Economics Motivational Quotes

Rejection is an opportunity for your selection.

Your comfort zone is a place where you keep yourself in a self-illusion and nothing can grow there but your potentiality can grow only when you can think and grow out of that zone.

It is a beautiful thing to be on fire for justice… there is no greater joy than inspiring and empowering others––especially the least of these, the precious and priceless wretched of the earth!

To summarize, using money to motivate people can be a double-edged sword. For tasks that require cognitive ability, low to moderate performance-based incentives can help. But when the incentive level is very high, it can command too much attention and thereby distract the person’s mind with thoughts about the reward. This can create stress and ultimately reduce the level of performance.

Historians have a word for Germans who joined the Nazi party, not because they hated Jews, but out of a hope for restored patriotism, or a sense of economic anxiety, or a hope to preserve their religious values, or dislike of their opponents, or raw political opportunism, or convenience, or ignorance, or greed. That word is "Nazi." Nobody cares about their motives anymore.

Your VISION and your self-willingness is the MOST powerful elements to conquer your goal

You will miss a normal life while living a successful life, but not as much as the craving for a successful life while you were living a normal life.

I would love to believe that when I die I will live again, that some thinking, feeling, remembering part of me will continue. But as much as I want to believe that, and despite the ancient and worldwide cultural traditions that assert an afterlife, I know of nothing to suggest that it is more than wishful thinking. I want to grow really old with my wife, Annie, whom I dearly love. I want to see my younger children grow up and to play a role in their character and intellectual development. I want to meet still unconceived grandchildren. There are scientific problems whose outcomes I long to witness—such as the exploration of many of the worlds in our Solar System and the search for life elsewhere. I want to learn how major trends in human history, both hopeful and worrisome, work themselves out: the dangers and promise of our technology, say; the emancipation of women; the growing political, economic, and technological ascendancy of China; interstellar flight. If there were life after death, I might, no matter when I die, satisfy most of these deep curiosities and longings. But if death is nothing more than an endless dreamless sleep, this is a forlorn hope. Maybe this perspective has given me a little extra motivation to stay alive. The world is so exquisite, with so much love and moral depth, that there is no reason to deceive ourselves with pretty stories for which there's little good evidence. Far better, it seems to me, in our vulnerability, is to look Death in the eye and to be grateful every day for the brief but magnificent opportunity that life provides.

The more grotesque your boss's pay and the less he has do to earn it, the bigger the motivation for you to work with the aim of being promoted to what he has.

Money can cloud your vision. Sometimes, God takes away the money and uses times of adversity to refine us like gold.

If the world were full of the self-seeking individuals found in economics textbooks, it would grind to a halt because we would be spending most of our time cheating, trying to catch the cheaters, and punishing the caught. The world works as it does only because people are not the totally self seeking agents that free-market economics believes them to be. We need to design an economic system that, while acknowledging that people are often selfish, exploits other human motives to the full and gets the best out of people. The likelihood is that, if we assume the worst about people, we will get the worst out of them.

The problem is that people have tried to look away from space and from the meaning of the moon landing. I remember seeing a picture of an astronaut standing on the moon. It was up at Yale and someone has scrawled on it, 'So what?' That is the arrogance of the kind of academic narrowness one too often sees; it is trapped in its own predictable prejudices, its own stale categories. It is the mind dulled to the poetry of existence. It's fashionable now to demand some economic payoff from space, some reward to prove it was all worthwhile. Those who say this resemble the apelike creatures in 2001. They are fighting for food among themselves, while one separates himself from them and moves to the slab, motivated by awe. That is the point they are missing. He is the one who evolves into a human being; he is the one who understands the future.

Autumn is a momentum of the natures golden beauty…, so the same it’s time to find your momentum of life

I would argue that it is not human fecundity that is overcrowding the world so much as the technological multipliers of the power of individual humans. The worst disease of the world now is probably the ideology of technological heroism, according to which more and more people willingly cause large-scale effects that they do not see and that they cannot control. This is the ideology of the professional class of the industrial nations—a class whose allegiance to communities and places has been dissolved by their economic motives and by their educations. These are people who will go anywhere and jeopardize anything in order to assure the success of their careers.

This points to a nagging and important question about free-market ideologues: Are they ‘true believers’, driven by ideology and faith that free markets will cure underdevelopment, as is often asserted, or do the ideas and theories frequently serve as an elaborate rationale to allow people to act on unfettered greed while still invoking an altruistic motive?

America - a great social and economic experiment, noble in motive and far-reaching in purpose.

Two percent who care deeply about something are a more potent political force than the 98 percent who feel the opposite but aren't motivated enough to do anything about it.

How you think and create your inner world that you gonna become in your outer world. Your inner believe manifest you in the outside

When the accumulation of wealth is no longer of high social importance, there will be great changes in the code of morals. We shall be able to rid ourselves of many of the pseudo-moral principles which have hag-ridden us for two hundred years, by which we have exalted some of the most distasteful of human qualities into the position of the highest virtues. We shall be able to afford to dare to assess the money-motive at its true value. The love of money as a possession — as distinguished from the love of money as a means to the enjoyments and realities of life — will be recognized for what it is, a somewhat disgusting morbidity, one of those semi-criminal, semi-pathological propensities which one hands over with a shudder to the specialists in mental disease.

Your traditional EDUCATION is not going to CHANGE your life but the life you are experiencing that can change you. Choose a POSITIVE life STYLE with positive ATTITUDE which could bring you a life with HAPPINESS and WISDOM

honesty and dishonesty are based on a mixture of two very different types of motivation. On the one hand, we want to benefit from cheating (this is the rational economic motivation), while on the other, we want to be able to view ourselves as wonderful human beings (this is the psychological motivation).

The opportunity cost of an unlived dream is not only that dream, but also the dreams the dream was meant to inspire.

Your every positive action in your life will increase your self-esteem and this self-esteem will boost you for more positive action to take you on success

If you have money but not love you will somehow manage, but if you don't have both then you are in serious trouble.

If you are not EXCITED enough at your present life its mean your future is not EXITING. Excitement will give you ENTHUSIASM and enthusiasm will give you a positive energetic LIFE STYLE which could give you a successful exiting life…

Now, for example, people with freckles aren’t thought of as a minority by the nonfreckled. They aren’t a minority in the sense we’re talking about. And why aren’t they? Because a minority is only thought of as a minority when it constitutes some kind of a threat to the majority, real or imaginary. And no threat is ever quite imaginary. Anyone here disagree with that? If you do, just ask yourself, What would this particular minority do if it suddenly became the majority overnight? You see what I mean? Well, if you don’t – think it over! “All right. Now along come the liberals – including everybody in this room, I trust – and they say, ‘Minorities are just people, like us.’ Sure, minorities are people – people, not angels. Sure, they’re like us – but not exactly like us; that’s the all-too- familiar state of liberal hysteria in which you begin to kid yourself you honestly cannot see any difference between a Negro and a Swede….” (Why, oh why daren’t George say “between Estelle Oxford and Buddy Sorensen”? Maybe, if he did dare, there would be a great atomic blast of laughter, and everybody would embrace, and the kingdom of heaven would begin, right here in classroom. But then again, maybe it wouldn’t.) “So, let’s face it, minorities are people who probably look and act and – think differently from us and hay faults we don’t have. We may dislike the way they look and act, and we may hate their faults. And it’s better if we admit to disliking and hating them than if we try to smear our feelings over with pseudo liberal sentimentality. If we’re frank about our feelings, we have a safety valve; and if we have a safety valve, we’re actually less likely to start persecuting. I know that theory is unfashionable nowadays. We all keep trying to believe that if we ignore something long enough it’ll just vanish…. “Where was I? Oh yes. Well, now, suppose this minority does get persecuted, never mind why – political, economic, psychological reasons. There always is a reason, no matter how wrong it is – that’s my point. And, of course, persecution itself is always wrong; I’m sure we all agree there. But the worst of it is, we now run into another liberal heresy. Because the persecuting majority is vile, says the liberal, therefore the persecuted minority must be stainlessly pure. Can’t you see what nonsense that is? What’s to prevent the bad from being persecuted by the worse? Did all the Christian victims in the arena have to be saints? “And I’ll tell you something else. A minority has its own kind of aggression. It absolutely dares the majority to attack it. It hates the majority–not without a cause, I grant you. It even hates the other minorities, because all minorities are in competition: each one proclaims that its sufferings are the worst and its wrongs are the blackest. And the more they all hate, and the more they’re all persecuted, the nastier they become! Do you think it makes people nasty to be loved? You know it doesn’t! Then why should it make them nice to be loathed? While you’re being persecuted, you hate what’s happening to You, you hate the people who are making it happen; you’re in a world of hate. Why, you wouldn’t recognize love if you met it! You’d suspect love! You’d think there was something behind it – some motive – some trick…

...exploration is hardly ever motivated by the desire to explore. Part the curtains of curiosity, and you'll find individuals hungry for political, cultural, or economic dominion funding the expedition.

Another myth of necessity is that killing is an economic imperative. While an economic motive has driven many violent ideologies--the economy of the New World was largely buttressed by slavery, and the plundering of gold and other assests as well as the unpaid labor of Nazi victims financed the German war machine--that doesn't mean the economy would collapse were the killing to cease. It is far more likely that the economic status quo would break down; the carnistic-corporate power structure, rather than the citizenry, would suffer were carnism abolished.

It can also be useful to politics, enabling that science to discover how much of it is no more than verbal construction, myth, literary tops. Politics, like literature, must above all know itself and distrust itself. As a final observation, I should like to add that it is impossible today for anyone to feel innocent, if in whatever we do or say we can discover a hidden motive - that of a white man, or a male, or the possessor of a certain income, or a member of a given economic system, or a sufferer from a certain neurosis - this should not induce in us either a universal sense of guilt or an attitude of universal accusation. When we become aware of our disease or of our hidden motives, we have already begun to get the better of them. What matters is the way in which we accept our motives and live through the ensuing crisis. This is the only chance we have of becoming different from the way we are - that is, the only way of starting to invent a new way of being.

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

CONFIDENCE is not showing off your VANITY, it’s about to be HUMBLED and KIND to others what are you truly SKILLED and PROFESSIONAL about…

Give yourself a great self-respect to know who you are then your confidence will shine on you

... toxic derivatives were underpinned by toxic economics, which, in turn, were no more than motivated delusions in search of theoretical justification; fundamentalist tracts that acknowledged facts only when they could be accommodated to the demands of the lucrative faith. Despite their highly impressive labels and technical appearance, economic models were merely mathematized versions of the touching superstition that markets know best, both at times of tranquility and in periods of tumult.

When men and women are rewarded for greed, greed becomes a corrupting motivator. When we equate the gluttonous consumption of the earth's resources with a status approaching sainthood, when we teach our children to emulate people who live unbalanced lives, and when we define huge sections of the population as subservient to an elite minority, we ask for trouble. And we get it.

The work that business offers just isn’t fulfilling, so instead of being motivated to innovate, reinvent, reimagine, and outperform, most of us are dully uninspired, dispirited, frustrated, suffocated, and downright stymied.

Everyone chatters about their imaginary friends. Some are ascribing agency, motivation, and intelligence to patterns of societal forces that are the emergent properties of distributed interactions. Others are writing—or filming—fiction.

Effective gamification is a combination of game design, game dynamics, behavioral economics, motivational psychology, UX/UI (User Experience and User Interface), neurobiology, technology platforms, as well as ROI-driving business implementations.

Many outsiders clarified that they believe Christians have a right (even an obligation) to pursue political involvement, but they disagree with our methods and our attitudes. They say we seem to be pursuing an agenda that benefits only ourselves; that we expect too much out of politics; they question whether we are motivated by our economic status rather than faith perspectives when we support conservative politics; they claim we act and say things in an unchristian manner; they wonder whether Jesus would use political power as we do; and they are concerned that we overpowered the voices of other groups.

...gândeai, ca întotdeauna de altfel, atât de departe, acesta fiind și principalul motiv pentru care n-ai reușit să păstrezi niciodată o femeie lângă tine. Toate ți-au fost imature, copilărești, cu minte infantilă incapabilă de a gândi mai departe decât ziua de mâine; ori pentru tine, ziua de mâine e mult prea aproape. Tu gândești la viitor, cu ani de zile înainte, îți place să-ți planifici viața cum își planifică un econom cheltuielile.

Dan Ariely, author of Predictably Irrational, a book that offers an entertaining and engaging overview of behavioral economics.

REJECTION is kind of your negative ILLUSION which has no value but it’s give you a CLUE to go for next level of your ACTION.

The Socialist system requires that each individual act out of selfless, altruistic motives. It sounds nice, but the only way that could happen is if Man were innately centered on others.

But when States did debase the coinage, it was always from purely fiscal motives. The government needed financial help, that was all; it was not concerned with questions of currency policy.

when you become addict in to MATERIAL things in life then the TRUE natural life start to run away from you, YES! it's can give you certain pleasure in the society but in the same time it will sabotage your true HAPPINESS of life which we could have simply with GRATITUDE and FORGIVENESS

All types of societies are limited by economic factors. Nineteenth century civilization alone was economic in a different and distinctive sense, for it chose to base itself in a motive rarely acknowledged as valid in history of human societies, and certainly never before raised to the level of justification of action and behavior in everyday life, namely, gain. The self-regulating market system was uniquely derived from this principle. The mechanism which the motive gain set in motion was comparable in effectiveness only to the most violent outburst of religious fervor in history. Within a generation the whole human world was subjected to its undiluted influence.

The mystery of existence will always remain a mystery. All we know for sure is what the ancients knew: each succeeding generation forms a link in the braided cord of humanity. Each of our lives is shallower if we do not know and pay homage to where we came from. The past forms the world that we currently inhabit, and our actions today, comparable to our ancestors’ actions of yesterday, will reverberate in the history of tomorrow. While the tools of our trades evolve from generation to generation, the way that people behave and the motives behind their behavior remains constant. Each generation must chart the same dangerous territories of the heart. Each succeeding generation must diagnosis the illnesses that imperil their mental, physical, social, and economic wellbeing. Life is brutally painful and extraordinary joyful.

In forming an opinion, the question for the unengaged citizen is: what will this policy do for me? Among the engaged, however, reactions to economic issues are better understood as expressively motivated signals of identity. The question for the engaged citizen is: what does support for this policy position say about me?

These crimes were all motivated by economic jealousy. Either the Negroes in the area were more prosperous than the Whites, or the black workers would not let themselves be exploited thoroughly. In all cases, the principal culprits were never troubled, for the simple reason that they were always incited, encouraged, spurred on, then protected, by the politicians, financiers, and authorities, and above all, by the reactionary press.

We discussed the focus on identity: how people think they and others should behave; how society teaches them how to behave; and how people are motivated by these views, sometimes to the point of being willing to die for them.

Most of us don’t respond well to delayed gratification; we are much more interested in immediate rewards. This is why we procrastinate, fail to save as much money as we should for retirement, eat too much, and exercise too little.

We should not conclude from this that everything depends on waves of irrational psychology. On the contrary, the state of long-term expectation is often steady, and, even when it is not, the other factors exert their compensating effects. We are merely reminding ourselves that human decisions affecting the future, whether personal or political or economic, cannot depend on strict mathematical expectation, since the basis for making such calculations does not exist; and that it is our innate urge to activity which makes the wheels go round, our rational selves choosing between the alternatives as best we are able, calculating where we can, but often falling back for our motive on whim or sentiment or chance.

The thought experiment of Adam Smith correctly takes into account the fact that people rationally pursue their economic interests. Of course they do. But this thought experiment fails to take into account the extent to which people are also guided by noneconomic motivations. And it fails to take into account the extent to which they are irrational or misguided. It ignores the animal spirits.

When economists base their models on their fantasies of an "economic man" motivated only by self-interest, they forget community--the all-important web of meaning we spin around each other--the inescapable context within which anything truly human has taken place.

I personally believe mavericks are people who write their own rulebook. They are the ones who act first and talk later. They are fiercely independent thinkers who know how to fight the lizard brain (to use Seth Godin’s term). I don’t believe many are born, rather they are products of an environment, or their experiences. They are usually the people that find the accepted norm does not meet their requirements and have the self-confidence, appetite, independence, degree of self reliance and sufficient desire to carve out their own niche in life. I believe a maverick thinker can take a new idea, champion it, and push it beyond the ability of a normal person to do so. I also believe the best mavericks can build a team, can motivate with their vision, their passion, and can pull together others to accomplish great things. A wise maverick knows that they need others to give full form to their views and can gather these necessary contributors around them. Mavericks, in my experience, fall into various categories – a/ the totally off-the-wall, uncontrollable genius who won’t listen to anyone; b/ the person who thinks that they have the ONLY solution to a challenge but prepared to consider others’ views on how to conquer the world &, finally, the person who thinks laterally to overcome problems considered to be irresolvable. I like in particular the third category. The upside is that mavericks, because of their different outlook on life, often sees opportunities and solutions that others cannot. But the downside is that often, because in life there is always some degree of luck in success (i.e. being in the right place at the right time), mavericks that fail are often ridiculed for their unorthodox approach. However when they succeed they are acclaimed for their inspiration. It is indeed a fine line they walk in life.

It is a special blessing to belong among those who can and may devote their best energies to the contemplation and exploration of objective and timeless things. How happy and grateful I am for having been granted this blessing, which bestows upon one a large measure of independence from one's personal fate and from the attitude of one's contemporaries. Yet this independence must not inure us to the awareness of the duties that constantly bind us to the past, present and future of humankind at large. Our situation on this earth seems strange. Every one of us appears here, involuntarily and uninvited, for a short stay, without knowing the why and the wherefore. In our daily lives we feel only that man is here for the sake of others, for those whom we love and for many other beings whose fate is connected with our own. I am often troubled by the thought that my life is based to such a large extent on the work of my fellow human beings, and I am aware of my great indebtedness to them. I do not believe in free will. Schopenhauer's words: 'Man can do what he wants, but he cannot will what he wills,' accompany me in all situations throughout my life and reconcile me with the actions of others, even if they are rather painful to me. This awareness of the lack of free will keeps me from taking myself and my fellow men too seriously as acting and deciding individuals, and from losing my temper. I have never coveted affluence and luxury and even despise them a good deal. My passion for social justice has often brought me into conflict with people, as has my aversion to any obligation and dependence I did not regard as absolutely necessary. [Part 2] I have a high regard for the individual and an insuperable distaste for violence and fanaticism. All these motives have made me a passionate pacifist and antimilitarist. I am against any chauvinism, even in the guise of mere patriotism. Privileges based on position and property have always seemed to me unjust and pernicious, as does any exaggerated personality cult. I am an adherent of the ideal of democracy, although I know well the weaknesses of the democratic form of government. Social equality and economic protection of the individual have always seemed to me the important communal aims of the state. Although I am a typical loner in daily life, my consciousness of belonging to the invisible community of those who strive for truth, beauty, and justice keeps me from feeling isolated. The most beautiful and deepest experience a man can have is the sense of the mysterious. It is the underlying principle of religion as well as of all serious endeavour in art and science. He who never had this experience seems to me, if not dead, then at least blind. To sense that behind anything that can be experienced there is a something that our minds cannot grasp, whose beauty and sublimity reaches us only indirectly: this is religiousness. In this sense I am religious. To me it suffices to wonder at these secrets and to attempt humbly to grasp with my mind a mere image of the lofty structure of all there is.

The science shows that . . . typical twentieth-century carrot-and-stick motivators—things we consider somehow a “natural” part of human enterprise—can sometimes work. But they’re effective in only a surprisingly narrow band of circumstances. The science shows that “if-then” rewards . . . are not only ineffective in many situations, but can also crush the high-level, creative, conceptual abilities that are central to current and future economic and social progress. The science shows that the secret to high performance isn’t our biological drive (our survival needs) or our reward-and-punishment drive, but our third drive—our deep-seated desire to direct our own lives, to extend and expand our abilities, and to fill our life with purpose.

When a moderate degree of comfort is assured, both individuals and communities will pursue power rather than wealth: they may seek wealth as a means to power, or they may forgo an increase of wealth in order to secure an increase of power, but in the former case as in the latter their fundamental motive is not economic.

Looking back on the fifty years since I first became aware of its flaws, the word that summarizes my feelings about Neoclassical economics today is that it is, as Marx once described the proto-Neoclassical Jean-Baptiste Say, ‘dull’ [...] Its vision of capitalism at its best is a system manifesting the harmony of equilibrium, where everyone is paid their just return (their ‘marginal product’), growth is occurring smoothly at a rate that maximizes social utility through time, and everyone is motivated by consumption – rather than accumulation and power – because, to quote Say, ‘the producers, though they have all of them the air of demanding money for their goods, do in reality demand merchandise for their merchandise’ [...] What a bland picture of the complex, changing world in which we live!

To those who feared oppressive taxes, Hamilton made an argument that anticipated “supply-side economics” of the late twentieth century, saying that officials “can have no temptation to abuse this power, because the motive of revenue will check its own extremes. Experience has shown that moderate duties are more productive than high ones.”10

I believe that to create real wealth one must be willing to abandon one’s limited thinking, remove the boundaries around our abundance, and stop outlining how it is to appear in our lives. Remember not to create boundaries and remember not to define the outcome. Most importantly, stop letting people who are motivated by jealousy and envy dictate what your limitations are.

The motivation for taking on debt is to buy assets or claims rising in price. Over the past half-century the aim of financial investment has been less to earn profits on tangible capital investment than to generate “capital” gains (most of which take the form of debt-leveraged land prices, not industrial capital). Annual price gains for property, stocks and bonds far outstrip the reported real estate rents, corporate profits and disposable personal income after paying for essential non-discretionary spending, headed by FIRE [Finance, Insurance, Real Estate]-sector charges.

Life is a total process, the inner as well as the outer; the outer definitely affects the inner, but the inner invariably overcomes the outer. What you are, you bring about outwardly. The outer and the inner cannot be separated and kept in watertight compartments, for they are constantly interacting upon each other; but the inner craving, the hidden pursuits and motives, are always more powerful. Life is not dependent upon political or economic activity; life is not a mere outward show, any more than a tree is the leaf or the branch. Life is a total process whose beauty is to be discovered only in its integration.

It’s common to associate the ‘goodness’ or ‘badness’ of behaviour with the ‘goodness’ or ‘badness’ of the motivations that drive it. But the nobility or ignobility of individuals’ motivations often bears no relationship, and in some cases even exhibits an inverse relationship, to the nobility or ignobility of the outcomes these motivations create. Sometimes the basest of intentions can produce the best of outcomes.

[C]apitalism is clearly inadequate as any kind of social ideal, since it is only motivated by profit, without any ethical principle guiding it. Unbridled capitalism can involve terrible exploitation of the weak. Thus we need to adopt an approach to economic justice which respects the dynamism of capitalism while combining it with a concern for the less fortunate. Once again, I think microfinance offers a sustainable and responsive line of approach to issues of poverty alleviation and development, an approach which could avoid the excesses of capitalism on the one hand and the inefficiency of excessive state control on the other.

How could a large land empire thrive and dominate in the modern world without reliable access to world markets and without much recourse to naval power? Stalin and Hitler had arrived at the same basic answer to this fundamental question. The state must be large in territory and self-sufficient in economics, with a balance between industry and agriculture that supported a hardily conformist and ideologically motivated citizenry capable of fulfilling historical prophecies - either Stalinist internal industrialization or Nazi colonial agrarianism. Both Hitler and Stalin aimed at imperial autarky, within a large land empire well supplies in food, raw materials, and mineral resources. Both understood the flash appeal of modern materials: Stalin had named himself after steel, and Hitler paid special attention to is production. Yet both Stalin and Hitler understood agriculture as a key element in the completion of their revolutions. Both believed that their systems would prove their superiority to decadent capitalism, and guarantee independence from the rest of the world, by the production of food. p. 158

I use “anticapitalist” because conservative defenders of capitalism regularly say their liberal and socialist opponents are against capitalism. They say efforts to provide a safety net for all people are “anticapitalist.” They say attempts to prevent monopolies are “anticapitalist.” They say efforts that strengthen weak unions and weaken exploitative owners are “anticapitalist.” They say plans to normalize worker ownership and regulations protecting consumers, workers, and environments from big business are “anticapitalist.” They say laws taxing the richest more than the middle class, redistributing pilfered wealth, and guaranteeing basic incomes are “anticapitalist.” They say wars to end poverty are “anticapitalist.” They say campaigns to remove the profit motive from essential life sectors like education, healthcare, utilities, mass media, and incarceration are “anticapitalist.” In doing so, these conservative defenders are defining capitalism. They define capitalism as the freedom to exploit people into economic ruin; the freedom to assassinate unions; the freedom to prey on unprotected consumers, workers, and environments; the freedom to value quarterly profits over climate change; the freedom to undermine small businesses and cushion corporations; the freedom from competition; the freedom not to pay taxes; the freedom to heave the tax burden onto the middle and lower classes; the freedom to commodify everything and everyone; the freedom to keep poor people poor and middle-income people struggling to stay middle income, and make rich people richer. The history of capitalism—of world warring, classing, slave trading, enslaving, colonizing, depressing wages, and dispossessing land and labor and resources and rights—bears out the conservative definition of capitalism.

Recognizing that many forms of violence are motivated by a range of intentions and hostilities, the terms racist, sexist, anti-Semitic, anti-Muslim, and homophobic and transphobic violence are used here in an effort to more accurately describe the phenomena under discussion: the terms bias or hate crime suggest that such violence is motivated entirely by prejudice (presumably irrational) and not informed by historical patterns of dominance and subordination that produce tangible political, social, and economic benefits for majority groups. Regardless of the terminology used or its targets, there is no question that such violence is abhorrent, structural, and pervasive. Where

Writer Brigid Brophy exposes [their motives] with great precision: "Whenever people say 'We mustn't be sentimental,' you can take it they are about to do something cruel. And if they add 'We must be realistic,' they mean they are going to make money out of it. These slogans have a long history. After being used to justify slave traders, ruthless industrialists, and contractors who had found that the most economically 'realistic' method of cleaning a chimney was to force a small child to climb it, they have now been passed on, like an heirloom, to the factory farmers. 'We mustn't be sentimental' tries to persuade us that factory farming isn't, in fact, cruel. It implies that the whole problem had been invented by our sloppy imaginations.

While economic motives contributed greatly to the spread of the Reformation, they are obviously not sufficient to account for it, since they had been operative for centuries. Many Emperors tried to resist the Pope; so did sovereigns elsewhere, e.g. Henry II and King John in England. But their attempts were thought wicked, and therefore failed. It was only after the Papacy had, for a long time, so abused its traditional powers as to cause a moral revolt, that successful resistance became possible.

The most powerful interests are basic human needs. In searching for the basic interests behind a declared position, look particularly for those bedrock concerns that motivate all people. If you can take care of such basic needs, you increase the chance both of reaching agreement and, if an agreement is reached, of the other side’s keeping to it. Basic human needs include: security economic well-being a sense of belonging recognition control over one’s life As fundamental as they are, basic human needs are easy to overlook. In many negotiations, we tend to think that the only interest involved is money. Yet even in a negotiation over a monetary figure, such as the amount of alimony to be specified in a separation agreement, much more can be involved.

Moreover, the fact that more than a third of the electorate voted Nazi in 1932 was a hugely significant factor in the Republic’s fall and in the rise of Hitler. But most of those voters were not motivated by a broad discontent with the Republic, including with its sexual politics, as some studies have asserted.54 Rather, voters were radicalized, driven to the extreme parties, and drawn to the polls by specific issues, such as the economic crisis, the fear of communism, and the trauma of unemployment.55

Wars are motivated by the need to seize the wealth of our neighbours, to wield power, to protect ourselves from real or imagined threats: in short they have, as we have seen, political, social, economic or demographic causes. There is no need to refer to Islam or the clash of civilizations to explain why the Afghans or the Iraqis resist the western military forces occupying their countries. Nor to speak of anti-Jewish sentiment or anti-Semitism to understand the reasons why the Palestinians are not overjoyed by the Israeli occupation of their lands.

The emotional pattern seems to be something like, “[Karl] Polanyi, a person of the left like me, says many true things, beautifully. Therefore his tales about what happened in economic history must be true.” Marx before him got similar treatment. Lately the more eloquent of the environmentalists, such as Wendell Berry, get it too. People want to believe that beauty is truth. A supporting emotional frame on the left arises from the very idea of historical progress: “We must be able to do so much better than this wretched capitalism.” It is not true, but it motivates.

Throughout history, the life of a businessperson always involves some risk; the higher the risk, the greater the reward. On the other hand, the life of an employee in any workforce involves minimal to no risk at all, resulting in a lifetime full of steadiness with little to no accomplishments during this lifetime. However, there is a crucial factor which can also be considered as a trait or characteristic that made many remarkable men and women throughout history reach high levels of their career paths, which is considered to be “success” in our modern world: Audacity.

Reasoning systematically, Marx was one of the few socialists to understand that economic competition, motivated by "greed," was what drove prices down under capitalism, as capitalists ceaselessly searched for more profits by seeking cheaper ways of producing than those possessed by their fellow capitalist rivals. Mutual competition ensured that capitalists were in no position simply to tack higher profits onto production costs. Therefore, as production costs were driven down throughout an industry, prices tended to be driven down as well, to the benefit of the consuming public.

In December 1790, with other options foreclosed, Hamilton revived a proposal he had floated in his Report on Public Credit: an excise tax on whiskey and other domestic spirits. He knew the measure would be loathed in rural areas that thrived on moonshine, but he thought this might be more palatable to farmers than a land tax. Hamilton confessed to Washington an ulterior political motive for this liquor tax: he wanted to lay “hold of so valuable a resource of revenue before it was generally preoccupied by the state governments.” As with assumption, he wanted to starve the states of revenue and shore up the federal government. Jefferson did not exaggerate Hamilton’s canny capacity to clothe political objectives in technical garb. There were hidden agendas buried inside Hamilton’s economic program, agendas that he tended to share with high-level colleagues but not always with the public.

Although the ideal of celibacy was always put forward as a matter of high spirituality, the controlling motive for this purging of marriage from the priesthood [with the First Lateran Council, 1123] was economic. Through networks of monasteries and feudal fiefdoms, the Church was the largest landowner in Christendom — the territory described today as Western Europe. Celibate clergy, with no households to support, would lack the essential drive to accumulate wealth for themselves; nor would they produce legitimate heirs to lodge competing claims to the vast estates and treasures the medieval church was hell-bent on protecting and expanding.

White vulnerability’ and ‘racial resentment’ are in themselves euphemisms (political correctness is sometimes not a myth, you see, when it comes to refusing to call prejudices what they actually are). Both terms imply that Trump voters’ motivation was legitimate and understandable – they were just vulnerable and resentful. ‘Racial entitlement’ would be a more accurate and less unnecessarily forgiving descriptor. Racial entitlement, rather than economic concerns, made Trump a more attractive proposition for white voters who, in the millennial category, were in fact less likely to be economically deprived than voters who did not support Trump. White non-Hispanics without college degrees making below the median US household income made up only 25 per cent of Trump voters. On the whole, Hillary Clinton lost to Trump among white voters in every single income category, across classes, educations and incomes. He won among poor working-class voters and their wealthy overlords. This was not an economic revolution; it was a white nationalist one.

The harm done by the FDA does not result from defects in the people in charge—unless it be a defect to be human. Many have been able and devoted civil servants. However, social, political, and economic pressures determine the behavior of the people supposedly in charge of a government agency to a far greater extent than they determine its behavior. No doubt there are exceptions, but they are rare—almost as rare as barking cats. That does not mean that effective reform is impossible. But it requires taking account of the political laws governing the behavior of government agencies, not simply berating officials for inefficiency and waste or questioning their motives and urging them to do better. The

The espousal of the doctrine of Negro inferiority by the South was primarily because of economic motives and the inter-connected political urge necessary to support slave industry; but to the watching world it sounded like the carefully thought out result of experience and reason; and because of this it was singularly disastrous for modern civilization science and religion, in art and government, as well as in industry. The South could say that the Negro, even when brought into modern civilization, could not be civilized, and that, therefore, he and the other colored peoples of the world were so far inferior to the whites that the white world had a right to rule mankind for their own selfish interests.

Since the very beginning of the Communist regime, I had carefully studied books on Marxism and pronouncements by Chinese Communist Party leaders. It seemed to me that socialism in China was still very much an experiment nad had no fixed course of development for the country had yet been decided upon. This, I thought, was why the government's policy was always changing, like a pendulum swinging from left to right and back again. When things went to extremes and problems emerged. Beijing would take corrective measures. Then these very corrective measures went too far and had to be corrected. The real difficulty was, of course, that a state-controlled economy only stifled productivity, and economic planning from Beijing ignored local conditions and killed incentive. When a policy changed from above, the standards of values changed with it. What was right yesterday became wrong today, and visa versa. Thus the words and actions of a Communist Party official at the lower level were valid for a limited time only... The Cultural Revolution seemed to me to be a swing to the left. Sooner or later, when it had gone too far, corrective measures would be taken. The people would have a few months or a few years of respite until the next political campaign. Mao Zedong believed that political campaigns were the motivating force for progress. So I thought the Proletarian Cultural Revolution was just one of an endless series of upheavals the Chinese people must learn to put up with.

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.

But within the framework of an ideology such pluralism cannot be so enlarged as to incorporate into the political system and submit to political arbitration radical structural conflicts between family life and economic development, religión and culture, personality and the need for governmental administration, or between the expected motives of agents and the methods of recruiting. In such States, political pluralism remains on a technical and instrumental level; the problem-solving capacity of the political system is built on the premise that, in the last analysis, all critical problems can be reduced to economic problems. For this reason (and because of the political ideologization of all publíc life) limits are set to the level of complexity such a society can reach.

But at the same time, Dreiser points in An American Tragedy to the significance of those very social connections in the creation of Clyde’s criminal motivation. In asking how Clyde Griffiths the murderer was formed, Dreiser takes a panoramic view of economic development and social change in the United States during the decades leading up to the 1920s. In particular, he views Clyde as the product of a certain kind of family during a certain historical period. Though the story of Clyde draws on accounts of an actual 1906 murder, Dreiser deliberately avoids exactly dating the story, and the book thus comments not on a specific moment, but on an American era. The Cambridge Companion to Theodore Dreiser (Cambridge Companions to Literature) (p. 198). Cambridge University Press. Kindle Edition.

Donald Trump consciously stokes racist sentiment, and has given a rocket boost to the ‘alt-right’ fringe of neo-Nazis and white nationalists. But to write off all those who voted for him as bigoted will only make his job easier. It is also inaccurate. Millions who backed Trump in 2016 had voted for Barack Obama in 2008. Did they suddenly become deplorable? A better explanation is that many kinds of Americans have long felt alienated from an establishment that has routinely sidelined their economic complaints. In 2008 America went for the outsider, an African-American with barely any experience in federal politics. Obama offered hope. In 2016 it went for another outsider with no background in any kind of politics. Trump channelled rage. To be clear: Trump poses a mortal threat to all America’s most precious qualities. But by giving a higher priority to the politics of ethnic identity than people’s common interests, the American left helped to create what it feared. The clash of economic interests is about relative trade-offs. Ethnic politics is a game of absolutes. In 1992, Bill Clinton won the overwhelming majority of non-college whites. By 2016, most of them had defected. Having branded their defection as racially motivated, liberals are signalling that they do not want them back.

We should finally note a more radical challenge to the concept of Platonic utility that arises from nascent work in the reinforcement learning field under the rubric of intrinsic motivation. One idea is that the "true" evolutionarily appropriate metric for behavior is the extremely sparse one of propagating ones genes. What we think of as a Platonic utility over immediate rewards such as food or water, would merely be a surrogate that helps overcome the otherwise insurmountable credit assignment path associated with procreation. In these terms, even the Platonic utility is the same sort of heuristic expedient as the Pavlovian controller itself, with evolutionary optimality molding approximate economic rationality to its own ends. It as a sober thought that understanding values may be less important as a way of unearthing the foundations of choice that we might have expected.

ONE OF THE main differences between standard and behavioral economics involves this concept of “free lunches.” According to the assumptions of standard economics, all human decisions are rational and informed, motivated by an accurate concept of the worth of all goods and services and the amount of happiness (utility) all decisions are likely to produce. Under this set of assumptions, everyone in the marketplace is trying to maximize profit and striving to optimize his experiences. As a consequence, economic theory asserts that there are no free lunches—if there were any, someone would have already found them and extracted all their value. Behavioral economists, on the other hand, believe that people are susceptible to irrelevant influences from their immediate environment (which we call context effects), irrelevant emotions, shortsightedness, and other forms of irrationality (see any chapter in this book or any research paper in behavioral economics for more examples). What good news can accompany this realization? The good news is that these mistakes also provide opportunities for improvement. If we all make systematic mistakes in our decisions, then why not develop new strategies, tools, and methods to help us make better decisions and improve our overall well-being? That’s exactly the meaning of free lunches from the perspective of behavioral economics—the idea that there are tools, methods, and policies that can help all of us make better decisions and as a consequence achieve what we desire.

Loss aversion refers to the relative strength of two motives: we are driven more strongly to avoid losses than to achieve gains. A reference point is sometimes the status quo, but it can also be a goal in the future: not achieving a goal is a loss, exceeding the goal is a gain. As we might expect from negativity dominance, the two motives are not equally powerful. The aversion to the failure of not reaching the goal is much stronger than the desire to exceed it. People often adopt short-term goals that they strive to achieve but not necessarily to exceed. They are likely to reduce their efforts when they have reached an immediate goal, with results that sometimes violate economic logic. New York cabdrivers, for example, may have a target income for the month or the year, but the goal that controls their effort is typically a daily target of earnings. Of course, the daily goal is much easier to achieve (and exceed) on some days than on others. On rainy days, a New York cab never remains free for long, and the driver quickly achieves his target; not so in pleasant weather, when cabs often waste time cruising the streets looking for fares. Economic logic implies that cabdrivers should work many hours on rainy days and treat themselves to some leisure on mild days, when they can “buy” leisure at a lower price. The logic of loss aversion suggests the opposite: drivers who have a fixed daily target will work many more hours when the pickings are slim and go home early when rain-drenched customers are begging to be taken somewhere.

In the 1970s, researchers conducted a study that pitted a moral incentive against an economic incentive. In this case, they wanted to learn about the motivation behind blood donations. Their discovery: when people are given a small stipend for donating blood rather than simply being praised for their altruism, they tend to donate less blood. The stipend turned a noble act of charity into a painful way to make a few dollars, and it wasn’t worth it. What if the blood donors had been offered an incentive of $50, or $500, or $5,000? Surely the number of donors would have changed dramatically. But something else would have changed dramatically as well, for every incentive has its dark side. If a pint of blood were suddenly worth $5,000, you can be sure that plenty of people would take note. They might literally steal blood at knifepoint. They might pass off pig blood as their own. They might circumvent donation limits by using fake IDs. Whatever the incentive, whatever the situation, dishonest people will try to gain an advantage by whatever means necessary. Or, as W. C. Fields once said: a thing worth having is a thing worth cheating for.

It is the punisher’s mind-set where everything must be changed. The difficulty of this is explored in the superb book The Punisher’s Brain: The Evolution of Judge and Jury (2014) by Morris Hoffman, a practicing judge and legal scholar.31 He reviews the reasons for punishment: As we see from game theory studies, because punishment fosters cooperation. Because it is in the fabric of the evolution of sociality. And most important, because it can feel good to punish, to be part of a righteous and self-righteous crowd at a public hanging, knowing that justice is being served. This is a deep, atavistic pleasure. Put people in brain scanners, give them scenarios of norm violations. Decision making about culpability for the violation correlates with activity in the cognitive dlPFC. But decision making about appropriate punishment activates the emotional vmPFC, along with the amygdala and insula; the more activation, the more punishment.32 The decision to punish, the passionate motivation to do so, is a frothy limbic state. As are the consequences of punishing—when subjects punish someone for making a lousy offer in an economic game, there’s activation of dopaminergic reward systems. Punishment that feels just feels good.

Fifteen years ago, a business manager from the United States came to Plum Village to visit me. His conscience was troubled because he was the head of a firm that designed atomic bombs. I listened as he expressed his concerns. I knew if I advised him to quit his job, another person would only replace him. If he were to quit, he might help himself, but he would not help his company, society, or country. I urged him to remain the director of his firm, to bring mindfulness into his daily work, and to use his position to communicate his concerns and doubts about the production of atomic bombs. In the Sutra on Happiness, the Buddha says it is great fortune to have an occupation that allows us to be happy, to help others, and to generate compassion and understanding in this world. Those in the helping professions have occupations that give them this wonderful opportunity. Yet many social workers, physicians, and therapists work in a way that does not cultivate their compassion, instead doing their job only to earn money. If the bomb designer practises and does his work with mindfulness, his job can still nourish his compassion and in some way allow him to help others. He can still influence his government and fellow citizens by bringing greater awareness to the situation. He can give the whole nation an opportunity to question the necessity of bomb production. Many people who are wealthy, powerful, and important in business, politics, and entertainment are not happy. They are seeking empty things - wealth, fame, power, sex - and in the process they are destroying themselves and those around them. In Plum Village, we have organised retreats for businesspeople. We see that they have many problems and suffer just as others do, sometimes even more. We see that their wealth allows them to live in comfortable conditions, yet they still suffer a great deal. Some businesspeople, even those who have persuaded themselves that their work is very important, feel empty in their occupation. They provide employment to many people in their factories, newspapers, insurance firms, and supermarket chains, yet their financial success is an empty happiness because it is not motivated by understanding or compassion. Caught up in their small world of profit and loss, they are unaware of the suffering and poverty in the world. When we are not int ouch with this larger reality, we will lack the compassion we need to nourish and guide us to happiness. Once you begin to realise your interconnectedness with others, your interbeing, you begin to see how your actions affect you and all other life. You begin to question your way of living, to look with new eyes at the quality of your relationships and the way you work. You begin to see, 'I have to earn a living, yes, but I want to earn a living mindfully. I want to try to select a vocation not harmful to others and to the natural world, one that does not misuse resources.' Entire companies can also adopt this way of thinking. Companies have the right to pursue economic growth, but not at the expense of other life. They should respect the life and integrity of people, animals, plants and minerals. Do not invest your time or money in companies that deprive others of their lives, that operate in a way that exploits people or animals, and destroys nature. Businesspeople who visit Plum Village often find that getting in touch with the suffering of others and cultivating understanding brings them happiness. They practise like Anathapindika, a successful businessman who lived at the time of the Buddha, who with the practise of mindfulness throughout his life did everything he could to help the poor and sick people in his homeland.

To be sure, we can buy art, but we sense that if it is mere commodity, we pay too much; and if it is true art, we pay infinitely too little. Similarly, we can buy sex but not love; we can buy calories but not real nourishment. Today we suffer a poverty of immesurable things, priceless things; a poverty of the things that money cannot buy and a surfeit of the things it can (though this surfeit is so unequally distributed that many suffer a poverty of those things, too). Just as money homogenizes the things it touches, so also does it homogenize and depersonalize its users: "It facilitates the kind of commercial exchange that is disembedded from all other relations." In other words, people become mere parties to a transaction. In contrast to the diverse motivations that characterize the giving and receiving of gifts, in a pure financial transaction we are all identical: we all want to get the best deal. The homegeneity among human beings that is an effect of money is assumed by economics to be a cause. The whole story of money's evolution from barter assumes that it is fundamental human nature to want to maximize self-interest. In this, human beings are assumed to be identical. When there is no standard of value, different humans want different things. When money is exchangeable for any thing, then all people want the same thing: money.

Finally, we arrive at the question of the so-called nonpolitical man. Hitler not only established his power from the very beginning with masses of people who were until then essentially nonpolitical; he also accomplished his last step to victory in March of 1933 in a "legal" manner, by mobilizing no less than five million nonvoters, that is to say, nonpolitical people. The Left parties had made every effort to win over the indifferent masses, without posing the question as to what it means "to be indifferent or nonpolitical." If an industrialist and large estate owner champions a rightist party, this is easily understood in terms of his immediate economic interests. In his case a leftist orientation would be at variance with his social situation and would, for that reason, point to irrational motives. If an industrial worker has a leftist orientation, this too is by all mean rationally consistent—it derives from his economic and social position in industry. If, however, a worker, an employee, or an official has a rightist orientation, this must be ascribed to a lack of political clarity, i.e., he is ignorant of his social position. The more a man who belongs to the broad working masses is nonpolitical, the more susceptible he is to the ideology of political reaction. To be nonpolitical is not, as one might suppose, evidence of a passive psychic condition, but of a highly active attitude, a defense against the awareness of social responsibility. The analysis of this defense against consciousness of one's social responsibility yields clear insights into a number of dark questions concerning the behavior of the broad nonpolitical strata. In the case of the average intellectual "who wants nothing to do with politics," it can easily be shown that immediate economic interests and fears related to his social position, which is dependent upon public opinion, lie at the basis of his noninvolvement. These fears cause him to make the most grotesque sacrifices with respect to his knowledge and convictions. Those people who are engaged in the production process in one way or another and are nonetheless socially irresponsible can be divided into two major groups. In the case of the one group the concept of politics is unconsciously associated with the idea of violence and physical danger, i.e., with an intense fear, which prevents them from facing life realistically. In the case of the other group, which undoubtedly constitutes the majority, social irresponsibility is based on personal conflicts and anxieties, of which the sexual anxiety is the predominant one. […] Until now the revolutionary movement has misunderstood this situation. It attempted to awaken the "nonpolitical" man by making him conscious solely of his unfulfilled economic interests. Experience teaches that the majority of these "nonpolitical" people can hardly be made to listen to anything about their socio-economic situation, whereas they are very accessible to the mystical claptrap of a National Socialist, despite the fact that the latter makes very little mention of economic interests. [This] is explained by the fact that severe sexual conflicts (in the broadest sense of the word), whether conscious or unconscious, inhibit rational thinking and the development of social responsibility. They make a person afraid and force him into a shell. If, now, such a self-encapsulated person meets a propagandist who works with faith and mysticism, meets, in other words, a fascist who works with sexual, libidinous methods, he turns his complete attention to him. This is not because the fascist program makes a greater impression on him than the liberal program, but because in his devotion to the führer and the führer's ideology, he experiences a momentary release from his unrelenting inner tension. Unconsciously, he is able to give his conflicts a different form and in this way to "solve" them.

Nevertheless, scholars keep obsessing about selfish motives, simply because both economics and behaviorism have indoctrinated them that incentives drive everything that animals or humans do. I don’t believe a word of it, though, and a recent ingenious experiment on children drives home why. The German psychologist Felix Warneken investigated how young chimpanzees and children assist human adults. The experimenter was using a tool but dropped it in midjob: would they pick it up? The experimenter’s hands were full: would they open a cupboard for him? Both species did so voluntarily and eagerly, showing that they understood the experimenter’s problem. Once Warneken started to reward the children for their assistance, however, they became less helpful. The rewards, it seems, distracted them from sympathizing with the clumsy experimenter.50 I am trying to figure how this would work in real life. Imagine that every time I offered a helping hand to a colleague or neighbor—keeping a door open or picking up their mail—they stuffed a few dollars in my shirt pocket. I’d be deeply offended, as if all I cared about was money! And it would surely not encourage me to do more for them. I might even start avoiding them as being too manipulative. It is curious to think that human behavior is entirely driven by tangible rewards, given that most of the time rewards are nowhere in sight. What are the rewards for someone who takes care of a spouse with Alzheimer’s? What payoffs does someone derive from sending money to a good cause? Internal rewards (feeling good) may very well come into play, but they work only via the amelioration of the other’s situation. They are nature’s way of making sure that we are other-oriented rather than self-oriented.

McDougall was a certified revolutionary hero, while the Scottish-born cashier, the punctilious and corpulent William Seton, was a Loyalist who had spent the war in the city. In a striking show of bipartisan unity, the most vociferous Sons of Liberty—Marinus Willett, Isaac Sears, and John Lamb—appended their names to the bank’s petition for a state charter. As a triple power at the new bank—a director, the author of its constitution, and its attorney—Hamilton straddled a critical nexus of economic power. One of Hamilton’s motivations in backing the bank was to introduce order into the manic universe of American currency. By the end of the Revolution, it took $167 in continental dollars to buy one dollar’s worth of gold and silver. This worthless currency had been superseded by new paper currency, but the states also issued bills, and large batches of New Jersey and Pennsylvania paper swamped Manhattan. Shopkeepers had to be veritable mathematical wizards to figure out the fluctuating values of the varied bills and coins in circulation. Congress adopted the dollar as the official monetary unit in 1785, but for many years New York shopkeepers still quoted prices in pounds, shillings, and pence. The city was awash with strange foreign coins bearing exotic names: Spanish doubloons, British and French guineas, Prussian carolines, Portuguese moidores. To make matters worse, exchange rates differed from state to state. Hamilton hoped that the Bank of New York would counter all this chaos by issuing its own notes and also listing the current exchange rates for the miscellaneous currencies. Many Americans still regarded banking as a black, unfathomable art, and it was anathema to upstate populists. The Bank of New York was denounced by some as the cat’s-paw of British capitalists. Hamilton’s petition to the state legislature for a bank charter was denied for seven years, as Governor George Clinton succumbed to the prejudices of his agricultural constituents who thought the bank would give preferential treatment to merchants and shut out farmers. Clinton distrusted corporations as shady plots against the populace, foreshadowing the Jeffersonian revulsion against Hamilton’s economic programs. The upshot was that in June 1784 the Bank of New York opened as a private bank without a charter. It occupied the Walton mansion on St. George’s Square (now Pearl Street), a three-story building of yellow brick and brown trim, and three years later it relocated to Hanover Square. It was to house the personal bank accounts of both Alexander Hamilton and John Jay and prove one of Hamilton’s most durable monuments, becoming the oldest stock traded on the New York Stock Exchange.

Having judged, condemned, abandoned his cultural forms, his language, his food habits, his sexual behavior, his way of sitting down, of resting, of laughing, of enjoying himself, the oppressed flings himself upon the imposed culture with the desperation of a drowning man. Developing his technical knowledge in contact with more and more perfected machines, entering into the dynamic circuit of industrial production, meeting men from remote regions in the framework of the concentration of capital, that is to say, on the job, discovering the assembly line, the team, production �time,� in other words yield per hour, the oppressed is shocked to find that he continues to be the object of racism and contempt. It is at this level that racism is treated as a question of persons. �There are a few hopeless racists, but you must admit that on the whole the population likes….� �With time all this will disappear.� �This is the country where there is the least amount of race prejudice.� �At the United Nations there is a commission to fight race prejudice.� Films on race prejudice, poems on race prejudice, messages on race prejudice. Spectacular and futile condemnations of race prejudice. In reality, a colonial country is a racist country. If in England, in Belgium, or in France, despite the democratic principles affirmed by these respective nations, there are still racists, it is these racists who, in their opposition to the country as a whole, are logically consistent. It is not possible to enslave men without logically making them inferior through and through. And racism is only the emotional, affective, sometimes intellectual explanation of this inferiorization. The racist in a culture with racism is therefore normal. He has achieved a perfect harmony of economic relations and ideology. The idea that one forms of man, to be sure, is never totally dependent on economic relations, in other words—and this must not be forgotten—on relations existing historically and geographically among men and groups. An ever greater number of members belonging to racist societies are taking a position. They are dedicating themselves to a world in which racism would be impossible. But everyone is not up to this kind of objectivity, this abstraction, this solemn commitment. One cannot with impunity require of a man that he be against �the prejudices of his group.� And, we repeat, every colonialist group is racist. �Acculturized� and deculturized at one and the same time, the oppressed continues to come up against racism. He finds this sequel illogical, what be has left behind him inexplicable, without motive, incorrect. His knowledge, the appropriation of precise and complicated techniques, sometimes his intellectual superiority as compared to a great number of racists, lead him to qualify the racist world as passion-charged. He perceives that the racist atmosphere impregnates all the elements of the social life. The sense of an overwhelming injustice is correspondingly very strong. Forgetting racism as a consequence, one concentrates on racism as cause. Campaigns of deintoxication are launched. Appeal is made to the sense of humanity, to love, to respect for the supreme values.

A common problem plagues people who try to design institutions without accounting for hidden motives. First they identify the key goals that the institution “should” achieve. Then they search for a design that best achieves these goals, given all the constraints that the institution must deal with. This task can be challenging enough, but even when the designers apparently succeed, they’re frequently puzzled and frustrated when others show little interest in adopting their solution. Often this is because they mistook professed motives for real motives, and thus solved the wrong problems. Savvy institution designers must therefore identify both the surface goals to which people give lip service and the hidden goals that people are also trying to achieve. Designers can then search for arrangements that actually achieve the deeper goals while also serving the surface goals—or at least giving the appearance of doing so. Unsurprisingly, this is a much harder design problem. But if we can learn to do it well, our solutions will less often meet the fate of puzzling disinterest. We should take a similar approach when reforming a preexisting institution by first asking ourselves, “What are this institution’s hidden functions, and how important are they?” Take education, for example. We may wish for schools that focus more on teaching than on testing. And yet, some amount of testing is vital to the economy, since employers need to know which workers to hire. So if we tried to cut too much from school’s testing function, we could be blindsided by resistance we don’t understand—because those who resist may not tell us the real reasons for their opposition. It’s only by understanding where the resistance is coming from that we have any hope of overcoming it. Not all hidden institutional functions are worth facilitating, however. Some involve quite wasteful signaling expenditures, and we might be better off if these institutions performed only their official, stated functions. Take medicine, for example. To the extent that we use medical spending to show how much we care (and are cared for), there are very few positive externalities. The caring function is mostly competitive and zero-sum, and—perhaps surprisingly—we could therefore improve collective welfare by taxing extraneous medical spending, or at least refusing to subsidize it. Don’t expect any politician to start pushing for healthcare taxes or cutbacks, of course, because for lawmakers, as for laypeople, the caring signals are what makes medicine so attractive. These kinds of hidden incentives, alongside traditional vested interests, are what often make large institutions so hard to reform. Thus there’s an element of hubris in any reform effort, but at least by taking accurate stock of an institution’s purposes, both overt and covert, we can hope to avoid common mistakes. “The curious task of economics,” wrote Friedrich Hayek, “is to demonstrate to men how little they really know about what they imagine they can design.”8

Rule by decree has conspicuous advantages for the domination of far-flung territories with heterogeneous populations and for a policy of oppression. Its efficiency is superior simply because it ignores all intermediary stages between issuance and application, and because it prevents political reasoning by the people through the withholding of information. It can easily overcome the variety of local customs and need not rely on the necessarily slow process of development of general law. It is most helpful for the establishment of a centralized administration because it overrides automatically all matters of local autonomy. If rule by good laws has sometimes been called the rule of wisdom, rule by appropriate decrees may rightly be called the rule of cleverness. For it is clever to reckon with ulterior motives and aims, and it is wise to understand and create by deduction from generally accepted principles. Government by bureaucracy has to be distinguished from the mere outgrowth and deformation of civil services which frequently accompanied the decline of the nation-state—as, notably, in France. There the administration has survived all changes in regime since the Revolution, entrenched itself like a parasite in the body politic, developed its own class interests, and become a useless organism whose only purpose appears to be chicanery and prevention of normal economic and political development. There are of course many superficial similarities between the two types of bureaucracy, especially if one pays too much attention to the striking psychological similarity of petty officials. But if the French people have made the very serious mistake of accepting their administration as a necessary evil, they have never committed the fatal error of allowing it to rule the country—even though the consequence has been that nobody rules it. The French atmosphere of government has become one of inefficiency and vexation; but it has not created and aura of pseudomysticism. And it is this pseudomysticism that is the stamp of bureaucracy when it becomes a form of government. Since the people it dominates never really know why something is happening, and a rational interpretation of laws does not exist, there remains only one thing that counts, the brutal naked event itself. What happens to one then becomes subject to an interpretation whose possibilities are endless, unlimited by reason and unhampered by knowledge. Within the framework of such endless interpretive speculation, so characteristic of all branches of Russian pre-revolutionary literature, the whole texture of life and world assume a mysterious secrecy and depth. There is a dangerous charm in this aura because of its seemingly inexhaustible richness; interpretation of suffering has a much larger range than that of action for the former goes on in the inwardness of the soul and releases all the possibilities of human imagination, whereas the latter is consistently checked, and possibly led into absurdity, by outward consequence and controllable experience.

The government has a great need to restore its credibility, to make people forget its history and rewrite it. The intelligentsia have to a remarkable degree undertaken this task. It is also necessary to establish the "lessons" that have to be drawn from the war, to ensure that these are conceived on the narrowest grounds, in terms of such socially neutral categories as "stupidity" or "error" or "ignorance" or perhaps "cost." Why? Because soon it will be necessary to justify other confrontations, perhaps other U.S. interventions in the world, other Vietnams. But this time, these will have to be successful intervention, which don't slip out of control. Chile, for example. It is even possible for the press to criticize successful interventions - the Dominican Republic, Chile, etc. - as long as these criticisms don't exceed "civilized limits," that is to say, as long as they don't serve to arouse popular movements capable of hindering these enterprises, and are not accompanied by any rational analysis of the motives of U.S. imperialism, something which is complete anathema, intolerable to liberal ideology. How is the liberal press proceeding with regard to Vietnam, that sector which supported the "doves"? By stressing the "stupidity" of the U.S. intervention; that's a politically neutral term. It would have been sufficient to find an "intelligent" policy. The war was thus a tragic error in which good intentions were transmuted into bad policies, because of a generation of incompetent and arrogant officials. The war's savagery is also denounced, but that too, is used as a neutral category...Presumably the goals were legitimate - it would have been all right to do the same thing, but more humanely... The "responsible" doves were opposed to the war - on a pragmatic basis. Now it is necessary to reconstruct the system of beliefs according to which the United States is the benefactor of humanity, historically committed to freedom, self-determination, and human rights. With regard to this doctrine, the "responsible" doves share the same presuppositions as the hawks. They do not question the right of the United States to intervene in other countries. Their criticism is actually very convenient for the state, which is quite willing to be chided for its errors, as long as the fundamental right of forceful intervention is not brought into question. ... The resources of imperialist ideology are quite vast. It tolerates - indeed, encourages - a variety of forms of opposition, such as those I have just illustrated. It is permissible to criticize the lapses of the intellectuals and of government advisers, and even to accuse them of an abstract desire for "domination," again a socially neutral category not linked in any way to concrete social and economic structures. But to relate that abstract "desire for domination" to the employment of force by the United States government in order to preserve a certain system of world order, specifically, to ensure that the countries of the world remain open insofar as possible to exploitation by U.S.-based corporations - that is extremely impolite, that is to argue in an unacceptable way.

Westerners, not just Lincoln Steffens. It took in the Central Intelligence Agency of the United States. It even took in the Soviet Union’s own leaders, such as Nikita Khrushchev, who famously boasted in a speech to Western diplomats in 1956 that “we will bury you [the West].” As late as 1977, a leading academic textbook by an English economist argued that Soviet-style economies were superior to capitalist ones in terms of economic growth, providing full employment and price stability and even in producing people with altruistic motivation. Poor old Western capitalism did better only at providing political freedom. Indeed, the most widely used university textbook in economics, written by Nobel Prize–winner Paul Samuelson, repeatedly predicted the coming economic dominance of the Soviet Union. In the 1961 edition, Samuelson predicted that Soviet national income would overtake that of the United States possibly by 1984, but probably by 1997. In the 1980 edition there was little change in the analysis, though the two dates were delayed to 2002 and 2012. Though the policies of Stalin and subsequent Soviet leaders could produce rapid economic growth, they could not do so in a sustained way. By the 1970s, economic growth had all but stopped. The most important lesson is that extractive institutions cannot generate sustained technological change for two reasons: the lack of economic incentives and resistance by the elites. In addition, once all the very inefficiently used resources had been reallocated to industry, there were few economic gains to be had by fiat. Then the Soviet system hit a roadblock, with lack of innovation and poor economic incentives preventing any further progress. The only area in which the Soviets did manage to sustain some innovation was through enormous efforts in military and aerospace technology. As a result they managed to put the first dog, Leika, and the first man, Yuri Gagarin, in space. They also left the world the AK-47 as one of their legacies. Gosplan was the supposedly all-powerful planning agency in charge of the central planning of the Soviet economy. One of the benefits of the sequence of five-year plans written and administered by Gosplan was supposed to have been the long time horizon necessary for rational investment and innovation. In reality, what got implemented in Soviet industry had little to do with the five-year plans, which were frequently revised and rewritten or simply ignored. The development of industry took place on the basis of commands by Stalin and the Politburo, who changed their minds frequently and often completely revised their previous decisions. All plans were labeled “draft” or “preliminary.” Only one copy of a plan labeled “final”—that for light industry in 1939—has ever come to light. Stalin himself said in 1937 that “only bureaucrats can think that planning work ends with the creation of the plan. The creation of the plan is just the beginning. The real direction of the plan develops only after the putting together of the plan.” Stalin wanted to maximize his discretion to reward people or groups who were politically loyal, and punish those who were not. As for Gosplan, its main role was to provide Stalin with information so he could better monitor his friends and enemies. It actually tried to avoid making decisions. If you made a decision that turned