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Analyst Cho Han-bum, at the Seoul-based Korea Institute for National Unification, said North Korea might be trying to portray Kim as a young leader who is humble yet confident.

what Chinese schoolchildren are encouraged to think of as the longstanding natural speech of the common people is in fact an artificial hybrid, only a few decades old, although it shares a name—Mandarin—with the language of administration from imperial times. It’s a designed-by-committee camel of a language that has largely lost track of its past.

The idea of a national Chinese language began with the realization by the accidentally successful revolutionaries of 1911 that retaining control over a country speaking multiple languages and myriad dialects would necessitate reform. Long-term unification and the introduction of mass education would require a common language.

Whatever the province they originated from, the administrators of the now-toppled Great Qing Empire had all learned to communicate with one another in a second common language—Guanhua, China’s equivalent, in practical terms, of medieval Latin

To understand this highly compressed idiom required a considerable knowledge of the Chinese classics. Early Jesuit missionaries had labeled it Mandarin,

The committee decided that the four-tone dialect of the capital would be the base for a new national language but added a fifth tone whose use had lapsed in the north but not in southern dialects. The result was a language that no one actually spoke.

After the Communist victory of 1949, the process began all over again with fresh conferences, leading finally to the decision to use Beijing sounds, northern dialects and modern literature in the vernacular (of which there was very little) as a source of grammar.

This new spoken form is what is now loosely labeled Mandarin, still as alien to most Chinese as all the other Chinese languages.

A Latin alphabet system called Pinyin was introduced to help children learn to pronounce Chinese characters, but today it is usually abandoned after the first few years of elementary school.

The view that Mandarin is too difficult for mere foreigners to learn is essential to Chinese amour propre. But it is belied by the number of foreign high-school students who now learn the language by using Pinyin as a key to pronunciation —and who bask in the admiration they receive as a result.

Since 1949, the Chinese government, obsessed with promoting the image of a nation completely united in its love of the Communist Party, has decided that the Chinese people speak not several different languages but the same one in a variety of dialects. To say otherwise is to suggest, dangerously, that China is not one nation

Yet on Oct. 1, 1949, Mao Zedong announced the founding of the People’s Republic in a Hunan accent so thick that members of his audience subsequently differed about what he had said. He never mastered the Beijing sounds on which Putonghua is based, nor did Sichuanese-speaking Deng Xiaoping or most of his successors.

When Xi Jinping took power in 2012, many online commentators rejoiced. “At last! A Chinese leader who can speak Putonghua!” One leader down, only 400 million more common people to go.

Kohr’s guiding principle was anarchism, “the noblest of philosophies.” But its inherent nobility, he recognized, also made it utopian:

Kohr cleverly turned this utopianism upside down, from weakness to strength: any party, any leader, any ideology promising utopia is automatically wrong, or lying [7]. Acceptance of utopia’s unattainability, in other words, is the best insurance against totalitarianism.

The strength of the American federation, Kohr thought, rested in no small part on the genius of its division: into states of roughly equal size. How different American history could have coursed, if the Union had looked like this:

in Kohr’s vision, smaller government should mean, first and foremost, a smaller area to govern.

: “The absolute maximum to which a society can expand without having its basic functions degrade, is about 12 to 15 million people.”

One of his 10 basic laws is the so-called Beanstalk Principle: For every animal, object, institution or system, there is an optimal limit beyond which it ought not to grow. In other words: “too big to fail” is a contradiction in terms. The real solution is to make countries (and companies) too small to fai

Kohr supported the independence movements of Puerto Rico, Wales and Anguilla [8], and opposed grand unification projects like the European Union. He appealed for the breakup of Czechoslovakia and Yugoslavia, long before they happened

In 1992, Freddy Heineken — yes, he of beer-brewing fame — devised Eurotopia, a Europe divided into 75 regions, based on Kohr’s ideas. And much earlier, revolutionary France produced a proposal for geometrically identical départements [12] prefiguring Kohr’s Europe map.

Some other Kohr principles: the Law of Peripheral Neglect (governmental concern, like marital fidelity or gravitational pull, diminishes with the square of distance); the Population Principle (as the size of a population doubles, its complexity quadruples); and the Self-Reliance Principle (self-reliant communities are less likely to get involved in war than those who depend on global trade systems).

only 2 percent of Europeans live in a different European nation than their country of citizenship.

you see stark values differences across the Continent.

Less than 40 percent of Danes believe that work is a “very important” part of their lives, compared with roughly 65 percent of the French.

levels of social and political trust have been declining almost everywhere except the Nordic countries. If there’s convergence, in other words, it’s in our increasing agreement that we don’t trust each other.

How do you govern amid divergence? If multilateral organizations can’t bind nations, do we simply resort to an era of regional hegemons — or chaos?

That process is gaining speed. The railway company Deutsche Bahn promised earlier this year to change its signs after a former school principal complained to his local member of Parliament about the use of English-language terms like “hot line,” “service point” and “kiss and ride.” Between 2000 and 2009, the share of German-produced acts in the Top 100 album charts rose to 36.7 percent from 19.5 percent.

Mr. Just said that he was aware of at least 70 children who have been reunited with their families through the app so far.

In considering his own project, as well as those of his future students, Mr. Just said, “one of the things I kept telling myself, was: you don’t have to ‘change the world’ to change the world.” SaveE-mailSharePrint

Hyon was seen nodding off during a meeting organized by Kim Jong Un

A spokesman for South Korea's Unification Ministry said the government considered the execution to be another display of "fear politics" in North Korea.

Hyon was a longtime Kim family loyalist who spent years working under North Korea's former leader Kim Jong Il as a high-ranking military official.

During 2014, Hyon was promoted again to the National Defense Commission (NDC), described as a supreme organ of the state which has authority over the Ministry of People's Armed Forces and Ministry of People's Security.

North Korean leader Kim Jong Un has been accused of ordering the executions of as many as 15 top officials so far this year. However, during a rare trip by CNN to Pyongyang last week, a top official dismissed the allegation as "malicious slander."

North Korea is one of the most closed and repressive countries on Earth.

"Kim Jong Un has shown a ruthless side that we haven't seen since his grandfather consolidated power back in the 50s and 60s -- going after rivals and potential rivals and having them executed."

North Korea fired eight or nine projectiles that flew about 60 miles before landing in the sea. The Defense Ministry said it could not confirm the report.

North Korea routinely test-fires missiles and rockets, but it often conducts more weapons launches when angered at international condemnation.

Thursday's launch was seen a "low-level" response the U.N. sanctions, with Pyongyang unlikely to launch any major provocation until a landmark ruling Workers' Party convention in May, according to Yang Moo-jin, a professor at the University of North Korean Studies in Seoul.

The new U.N. sanctions include mandatory inspections of cargo leaving and entering North Korea by land, sea or air; a ban on all sales or transfers of small arms and light weapons to Pyongyang; and expulsion of diplomats from the North who engage in "illicit activities."

South Korea's National Assembly passed the human rights bill shortly before the U.N. sanctions were unanimously approved.

The Cabinet Council endorsed the bill on Thursday. It will become law after it is signed by President Park Geun-hye.

North Korea has warned that enactment of the law would result in "miserable ruin." It views any criticism of its rights situation as part of a U.S.-led plot to overthrow its government, a reason why it says it needs nuclear weapons.

The bill would establish a center in South Korea's Unification Ministry tasked with collecting, archiving and publishing information about human rights in North Korea.

It is required to transfer that information to the Justice Ministry, a step parliamentary officials say would provide legal grounds to punish rights violators in North Korea when the two Koreas eventually reunify.

In 2014, a U.N. commission of inquiry on North Korea published a report laying out abuses such as a harsh system of political prison camps holding up to 120,000 people. The commission urged the Security Council to refer North Korea to the International Criminal Court over its human rights record.

The land was inhospitable, and some archaeologists of the era subtly or explicitly dismissed the notion that black Africans were capable of creating art, technology, and metropolises like those from Egypt or Rome. Modern textbooks still treat ancient Nubia like a mere annex to Egypt: a few paragraphs on black pharaohs, at most. Articles republished from Undark MagazineRead more Today, archaeologists are realizing how wrong their predecessors were—and how little time they have left to uncover and fully understand Nubia’s historical significance.

A woman’s skull half coated with termite-riddled dirt rests on a wooden table. Smith beams and locates an amulet the size of his fist that he found beside this skeleton. The amulet is shaped like a scarab beetle, a common symbol of rebirth in Egypt, but the insect bears a man’s head. “This is very unusual,” Smith says. He laughs as he paraphrases hieroglyphics etched into the scarab’s underside: “On the day of judgment, let my heart not testify against me.”

“This period has been burdened by racist colonial interpretations assuming that Nubians were backwater and inferior and now we can tell the story of this remarkable civilization,” he adds

When ancient Egyptians conquered the region, they identified Jebel Barkal as the residence of the god Amun, who was believed to help renew life each year when the Nile flooded. They carved a temple into its base, and illustrated the walls with gods and goddesses. And when ancient Nubians regained control, they converted the holy mountain into a place for royal coronations, and constructed pyramids for royalty beside it.

The history of capitals, as well as countries, confirms the importance of courts. The rise of Berlin, Vienna, Madrid (often called Corte), St Petersburg and Istanbul cannot be understood except as court cities, apparent in the appearance of their streets and squares or, in Istanbul, mosques. A final, fatal expression of that role occurred in July 1914. Thousands, eager for war, gathered in front of palaces in London, Berlin, Munich (where, in a photograph, the young Hitler can be seen in the crowd) and St Petersburg, to wave hands, flags and hats, cheer and sing the national anthem as their monarch appeared on the palace balcony

The Louvre was a royal palace before it became an art gallery, founded by Francis I and principal residence of Louis XIV from 1652 to 1671. After the Revolution Paris again became a court city and remained one from 1804 to 1870.

The development of constitutions also owed much to courts. The rise of the House of Commons was helped by disputed royal successions – no monarchy had more of them than England – as well as the needs of royal finances. The founding document of constitutional monarchy in 19th-century Europe was the Charte constitutionelle des francais, promulgated by Louis XVIII (who was one of its authors) on June 4th, 1814. The Charte became the principal model for other constitutions in Europe, including those of Bavaria (1818), Belgium (1831), Spain (1834), Prussia (1850), Piedmont(1848) and the Ottoman Empire (1876). Britain could not have a comparable influence, since it did not have a written constitution to copy

A constitution was a royal life insurance policy: when Louis XVIII’s brother Charles X violated it in July 1830 the dynasty was deposed. Nevertheless France finally became a republic, after 1870, only after three dynasties – the Bourbons, Orléans and Bonapartes  – had been tried and found wanting

Having helped to finance the struggle against the French Empire, the Rothschilds became financiers to the Holy Alliance. They financed Louis XVIII’s return to France in 1814, Charles X’s departure in 1830, the Neapolitan Bourbons both before and after their exile in 1861 and the Austrian monarchy. As one Rothschild wrote to another, on February 8th, 1816: ‘A court is always a court and it always leads to something.

Under Edward VII public ceremonial increased in splendour, the court entertained more frequently than before and there were more royal warrant-holders

He wrote admiringly about monarchs, from Henri IV and Louis XIV to Charles XII. In the 19th century Walter Scott was an admirer of George IV, whose visit to Edinburgh he arranged; Chateaubriand was a brilliant royalist pamphleteer and memorialist; Stendhal and Mérimée were convinced Bonapartists

Court history also subverts national boundaries. The Tudors came to power with French help: Henry VII, after 14 years of exile in Brittany and France, had French as well as English troops in his victorious army at Bosworth. One aspect of Anne Boleyn’s appeal to Henry VIII was her French education and the skills she had acquired while serving at the French court. The House of Orange was both German and Dutch (and partly English), the Bourbons acquired Spanish, Neapolitan and Parmesan branches. The Habsburgs were  able to switch nationalities and capitals between Prague, Vienna, Budapest, Brussels, Barcelona, Madrid, Lisbon and, in the brief reign of Philip I, London

Through the prism of courts and monarchy, Cortes could communicate with Montezuma. The Sunni-Shi’a struggle now destroying Syria and Iraq is another war of succession. It began as a dynastic dispute, between the prophet Muhammad’s Umayyad cousins and his son-in-law Ali over succession to the caliphate: from the start Islam was a state as well as a religion. In 680 the struggle culminated in the murder of Ali’s son, the Imam Hussein, in Kerbela in Iraq. Every year, on the Day of Ashura, this murder is commemorated by Shi’a in mournful flagellatory processions

Above all, courts subvert boundaries between the sexes. Because of a European consort’s role in assuring the succession and enhancing dynastic prestige, her household and apartments could rival in size and splendour those of the monarch. Sometimes she controlled her own finances. The court of France was called ‘a paradise of women’. A court was therefore the only arena where women could compete with men, on near equal terms, for power and influence. Hence the decisive impact on national and international politics of, to name only a few consorts, Anne Boleyn, Catherine the Great and Marie Antoinette. Or, among rulers’ mothers: Catherine de’ Medici and Anne of Austria in France; 17th-century Valide Sultans in the Ottoman Empire; and the Empress Dowager in China

Five years later he had attempted to manipulate the outcome of the marriage of Isabella II of Spain against French interests in order to align Britain with a liberal Spain

In February 1848, a new revolution in Paris threatened to upset Anglo-French relations altogether

he Second Republic was therefore seen as unstable and potentially militaristic, and Palmerston’s reaction was to issue a confidential  paper outlining government preparations for an imminent invasion of Britain

There was considerable relief in London, then, when in October the political body in France agreed to usher in a republic under the authority of a president elected for four years by universal adult manhood suffrage. The future of Anglo-French relations would now hinge  on the identity of the new president

In December, Louis-Napoléon Bonaparte, nephew to the great defeated enemy of England, was elected first president of the Second Republic, gaining 74.3 per cent of the 7,449,471 votes cast in metropolitan France

In Britain, initial reaction to the news was mixed. Louis-Napoléon had spent three years in exile in England between 1831 and 1848, and over five separate visits had acquired a respect for, and knowledge of, the country unrivalled among European heads of state

The sepoy revolt in India in May 1857 could hardly be blamed on Napoleon III, but in some quarters the suggestion was made that he was secretly helping them. A short visit to Osborne in August to meet the Queen and Palmerston put the matter straight (though none there had believed it).

When the French navy was not seen to be steaming up the Thames the panic dissipated, but the fears were resurrected after Louis-Napoléon’s coup d’état of December 2nd, 1851, dissolving the National Assembly and declaring a new constitution. Opinion polarised both in France and Britain; on the one hand Louis-Napoléon was declared a ‘saviour of society’ and on the other the ‘Antichrist’

even the Queen hoped that Louis-Napoléon’s enemies abroad would remain ‘perfectly passive’. But the press and its public were united in bitter condemnation. By January 1852, the poet Coventry Patmore had persuaded nineteen friends to form the first Rifle Club as part of a nation-wide army of volunteers to repel, as he put it later, ‘the threats of the French colonels and by suspicions of the intentions of Louis-Napoléon

The second invasion panic did not subside until a formal alliance was established in March 1854, preceding the Crimean War. In April 1855 the Emperor Napoleon III (as Louis-Napoléon had declared himself in December 1852) enjoyed a successful state visit to Britain, reciprocated by an equally successful visit by Victoria to Paris in August. Throughout the Crimean War, Napoleon III allowed Britain to lead affairs

personal relations between Palmerston and Napoleon III continued to deteriorate throughout the early 1860s

The incident most dangerous to Franco-British relations occurred on January 14th, 1858, when an attempt was made to assassinate Napoleon III in the streets of Paris, the plot hatched in London by political refugees

But popular opinion in England remained suspicious of the Second Republic, and the economic upturn was accompanied by the first of three intense ‘invasion panics’, which recalled to mind those set in motion many years earlier by Napoleon I

Outright war between France and England might have resulted had two different players been involved: Napoleon III apologised to Lord Cowley, Britain’s ambassador in Paris, for having overlooked the jingoistic pronouncements in Le Moniteur universel, while Palmerston attempted to introduce a Conspiracy Bill, which would have elevated the crime of conspiring to murder persons abroad from a misdemeanour to a felony.

To Napoleon III from Queen Victoria’ promised to him in 1855 but somehow ‘forgotten’. The entente had been saved by an imperial whisker

In the wake of the assassination attempt Napoleon III was keen to demonstrate that his improvements to the naval base at Cherbourg were not a threat to Britain, and in August 1858 he invited Victoria and Albert, several politicians and naval men, to inspect them as a mark of trust.

The third invasion panic, the following year, originated in Napoleon III’s military attempt in May 1859 to oust Habsburg influence in Italy and prepare the peninsula for some form of unification and self-government

France’s annexation of Nice and Savoy in 1860 as a reward from Piedmont-Sardinia following the war in Italy was wholeheartedly approved by the local populace in a referendum

Napoleon III’s attempt to set up by direct intervention a European monarchy in Mexico from October 1861 (when a French, Spanish and British naval fleet worked in concert to extract the payment of debts from a corrupt Mexican administration) was approved by Palmerston but again vigorously opposed by Albert and all the royal family – and was unpopular in Britain, although offset by several other actions. Napoleon III’s vigorous support of free trade resulted in the pioneering Cobden-Chevalier Treaty of 1860 which, while it undoubtedly harmed a minority of trades, vastly improved the majority, increasing prosperity and mutual trust

Napoleon III was careful to appear subservient, enabling Palmerston to acknowledge that the British ‘throughout had their own way and ... led the way’

The Duruz were the aggressors in this instance, and thousands of Christians were killed during a period resolved only through French diplomacy, Turkish aid and Algerian sympathy

Napoleon III reacted by sighing that once he used to say ‘avec Lord Palmerston on peut faire les grandes choses’ but now he seemed determined to prevent him doing anything at all

The most bizarre was that Napoleon III was looking for the nephew of Marie Cantillon, a man who had attempted to assassinate the Duke of Wellington in Paris in 1818, to pay him money Napoléon I had bequeathed Cantillon in his recently published will

Napoleon III’s attempt to set up a European monarchy in Mexico was his only independent action undertaken in the 1860s to meet with Palmerston’s general approval, but only for what the scheme potentially meant for British trade

Following military defeat by Prussia and deposition by Parisian ideologues in 1870, Napoleon III died in England on January 9th, 1873.

Gladstone soon came to terms with the new Third French Republic, and the rest of Europe again took Britain’s lead in officially recognising the new French regime

The Napoleonic wars did not end at Waterloo, but in Paris in the hands of Napoleon III. Punch stated why on January 18th, 1873

His own other publications included a biography of Mussolini (1982), and further, separate studies of Garibaldi and Cavour were joined in 1994 by a biography of Giuseppe Mazzini, the other leading figure of the Risorgimento. Denis also edited The Making of Italy, 1796-1866 (1988), and co-authored A History of Sicily (1986) with Moses Finley and Christopher Duggan.

Denis’s success set in train a whole host of British scholars working on modern and contemporary Italy. The Association for the Study of Modern Italy, which organises an annual conference and publishes the journal Modern Italy, was set up in 1982, and Denis followed Christopher Seton-Watson as its chair. He was made a fellow of the British Academy (1976), a Grande Ufficiale dell’Ordine di Merito della Repubblica Italiana (1984) and a CBE (1990).

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

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

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

The study of the history of a certain field is not, as is commonly held, a useless display of its blind alleys or a collection of the field’s trials and errors (until we got it right), but history is the fullest possible scope of study of a menu that the given field can offer.

History of thought helps us to get rid of the intellectual brainwashing of the age, to see through the intellectual fashion of the day, and to take a couple of steps back.

That is the reason for this book: to look for economic thought in ancient myths and, vice versa, to look for myths in today’s economics.

stories; Adam Smith believed. As he puts it in The Theory of Moral Sentiments, “the desire of being believed, or the desire of persuading, of leading and directing other people, seems to be one of the strongest of all our natural desires.”

“The human mind is built to think in terms of narratives … in turn, much of human motivation comes from living through a story of our lives, a story that we tell to ourselves and that creates a framework of our motivation. Life could be just ‘one damn thing after another’ if it weren’t for such stories. The same is true for confidence in a nation, a company, or an institution. Great leaders are foremost creators of stories.”

contrary to what our textbooks say, economics is predominantly a normative field. Economics not only describes the world but is frequently about how the world should be (it should be effective, we have an ideal of perfect competition, an ideal of high-GDP growth in low inflation, the effort to achieve high competitiveness …). To this end, we create models, modern parables,

I will try to show that mathematics, models, equations, and statistics are just the tip of the iceberg of economics; that the biggest part of the iceberg of economic knowledge consists of everything else; and that disputes in economics are rather a battle of stories and various metanarratives than anything else.

Before it was emancipated as a field, economics lived happily within subsets of philosophy—ethics, for example—miles away from today’s concept of economics as a mathematical-allocative science that views “soft sciences” with a scorn born from positivistic arrogance. But our thousand-year “education” is built on a deeper, broader, and oftentimes more solid base. It is worth knowing about.

is a paradox that a field that primarily studies values wants to be value-free. One more paradox is this: A field that believes in the invisible hand of the market wants to be without mysteries.

mathematics at the core of economics, or is it just the icing of the cake, the tip of the iceberg of our field’s inquiry?

we seek to chart the development of the economic ethos. We ask questions that come before any economic thinking can begin—both philosophically and, to a degree, historically. The area here lies at the very borders of economics—and often beyond. We may refer to this as protoeconomics (to borrow a term from protosociology) or, perhaps more fittingly, metaeconomics (to borrow a term from metaphysics).

The more important elements of a culture or field of inquiry such as economics are found in fundamental assumptions that adherents of all the various systems within the epoch unconsciously presuppose. Such assumptions appear so obvious that people do not know what they are assuming, because no other way of putting things has ever occurred to them, as the philosopher Alfred Whitehead notes in Adventures of Ideas.

I argue that economic questions were with mankind long before Adam Smith. I argue that the search for values in economics did not start with Adam Smith but culminated with him.

We should go beyond economics and study what beliefs are “behind the scenes,” ideas that have often become the dominant yet unspoken assumptions in our theories. Economics is surprisingly full of tautologies that economists are predominantly unaware of. I

argue that economics should seek, discover, and talk about its own values, although we have been taught that economics is a value-free science. I argue that none of this is true and that there is more religion, myth, and archetype in economics than there is mathematics.

In a way, this is a study of the evolution of both homo economicus and, more importantly, the history of the animal spirits within him. This book tries to study the evolution of the rational as well as the emotional and irrational side of human beings.

I argue that his most influential contribution to economics was ethical. His other thoughts had been clearly expressed long before him, whether on specialization, or on the principle of the invisible hand of the market. I try to show that the principle of the invisible hand of the market is much more ancient and developed long before Adam Smith. Traces of it appear even in the Epic of Gilgamesh, Hebrew thought, and in Christianity, and it is expressly stated by Aristophanes and Thomas Aquinas.

This is not a book on the thorough history of economic thought. The author aims instead to supplement certain chapters on the history of economic thought with a broader perspective and analysis of the influences that often escape the notice of economists and the wider public.

Progress (Naturalness and Civilization)

The Economy of Good and Evil

from his beginnings, man has been marked as a naturally unnatural creature, who for unique reasons surrounds himself with external possessions. Insatiability, both material and spiritual, are basic human metacharacteristics, which appear as early as the oldest myths and stories.

the Hebrews, with linear time, and later the Christians gave us the ideal (or amplified the Hebrew ideal) we now embrace. Then the classical economists secularized progress. How did we come to today’s progression of progress, and growth for growth’s sake?

The Need for Greed: The History of Consumption and Labor

Metamathematics From where did economics get the concept of numbers as the very foundation of the world?

All of economics is, in the end, economics of good and evil. It is the telling of stories by people of people to people. Even the most sophisticated mathematical model is, de facto, a story, a parable, our effort to (rationally) grasp the world around us.

idea that we can manage to utilize our natural egoism, and that this evil is good for something, is an ancient philosophical and mythical concept. We will also look into the development of the ethos of homo economicus, the birth of “economic man.”

The History of Animal Spirits: Dreams Never Sleep

Masters of the Truth

Originally, truth was a domain of poems and stories, but today we perceive truth as something much more scientific, mathematical. Where does one go (to shop) for the truth? And who “has the truth” in our epoch?

Our animal spirits (something of a counterpart to rationality) are influenced by the archetype of the hero and our concept of what is good.

The entire history of ethics has been ruled by an effort to create a formula for the ethical rules of behavior. In the final chapter we will show the tautology of Max Utility, and we will discuss the concept of Max Good.

The History of the Invisible Hand of the Market and Homo Economicus

We understand “economics” to mean a broader field than just the production, distribution, and consumption of goods and services. We consider economics to be the study of human relations that are sometimes expressible in numbers, a study that deals with tradables, but one that also deals with nontradables (friendship, freedom, efficiency, growth).

When we mention economics in this book, we mean the mainstream perception of it, perhaps as best represented by Paul Samuelson.

By the term homo economicus, we mean the primary concept of economic anthropology. It comes from the concept of a rational individual, who, led by narrowly egotistical motives, sets out to maximize his benefit.

the Epic of Gilgamesh bears witness to the opposite—despite the fact that the first written clay fragments (such as notes and bookkeeping) of our ancestors may have been about business and war, the first written story is mainly about great friendship and adventure.

Even today we live in Gilgamesh’s vision that human relations—and therefore humanity itself—are a disturbance to work and efficiency; that people would perform better if they did not “waste” their time and energy on nonproductive things.

is a story of nature and civilization, of heroism, defiance, and the battle against the gods, and evil; an epic about wisdom, immortality, and also futility.

But it is in friendship where—often by-the-way, as a side product, an externality—ideas and deeds are frequently performed or created that together can altogether change the face of society.19 Friendship can go against an ingrained system in places where an individual does not have the courage to do so himself or herself.

started with Babylonians—rural nature becomes just a supplier of raw materials, resources (and humans the source of human resources). Nature is not the garden in which humans were created and placed, which they should care for and which they should reside in, but becomes a mere reservoir for natural (re)sources.

To be human seems to be somewhere in between, or both of these two. We

The entire history of culture is dominated by an effort to become as independent as possible from the whims of nature.39 The more developed a civilization is, the more an individual is protected from nature and natural influences and knows how to create around him a constant or controllable environment to his liking.

The epic captures one of the greatest leaps in the development of the division of labor. Uruk itself is one of the oldest cities of all, and in the epic it reflects a historic step forward in specialization—in the direction of a new social city arrangement. Because of the city wall, people in the city can devote themselves to things other than worrying about their own safety, and they can continue to specialize more deeply.

“The chief thing which the common-sense individual wants is not satisfactions for the wants he had, but more, and better wants.”47

If a consumer buys something, theoretically it should rid him of one of his needs—and the aggregate of things they need should be decreased by one item. In reality, though, the aggregate of “I want to have” expands together with the growing aggregate of “I have.”

the Old Testament, this relationship is perceived completely differently. Man (humanity) is created in nature, in a garden. Man was supposed to care for the Garden of Eden and live in harmony with nature and the animals. Soon after creation, man walks naked and is not ashamed, de facto the same as the animals. What is characteristic is that man dresses (the natural state of creation itself is not enough for him), and he (literally and figuratively) covers52 himself—in shame after the fall.53

Nature is where one goes to hunt, collect crops, or gather the harvest. It is perceived as the saturator of our needs and nothing more. One goes back to the city to sleep and be “human.” On the contrary, evil resides in nature. Humbaba lives in the cedar forest, which also happens to be the reason to completely eradicate it.

Symbolically, then, we can view the entire issue from the standpoint of the epic in the following way: Our nature is insufficient, bad, evil, and good (humane) occurs only after emancipation from nature (from naturalness), through culturing and education. Humanity is considered as being in civilization.

The city was frequently (at least in older Jewish writings) a symbol of sin, degeneration, and decadence—nonhumanity. The Hebrews were originally a nomadic nation, one that avoided cities. It is no accident that the first important city57 mentioned in the Bible is proud Babylon,58 which God later turns to dust.

is enough, for example, to read the Book of Revelation to see how the vision of paradise developed from the deep Old Testament period, when paradise was a garden. John describes his vision of heaven as a city—paradise is in New Jerusalem, a city where the dimensions of the walls(!) are described in detail, as are the golden streets and gates of pearl.

Hebrews later also chose a king (despite the unanimous opposition of God’s prophets) and settled in cities, where they eventually founded the Lord’s Tabernacle and built a temple for Him. The city of Jerusalem later gained an illustrious position in all of religion.

this time Christianity (as well as the influence of the Greeks) does not consider human naturalness to be an unambiguous good, and it does not have such an idyllic relationship to nature as the Old Testament prophets.

If a tendency toward good is not naturally endowed in people, it must be imputed from above through violence or at least the threat of violence.

If we were to look at human naturalness as a good, then collective social actions need a much weaker ruling hand. If people themselves have a natural tendency (propensity) toward good, this role does not have to be supplied by the state, ruler, or, if you wish, Leviathan.

How does this affect economics?

us return for the last time to the humanization of the wild Enkidu, which is a process we can perceive with a bit of imagination as the first seed of the principle of the market’s invisible hand, and therefore the parallels with one of the central schematics of economic thinking.

Sometimes it is better to “harness the devil to the plow” than to fight with him. Instead of summoning up enormous energy in the fight against evil, it is better to use its own energy to reach a goal we desire; setting up a mill on the turbulent river instead of futile efforts to remove the current. This is also how Saint Prokop approached it in one of the oldest Czech legends.

Enkidu caused damage and it was impossible to fight against him. But with the help of a trap, trick, this evil was transformed into something that greatly benefited civilization.

By culturing and “domesticating” Enkidu, humanity tamed the uncontrollable wild and chaotic evil

Enkidu devastated the doings (the external, outside-the-walls) of the city. But he was later harnessed and fights at the side of civilization against nature, naturalness, the natural state of things.

A similar story (reforming something animally wild and uncultivated in civilizational achievement) is used by Thomas Aquinas in his teachings. Several centuries later, this idea is fully emancipated in the hands of Bernard Mandeville and his Fable of the Bees: or, Private Vices, Publick Benefits. The economic and political aspects of this idea are—often incorrectly—ascribed to Adam Smith.

Here the individual does not try anymore to maximize his goods or profits, but what is important is writing his name in human memory in the form of heroic acts or deeds.

immortality, one connected with letters and the cult of the word: A name and especially a written name survives the body.”77

After this disappointment, he comes to the edge of the sea, where the innkeeper Siduri lives. As tonic for his sorrow, she offers him the garden of bliss, a sort of hedonistic fortress of carpe diem, where a person comes to terms with his mortality and at least in the course of the end of his life maximizes earthly pleasures, or earthly utility.

In the second stage, after finding his friend Enkidu, Gilgamesh abandons the wall and sets out beyond the city to maximalize heroism. “In his (…) search of immortal life, Gilgamesh

The hero refuses hedonism in the sense of maximizing terrestrial pleasure and throws himself into things that will exceed his life. In the blink of an eye, the epic turns on its head the entire utility maximization role that mainstream economics has tirelessly tried to sew on people as a part of their nature.81

today remember Gilgamesh for his story of heroic friendship with Enkidu, not for his wall, which no longer reaches monumental heights.

the eleventh and final tablet, Gilgamesh again loses what he sought. Like Sisyphus, he misses his goal just before the climax

The very existence of questions similar to today’s economic ones can be considered as the first observation. The first written considerations of the people of that time were not so different from those today. In other words: The epic is understandable for us, and we can identify with it.

We have also been witnesses to the very beginnings of man’s culturing—a great drama based on a liberation and then a distancing from the natural state.

Let us take this as a memento in the direction of our restlessness, our inherited dissatisfaction and the volatility connected to it. Considering that they have lasted five thousand years and to this day we find ourselves in harmony with a certain feeling of futility, perhaps these characteristics are inherent in man.

with the phenomenon of the creation of the city, we have seen how specialization and the accumulation of wealth was born, how holy nature was transformed into a secular supplier of resources, and also how humans’ individualistic ego was emancipated.

For small acts (hunting together, work in a factory), small love is enough: Camaraderie. For great acts, however, great love is necessary, real love: Friendship. Friendship that eludes the economic understanding of quid pro quo. Friendship gives. One friend gives (fully) for the other. That is friendship for life and death,

less a civilized, city person is dependent on nature, the more he or she is dependent on the rest of society. Like Enkidu, we have exchanged nature for society; harmony with (incalculable) nature for harmony with (incalculable) man.

human nature good or evil? To this day these questions are key for economic policy: If we believe that man is evil in his nature, therefore that a person himself is dog eat dog (animal), then the hard hand of a ruler is called for. If we believe that people in and of themselves, in their nature, gravitate toward good, then it is possible to loosen up the reins and live in a society that is more laissez-faire.

For a concept of historical progress, for the undeification of heroes, rulers, and nature, mankind had to wait for the Hebrews.

Because nature is not undeified, it is beyond consideration to explore it, let alone intervene in it (unless a person was a two-thirds god like Gilgamesh). It

As early as the “dark” ages, the Jews commonly used economic tools that were in many ways ahead of their time and that later became key elements of the modern economy:

Gilgamesh’s story ends where it began. There is a consistency in this with Greek myths and fables: At the end of the story, no progress occurs, no essential historic change; the story is set in indefinite time, something of a temporal limbo.

For a nation originally based on nomadism, where did this Jewish business ethos come from? And can the Hebrews truly be considered as the architects of the values that set the direction of our civilization’s economic thought?

PROGRESS: A SECULARIZED RELIGION One of the things the writers of the Old Testament gave to mankind is the idea and notion of progress. The Old Testament stories have their development; they change the history of the Jewish nation and tie in to each other. The Jewish understanding of time is linear—it has a beginning and an end.

The observance of God’s Commandments in Judaism leads not to some ethereal other world, but to an abundance of material goods (Genesis 49:25–26, Leviticus 26:3–13, Deuteronomy 28:1–13) (…) There are no accusing fingers pointed at

There are no echoes of asceticism nor for the cleansing and spiritual effect of poverty. It is fitting therefore, that the founders of Judaism, the Patriarchs Abraham, Isaac and Jacob, were all wealthy men.12

about due to a linear understanding of history. If history has a beginning as well as an end, and they are not the same point, then exploration suddenly makes sense in areas where the fruits are borne only in the next generation.

however, the idea of progress itself underwent major changes, and today we perceive it very differently. As opposed to the original spiritual conceptions, today we perceive progress almost exclusively in an economic or scientific-technological sense.

Because care for the soul has today been replaced by care for external things,

This is why we must constantly grow, because we (deep down and often implicitly) believe that we are headed toward an (economic) paradise on Earth.

Only since the period of scientific-technological revolution (and at a time when economics was born as an independent field) is material progress automatically assumed.

Jewish thought is the most grounded, most realistic school of thought of all those that have influenced our culture.17 An abstract world of ideas was unknown to the Jews. To this day it is still forbidden to even depict God, people, and animals in symbols, paintings, statues, and drawings.

economists have become key figures of great importance in our time (Kacířské eseje o filosofii dějin [Heretical Essays in the Philosophy of History]). They are expected to perform interpretations of reality, give prophetic services (macroeconomic forecasts), reshape reality (mitigate the impacts of the crisis, speed up growth), and, in the long run, provide leadership on the way to the Promised Land—paradise on Earth.

REALISM AND ANTIASCETICISM Aside from ideas of progress, the Hebrews brought another very fundamental contribution to our culture: The desacralization of heroes, nature, and rulers.

Voltaire writes: “It certain fact is, that in his public laws he [Moses] never so much as once made mention of a life to come, limiting all punishments and all rewards to the present life.”21

As opposed to Christianity, the concept of an extraterrestrial paradise or heaven was not developed much in Hebrew thought.19 The paradise of the Israelites—Eden—was originally placed on Earth at a given place in Mesopotamia20 and at a given time,

The Hebrews consider the world to be real—not just a shadow reflection of a better world somewhere in the cloud of ideas, something the usual interpretation of history ascribes to Plato. The soul does not struggle against the body and is not its prisoner, as Augustine would write later.

The land, the world, the body, and material reality are for Jews the paramount setting for divine history, the pinnacle of creation. This idea is the conditio sine qua non of the development of economics, something of an utterly earthly making,

The mythology of the hero-king was strongly developed in that period, which Claire Lalouette summarizes into these basic characteristics: Beauty (a perfect face, on which it is “pleasant to look upon,” but also “beauty,” expressed in the Egyptian word nefer, not only means aesthetics, but contains moral qualities as well),

THE HERO AND HIS UNDEIFICATION: THE DREAM NEVER SLEEPS The concept of the hero is more important than it might appear. It may be the remote origin of Keynes’s animal spirits, or the desire to follow a kind of internal archetype that a given individual accepts as his own and that society values.

This internal animator of ours, our internal mover, this dream, never sleeps and it influences our behavior—including economic behavior—more than we want to realize.

Anthropology knows several archetypes of heroes. The Polish-born American anthropologist Paul Radin examined the myths of North American Indians and, for example, in his most influential book, The Trickster, he describes their four basic archetypes of heroes.

The Torah’s heroes (if that term can be used at all) frequently make mistakes and their mistakes are carefully recorded in the Bible—maybe precisely so that none of them could be deified.32

the Hebrew heroes correspond most to the Tricksters, the Culture Bearers, and the Twins. The divine muscleman, that dominant symbol we think of when we say hero, is absent here.

Undeification, however, does not mean a call to pillage or desecration; man was put here to take care of nature (see the story of the Garden of Eden or the symbolism of the naming of the animals). This protection and care of nature is also related to the idea of progress

For the heroes who moved our civilization to where it is today, the heroic archetypes of the cunning trickster, culture bearer, and sufferer are rather more appropriate.

the Old Testament strongly emphasizes the undeification of nature.37 Nature is God’s creation, which speaks of divinity but is not the domain of moody gods

in an Old Testament context, the pharaoh was a mere man (whom one could disagree with, and who could be resisted!).

RULERS ARE MERE MEN In a similar historical context, the Old Testament teachings carried out a similar desacralization of rulers, the so-called bearers of economic policy.

Ultimately the entire idea of a political ruler stood against the Lord’s will, which is explicitly presented in the Torah. The Lord unequivocally preferred the judge as the highest form of rule—an

The needs of future generations will have to be considered; after all humankind are the guardians of God’s world. Waste of natural resources, whether privately owned or nationally owned is forbidden.”39

Politics lost its character of divine infallibility, and political issues were subject to questioning. Economic policy could become a subject of examination.

44 God first creates with the word and then on individual days He divides light from darkness, water from dry land, day from night, and so forth—and He gives order to things.45 The world is created orderly— it is wisely, reasonably put together. The way of the world is put together at least partially46 decipherably by any other wise and reasonable being who honors rational rules.

THE PRAISE OF ORDER AND WISDOM: MAN AS A PERFECTER OF CREATION The created world has an order of sorts, an order recognizable by us as people,

From the very beginning, when God distances Himself from the entire idea, there is an anticipation that there is nothing holy, let alone divine, in politics. Rulers make mistakes, and it is possible to subject them to tough criticism—which frequently occurs indiscriminately through the prophets in the Old Testament.

Hebrew culture laid the foundations for the scientific examination of the world.

Examining the world is therefore an absolutely legitimate activity, and one that is even requested by God—it is a kind of participation in the Creator’s work.51 Man is called on to understand himself and his surroundings and to use his knowledge for good.

The Book of Proverbs emphasizes specifically several times that it was wisdom that was present at the creation of the world. Wisdom personified calls out:

The last act, final stroke of the brush of creation, naming of the animals—this act is given to a human, it is not done by God, as one would expect. Man was given the task of completing the act of creation that the Lord began:

MAN AS A FINISHER OF CREATION The creation of the world, as it is explained in Jewish teachings, is described in the Book of Genesis. Here God (i) creates, (ii) separates, and (iii) names [my emphasis]:

Naming is a symbolic expression. In Jewish culture (and also in our culture to this day), the right to name meant sovereign rights and belonged, for example, to explorers (new places), inventors (new principles), or parents (children)—that is, to those who were there at the genesis, at the origin. This right was handed over by God to mankind.

The Naming itself (the capital N is appropriate) traditionally belongs to the crowning act of the Creator and represents a kind of grand finale of creation, the last move of the brush to complete the picture—a signature of the master.

Without naming, reality does not exist; it is created together with language. Wittgenstein tightly names this in his tractatus—the limits of our language are the limits of our world.53

Reality is not a given; it is not passive. Perceiving reality and “facts” requires man’s active participation. It is man who must take the last step, an act (and we

A real-ization act on our part represents the creation of a construct, the imputation of sense and order (which is beautifully expressed by the biblical act of naming, or categorization, sorting, ordering).

God connects man with the task of guarding and protecting the Garden of Eden, and thus man actually cocreates the cultural landscape. The Czech philosopher Zdeněk Neubauer also describes this: “Such is reality, and it is so deep that it willingly crystallizes into worlds. Therefore I profess that reality is a creation and not a place of occurrence for objectively given phenomena.”61

The Jews believed the exact opposite. The world is created by a good God, and evil appears in it as a result of immoral human acts. Evil, therefore, is induced by man.66 History unwinds according to the morality of human acts.

GOOD AND EVIL IN US: A MORAL EXPLANATION OF WELL-BEING We have seen that in the Epic of Gilgamesh, good and evil are not yet addressed systematically on a moral level.

the epic, good and evil are not envisaged morally—they are not the result of an (a)moral act. Evil was not associated with free moral action or individual will.

Hebrew thought, on the other hand, deals intensively with moral good and evil. A moral dimension touches the core of its stories.65

discrepancy between savings and investment, and others are convinced of the monetary essence

The entire history of the Jewish nation is interpreted and perceived in terms of morality. Morality has become, so to speak, a mover and shaker of Hebrew history.

sunspots. The Hebrews came up with the idea that morals were behind good and bad years, behind the economic cycle. But we would be getting ahead of ourselves. Pharaoh’s Dream: Joseph and the First Business Cycle To

It is the Pharaoh’s well-known dream of seven fat and seven lean cows, which he told to Joseph, the son of Jacob. Joseph interpreted the dream as a macroeconomic prediction of sorts: Seven years of abundance were to be followed by seven years of poverty, famine, and misery.

Self-Contradicting Prophecy Here, let’s make several observations on this: Through taxation74 on the level of one-fifth of a crop75 in good years to save the crop and then open granaries in bad years, the prophecy was de facto prevented (prosperous years were limited and hunger averted—through a predecessor of fiscal stabilization).

The Old Testament prophesies therefore were not any deterministic look into the future, but warnings and strategic variations of the possible, which demanded some kind of reaction. If the reaction was adequate, what was prophesied would frequently not occur at all.

If the threat is anticipated, it is possible to totally or at least partially avoid it. Neither Joseph nor the pharaoh had the power to avoid bounty or crop failure (in this the dream interpretation was true and the appearance of the future mystical), but they avoided the impacts and implications of the prophecy (in this the interpretation of the dream was “false”)—famine did not ultimately occur in Egypt, and this was due to the application of reasonable and very intuitive economic policy.

Let us further note that the first “macroeconomic forecast” appears in a dream.

back to Torah: Later in this story we will notice that there is no reason offered as to why the cycle occurs (that will come later). Fat years will simply come, and then lean years after them.

Moral Explanation of a Business Cycle That is fundamentally different from later Hebrew interpretations, when the Jewish nation tries to offer reasons why the nation fared well or poorly. And those reasons are moral.

Only in recent times have some currents of economics again become aware of the importance of morals and trust in the form of measuring the quality of institutions, the level of justice, business ethics, corruption, and so forth, and examining their influence on the economy,

it is not within the scope of this book to answer that question; justice has been done to the question if it manages to sketch out the main contours of possible searches for answers.

THE ECONOMICS OF GOOD AND EVIL: DOES GOOD PAY OFF? This is probably the most difficult moral problem we could ask.

Inquiring about the economics of good and evil, however, is not that easy. Where would Kant’s “moral dimension of ethics” go if ethics paid? If we do good for profit, the question of ethics becomes a mere question of rationality.

He remains righteous, even if his only reward is death. What economic advantage could he have from that?

morals cannot be considered in the economic dimension of productivity and calculus. The role of the Hebrews was to do good, whether it paid off or not. If good (outgoing) is rewarded by incoming goodness, it is a bonus,99 not a reason to do outgoing good. Good and reward do not correlate to each other.

This reasoning takes on a dimension of its own in the Old Testament. Good (incoming) has already happened to us. We must do good (outgoing) out of gratitude for the good (incoming) shown to us in the past.

So why do good? After all, suffering is the fate of many biblical figures. The answer can only be: For good itself. Good has the power to be its own reward. In this sense, goodness gets its reward, which may or may not take on a material dimension.

the Hebrews offered an interesting compromise between the teachings of the Stoics and Epicureans. We will go into it in detail later, so only briefly

constraint. It calls for bounded optimalization (with limits). A kind of symbiosis existed between the legitimate search for one’s own utility (or enjoyment of life) and maintaining rules, which are not negotiable and which are not subject to optimalization.

In other words, clear (exogenously given) rules exist that must be observed and cannot be contravened. But within these borders it is absolutely possible, and even recommended, to increase utility.

To Love the Law The Jews not only had to observe the law (perhaps the word covenant would be more appropriate), but they were to love it because it was good.

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

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

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

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

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