris provides a sympathetic reading of the civil wars and conflicts engendered by the empire's fundamental problem in this era: how to balance Byzantine traditions with the need for military aid from the West in order to confront the Ottoman Turks.
  • Copyright 2011 Dow Jones &amp; Company, Inc. All Rights Reserved This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com More In Books Email Printer Friendly Order Reprints
  • The empire checked the first great wave of Muslim expansion in the 630s, and by 740 a more secure border with the caliphate in Damascus was established at the Taurus mountains in southeastern Turkey.
Javier E

Generation Later, Poor Are Still Rare at Elite Colleges - NYTimes.com - 0 views

www.nytimes.com/...ng-poor-to-elite-colleges.html

university admission aid costs

shared by Javier E on 26 Aug 14 - No Cached
  • critics contend that on the whole, elite colleges are too worried about harming their finances and rankings to match their rhetoric about wanting economic diversity with action.
  • “A lot of it is just about money, because each additional low-income student you enroll costs you a lot in financial aid,” said Michael N. Bastedo, director of the Center for the Study of Higher and Postsecondary Education at the University of Michigan. “No one is going to talk openly and say, ‘Oh, we’re not making low-income students a priority.’ But enrollment management is so sophisticated that they know pretty clearly how much each student would cost.”
  • The rankings published by U.S. News and World Report, and others, also play a major role. The rankings reward spending on facilities and faculty, but most pay little or no attention to financial aid and diversity.
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  • Sustaining one poor student who needs $45,000 a year in aid requires $1 million in endowment devoted to that purpose; 100 of them require $100 million. Only the wealthiest schools can do that, and build new laboratories, renovate dining halls, provide small classes and bid for top professors.
  • College presidents are under constant pressure to meet budgets, improve graduation rates and move up in the rankings,” Dr. Carnevale said. “The easiest way to do it is to climb upstream economically — get students whose parents can pay more.”
  • A big part of that climb has been the rise of “merit aid,” price breaks offered to desirable students regardless of their parents’ wealth. A few dozen top schools give no merit aid, but they are the exception. Historically, American colleges gave far more need-based aid, but it is outweighed today by merit aid.
  • In 2006, at the 82 schools rated “most competitive” by Barron’s Profiles of American Colleges, 14 percent of American undergraduates came from the poorer half of the nation’s families, according to researchers at the University of Michigan and Georgetown University who analyzed data from federal surveys. That was unchanged from 1982.
  • What distinguishes those who apply to elite schools is not family income or their parents’ level of education, according to a groundbreaking study published last year, but location. Exposure to just a few high-achieving peers or attending a high school with just a few teachers or recent alumni who went to highly selective colleges makes a huge difference in where low-income students apply.
  • Cost remains a barrier, but so does perception, he said, adding, “It’s a psychology and sociology thing, as well as a pricing thing.”
  • Public colleges remain less expensive, but in an era of declining state support, their prices have risen faster than those of private colleges, and they vary widely from state to state. Private colleges have sharply increased financial aid since the turn of the century, so that the average net price that families really pay has barely changed over the last decade, adjusted for inflation — and for low-income students, it has actually dropped.
  • even top private colleges with similar sticker prices differ enormously in net prices, related to how wealthy they are, so a family can find that an elite education is either dauntingly expensive or surprisingly affordable. In 2011-12, net prices paid by families with incomes under $48,000 averaged less than $4,000 at Harvard, which has the nation’s largest endowment, for example, and more than $27,000 at New York University, according to data compiled by the Department of Education.
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