Applied Economics Quotes

Experience demands that man is the only animal which devours his own kind, for I can apply no milder term to the general prey of the rich on the poor.

The rich run a global system that allows them to accumulate capital and pay the lowest possible price for labour. The freedom that results applies only to them. The many simply have to work harder, in conditions that grow ever more insecure, to enrich the few. Democratic politics, which purports to enrich the many, is actually in the pocket of those bankers, media barons and other moguls who run and own everything.

Seldom do people think things through foolishly. More often, they do not bother to think things through at all, so that even brainy individuals can reach untenable conclusions because their brainpower means little if it is not deployed and applied.

Brilliant Muslim scholars applied Qur’anic insights to spark the medieval Islamic Golden Age filled with a mind-boggling outpouring of creativity in science, math, medicine, fashion, philosophy, economics, mental health therapy, architecture, art, and beyond.

Where recyling takes place only in response to political pressures and exhortations, it need not meet the test of being incrementally worth its incremental costs. Accordingly, studies of government-imposed recycling programs in the United States have shown that what they salvage is usually worth less than the cost of salvaging it.

When I applied to graduate school many years ago, I wrote an essay expressing my puzzlement at how a country that could put a man on the moon could still have people sleeping on the streets. Part of that problem is political will; we could take a lot of people off the streets tomorrow if we made it a national priority. But I have also come to realize that NASA had it easy. Rockets conform to the unchanging laws of physics. We know where the moon will be at a given time; we know precisely how fast a spacecraft will enter or exist the earth's orbit. If we get the equations right, the rocket will land where it is supposed to--always. Human beings are more complex than that. A recovering drug addict does not behave as predictably as a rocket in orbit. We don't have a formula for persuading a sixteen-year-old not to drop out of school. But we do have a powerful tool: We know that people seek to make themselves better off, however they may define that. Our best hope for improving the human condition is to understand why we act the way we do and then plan accordingly. Programs, organizations, and systems work better when they get the incentives right. It is like rowing downstream.

Is science the disinterested pursuit of knowledge which the world may apply if it will? Or is it an activity always dependent upon economic and political demands?

People sometimes say that we will know feminism has done its job when half the CEOs are women. That’s not feminism; to quote Catharine MacKinnon, it’s liberalism applied to women. Feminism will have won not when a few women get an equal piece of the oppression pie, served up in our sisters’ sweat, but when all dominating hierarchies - including economic ones - are dismantled.

When we apply the design principles of permaculture to economics, we end up with an economic ecosystem where every participant adds to and benefits from maximized productivity.

Part of being a good steward of capital is paying to others what is due to them for services we received which added value to our lives.

The job of economic theorists is to prove theorems. The job of policy economists is to figure out which theorems to apply.

Go into the London Stock Exchange – a more respectable place than many a court – and you will see representatives from all nations gathered together for the utility of men. Here Jew, Mohammedan and Christian deal with each other as though they were all of the same faith, and only apply the word infidel to people who go bankrupt. Here the Presbyterian trusts the Anabaptist and the Anglican accepts a promise from the Quaker. On leaving these peaceful and free assemblies some go to the Synagogue and others for a drink, this one goes to be baptized in a great bath in the name of Father, Son and Holy Ghost, that one has his son’s foreskin cut and has some Hebrew words he doesn’t understand mumbled over the child, others go to heir church and await the inspiration of God with their hats on, and everybody is happy.

Why do writers use symbolism?” Okay, so let’s say you have a headache and you wanna tell someone about it and you say, “I have a headache!” and other people are like, “Yeah, whatever. Everybody gets headaches.” But your headache is not a regular headache, it’s a serious headache, so you say, “My brain is on fire!” to try to help these people understand that this is a headache that needs attention! That’s a metaphor, right? And you use it so that you can be understood. Now let’s say you want to take those same imagistic principles but apply them to a much more complex idea than having a headache, like, for instance, the yearning that one feels for one’s dreams. And you can see the dream but you can’t cross the bay to get to the green light that embodies your dream. And you want to talk about how socio-economic class in America is a barrier – a bay-like barrier, some would say – that stands between you and the green light and makes that gap unbridgeable. Now, you can just talk about that stuff directly, but when you talk about it symbolically, it becomes more powerful, because instead of being abstract it becomes kind of observable…. So I think that’s why.

Meanwhile, time is one of our most scarce resources. At the moment, you are reading instead of working, playing with the dog, applying to law school, shopping for groceries, or having sex. Life is about trade-offs, and so is economics.

If you are a policy maker, don’t apply bandages to old injuries when what we need is early, corrective surgery.

Along with the mystical wonderment and sense of ecological responsibility that comes with the recognition of connectedness, more disturbing images come to mind. When applied to economics, connectedness seems to take the form of chain stores, multinational corporations, and international trade treaties which wipe out local enterprise and indigenous culture. When I think of it in the realm of religion, I envision smug missionaries who have done such a good job of convincing native people everywhere that their World-Maker is the same as God, and by this shoddy sleight of hand have been steadily impoverishing the world of the great fecundity and complex localism of belief systems that capture truths outside the Western canon. And I wonder—if everything's connected, does that mean that everything can be manipulated and controlled centrally by those who know how to pull strings at strategic places?

It is worth noting that the standard American tests of success that they have flunked are almost exclusively economic. If one applied social indices instead—such as rates of crime, child abuse, illegitimacy, and divorce—the Hmong would probably score better than most refugee groups (and also better than most Americans), but those are not the forms of success to which our culture assigns its highest priority.

The notion that one must know history in order to understand the present has a certain justification when applied to the history of events, but not for the structural history of society. Rather, the opposite is the case: to examine the *constitution* of a particular social and economic structure, one has to be already familiar with the *completed* structure. Only then will one know what to look for in history.

Almost as an article of faith, some individuals believe that conspiracies are either kooky fantasies or unimportant aberrations. To be sure, wacko conspiracy theories do exist. There are people who believe that the United States has been invaded by a secret United Nations army equipped with black helicopters, or that the country is secretly controlled by Jews or gays or feminists or black nationalists or communists or extraterrestrial aliens. But it does not logically follow that all conspiracies are imaginary. Conspiracy is a legitimate concept in law: the collusion of two or more people pursuing illegal means to effect some illegal or immoral end. People go to jail for committing conspiratorial acts. Conspiracies are a matter of public record, and some are of real political significance. The Watergate break-in was a conspiracy, as was the Watergate cover-up, which led to Nixon’s downfall. Iran-contra was a conspiracy of immense scope, much of it still uncovered. The savings and loan scandal was described by the Justice Department as “a thousand conspiracies of fraud, theft, and bribery,” the greatest financial crime in history. Often the term “conspiracy” is applied dismissively whenever one suggests that people who occupy positions of political and economic power are consciously dedicated to advancing their elite interests. Even when they openly profess their designs, there are those who deny that intent is involved. In 1994, the officers of the Federal Reserve announced they would pursue monetary policies designed to maintain a high level of unemployment in order to safeguard against “overheating” the economy. Like any creditor class, they preferred a deflationary course. When an acquaintance of mine mentioned this to friends, he was greeted skeptically, “Do you think the Fed bankers are deliberately trying to keep people unemployed?” In fact, not only did he think it, it was announced on the financial pages of the press. Still, his friends assumed he was imagining a conspiracy because he ascribed self-interested collusion to powerful people. At a World Affairs Council meeting in San Francisco, I remarked to a participant that U.S. leaders were pushing hard for the reinstatement of capitalism in the former communist countries. He said, “Do you really think they carry it to that level of conscious intent?” I pointed out it was not a conjecture on my part. They have repeatedly announced their commitment to seeing that “free-market reforms” are introduced in Eastern Europe. Their economic aid is channeled almost exclusively into the private sector. The same policy holds for the monies intended for other countries. Thus, as of the end of 1995, “more than $4.5 million U.S. aid to Haiti has been put on hold because the Aristide government has failed to make progress on a program to privatize state-owned companies” (New York Times 11/25/95). Those who suffer from conspiracy phobia are fond of saying: “Do you actually think there’s a group of people sitting around in a room plotting things?” For some reason that image is assumed to be so patently absurd as to invite only disclaimers. But where else would people of power get together – on park benches or carousels? Indeed, they meet in rooms: corporate boardrooms, Pentagon command rooms, at the Bohemian Grove, in the choice dining rooms at the best restaurants, resorts, hotels, and estates, in the many conference rooms at the White House, the NSA, the CIA, or wherever. And, yes, they consciously plot – though they call it “planning” and “strategizing” – and they do so in great secrecy, often resisting all efforts at public disclosure. No one confabulates and plans more than political and corporate elites and their hired specialists. To make the world safe for those who own it, politically active elements of the owning class have created a national security state that expends billions of dollars and enlists the efforts of vast numbers of people.

The study of economic lift-off is well developed; touch-down has not been considered. There is an asymmetry here which would invite comment if applied to aviation.

The feeling that the government should “do something” has seldom been based on a comparison of what actually happens when government does and when it does not “do something.

Without adjustments to our economic system and regulatory policies, we may be in for an extended period of social turmoil.

There are six canons of conservative thought: 1) Belief in a transcendent order, or body of natural law, which rules society as well as conscience. Political problems, at bottom, are religious and moral problems. A narrow rationality, what Coleridge called the Understanding, cannot of itself satisfy human needs. "Every Tory is a realist," says Keith Feiling: "he knows that there are great forces in heaven and earth that man's philosophy cannot plumb or fathom." True politics is the art of apprehending and applying the Justice which ought to prevail in a community of souls. 2) Affection for the proliferating variety and mystery of human existence, as opposed to the narrowing uniformity, egalitarianism, and utilitarian aims of most radical systems; conservatives resist what Robert Graves calls "Logicalism" in society. This prejudice has been called "the conservatism of enjoyment"--a sense that life is worth living, according to Walter Bagehot "the proper source of an animated Conservatism." 3) Conviction that civilized society requires orders and classes, as against the notion of a "classless society." With reason, conservatives have been called "the party of order." If natural distinctions are effaced among men, oligarchs fill the vacuum. Ultimate equality in the judgment of God, and equality before courts of law, are recognized by conservatives; but equality of condition, they think, means equality in servitude and boredom. 4) Persuasion that freedom and property are closely linked: separate property from private possession, and Leviathan becomes master of all. Economic levelling, they maintain, is not economic progress. 5) Faith in prescription and distrust of "sophisters, calculators, and economists" who would reconstruct society upon abstract designs. Custom, convention, and old prescription are checks both upon man's anarchic impulse and upon the innovator's lust for power. 6) Recognition that change may not be salutary reform: hasty innovation may be a devouring conflagration, rather than a torch of progress. Society must alter, for prudent change is the means of social preservation; but a statesman must take Providence into his calculations, and a statesman's chief virtue, according to Plato and Burke, is prudence.

The tragic reality is that very few sustainable systems are designed or applied by those who hold power, and the reason for this is obvious and simple: to let people arrange their own food, energy and shelter is to lose economic and political control over them. We should cease to look to power structures, hierarchical systems, or governments to help us, and devise ways to help ourselves.

The Profit function: Individual profits cause collective growth and prosperity. It is necessary for individual people and businesses to profit in a Permaculture Economy where justice is maintained and fairly applied. Profits are earned when efficiency is mastered. With profits, individuals invest in (a) new and innovative means of production which will allow more profits, or (b) buying products and services from other individuals who are also seeking profit by providing value. Profits also incentivize individuals to be productive participants in society to begin with. If there will be no profit in an activity, business or industry, then individuals will decline participation in that activity, business or industry. Since profits are only possible when buyers are satisfied with the productivity of sellers, then it is also true that an individuals willingness to participate in an activity, business or industry is preceded by the buyers satisfaction which allows the seller to profit. But when buyers are dissatisfied and decline participation, it forces sellers to decline participation. Inversely, if profits are eradicated through the force of price-controls by the government, then sellers will decline participation which then causes buyers to decline participation. And when both sellers and buyers decline participation, then whole industries and economies collapse.

If tribulation is a necessary element in the redemption we must anticipate that it will never cease till God sees the world to be either redeemed or no further redeemable. A Christian cannot, therefore, believe any of those who promise that if only some reform in our economic, political, or hygienic system were made, a heaven on earth would follow. This might seem to have a discouraging effect on the social worker, but it is not found in practice to discourage him. On the contrary, a strong sense of our common miseries, simply as men, is at least as good a spur to the removal of all the miseries we can, as any of those wild hopes which tempt men to seek their realisation by breaking the moral law and prove such dust and ashes when they are realised. If applied to individual life, the doctrine that an imagined heaven on earth as necessary for vigorous attempts to remove present evil, would at once reveal its absurdity. Hungry men seek food and sick men healing none the less because they know that after the meal or the cure the ordinary ups and downs of life still await them.

Individual profits cause collective growth and prosperity. It is necessary for individual people, businesses, and companies to profit, in a Permaculture Economy where justice is maintained and fairly applied. Profits are earned when efficiency is mastered. With profits, individuals invest in (a) new and innovative means of production which will allow more profits, or (b) they use profits to buy products or services from other individuals who are also seeking profit by providing value. Profits also incentivize individuals to be productive to begin with. If there will be no profit in an activity, business or industry, then individuals will decline participation. Since profits are only possible when buyers are satisfied with the productivity of sellers, then it is also true that an individual's willingness to participate in an activity, business or industry is preceded by the buyers satisfaction which allows them to profit. So, when buyers decline participation it forces sellers to decline participation. Inversely, if profits are removed through force of price controls by the government, then sellers will decline participation which then causes buyers to decline participation.

... we can define concept as a logical, mental construction of one or more relationships. [...] It is purely mental, is logical, and can be described; it has been reasoned through sufficiently and presented with clarity. As such, a concept is inherently abstract (takes some things as given or assumed)

American capitalism replaced some of the old colonial capitalisms in the countries that began their independent life. But it knows that this is transitory and that there is no real security for its financial speculation in these new territories. The octopus cannot there apply its suckers firmly. The claw of the imperial eagle is trimmed. Colonialism is dead or is dying a natural death in all these places.

The metaphysical mutation that gave rise to materialism and modern science in turn spawned two great trends: rationalism and individualism. Huxley’s mistake was in having poorly evaluated the balance of power between these two. Specifically, he underestimated the growth of individualism brought about by an increased consciousness of death. Individualism gives rise to freedom, the sense of self, the need to distinguish oneself and to be superior to others. A rational society like the one he describes in Brave New World can defuse the struggle. Economic rivalry—a metaphor for mastery over space—has no more reason to exist in a society of plenty, where the economy is strictly regulated. Sexual rivalry—a metaphor for mastery over time through reproduction—has no more reason to exist in a society where the connection between sex and procreation has been broken. But Huxley forgets about individualism. He doesn’t understand that sex, even stripped of its link with reproduction, still exists—not as a pleasure principle, but as a form of narcissistic differentiation. The same is true of the desire for wealth. Why has the Swedish model of social democracy never triumphed over liberalism? Why has it never been applied to sexual satisfaction? Because the metaphysical mutation brought about by modern science leads to individuation, vanity, malice and desire. Any philosopher, not just Buddhist or Christian, but any philosopher worthy of the name, knows that, in itself, desire—unlike pleasure—is a source of suffering, pain and hatred.

Here is a principle to use in all aspects of economics and policy. When you find a good or service that is in huge demand but the supply is so limited to the point that the price goes up and up, look for the regulation that is causing it. This applies regardless of the sector, whether transportation, gas, education, food, beer, or daycare. There is something in the way that is preventing the market from working as it should. If you look carefully enough, you will find the hand of the state making the mess in question.

Perhaps one unspoken reason why many have been so reluctant to apply the term “torture” to slavery is that even though they denied slavery’s economic dynamism, they knew that slavery on the cotton frontier made a lot of product. No one was willing, in other words, to admit that they lived in an economy whose bottom gear was torture.52 Yet we should call torture by its name. Historians of torture have defined the term as extreme torment that is part of a judicial or inquisitorial process. The key feature that distinguishes it from mere sadistic behavior is supposedly that torture aims to extract “truth.” But the scale and slate and lash did, in fact, continually extract a truth: the maximum poundage that a man, woman, or child could pick.

Well, regular math, or applied math, is what I suppose you could call practical math," he said. "It's used to solve problems, to provide solutions, whether it's in the realm of economics, or engineering, or accounting, or what have you. But pure math doesn't exist to provide immediate, or necessarily obvious, practical applications. It's purely an expression of form, if you will - the only thing it proves is the almost infinite elasticity of mathematics itself, within the accepted set of assumptions by which we define it, of course.

Recognition of the political-economic forces that impose patterns of suffering is the foundation for an applied critique of policy and services that persecute oppositional, marginalized populations in the name of morality

In a highly popular statement, we are told that the family has progressed from institution to companionship. But, as Ortega y Gasset has written, “people do not live together merely to be together. They live together to do something together”. To suppose that the present family, or any other group, can perpetually vitalize itself through some indwelling affectional tie, in the absence of concrete, perceived functions, is like supposing that the comradely ties of mutual aid which grow up incidentally in a militar unit will along outlast a condition in which war is plainly and irrevocably banished . Applied to the family, the argument suggests that affection and personality cultivation can somehow exist in a social vacum, unsupported by the determining goals and ideals of economic and political society.

Religious people should always be wary of the ways in which political power is wielded and skeptical of how economic privileges are distributed. They should also be mindful of how their own traditions have been used for narrow political purposes, and how some religious figures have manipulated the faith to aggrandize their own power. The doctrine of original sin and the idea of a fallen side of human nature apply to people who are religious no less than those who are not.

The direction of research . . .should be: - toward non-violence rather than violence, - towards a harmonious cooperation with nature rather than with warfare against nature; - towards the noiseless, low-energy, elegant, and economical solutions normally applied in nature rather than [our often] noisy, high-energy, brutal, wasteful, and clumsy solutions.

The [carried-interest] loophole was in essence an accounting trick that enabled hedge fund and private equity managers to categorize huge portions of their income as ‘interest,’ which was taxed at the 15 percent rate then applied to long-term capital gains. This was less than half the income tax rate paid by other top-bracket wage earners. Critics called the loophole a gigantic subsidy to millionaires and billionaires at the expense of ordinary taxpayers. The Economic Policy Institute, a progressive think tank, estimated that the hedge fund loophole cost the government over $6 billion a year—the cost of providing health care to three million children. Of that total, it said, almost $2 billion a year from the tax break went to just twenty-five individuals.

The economic metaphor came to be applied to every aspect of modern life, especially the areas where it simply didn't belong. In fields such as education, equality of opportunity, health, employee's rights, the social contract and culture, the first conversation to happen should be about values and principles; then you have the conversation about costs, and what you as a society can afford.

It's interesting that penny-pinching is an accepted defense for toxic food habits, when frugality so rarely rules other consumer domains. The majority of Americans buy bottled drinking water, for example, even though water runs from the faucets at home for a fraction of the cost, and government quality standards are stricter for tap water than for bottled. At any income level, we can be relied upon for categorically unnecessary purchases: portable-earplug music instead of the radio; extra-fast Internet for leisure use; heavy vehicles to transport light loads; name-brand clothing instead of plainer gear. "Economizing," as applied to clothing, generally means looking for discount name brands instead of wearing last year's clothes again. The dread of rearing unfashionable children is understandable. But as a priority, "makes me look cool" has passed up "keeps arteries functional" and left the kids huffing and puffing (fashionably) in the dust.

Because learning takes practice, we are more likely to get things right at small stakes than at large stakes. This means critics have to decide which argument they want to apply. If learning is crucial, then as the stakes go up, decision-making quality is likely to go down.

The United States thus achieved what no earlier imperial system had put in place: a flexible form of global exploitation that controlled debtor countries by imposing the Washington Consensus via the IMF and World Bank, while the Treasury bill standard obliged the payments-surplus nations of Europe and East Asia to extend forced loans to the U.S. Government. Against dollar-deficit regions the United States continued to apply the classical economic leverage that Europe and Japan were not able to use against it. Debtor economies were forced to impose economic austerity to block their own industrialization and agricultural modernization. Their designated role was to export raw materials and provide low-priced labor whose wages were denominated in depreciating currencies. Against dollar-surplus nations the United States was learning to apply a new, unprecedented form of coercion. It dared the rest of the world to call its bluff and plunge the international economy into monetary crisis. That is what would have happened if creditor nations had not channeled their surplus savings to the United States by buying its Government securities.

If women have influence, it is only—and then only sometimes—within their home. Men control all the political and economic power, the culture and customs; they proclaim the laws and apply them as they wish, and when social pressures and the legal apparatus are not sufficient to subdue the most rebellious women, the Church steps in with its incontestable patriarchal seal. What is unforgivable, though, is that it is women who perpetuate and reinforce the system, continuing to raise arrogant sons and servile daughters. If they would agree to revise the standards, they could end machismo in one generation.

Up to now in the West none of the apostles of stabilization and petrification has succeeded in wiping out the individuals' innate disposition to think and to apply to all problems the yardstick of reason. This alone, and no more, history and philosophy can assert in dealing with doctrines that claim to know exactly what the future has in store for mankind.

Why am I permitted to apply racial criteria when I select a spouse but not when I select a personal assistant?

A product that could change behavior is useless if no one wants to use it.

Many thousands of people can write code. But only a relative few can get the psychology right.

We may build a machine that will not work, or make a product that no one wants; but labor that attains a rational purpose is always economically productive.

In the history of ideas, it's repeatedly happened that an idea, developed in one area for one purpose, finds an unexpected application elsewhere. Concepts developed purely for philosophy of mathematics turned out to be just what you needed to build a computer. Statistical formulae for understanding genetic change in biology are now applied in both economics and in programming.

The same reasoning applies to civilian government officials whenever they are retained in excessive numbers and do not perform services for the community reasonably equivalent to the remuneration they receive.

neither we nor our planet enjoys a privileged position in Nature. This insight has since been applied upward to the stars, and sideways to many subsets of the human family, with great success and invariable opposition. It has been responsible for major advances in astronomy, physics, biology, anthropology, economics and politics. I wonder if its social extrapolation is a major reason for attempts at its suppression.

When I was an undergraduate studying economics under Professor Arthur Smithies of Harvard, he asked me in class one day what policy I favored on a particular issue of the times. Since I had strong feelings on that issue, I proceeded to answer him with enthusiasm, explaining what beneficial consequences I expected from the policy I advocated. “And then what will happen?” he asked. The question caught me off guard. However, as I thought about it, it became clear that the situation I described would lead to other economic consequences, which I then began to consider and to spell out. “And what will happen after that?” Professor Smithies asked. As I analyzed how the further economic reactions to the policy would unfold, I began to realize that these reactions would lead to consequences much less desirable than those at the first stage, and I began to waver somewhat. “And then what will happen?” Smithies persisted. By now I was beginning to see that the economic reverberations of the policy I advocated were likely to be pretty disastrous— and, in fact, much worse than the initial situation that it was designed to improve. Simple as this little exercise might seem, it went further than most economic discussions about policies on a wide range of issues. Most thinking stops at stage one.

Granted, I should love my neighbor as myself, the questions which, under modern conditions of large-scale organization, remain for solution are, ''Who precisely is my neighbor?'' and ''How exactly am I to make my love for them effective in practice?''... It had insisted that all men were brethren. But it did not occur to it to point out that, as a result of the new economic imperialism, which was begging to develop in the 17th century, the brethren of the English merchant were the Africans whom he kidnapped for slavery in America, or the American Indians from whom he stripped of their lands, or the Indian craftsmen whom he bought muslin's and silks at starvation prices. Religion had not yet learned to console itself for the practical difficulty of applying its moral principles by clasping the comfortable formula that for the transaction of economic life no moral principles exist.

For the merchants, the entire world was a single market and all humans were potential customers. They tried to establish an economic order that would apply to all, everywhere. For the conquerors, the entire world was a single empire and all humans were potential subjects, and for the prophets, the entire world held a single truth and all humans were potential believers. They too tried to establish an order that would be applicable for everyone everywhere.

As the philosopher of science Nancy Cartwright has put it, what modern science seems to show is not that we live in a world governed by a single systematic set of natural laws that apply at all times and in all places, but rather that we live in a ‘dappled world’ in which pockets of order emerge, or can be made to emerge, using a patchwork of different scientific theories (from physics, to biology, to economics), none of which is applicable across all domains.

Most important of all: in our anxiety to "improve" the world and insure "progress" we have permitted our schools to become laboratories for social and economic change according to the predilections of the professional educators. We have forgotten that the proper function of the school is to transmit the cultural heritage of one generation to the next generation, and to so train the minds of the new generation as to make them capable of absorbing ancient learning and applying it to the problem of its own day. The

The writer doesn’t need economic freedom. All he needs is a pencil and some paper. I’ve never known anything good in writing to come from having accepted any free gift of money. The good writer never applies to a foundation. He’s too busy writing something. If he isn’t first rate he fools himself by saying he hasn’t got time or economic freedom. Good art can come out of thieves, bootleggers, or horse swipes. People really are afraid to find out just how much hardship and poverty they can stand. They are afraid to find out how tough they are.

Westernization is an often-used word in Korea, and can be applied to something considered cold, lacking in jeong, and going against traditional Korean values. To suggest that Korean households are now “Westernized,” whatever that may mean exactly, would be a gross oversimplification.

Intersectionality, and the necessity of considering intersectionality, applies to more than just our social justice efforts. Our government, education system, economic system, and social systems all should consider intersectionality if they have any hope of effectively serving the public. Intersectionality helps ensure that fewer people are left behind and that our efforts to do better for some do not make things far worse for others. Intersectionality helps us stay true to our values of justice and equality by helping to keep our privilege from getting in our way. Intersectionality makes our systems more effective and more fair.

Equality (outside mathematics) is a purely social conception. It applies to man as a political and economic animal. It has no place in the world of the mind. Beauty is not democratic; she reveals herself more to the few than to the many, more to the persistent and disciplined seekers than to the careless. Virtue is not democratic; she is achieved by those who pursue her more hotly than most men. Truth is not democratic; she demands special talents and special industry in those to whom she gives her favours. Political democracy is doomed if it tries to extend its demand for equality into these higher spheres. Ethical, intellectual, or aesthetic democracy is death.

To sum up. A plongeur is a slave, and a wasted slave, doing stupid and largely unnecessary work. He is kept at work, ultimately, because of a vague feeling that he would be dangerous if he had leisure. And educated people, who should be on his side, acquiesce in the process, because they know nothing about him and consequently are afraid of him. I say this of the plongeur because it is his case I have been considering; it would apply equally to numberless other types of worker. These are only my own Ideas about the basic facts of a plongeur’s life, made without reference to immediate economic questions, and no doubt largely platitudes. I present them as a sample of the thoughts that are put into one’s head by working in a hotel.

When people have different ideas about which of these four modes of interacting applies to a current relationship, the result can range from blank incomprehension to acute discomfort or outright hostility. Think abut a dinner guest offering to pay the host for her meal, a person barking an order to a friend, or an employee helping himself to a shrimp off the boss' plate. Misunderstandings in which one person thinks of a transaction in terms of Equality Matching and another thinks in terms of Market Pricing are even more pervasive and can be even more dangerous. They tap into very different psychologies, one of them intuitive and universal, the other rarefied and learned, and clashes between them have been common in economic history.

Another view of the Constitution was put forward early in the twentieth century by the historian Charles Beard (arousing anger and indignation, including a denunciatory editorial in the New York Times). He wrote in his book An Economic Interpretation of the Constitution: Inasmuch as the primary object of a government, beyond the mere repression of physical violence, is the making of the rules which determine the property relations of members of society, the dominant classes whose rights are thus to be determined must perforce obtain from the government such rules as are consonant with the larger interests necessary to the continuance of their economic processes, or they must themselves control the organs of government. In short, Beard said, the rich must, in their own interest, either control the government directly or control the laws by which government operates. Beard applied this general idea to the Constitution, by studying the economic backgrounds and political ideas of the fifty-five men who gathered in Philadelphia in 1787 to draw up the Constitution. He found that a majority of them were lawyers by profession, that most of them were men of wealth, in land, slaves, manufacturing, or shipping, that half of them had money loaned out at interest, and that forty of the fifty-five held government bonds, according to the records of the Treasury Department. Thus, Beard found that most of the makers of the Constitution had some direct economic interest in establishing a strong federal government: the manufacturers needed protective tariffs; the moneylenders wanted to stop the use of paper money to pay off debts; the land speculators wanted protection as they invaded Indian lands; slaveowners needed federal security against slave revolts and runaways; bondholders wanted a government able to raise money by nationwide taxation, to pay off those bonds. Four groups, Beard noted, were not represented in the Constitutional Convention: slaves, indentured servants, women, men without property. And so the Constitution did not reflect the interests of those groups. He wanted to make it clear that he did not think the Constitution was written merely to benefit the Founding Fathers personally, although one could not ignore the $150,000 fortune of Benjamin Franklin, the connections of Alexander Hamilton to wealthy interests through his father-in-law and brother-in-law, the great slave plantations of James Madison, the enormous landholdings of George Washington. Rather, it was to benefit the groups the Founders represented, the “economic interests they understood and felt in concrete, definite form through their own personal experience.

I still worry about Africa, we are slaves to western and Eastern Brands and we do not cherish and love our own. We are not even in charge of our economies because we depend heavily on what happens in the East or West, Worse-off we still judge each other based on skin color because those from Northern Africa and even some in East Africa believe that they are not Africans and they do not integrate with the darker Africans. For centuries we are still being victimized by other races from other continents, because they despise our dark skin and think that we are lesser than them.. Xenophobia still lingers and some have the cold heart to kill their black African brothers and sisters and yet the people who owe them reparation and economic freedom are originally from the western countries. We still are held captive by our governments , who abuse our resources only to feed their pockets at the expense our crumbling nations. Why should we continue to suffer when we can apply Pan Africanism and Rise above the Western and Eastern Countries, but sadly we do not because we are not united.. Africa must unite to solve its problems, Happy Africa Day

A disdain for the practical swept the ancient world. Plato urged astronomers to think about the heavens, but not to waste their time observing them. Aristotle believed that: “The lower sort are by nature slaves, and it is better for them as for all inferiors that they should be under the rule of a master.… The slave shares in his master’s life; the artisan is less closely connected with him, and only attains excellence in proportion as he becomes a slave. The meaner sort of mechanic has a special and separate slavery.” Plutarch wrote: “It does not of necessity follow that, if the work delight you with its grace, the one who wrought it is worthy of esteem.” Xenophon’s opinion was: “What are called the mechanical arts carry a social stigma and are rightly dishonoured in our cities.” As a result of such attitudes, the brilliant and promising Ionian experimental method was largely abandoned for two thousand years. Without experiment, there is no way to choose among contending hypotheses, no way for science to advance. The anti-empirical taint of the Pythagoreans survives to this day. But why? Where did this distaste for experiment come from? An explanation for the decline of ancient science has been put forward by the historian of science, Benjamin Farrington: The mercantile tradition, which led to Ionian science, also led to a slave economy. The owning of slaves was the road to wealth and power. Polycrates’ fortifications were built by slaves. Athens in the time of Pericles, Plato and Aristotle had a vast slave population. All the brave Athenian talk about democracy applied only to a privileged few. What slaves characteristically perform is manual labor. But scientific experimentation is manual labor, from which the slaveholders are preferentially distanced; while it is only the slaveholders—politely called “gentle-men” in some societies—who have the leisure to do science. Accordingly, almost no one did science. The Ionians were perfectly able to make machines of some elegance. But the availability of slaves undermined the economic motive for the development of technology. Thus the mercantile tradition contributed to the great Ionian awakening around 600 B.C., and, through slavery, may have been the cause of its decline some two centuries later. There are great ironies here.

Economists comparing the economic growth of various countries have found a strong positive correlation between GDP growth and measured social trust. The effect even seems to apply when comparing different states in the U.S., with one study finding that a ten percent increase in trust translated to about a half percent increase in per capita income growth and even a positive effect on employment rates.

Men should continue to fight, but they should fight for things worthwhile, not for imaginary geographical lines, racial prejudices, and private greed draped in the colors of patriotism. Their arms should be weapons of the spirit, not shrapnel and tanks. Think of what a world we could build if the power unleashed in war were applied to constructive tasks! One tenth of the energy that the various belligerent spent in the World War, a fraction of the money they exploded in hand grenades and poison gas, would suffice to raise the standard of living in every country and avert the economic catastrophe of worldwide unemployment. Nothing that I can do or say will change the structure of the universe. But maybe, by raising my voice, I can help the greatest of all causes-goodwill among men and peace on earth

Whether conservative or progressive, whether religious or nonreligious, we must be careful, in our passionate zeal against the spirit of the unloving Pharisee, that we do not become unloving Pharisees ourselves—a hate group who is harsh, manipulative, and condemning with anyone who disagrees with us. This truth applies not only along ideological and doctrinal lines but also along economic and cultural and moral ones.

According to our estimates, the optimal top tax rate in the developed countries is probably above 80 percent.50 Do not be misled by the apparent precision of this estimate: no mathematical formula or econometric estimate can tell us exactly what tax rate ought to be applied to what level of income. Only collective deliberation and democratic experimentation can do that. What is certain, however, is that our estimates pertain to extremely high levels of income, those observed in the top 1 percent or 0.5 percent of the income hierarchy. The evidence suggests that a rate on the order of 80 percent on incomes over $500,000 or $1 million a year not only would not reduce the growth of the US economy but would in fact distribute the fruits of growth more widely while imposing reasonable limits on economically useless (or even harmful) behavior.

What Mr. Rothschild had discovered was the basic principle of power, influence, and control over people as applied to economics. That principle is "when you assume the appearance of power, people soon give it to you." Mr. Rothschild had discovered that currency or deposit loan accounts had the required appearance of power that could be used to INDUCE PEOPLE [WC emphasis] (inductance, with people corresponding to a magnetic field) into surrendering their real wealth in exchange for a promise of greater wealth (instead of real compensation). They would put up real collateral in exchange for a loan of promissory notes. Mr. Rothschild found that he could issue more notes than he had backing for, so long as he had someone's stock of gold as a persuader to show to his customers. Mr. Rothschild loaned his promissory notes to individuals and to governments. These would create overconfidence. Then he would make money scarce, tighten control of the system, and collect the collateral through the obligation of contracts. The cycle was then repeated. These pressures could be used to ignite a war. Then he would control the availability of currency to determine who would win the war. That government which agreed to give him control of its economic system got his support.

Of course, almost all people, guided by the traditional manner of dealing with ethical precepts, peremptorily repudiate such an explanation of the issue. Social institutions, they assert, must be just. It is base to judge them merely according to their fitness to attain definite ends, however desirable these ends may be from any other point of view. What matters first is justice. The extreme formulation of this idea is to be found in the famous phrase: fiai fustitia, pereat mundus. Let justice be done, even if it destroys the world. Most supporters of the postulate of justice will reject this maxim as extravagant, absurd, and paradoxical. But it is not more absurd, merely more shocking, than any other reference to an arbitrary notion of absolute justice. It clearly shows the fallacies of the methods applied in the discipline of intuitive ethics.

Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist. ... in the field of economic and political philosophy there are not many who are influenced by new theories after they are twenty-five or thirty years of age, so that the ideas which civil servants and politicians and even agitators apply to current events are not likely to be the newest.

There has always been a temptation to classify economic goods in clearly defined groups, about which a number of short and sharp propositions could be made, to gratify at once the student’s desire for logical precision, and the popular liking for dogmas that have the air of being profound and are yet easily handled. But great mischief seems to have been done by yielding to this temptation, and drawing broad artificial lines of division where Nature has made none. The more simple and absolute an economic doctrine is, the greater will be the confusion which it brings into attempts to apply economic doctrines to practice, if the dividing lines to which it refers cannot be found in real life. There is not in real life a clear line of division between things that are and are not Capital, or that are and are not Necessaries, or again between labour that is and is not Productive.

I want economists to quit concerning themselves with allocation problems, per se, with the problem, as it has been traditionally defined. The vocabulary of science is important here, and as T. D. Weldon once suggested, the very word "problem" in and of itself implies the presence of "solution." Once the format has been established in allocation terms, some solution is more or less automatically suggested. Our whole study becomes one of applied maximization of a relatively simple computational sort. Once the ends to be maximized are provided by the social welfare function, everything becomes computational, as my colleague, Rutledge Vining, has properly noted. If there is really nothing more to economics than this, we had as well turn it all over to the applied mathematicians. This does, in fact, seem to be the direction in which we are moving, professionally, and developments of note, or notoriety, during the past two decades consist largely in improvements in what are essentially computing techniques, in the mathematics of social engineering. What I am saying is that we should keep these contributions in perspective; I am urging that they be recognized for what they are, contributions to applied mathematics, to managerial science if you will, but not to our chosen subject field which we, for better or for worse, call "economics.

More generally, we underestimate the share of randomness in about everything, a point that may not merit a book—except when it is the specialist who is the fool of all fools. Disturbingly, science has only recently been able to handle randomness (the growth in available information has been exceeded only by the expansion of noise). Probability theory is a young arrival in mathematics; probability applied to practice is almost nonexistent as a discipline. In addition we seem to have evidence that what is called “courage” comes from an underestimation of the share of randomness in things rather than the more noble ability to stick one’s neck out for a given belief. In my experience (and in the scientific literature), economic “risk takers” are rather the victims of delusions (leading to overoptimism and overconfidence with their underestimation of possible adverse outcomes) than the opposite. Their “risk taking” is frequently randomness foolishness.

We look for happiness in every other thing and being around us. We live in an “if and then” model of happiness. If that happens, then I will be happy. This list of “if and then” never finishes, and we continue through our entire life learning how to be unhappy.” “Life is a classroom. Learn diligently. Apply the lessons in your life to create joyful experiences; otherwise, you have lost the meaning in living. Share your lessons with others; otherwise, the lessons you learned are lost.

At this point, I must describe an important study carried out by Clare W. Graves of Union College, Schenectady, N.Y. on deterioration of work standards. Professor Graves starts from the Maslow-McGregor assumption that work standards deteriorate when people react against workcontrol systems with boredom, inertia, cynicism... A fourteen-year study led to the conclusion that, for practical purposes, we may divide people up into seven groups, seven personality levels, ranging from totally selfpreoccupied and selfish to what Nietzsche called ‘a selfrolling wheel’-a thoroughly self-determined person, absorbed in an objective task. This important study might be regarded as an expansion of Shotover’s remark that our interest in the world is an overflow of our interest in ourselves—and that therefore nobody can be genuinely ‘objective’ until they have fully satiated the subjective cravings. What is interesting—and surprising—is that it should not only be possible to distinguish seven clear personality-ypes, but that these can be recognised by any competent industrial psychologist. When Professor Graves’s theories were applied in a large manufacturing organisation—and people were slotted into their proper ‘levels’—the result was a 17% increase in production and an 87% drop in grumbles. The seven levels are labelled as follows: (1) Autistic (2) Animistic (3) Awakening and fright (4) Aggressive power seeking (5) Sociocentric (6) Aggressive individualistic (7) Pacifist individualistic. The first level can be easily understood: people belonging to it are almost babylike, perhaps psychologically run-down and discouraged; there is very little to be done with these people. The animistic level would more probably be encountered in backward countries: primitive, superstitious, preoccupied with totems and taboos, and again poor industrial material. Man at the third level is altogether more wide-awake and objective, but finds the complexity of the real world frightening; the best work is to be got out of him by giving him rules to obey and a sense of hierarchical security. Such people are firm believers in staying in the class in which they were born. They prefer an autocracy. The majority of Russian peasants under the Tsars probably belonged to this level. And a good example of level four would probably be the revolutionaries who threw bombs at the Tsars and preached destruction. In industry, they are likely to be trouble makers, aggressive, angry, and not necessarily intelligent. Management needs a high level of tact to get the best out of these. Man at level five has achieved a degree of security—psychological and economic—and he becomes seriously preoccupied with making society run smoothly. He is the sort of person who joins rotary clubs and enjoys group activities. As a worker, he is inferior to levels three and four, but the best is to be got out of him by making him part of a group striving for a common purpose. Level six is a self-confident individualist who likes to do a job his own way, and does it well. Interfered with by authoritarian management, he is hopeless. He needs to be told the goal, and left to work out the best way to achieve it; obstructed, he becomes mulish. Level seven is much like level six, but without the mulishness; he is pacifistic, and does his best when left to himself. Faced with authoritarian management, he either retreats into himself, or goes on his own way while trying to present a passable front to the management. Professor Graves describes the method of applying this theory in a large plant where there was a certain amount of unrest. The basic idea was to make sure that each man was placed under the type of supervisor appropriate to his level. A certain amount of transferring brought about the desired result, mentioned above—increased production, immense decrease in grievances, and far less workers leaving the plant (7% as against 21% before the change).

The Bible isn’t an answer book. It isn’t a self-help manual. It isn’t a flat, perspicuous list of rules and regulations that we can interpret objectively and apply unilaterally to our lives. The Bible is a sacred collection of letters and laws, poetry and proverbs, philosophy and prophecies, written and assembled over thousands of years in cultures and contexts very different from our own, that tells the complex, ever-unfolding story of God’s interaction with humanity. When we turn the Bible into an adjective and stick it in front of another loaded word (like manhood, womanhood, politics, economics, marriage, and even equality), we tend to ignore or downplay the parts of the Bible that don’t fit our tastes. In an attempt to simplify, we try to force the Bible’s cacophony of voices into a single tone, to turn a complicated and at times troubling holy text into a list of bullet points we can put in a manifesto or creed. More often than not, we end up more committed to what we want the Bible to say than what it actually says. So

In natural ecosystems, the way the waste of one is turned into a resource for another is through systematic value added consumption. In human economic systems, waste is only a problem insofaras systematic value added consumption has not been holistically applied. So, the way to prevent waste is to have it exist in a system where the waste of one is viewed as a product for value added consumption by another. The way to prevent waste is to consider full lifecycle consumption during the design of materials and products and then ensure that for everything produced there exists a mechanism of value added consumption and an audience which will perceive the consumption of it as adding value to their lives. It must be value added consumption because people only voluntarily consume that which they deem to add value to their own lives. And it must be systematic because no amount of accumulated waste is acceptable. When the consumption of ones waste is perceived to be a value add to others, and those others are able to efficiently consume it, a system will organically emerge whereby in essence, the concept of waste is nullified.

If you would know, therefore, who are the fascists in America, you must ask yourselves not who are the men and women most vocal in their denunciations of Hitler and Mussolini. The most ardent enemies of those two leaders were some of their rival fascist dictators in Europe. The test of fascism is not one's rage against the Italian and German war lords. The test is—how many of the essential principles of fascism do you accept and to what extent are you prepared to apply those fascist ideas to American social and economic life? When you can put your finger on the men or the groups that urge for America the debt-supported state, thee autarchial corporative state, the state bent on the socialization of investment and the bureaucratic government of industry and society, the establishment of the institution of militarism as the great glamorous public-works project of the nation and the institution of imperialism under which it proposes to regulate and rule the world and, along with this, proposes to alter the forms of our government to approach as closely as possible the unrestrained, absolute government—then you will know you have located the authentic fascist.

Flynn conducted a study in which he compared the grade point averages of seniors at one of America’s top state universities, from neuroscience to English majors, to their performance on a test of critical thinking. The test gauged students’ ability to apply fundamental abstract concepts from economics, social and physical sciences, and logic to common, real-world scenarios. Flynn was bemused to find that the correlation between the test of broad conceptual thinking and GPA was about zero. In Flynn’s words, “the traits that earn good grades at [the university] do not include critical ability of any broad significance.”*

One may suggest that nations, in assessing their relative strength, were influenced by seven main factors: military strength and the ability to apply that strength efficiently in the chosen zone of war; predictions on how outside nations would behave in the event of war; perceptions of internal unity and the unity or discord of the enemy; memory or forgetfulness of the realities and sufferings of war; perceptions of prosperity and of ability to sustain, economically, the kind of war envisaged; nationalism and ideology: and the personality and mental qualities of the leaders who weighted the evidence and decided for peace or war.

The word psychogeography, suggested by an illiterate Kabyle as a general term for the phenomena a few of us were investigating around the summer of 1953, is not too inappropriate. It does not contradict the materialist perspective of the conditioning of life and thought by objective nature. Geography, for example, deals with the determinant action of general natural forces, such as soil composition or climatic conditions, on the economic structures of a society, and thus on the corresponding conception that such a society can have of the world. Psychogeography could set for itself the study of the precise laws and specific effects of the geographical environment, whether consciously organized or not, on the emotions and behavior of individuals. The charmingly vague adjective psychogeographicalcan be applied to the findings arrived at by this type of investigation, to their influence on human feelings, and more generally to any situation or conduct that seems to reflect the same spirit of discovery. It has long been said that the desert is monotheistic. Is it illogical or devoid of interest to observe that the district in Paris between Place de la Contrescarpe and Rue de l’Arbalète conduces rather to atheism, to oblivion and to the disorientation of habitual reflexes?

[The eighteenth century] was the century, as we are frequently told, of women - the intellectual life of women in salons, women wielding unseen influence, women as members of academies, theatrical productions whose success depended on the power of actresses to charm; in the economic sphere, financiers amassing great fortunes in order to marry their daughters into the aristocracy, and women ruling over whole peoples and empires: Maria Theresa, Catherine the Great, Queen Elisabeth Farnese of Spain, as well as the likes of Mme du Pompadour and Mme du Barry. It was as if some residual matriarchy - the oldest culture of the Mediterranean - was struggling to emerge from the blood and the collective unconscious; as if the time would one day return when, in every tribe, it was the women who possessed wealth and power and the men who 'married out', moving into the wife's extended family, where they became gentle, pampered, more or less superfluous drones. [...] In the century of women, it was inevitable that these erotic legends should attach themselves to the outstanding female figures of the time [...] and all this applied even more strongly in France. It was there that women reached the greatest positions of power, and there that this erotic momentum was at its strongest, by virtue of the traditions and nature of the French people.

Human labor, in general, is still divided into two exclusive categories: the first—solely intellectual and managerial—includes the scientists, artists, engineers, inventors, accountants, educators, governmental officials, and their subordinate elites who enforce labor discipline The second group consists of the great mass of workers, people prevented from applying creative ideas or intelligence, who blindly and mechanically carry out the orders of the intellectual-managerial elite This economic and social division of labor has disastrous consequences for members of the privileged classes, the masses of the people, and for the prosperity, as well as the moral and intellectual development, of society as a whole.

The exchangeability that is expressed in money must inevitably have repercussions upon the quality of commodities themselves, or must interact with it. The disparagement of the interest in the individuality of a commodity leads to a disparagement of individuality itself. If the two sides to a commodity are its quality and it s price, then it seems logically impossible for the interest to be focused on only one of these sides: for cheapness is an empty word if it does not imply a low price for a relative good quality, and good quality is an economic attraction only for a correspondingly fair price. And yet this conceptual impossibility is psychologically real and effective. The interest in the one side can be so great that its logically necessary counterpart completely disappears. The typical instance of one of these case s is the ‘fifty cents bazaar’. The principle of valuation in the mode rn money economy finds its clearest expression here. It is not the commodity that is the centre of interest here but the price—a principle that in former times not only would have appeared shameless but would have been absolutely impossible. It has been rightly pointed out that the medieval town, despite all the progress it embodied, still lacked the extensive capital economy, and that this was the reason for seeking the ideal of the economy not so much in the expansion (which is possibly only through cheapness) but rather in the quality of the goods offered; hence the great contributions of the applied arts, the rigorous control of production, the strict policing of basic necessities, etc. Such is one extreme pole of the series, whose other pole is characterized by the slogan, ‘cheap and bad’—a synthesis that is possibly only if we are hypnotized by cheapness and are not aware of anything else. The levelling of objects to that of money reduces the subjective interest first in their specific qualities and then, as a further consequence, in the objects themselves. The production of cheap trash is, as it were, the vengeance of the objects for the fact that they have been ousted from the focal point of interest by a merely indifferent means.

The American system of jurisprudence recognizes a wide range of factors, predispositions, prejudices, and experiences that might cloud our judgment, or affect our objectivity—sometimes even without our knowing it. It goes to great, perhaps even extravagant, lengths to safeguard the process of judgment in a criminal trial from the human weaknesses of those who must decide on innocence or guilt. Even then, of course, the process sometimes fails. Why would we settle for anything less when interrogating the natural world, or when attempting to decide on vital matters of politics, economics, religion, and ethics? — If it is to be applied consistently, science imposes, in exchange for its manifold gifts, a certain onerous burden: We are enjoined, no matter how uncomfortable it might be, to consider ourselves and our cultural institutions scientifically—not to accept uncritically whatever we’re told; to surmount as best we can our hopes, conceits, and unexamined beliefs; to view ourselves as we really are. Can we conscientiously and courageously follow planetary motion or bacterial genetics wherever the search may lead, but declare the origin of matter or human behavior off-limits? Because its explanatory power is so great, once you get the hang of scientific reasoning you’re eager to apply it everywhere. However, in the course of looking deeply within ourselves, we may challenge notions that give comfort before the terrors of the world.

The intriguing history of American applied toponymy includes a few notoriously unpopular sweeping decisions a year after President Benjamin Harrison created the Board on Geographic Names in 1890. Harrison acted at the behest of several government agencies, including the U.S. Geological Survey and the U.S. Coast and Geodetic Survey, which was responsible for mapping the nation's coastline, harbors, and coastal waterways. Troubled by inconsistencies in spelling, board members voted to replace centre with center, drop the ugh from names ending in orough, and shorten the suffix burgh to burg. Overnight, Centreview (in Mississippi) became Centerview, Isleborough (in Maine) became Isleboro, and Pittsburgh (in Pennsylvania) lost its final h and a lot of civic pride. The city was chartered in 1816 as Pittsburg, but the Post Office Department added the extra letter sometime later. Although both spellings were used locally and the shorter version had been the official name, many Pittsburghers complained bitterly about the cost of reprinting stationery and repainting signs. Making the spelling consistent with Harrisburg, they argued, was hardly a good reason for truncating the Iron City's moniker--although Harrisburg was the state capital, it was a smaller and economically less important place. Local officials protested that the board had exceeded its authority. The twenty-year crusade to restore the final h bore fruit in 1911, when the board reversed itself--but only for Pittsburgh. In 1916 the board reaffirmed its blanket change of centre, borough, and burgh as well as its right to make exceptions for Pittsburgh and other places with an entrenched local usage.

MAN AS “NIGGER”? In the early years of the women’s movement, an article in Psychology Today called “Women as Nigger” quickly led to feminist activists (myself included) making parallels between the oppression of women and blacks.29 Men were characterized as the oppressors, the “master,” the “slaveholders.” Black congresswoman Shirley Chisholm’s statement that she faced far more discrimination as a woman than as a black was widely quoted. The parallel allowed the hard-earned rights of the civil rights movement to be applied to women. The parallels themselves had more than a germ of truth. But what none of us realized was how each sex was the other’s slave in different ways and therefore neither sex was the other’s “nigger” (“nigger” implies a one-sided oppressiveness). If “masculists” had made such a comparison, they would have had every bit as strong a case as feminists. The comparison is useful because it is not until we understand how men were also women’s servants that we get a clear picture of the sexual division of labor and therefore the fallacy of comparing either sex to “nigger.” For starters . . . Blacks were forced, via slavery, to risk their lives in cotton fields so that whites might benefit economically while blacks died prematurely. Men were forced, via the draft, to risk their lives on battlefields so that everyone else might benefit economically while men died prematurely. The disproportionate numbers of blacks and males in war increases both blacks’ and males’ likelihood of experiencing posttraumatic stress, of becoming killers in postwar civilian life as well, and of dying earlier. Both slaves and men died to make the world safe for freedom—someone else’s.

A 2011 study done by Alan Krueger, a Princeton economics professor who served for two years as the chairman of President Obama’s Council of Economic Advisers, and Stacy Dale, an analyst with Mathematica Policy Research, tried to adjust for that sort of thing. Krueger and Dale examined sets of students who had started college in 1976 and in 1989; that way, they could get a sense of incomes both earlier and later in careers. And they determined that the graduates of more selective colleges could expect earnings 7 percent greater than graduates of less selective colleges, even if the graduates in that latter group had SAT scores and high school GPAs identical to those of their peers at more exclusive institutions. But then Krueger and Dale made their adjustment. They looked specifically at graduates of less selective colleges who had applied to more exclusive ones even though they hadn’t gone there. And they discovered that the difference in earnings pretty much disappeared. Someone with a given SAT score who had gone to Penn State but had also applied to the University of Pennsylvania, an Ivy League school with a much lower acceptance rate, generally made the same amount of money later on as someone with an equivalent SAT score who was an alumnus of UPenn. It was a fascinating conclusion, suggesting that at a certain level of intelligence and competence, what drives earnings isn’t the luster of the diploma but the type of person in possession of it. If he or she came from a background and a mindset that made an elite institution seem desirable and within reach, then he or she was more likely to have the tools and temperament for a high income down the road, whether an elite institution ultimately came into play or not. This was powerfully reflected in a related determination that Krueger and Dale made in their 2011 study: “The average SAT score of schools that rejected a student is more than twice as strong a predictor of the student’s subsequent earnings as the average SAT score of the school the student attended.

Oligarchy: Rule by the few, usually the richest One Percent. In Aristotle’s political theory, oligarchy is the stage into which democracy evolves, and which ends up becoming a hereditary aristocracy. “The essence of oligarchic rule,” wrote George Orwell in Nineteen Eighty-Four, “is not father-to-son inheritance, but the persistence of a certain world-view and a certain way of life ... A ruling group is a ruling group so long as it can nominate its successors ... Who wields power is not important, provided that the hierarchical structure remains always the same.” The word “oligarchy” has been applied to Russia’s kleptocrats who obtained natural resources and other assets under Boris Yeltsin, most notoriously in the 1994-1996 “bank loans for shares” insider deals. It also applies to Latin American and other client oligarchies that concentrate wealth in the financial and propertied class at the top of the pyramid. However, U.S. media vocabulary defines any country as a democracy as long as it supports the Washington Consensus and U.S. diplomacy.

The essence of Roosevelt’s leadership, I soon became convinced, lay in his enterprising use of the “bully pulpit,” a phrase he himself coined to describe the national platform the presidency provides to shape public sentiment and mobilize action. Early in Roosevelt’s tenure, Lyman Abbott, editor of The Outlook, joined a small group of friends in the president’s library to offer advice and criticism on a draft of his upcoming message to Congress. “He had just finished a paragraph of a distinctly ethical character,” Abbott recalled, “when he suddenly stopped, swung round in his swivel chair, and said, ‘I suppose my critics will call that preaching, but I have got such a bully pulpit.’ ” From this bully pulpit, Roosevelt would focus the charge of a national movement to apply an ethical framework, through government action, to the untrammeled growth of modern America. Roosevelt understood from the outset that this task hinged upon the need to develop powerfully reciprocal relationships with members of the national press. He called them by their first names, invited them to meals, took questions during his midday shave, welcomed their company at day’s end while he signed correspondence, and designated, for the first time, a special room for them in the West Wing. He brought them aboard his private railroad car during his regular swings around the country. At every village station, he reached the hearts of the gathered crowds with homespun language, aphorisms, and direct moral appeals. Accompanying reporters then extended the reach of Roosevelt’s words in national publications. Such extraordinary rapport with the press did not stem from calculation alone. Long before and after he was president, Roosevelt was an author and historian. From an early age, he read as he breathed. He knew and revered writers, and his relationship with journalists was authentically collegial. In a sense, he was one of them. While exploring Roosevelt’s relationship with the press, I was especially drawn to the remarkably rich connections he developed with a team of journalists—including Ida Tarbell, Ray Stannard Baker, Lincoln Steffens, and William Allen White—all working at McClure’s magazine, the most influential contemporary progressive publication. The restless enthusiasm and manic energy of their publisher and editor, S. S. McClure, infused the magazine with “a spark of genius,” even as he suffered from periodic nervous breakdowns. “The story is the thing,” Sam McClure responded when asked to account for the methodology behind his publication. He wanted his writers to begin their research without preconceived notions, to carry their readers through their own process of discovery. As they educated themselves about the social and economic inequities rampant in the wake of teeming industrialization, so they educated the entire country. Together, these investigative journalists, who would later appropriate Roosevelt’s derogatory term “muckraker” as “a badge of honor,” produced a series of exposés that uncovered the invisible web of corruption linking politics to business. McClure’s formula—giving his writers the time and resources they needed to produce extended, intensively researched articles—was soon adopted by rival magazines, creating what many considered a golden age of journalism. Collectively, this generation of gifted writers ushered in a new mode of investigative reporting that provided the necessary conditions to make a genuine bully pulpit of the American presidency. “It is hardly an exaggeration to say that the progressive mind was characteristically a journalistic mind,” the historian Richard Hofstadter observed, “and that its characteristic contribution was that of the socially responsible reporter-reformer.

The VCs were prolific. They talked like nobody I knew. Sometimes they talked their own book, but most days, they talked Ideas: how to foment enlightenment, how to apply microeconomic theories to complex social problems. The future of media and the decline of higher ed; cultural stagnation and the builder’s mind-set. They talked about how to find a good heuristic for generating more ideas, presumably to have more things to talk about. Despite their feverish advocacy of open markets, deregulation, and continuous innovation, the venture class could not be relied upon for nuanced defenses of capitalism. They sniped about the structural hypocrisy of criticizing capitalism from a smartphone, as if defending capitalism from a smartphone were not grotesque. They saw the world through a kaleidoscope of startups: If you want to eliminate economic inequality, the most effective way to do it would be to outlaw starting your own company, wrote the founder of the seed accelerator. Every vocal anti-capitalist person I’ve met is a failed entrepreneur, opined an angel investor. The SF Bay Area is like Rome or Athens in antiquity, posted a VC. Send your best scholars, learn from the masters and meet the other most eminent people in your generation, and then return home with the knowledge and networks you need. Did they know people could see them?

A few years ago my friend Jon Brooks supplied this great illustration of skewed interpretation at work. Here’s how investors react to events when they’re feeling good about life (which usually means the market has been rising): Strong data: economy strengthening—stocks rally Weak data: Fed likely to ease—stocks rally Data as expected: low volatility—stocks rally Banks make $4 billion: business conditions favorable—stocks rally Banks lose $4 billion: bad news out of the way—stocks rally Oil spikes: growing global economy contributing to demand—stocks rally Oil drops: more purchasing power for the consumer—stocks rally Dollar plunges: great for exporters—stocks rally Dollar strengthens: great for companies that buy from abroad—stocks rally Inflation spikes: will cause assets to appreciate—stocks rally Inflation drops: improves quality of earnings—stocks rally Of course, the same behavior also applies in the opposite direction. When psychology is negative and markets have been falling for a while, everything is capable of being interpreted negatively. Strong economic data is seen as likely to make the Fed withdraw stimulus by raising interest rates, and weak data is taken to mean companies will have trouble meeting earnings forecasts. In other words, it’s not the data or events; it’s the interpretation. And that fluctuates with swings in psychology.

Except for Christianity, the Nazis reject as Jewish everything which stems from Jewish authors. This condemnation includes the writings of those Jews who, like Stahl, Lassalle, Gumplowicz, and Rathenau, have contributed many essential ideas to the system of Nazism. But the Jewish mind is, as the Nazis say, not limited to the Jews and their offspring only. Many “Aryans” have been imbued with Jewish mentality—for instance the poet, writer, and critic Gotthold Ephraim Lessing, the socialist Frederick Engels, the composer Johannes Brahms, the writer Thomas Mann, and the theologian Karl Barth. They too are damned. Then there are whole schools of thought, art, and literature rejected as Jewish. Internationalism and pacifism are Jewish, but so is warmongering. So are liberalism and capitalism, as well as the “spurious” socialism of the Marxians and of the Bolsheviks. The epithets Jewish and Western are applied to the philosophies of Descartes and Hume, to positivism, materialism and empiro-criticism, to the economic theories both of the classics and of modern subjectivism. Atonal music, the Italian opera style, the operetta and the paintings of impressionism are also Jewish. In short, Jewish is what any Nazi dislikes. If one put together everything that various Nazis have stigmatized as Jewish, one would get the impression that our whole civilization has been the achievement only of Jews.

In short, the combined effects of lower infant mortality, higher longevity, and increased fertility have fueled an explosion in the world’s population, as figure 18 graphs. Since population growth is intrinsically exponential, even small increases in fertility or decreases in mortality spark rapid population growth. If an initial population of 1 million people grows at 3.5 percent per year, then it will roughly double every generation, growing to 2 million in twenty years, 4 million in forty years, and so on, reaching 32 million in a hundred years. In actual fact, the global growth rate peaked in 1963 at 2.2 percent per year and has since declined to about 1.1 percent per year,60 which translates into a doubling rate of every sixty-four years. In the fifty years between 1960 and 2010, the world’s population more than doubled, from 3 to 6.9 billion people. At current rates of growth, we can expect 14 billion people at the end of this century. FIGURE 21. The demographic transition model. Following economic development, death rates tend to fall before birth rates decrease, resulting in an initial population boom that eventually levels off. This controversial model, however, only applies to some countries. One major by-product of population growth plus the concentration of wealth in cities has been a shift to more urbanization. In 1800, only 25 million people lived in cities, about 3 percent of the world’s population. In 2010, about 3.3 billion people, half the world’s population, are city dwellers.

Men cooperate with one another. The totality of interhuman relations engendered by such cooperation is called society. Society is not an entity in itself. It is an aspect of human action. It does not exist or live outside of the conduct of people. It is an orientation of human action. Society neither thinks nor acts. Individuais in thinking and acting constitute a complex of relations and facts that are called social relations and facts. The issue has been confused by an arithmetical metaphor. Is society, people asked, merely a sum of individuals or is it more than this and thereby an entity endowed with independent reality? The question is nonsensical. Society is neither the sum of individuais nor more nor less. Arithmetical concepts cannot be applied to the matter. Another confusion arises from the no less empty question whether society is—in logic and in time—anterior to individuais or not. The evolution of society and that of civilization were not two distinct processes but one and the same process. The biological passing of a species of primates beyond the levei of a mere animal existence and their transformation into primitive men implied already the development of the first rudiments of social cooperation. Homo sapiens appeared on the stage of earthly events neither as a solitary foodseeker nor as a member of a gregarious flock, but as a being consciously cooperating with other beings of his own kind. Only in cooperation with his fellows could he develop language, the indispensable tool of thinking. We cannot even imagine a reasonable being living in perfect isolation and not cooperating at least with members of his family, clan, or tribe. Man as man is necessarily a social animal. Some sort of cooperation is an essential characteristic of his nature. But awareness of this fact does not justify dealing with social relations as if they were something else than relations or with society as if it were an independent entity outside or above the actions of individual men. Finally there are the misconstructions caused by the organismic metaphor. We may compare society to a biological organism. The tertium comparationis is the fact that division of labor and cooperation exist among the various parts of a biological body as among the various members of society. But the biological evolution that resulted in the emergence of the structurefunction systems of plant and animal bodies was a purely physiological process in which no trace of a conscious activity on the part of the cells can be discovered. On the other hand, human society is an intellectual and spiritual phenomenon. In cooperating with their fellows, individuais do not divest themselves of their individuality. They retain the power to act antisocially, and often make use of it. Its place in the structure of the body is invariably assigned to each cell. But individuais spontaneously choose the way in which they integrate themselves into social cooperation. Men have ideas and seek chosen ends, while the cells and organs of the body lack such autonomy.

There are two famous quips of Stalin which are both grounded in this logic. When Stalin answered the question "Which deviation is worse, the Rightist or the Leftist one?" by "They are both worse!", the underlying premise is that the Leftist deviation is REALLY ("objectively," as Stalinists liked to put it) not leftist at all, but a concealed Rightist one! When Stalin wrote, in a report on a party congress, that the delegates, with the majority of votes, unanimously approved the CC resolution, the underlying premise is, again, that there was really no minority within the party: those who voted against thereby excluded themselves from the party... In all these cases, the genus repeatedly overlaps (fully coincides) with one of its species. This is also what allows Stalin to read history retroactively, so that things "become clear" retroactively: it was not that Trotsky was first fighting for the revolution with Lenin and Stalin and then, at a certain stage, opted for a different strategy than the one advocated by Stalin; this last opposition (Trotsky/Stalin) "makes it clear" how, "objectively," Trotsky was against revolution all the time back. We find the same procedure in the classificatory impasse the Stalinist ideologists and political activists faced in their struggle for collectivization in the years 1928-1933. In their attempt to account for their effort to crush the peasants' resistance in "scientific" Marxist terms, they divided peasants into three categories (classes): the poor peasants (no land or minimal land, working for others), natural allies of the workers; the autonomous middle peasants, oscillating between the exploited and exploiters; the rich peasants, "kulaks" (employing other workers, lending them money or seeds, etc.), the exploiting "class enemy" which, as such, has to be "liquidated." However, in practice, this classification became more and more blurred and inoperative: in the generalized poverty, clear criteria no longer applied, and other two categories often joined kulaks in their resistance to forced collectivization. An additional category was thus introduced, that of a subkulak, a peasant who, although, with regard to his economic situation, was to poor to be considered a kulak proper, nonetheless shared the kulak "counter-revolutionary" attitude.

The philosophers who in their treatises of ethics assigned supreme value to justice and applied the yardstick of justice to ali social institutions were not guilty of such deceit. They did not support selfish group concerns by declaring them alone just, fair, and good, and smear ali dissenters by depicting them as the apologists of unfair causes. They were Platonists who believed that a perennial idea of absolute justice exists and that it is the duty of man to organize ali human institutions in conformity with this ideal. Cognition of justice is imparted to man by an inner voice, i.e., by intuition. The champions of this doctrine did not ask what the consequences of realizing the schemes they called just would be. They silently assumed either that these consequences will be beneficiai or that mankind is bound to put up even with very painful consequences of justice. Still less did these teachers of morality pay attention to the fact that people can and really do disagree with regard to the interpretation of the inner voice and that no method of peacefully settling such disagreements can be found. Ali these ethical doctrines have failed to comprehend that there is, outside of social bonds and preceding, temporally or logically, the existence of society, nothing to which the epithet "just" can be given. A hypothetical isolated individual must under the pressure of biological competition look upon ali other people as deadly foes. His only concern is to preserve his own life and health; he does not need to heed the consequences which his own survival has for other men; he has no use for justice. His only solicitudes are hygiene and defense. But in social cooperation with other men the individual is forced to abstain from conduct incompatible with life in society. Only then does the distinction between what is just and what is unjust emerge. It invariably refers to interhuman social relations. What is beneficiai to the individual without affecting his fellows, such as the observance of certain rules in the use of some drugs, remains hygiene. The ultimate yardstick of justice is conduciveness to the preservation of social cooperation. Conduct suited to preserve social cooperation is just, conduct detrimental to the preservation of society is unjust. There cannot be any question of organizing society according to the postulates of an arbitrary preconceived idea of justice. The problem is to organize society for the best possible realization of those ends which men want to attain by social cooperation. Social utility is the only standard of justice. It is the sole guide of legislation. Thus there are no irreconcilable conflicts between selfíshness and altruism, between economics and ethics, between the concerns of the individual and those of society. Utilitarian philosophy and its finest product, economics, reduced these apparent antagonisms to the opposition of shortrun and longrun interests. Society could not have come into existence or been preserved without a harmony of the rightly understood interests of ali its members.

These negative-sum games of coercion and extortion lead to highly inefficient outcomes, and they can only be avoided by carefully crafting the ex ante rules to avoid such coercion and extortion. These coercive threats that make negative-sum games possible, and that decrease the payoffs of positive-sum games, cannot be neatly distinguished in practice from innocent externalities: any act or omission of one party that harms another, i.e. any externality, doubles as a threat, whether a tiny threat or a large threat, from which an extortion premium, its size depending on the size of the threat, can be extracted. In order to try to distinguish coercion, and the extortion it gives rise to, from an "innocent" externality that can be cured by efficient bargaining, there are ways to exclude some of these extreme possibilities from the prior allocation of rights. And indeed criminal and tort law do this: they distinguish purposeful behavior from negligent, and negligent from the mere unfortunate accident. But any such ex ante distiction contradicts the claim that the Coase Theorem applies to any prior allocation of rights. Voluntary bargaining cannnot give rise to tort and criminal law. Quite the opposite is true: at least a basic tort law is necessary to make voluntary bargaining possible. Tort law (and the associated property law which defines boundaries for the tort of trespass) is logically prior to contract law: good contracts depend on good tort and property law. Without a good tort law already in place, nobody, including the "protection firms" posited by anarcho-capitalism, can engage in the voluntary bargains that are necessary for efficient outcomes. This is not to claim that the polar opposite of anarcho-capitalism must be true, i.e. that "the government" along the lines we are familiar with is necessary. Instead, a system of political property rights that is unbundled and decentralized is possible, and may give rise to many of the benefits (e.g. peaceful competition between jurisdictions) promised by anarcho-capitalism. But political property rights are not based on a Rothbardian assumption of voluntary agreement -- instead, in these systems the procedural law of political property rights, as well as much of substantive property rights and tort law, is prior to contract law, and their origin necessarily involves some degree of coercion. Political and legal systems have not, do not, and cannot originate solely from voluntary contract. Both traditional "social contract" justifications of the state and the Rothbardian idea that contracts can substitute for the state are false: in all cases coercion is involved, both at the origin and in the ongoing practice of legal procedure. In both cases the term "contract" is used, implying voluntary agreement, when the term "treaty", a kind of agreement often forced by coercion, would far more accurately describe the reality. The real task for libertarians and other defenders of sound economics and law is not to try to devise law from purely voluntary origins, an impossible task, but to make sure the ex ante laws make voluntary bargaining possible and discourage coercion and extortion (by any party, including political property rights holders or governments) as much as possible.