Short Economies Quotes

Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.

And more than the quality of its institutions, what distinguishes a developed country from a developing one is the degree of consensus in its politics, and thus its ability to take actions to secure a better future despite short-term pain.

Ultimately, Investing is about holistic ROI. It’s not about just owning stocks or crypto or flipping for quick income. When we talk about holistic ROI, we are looking at our long term profit, short term profit, income security, cash flow, social impact, environmental impact, spiritual impact, stability of the permaculture economy, and more. That’s how we see it at Mayflower-Plymouth.

We experience the externalities of the attention economy in little drips, so we tend to describe them with words of mild bemusement like “annoying” or “distracting.” But this is a grave misreading of their nature. In the short term, distractions can keep us from doing the things we want to do. In the longer term, however, they can accumulate and keep us from living the lives we want to live, or, even worse, undermine our capacities for reflection and self-regulation, making it harder, in the words of Harry Frankfurt, to “want what we want to want.” Thus there are deep ethical implications lurking here for freedom, wellbeing, and even the integrity of the self.

Much of our food system depends on our not knowing much about it, beyond the price disclosed by the checkout scanner; cheapness and ignorance are mutually reinforcing. And it's a short way from not knowing who's at the other end of your food chain to not caring–to the carelessness of both producers and consumers that characterizes our economy today. Of course, the global economy couldn't very well function without this wall of ignorance and the indifference it breeds. This is why the American food industry and its international counterparts fight to keep their products from telling even the simplest stories–"dolphin safe," "humanely slaughtered," etc.–about how they were produced. The more knowledge people have about the way their food is produced, the more likely it is that their values–and not just "value"–will inform their purchasing decisions.

The slow cancellation of the future has been accompanied by a deflation of expectations. There can be few who believe that in the coming year a record as great as, say, the Stooges’ Funhouse or Sly Stone’s There’s A Riot Goin’ On will be released. Still less do we expect the kind of ruptures brought about by The Beatles or disco. The feeling of belatedness, of living after the gold rush, is as omnipresent as it is disavowed. Compare the fallow terrain of the current moment with the fecundity of previous periods and you will quickly be accused of ‘nostalgia’. But the reliance of current artists on styles that were established long ago suggests that the current moment is in the grip of a formal nostalgia, of which more shortly. It is not that nothing happened in the period when the slow cancellation of the future set in. On the contrary, those thirty years has been a time of massive, traumatic change. In the UK, the election of Margaret Thatcher had brought to an end the uneasy compromises of the so-called postwar social consensus. Thatcher’s neoliberal programme in politics was reinforced by a transnational restructuring of the capitalist economy. The shift into so-called Post-Fordism – with globalization, ubiquitous computerization and the casualisation of labour – resulted in a complete transformation in the way that work and leisure were organised. In the last ten to fifteen years, meanwhile, the internet and mobile telecommunications technology have altered the texture of everyday experience beyond all recognition. Yet, perhaps because of all this, there’s an increasing sense that culture has lost the ability to grasp and articulate the present. Or it could be that, in one very important sense, there is no present to grasp and articulate anymore.

Picture a thirteen-year-old boy sitting in the living room of his family home doing his math assignment while wearing his Walkman headphones or watching MTV. He enjoys the liberties hard won over centuries by the alliance of philosophic genius and political heroism, consecrated by the blood of martyrs; he is provided with comfort and leisure by the most productive economy ever known to mankind; science has penetrated the secrets of nature in order to provide him with the marvelous, lifelike electronic sound and image reproduction he is enjoying. And in what does progress culminate? A pubescent child whose body throbs with orgasmic rhythms; whose feelings are made articulate in hymns to the joys of onanism or the killing of parents; whose ambition is to win fame and wealth in imitating the drag-queen who makes the music. In short, life is made into a nonstop, commercially prepackaged masturbational fantasy.

Capitalism lures us onward like the mechanical hare before the greyhounds, insisting that the economy is infinite and sharing therefore irrelevant. Just enough greyhounds catch a real hare now and then to keep the others running till they drop. In the past it was only the poor who lost this game; now it is the planet.

In short, rent control reduces the rate of housing turnover.

Most of my favorite stories as a reader come in at this length. Short novels are all killer, no filler. They offer the economy of the short story but the depth of characterization we associate with longer works. Little novels aren’t leisurely, meandering journeys. They’re drag races. You put the pedal to the floor and run your narrative right off the edge of the cliff. Live fast and leave a pretty corpse is a shitty objective for a human being but a pretty good plan for a story.

For when a nation founded on the belief in racial hierarchy truly rejects that belief then and only then will we have discovered a new world. That is our destiny. To make it manifest, we must challenge ourselves to live our lives in solidarity across color, origin, and class. We must demand changes to the rules in order to disrupt the very notion that those who have more money are worth more in our democracy and our economy. Since this country’s founding, we have not allowed our diversity to be our superpower and the result is that the United States is not more than the sum of its disparate parts. But it could be. And if it were, all of us would prosper. In short, we must emerge from this crisis in our republic with a new birth of freedom. Rooted in the knowledge that we are so much more, when the we in we the people is not some of us, but all of us. We are greater than and greater for the sum of us.

[Obamacare] was almost the perfect example of politics in the Bubble Era, where the time horizon for anyone with real power is always close to zero, long-term thinking is an alien concept, and even the most massive and ambitious undertakings are motivated entirely by short-term rewards. A radical reshaping of the entire economy, for two election cycles’ worth of campaign cash – that was what this bill meant. It sounds absurdly reductive to say so, but there’s no other explanation that makes any sense.

In short, honesty is more than a moral principle. It is also a major economic factor. While government can do little to create honesty directly, in various ways it can indirectly either support or undermine the traditions on which honest conduct is based. This it can do by what it teaches in its schools, by the examples set by public officials, or by the laws that it passes. These laws can create incentives toward either moral or immoral conduct. Where laws create a situation in which the only way to avoid ruinous losses is by violating the law, the government is in effect reducing public respect for laws in general, as well as rewarding specific dishonest behavior.

Pope Benedict XVI was the first to predict the crisis in the global financial system…Italian Finance Minister Giulio Tremonti said. “The prediction that an undisciplined economy would collapse by its own rules can be found” in an article written by Cardinal Joseph Ratzinger [in 1985], Tremonti said yesterday at Milan’s Cattolica University. —Bloomberg News, November 20, 2008

Finally, there came a time when everything that men had considered as inalienable became an object of exchange, of traffic and could be alienated. This is the time when the very things which till then had been communicated, but never exchanged; given, but never sold; acquired, but never bought – virtue, love, conviction, knowledge, conscience, etc. – when everything, in short, passed into commerce. It is the time of general corruption, of universal venality, or, to speak in terms of political economy, the time when everything, moral or physical, having become a marketable value, is brought to the market to be assessed at its truest value.

In the short run, technology many be more efficient than man, but it will never be perfect. Every piece of equipment will eventually reveal an error code. In the long run, man will never be perfect, but prove to be more reliable than technology.

The democratization of media means that anyone with a phone can become a celebrity. Our short-sighted focus on self-esteem in children means that everyone gets a trophy, universities and education are “brands” instead of places of learning, standardized tests are used to assess wisdom, and grade inflation is rampant. The tribe has been replaced with followers and likes. Our economy, our bodies, our health, our children, and frankly our psyches are in big trouble.

Growing economies are built by billions of actors behaving according to their own interests, coordinated through institutions that no one in particular created. Realizing this requires humility, a trait that is in short supply among would-be dictators, politicians, and bureaucrats, which is precisely why these groups are the proven enemies of prosperity in all times and places.

I believe that there is one story in the world, and only one, that has frightened and inspired us, so that we live in a Pearl White serial of continuing thought and wonder. Humans are caught—in their lives, in their thoughts, in their hungers and ambitions, in their avarice and cruelty, and in their kindness and generosity too—in a net of good and evil. I think this is the only story we have and that it occurs on all levels of feeling and intelligence. Virtue and vice were warp and woof of our first consciousness, and they will be the fabric of our last, and this despite any changes we may impose on field and river and mountain, on economy and manners. There is no other story. A man, after he has brushed off the dust and chips of his life, will have left only the hard, clean questions: Was it good or was it evil? Have I done well—or ill? [...] In uncertainty I am certain that underneath their topmost layers of frailty men want to be good and want to be loved. Indeed, most of their vices are attempted short cuts to love. When a man comes to die, no matter what his talents and influence and genius, if he dies unloved his life must be a failure to him and his dying a cold horror. It seems to me that if you or I must choose between two courses of thought or action, we should remember our dying and try so to live that our death brings no pleasure to the world. We have only one story. All novels, all poetry, are built on the never-ending contest in ourselves of good and evil. And it occurs to me that evil must constantly respawn, while good, while virtue, is immortal. Vice has always a new fresh young face, while virtue is venerable as nothing else in the world is.

That we are in the midst of crisis is now well understood. Our nation is at war, against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered. Our health care is too costly; our schools fail too many; and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet. These are the indicators of crisis, subject to data and statistics. Less measurable but no less profound is a sapping of confidence across our land — a nagging fear that America's decline is inevitable, and that the next generation must lower its sights. Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America — they will be met. On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord. On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn out dogmas, that for far too long have strangled our politics.

Among the many queer things about the American economy is this: A writer can get more money for a bungling speech at a bankrupt college than he can get for a short-story masterpiece. What’s more, he can sell the speech over and over again, and no one complains.

...many of us know deep down, whether we choose to admit it or not, a number of simple truths: the global capitalist economy is incompatible with life. As numerous environmentalist authors... have noted, the global economy effectively creates infinite demand and no natural community can support infinite demand, especially when nothing beneficial is given back. A global economy is extractive, it gives nothing back, but follows the ecocidal pattern of a genocidal machine converting raw materials into power at the expense of living things and living systems.

This was no coincidence. The best short stories and the most successful jokes have a lot in common. Each form relies on suggestion and economy. Characters have to be drawn in a few deft strokes. There's generally a setup, a reveal, a reversal, and a release. The structure is delicate. If one element fails, the edifice crumbles. In a novel you might get away with a loose line or two, a saggy paragraph, even a limp chapter. But in the joke and in the short story, the beginning and end are precisely anchored tent poles, and what lies between must pull so taut it twangs.

The key to entering into the Divine Exchange is never our worthiness but always God’s graciousness. Any attempt to measure or increase our worthiness will always fall short, or it will force us into the position of denial and pretend, which produces the constant perception of hypocrisy in religious people. To switch to an “economy of grace” is a switch that is very hard for humans to make. We base almost everything in human culture on achievement, performance, accomplishment, an equal exchange value, or some kind of worthiness gauge. I call it meritocracy. Unless one personally experiences a dramatic and personal breaking of the rules of merit (forgiveness or undeserved goodness), it is almost impossible to disbelieve or operate outside of its rigid logic. This cannot happen theoretically or abstractly. It cannot happen “out there” but must be known personally “in here.

Wherever Europeans or the descendants of European emigrants live, we see Socialism at work to-day; and in Asia it is the banner round which the antagonists of European civilization gather. If the intellectual dominance of Socialism remains unshaken, then in a short time the whole co-operative system of culture which Europe has built up during thousands of years will be shattered. For a socialist order of society is unrealizable. All efforts to realize Socialism lead only to the destruction of society. Factories, mines, and railways will come to a standstill, towns will be deserted. The population of the industrial territories will die out or migrate elsewhere. The farmer will return to the self-sufficiency of the closed, domestic economy. Without private ownership in the means of production there is, in the long run, no production other than a hand-to-mouth production for one's own needs.

us to cope with. The Angels are prototypes. Their lack of education has not only rendered them completely useless in a highly technical economy, but it has also given them the leisure to cultivate a powerful resentment … and to translate it into a destructive cult which the mass media insists on portraying as a sort of isolated oddity, a temporary phenomenon that will shortly become extinct now that it’s been called to the attention of the police.

In short, capitalism depends on ever-growing amounts of state intervention in the market for its survival, and the system is hitting the point where the teat runs dry. The result is a system in which governments and corporations are increasingly hollowed out. And meanwhile, growing up within this corporate capitalist “integument,” things like open source software and culture, open-source industrial design, permaculture and low-overhead garage micromanufacturing eat the corporate-state economy alive. An ever-growing share of labor and production are disappearing into relocalized resilient economies, self-employment, worker cooperatives and the informal and household economy. In the end, they will skeletonize the corporate dinosaurs like a swarm of piranha.

Perhaps the deepest indication of our slavery is the monetization of time. It is a phenomenon with roots deeper than our money system, for it depends on the prior quantification of time. An animal or a child has “all the time in the world.” The same was apparently true for Stone Age peoples, who usually had very loose concepts of time and rarely were in a hurry. Primitive languages often lacked tenses, and sometimes lacked even words for “yesterday” or “tomorrow.” The comparative nonchalance primitive people had toward time is still apparent today in rural, more traditional parts of the world. Life moves faster in the big city, where we are always in a hurry because time is scarce. But in the past, we experienced time as abundant. The more monetized society is, the more anxious and hurried its citizens. In parts of the world that are still somewhat outside the money economy, where subsistence farming still exists and where neighbors help each other, the pace of life is slower, less hurried. In rural Mexico, everything is done mañana. A Ladakhi peasant woman interviewed in Helena Norberg-Hodge’s film Ancient Futures sums it all up in describing her city-dwelling sister: “She has a rice cooker, a car, a telephone—all kinds of time-saving devices. Yet when I visit her, she is always so busy we barely have time to talk.” For the animal, child, or hunter-gatherer, time is essentially infinite. Today its monetization has subjected it, like the rest, to scarcity. Time is life. When we experience time as scarce, we experience life as short and poor. If you were born before adult schedules invaded childhood and children were rushed around from activity to activity, then perhaps you still remember the subjective eternity of childhood, the afternoons that stretched on forever, the timeless freedom of life before the tyranny of calendar and clocks. “Clocks,” writes John Zerzan, “make time scarce and life short.” Once quantified, time too could be bought and sold, and the scarcity of all money-linked commodities afflicted time as well. “Time is money,” the saying goes, an identity confirmed by the metaphor “I can’t afford the time.” If the material world

Uncharles, in human populations there is seldom a uniformity of knowledge. Based on existing information I estimate that forty-five percent were unaware of the situation or considered it fake, owing to the precisely curated news sources that they limited themselves to, whilst a further thirty percent were aware but did not consider it their problem and twenty percent were aware and actively cheering on the fact or profiting from shorting elements of the neighbouring economy. A final five percent seem likely to have been directly and deliberately contributing to the collapse of their neighbour, either through reasons of malice or because they believed that in the absence of that competition their own interests would prosper. Whilst low as a proportion, I estimate this final category wielded a disproportionate amount of influence.

(Jane Jacobs cites it in her landmark work of 1969, The Economy of Cities),

Imagination is usually nothing but the search for middle run profits by those to whom short run channels are blocked. When

Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.

The Principle of Least Resistance, protected from scrutiny by the metric black hole, supports work cultures that save us from the short-term discomfort of concentration and planning, at the expense of long-term satisfaction and the production of real value. By doing so, this principle drives us toward shallow work in an economy that increasingly rewards depth.

short-term interest rates above long-term rates (which was called “inverting the yield curve”). Every time that happened, inflation-hedged assets and the economy went down. But Bunker

Economists who simply advised leaving the economy alone, governments whose first instincts, apart from protecting the gold standard by deflationary policies, was to stick to financial orthodoxy, balance budgets and cut costs, were visibly not making the situation better. Indeed, as the depression continued, it was argued with considerable force not least by J.M. Keynes who consequently became the most influential economist of the next forty years - that they were making the depression worse. Those of us who lived through the years of the Great Slump still find it almost impossible to understand how the orthodoxies of the pure free market, then so obviously discredited, once again came to preside over a global period of depression in the late 1980s and 1990s, which, once again, they were equally unable to understand or to deal with. Still, this strange phenomenon should remind us of the major characteristic of history which it exemplifies: the incredible shortness of memory of both the theorists and practitioners of economics. It also provides a vivid illustration of society's need for historians, who are the professional remembrancers of what their fellow-citizens wish to forget.

In short, finance gives you the opportunity to dramatically increase your consumption by doing nothing—or, more precisely, by choosing not to consume everything you produce today, but instead providing the productive economy with savings that can be used to generate additional economic value with minimal effort on your part. For all of the demonization of financiers, this is as close to magic as you can get.

If there is to be no ceiling on the amount of money a man can take out of our economy, then concomitantly there can be no foundation below which a human being cannot sink. What capitalists must realize is that you are fighting to make capitalism survive, not destroy it; you are fighting to eliminate the seeds of destruction inherent in the status quo." ~Kurt Vonnegut, Jr's letter to Don Matchan, 27 April 1947

This first generation of corporate barons left a lasting, if dubious, legacy: they made America more hierarchical, with new divisions between management and labor, between a professional class and everyday workers. They made the economy more centralized, consolidating power into a few mega-companies and their owners; they made it more globalized, keyed to international capital and trade. They diminished the voice of the ordinary citizen in society and politics in favor of educated, professionalized elites. In short, they gave America an entirely new political economy, what some historians have called corporate liberalism.

That news was enough to induce 900 Maori to sail to the Chathams. The outcome clearly illustrates how environments can affect economy, technology, political organization, and fighting skills within a short time.

Our main difference from chimps and gorillas is that over the last 3 million years or so, we have been shaped less and less by nature, and more and more by culture. We have become experimental creatures of our own making. This experiment has never been tried before. And we, its unwitting authors, have never controlled it. The experiment is now moving very quickly and on a colossal scale. Since the early 1900s, the world’s population has multiplied by four and its economy — a rough measure of the human load on nature — by more than forty. We have reached a stage where we must bring the experiment under rational control, and guard against present and potential dangers. It’s entirely up to us. If we fail — if we blow up or degrade the biosphere so it can no longer sustain us — nature will merely shrug and conclude that letting apes run the laboratory was fun for a while but in the end a bad idea.

The best short stories and the most successful jokes have a lot in common. Each form relies on suggestion and economy. Characters have to be drawn in a few deft strokes. There's generally a setup, a reveal, a reversal, and a release.

War, in short, concentrated the mind. It had proven possible to convert a whole country into a war machine around a war economy; why then, people asked, could something similar not be accomplished in pursuit of peace? There was no convincing answer.

So many problems we will get to the bottom of later, but whose spatial aspect we must grasp right away. If the space of the industrial economy dominates the social space in which the Parisian worker or intellectual develops, to what extent could residential space, cultural space, or political space be planned without it being necessary to first intervene in economic structures?...In short...: to what extent can we freely build the framework for a social life in which we might be guided by our aspirations and not by our instincts?

In 1962, President John F. Kennedy said, “Our true choice is not between tax reduction on the one hand and avoidance of large federal deficits on the other; it is increasingly clear that no matter what party is in power, as long as our national security needs keep rising, an economy hampered by restrictive tax rates will never produce enough revenues to balance the budget—just as it will never produce enough jobs or enough profits. In short, the paradoxical truth is that the tax rates are too high today and tax revenues are too low and the soundest way to raise revenues in the long run is to cut rates now.

Less than a decade after the explosion of the first atom bomb the megamachine had expanded to a point where it began to dominate key areas of the whole economy of the United States: its system of control reached beyond the airfields, the rocket sites, the bomb factories, the universities, to a hundred other related areas, tying the once separate and independent enterprises to a central organization whose irrational and humanly subversive policies ensured the still further expansion of the megamachine. Financial subventions, research grants, educational subsidies, all worked unceasingly for the 'Life, Prosperity, Health' of the new rulers, headed by Goliaths in brass armor bellowing threats of defiance and destruction at the entire world. In a short time, the original military-industrial-scientific elite became the supreme Pentagon of Power, for it incorporated likewise both the bureaucratic and the educational establishments.

The cotton gin made it possible to grow medium- and short-staple cotton commercially, which led to the spread of the cotton plantation from a small coastal area to most of the South. As cotton planting expanded, so did slavery, and slavery’s becoming the central institution of the Southern economy was the central precondition of the Civil War. What

slavery never took the form of the large-scale plantations found in the American South, the Caribbean or South America. Plantations, though their establishment was desired by some colonists, were found to be incompatible with Canada’s climate and short growing season (Mackey 2010). As a result, the number of enslaved people in Canada was always lower, and the economy less reliant on slave labour than other parts of the Americas and the Caribbean. These distinctions have underpinned the assumption in some existing scholarship that enslavement in Canada was relatively benign. Yet, the absence of slave plantation economies does not negate the brutality of the centuries-long, state-supported practice of slavery. White individuals and white settler society profited from owning unfree Black (and Indigenous) people and their labour for hundreds of years while exposing them to physical and psychological brutality, and the inferiority ascribed to Blackness in this era would affect the treatment of Black persons living in Canada for centuries to come.

Since democratic elections are always held in the short term, politicians have every incentive to extract as much wealth as possible from the fixed capital under their jurisdiction, whether through taxes, the imposition of charges on property or of the expropriation. Only public awareness of the long-term consequences can limit this form of exploitation.

Without the participation of one fifth of the global population, without the endorsement of the world's second-largest economy, without the political will and security guarantee of this emerging power, international institutions and norms will be irrelevant and the legitimacy and credibility of their resolutions and arrangements will fall short of promise.

That we can prescribe the terms of our own success, that we can live outside or in ignorance of the Great Economy are the greatest errors. They condemn us to a life without a standard, wavering in inescapable bewilderment from paltry self-satisfaction to paltry self-dissatisfaction. But since we have no place to live but in the Great Economy, whether or not we know that and act accordingly is the critical question, not about economy merely, but about human life itself. It is possible to make a little economy, such as our present one, that is so short-sighted and in which accounting is of so short a term as to give the impression that vices are necessary and practically justifiable. When we make our economy a little wheel turning in opposition to what we call “nature,” then we set up competitiveness as the ruling principle in our explanation of reality and in our understanding of economy; we make of it, willy-nilly, a virtue. But competitiveness, as a ruling principle and a virtue, imposes a logic that is extremely difficult, perhaps impossible, to control. That logic explains why our cars and our clothes are shoddily made, why our “wastes” are toxic, and why our “defensive” weapons are suicidal; it explains why it is so difficult for us to draw a line between “free enterprise” and crime. If our economic ideal is maximum profit with minimum responsibility, why should we be surprised to find our corporations so frequently in court and robbery on the increase? Why should we be surprised to find that medicine has become an exploitive industry, profitable in direct proportion to its hurry and its mechanical indifference? People who pay for shoddy products or careless services and people who are robbed outright are equally victims of theft, the only difference being that the robbers outright are not guilty of fraud.

Early on in the top, some parts of the credit system suffer, but others remain robust, so it isn’t clear that the economy is weakening. So while the central bank is still raising interest rates and tightening credit, the seeds of the recession are being sown. The fastest rate of tightening typically comes about five months prior to the top of the stock market. The economy is then operating at a high rate, with demand pressing up against the capacity to produce. Unemployment is normally at cyclical lows and inflation rates are rising. The increase in short-term interest rates makes holding cash more attractive, and it raises the interest rate used to discount the future cash flows of assets, weakening riskier asset prices and slowing lending.

Adams came of age, too, at a time when the Massachusetts economy was markedly on the skids. Plenty of other young men stumbled in finding their footholds. On leaving Harvard shortly after Adams, a future colleague would try his hand as a schoolmaster. Miserable, he sailed off as a merchant, later as a whaler. He was soon back in Boston. In a patched gown, he served briefly as a chaplain. Out of options, he turned to the law.

A third emotional source of the defense forces is the sadistic conception of sexuality that the children of all patriarchal cultural circles acquire in early childhood. Since every inhibition of genital gratification intensifies the sadistic impulse, the entire sexual structure becomes sadistic. Since, moreover, genital claims are replaced by anal claims, the reactionary sexual slogan that a woman is degraded by sexual intercourse strikes a chord in the adolescent structure. In short, it is owing to the already existing perversity in the adolescent structure that the slogan can be effective. It is from his own personal experience that the adolescent has developed a sadistic conception of sexual intercourse. Thus, here too we find a confirmation of the fact that man's compulsive moralistic defense forces constitute the basis of political reaction's power.

Because immobility is the key to exploitation, fixed capital, like labor, can also be exploited in the short term. And, since some capital goods can last longer than the average life span of a worker, once a hydroelectric plant has been built, both local taxes and local unions can absorb much of its profits, to the point of making very difficult that someone is ever willing to build another hydroelectric plant in that jurisdiction.

It is ludicrous to believe that asset bubbles can only be recognized in hindsight,” he wrote. “There are specific identifiers that are entirely recognizable during the bubble’s inflation. One hallmark of mania is the rapid rise in the incidence and complexity of fraud…. The FBI reports mortgage-related fraud is up fivefold since 2000.” Bad behavior was no longer on the fringes of an otherwise sound economy; it was its central feature.

A more recent concern relates to “financialization” and associated short-termism. Financialization is the growing importance of norms, metrics, and incentives from the financial sector to the wider economy. Some of the concerns expressed are that, for example, managers are increasingly awarded stock options to align their incentives with those of shareholders; companies are often explicitly managed to increase short-term shareholder value; and financial engineering, such as share buybacks and earnings management, has become a more important part of senior managers’ jobs. The end result is that rather than finance serving business, business serves finance: the tail wags the dog. What John Kay described as “obliquity,” the idea that making money was a consequence of, or a second-order benefit of, serving one’s customers and building good businesses, is driven out (Kay 2010).

The “German problem” after 1970 became how to keep up with the Germans in terms of efficiency and productivity. One way, as above, was to serially devalue, but that was beginning to hurt. The other way was to tie your currency to the deutsche mark and thereby make your price and inflation rate the same as the Germans, which it turned out would also hurt, but in a different way. The problem with keeping up with the Germans is that German industrial exports have the lowest price elasticities in the world. In plain English, Germany makes really great stuff that everyone wants and will pay more for in comparison to all the alternatives. So when you tie your currency to the deutsche mark, you are making a one-way bet that your industry can be as competitive as the Germans in terms of quality and price. That would be difficult enough if the deutsche mark hadn’t been undervalued for most of the postwar period and both German labor costs and inflation rates were lower than average, but unfortunately for everyone else, they were. That gave the German economy the advantage in producing less-than-great stuff too, thereby undercutting competitors in products lower down, as well as higher up the value-added chain. Add to this contemporary German wages, which have seen real declines over the 2000s, and you have an economy that is extremely hard to keep up with. On the other side of this one-way bet were the financial markets. They looked at less dynamic economies, such as the United Kingdom and Italy, that were tying themselves to the deutsche mark and saw a way to make money. The only way to maintain a currency peg is to either defend it with foreign exchange reserves or deflate your wages and prices to accommodate it. To defend a peg you need lots of foreign currency so that when your currency loses value (as it will if you are trying to keep up with the Germans), you can sell your foreign currency reserves and buy back your own currency to maintain the desired rate. But if the markets can figure out how much foreign currency you have in reserve, they can bet against you, force a devaluation of your currency, and pocket the difference between the peg and the new market value in a short sale. George Soros (and a lot of other hedge funds) famously did this to the European Exchange Rate Mechanism in 1992, blowing the United Kingdom and Italy out of the system. Soros could do this because he knew that there was no way the United Kingdom or Italy could be as competitive as Germany without serious price deflation to increase cost competitiveness, and that there would be only so much deflation and unemployment these countries could take before they either ran out of foreign exchange reserves or lost the next election. Indeed, the European Exchange Rate Mechanism was sometimes referred to as the European “Eternal Recession Mechanism,” such was its deflationary impact. In short, attempts to maintain an anti-inflationary currency peg fail because they are not credible on the following point: you cannot run a gold standard (where the only way to adjust is through internal deflation) in a democracy.

What if, by contrast, you are more a user of intangible assets: say, the Amazon warehouse, using the knowledge of the routing algorithm, or Starbucks, using the franchise book? For these firms, the organization and so management would look different. You probably want to have more hierarchies and short-term targets, since you are less worried about information flows form below and more concerned about low performance and stopping influence activities.

Egypt was rich in copper ore, which, as the base of bronze, had been valuable through the entire Meditarranean world. By 1150 B.C., however, the Iron Age had succeeded the bronze Age. Egypt had no iron and so lost power in the Asiatic countries where the ore existed; the adjustment of its economy to the new metal caused years of inflation and contributed to the financial distress of the central government. The pharaoh could not meet the expenses of his government; he had no money to pay the workers on public buildings, and his servants robbed him at every opportunity. Still a god in theory, he was satirized in literature and became a tool of the oligarchy. During the centuries after the twelfth B.C., the Egyptian state disintegrated into local units loosely connected by trade. Occasional spurts of energy interrupted the decline, but these were short-lived and served only to illuminate the general passivity.

On one hand the Christian missionaries sought to convert the heathen, by fire and sword if need be, to the gospel of peace, brotherhood, and heavenly beatitude; on the other, the more venturesome spirits wished to throw off the constraining traditions and customs, and begin life afresh, levelling distinctions of class, eliminating superfluities and luxuries, privileges and distinctions, and hierarchical rank. In short, to go back to the Stone Ages, before the institutions of Bronze Age civilization had crystallized. Though the Western hemisphere was indeed inhabited, and many parts of it were artfully cultivated, so much of it was so sparsely occupied that the European thought of it as a virgin continent against whose wildness he pitted his manly strength. In one mood the European invaders preached the Christian gospel to the native idolaters, subverted them with strong liquors, forced them to cover their nakedness with clothes, and worked them to an early death in mines; in another, the pioneer himself took on the ways of the North American Indian, adopted his leather costume, and reverted to the ancient paleolithic economy: hunting, fishing, gathering shellfish and berries, revelling in the wilderness and its solitude, defying orthodox law and order, and yet, under pressure, improvising brutal substitutes. The beauty of that free life still haunted Audubon in his old age.

The short-termism among US policymakers has meant that the gains from globalization have been misallocated in a way that frustrated millions of Americans and spurred the populist reaction witnessed in 2016. As Alibaba founder Jack Ma pointed out at the Economic Forum in 2017, by choosing to spend $14.2 trillion fighting thirteen wars over three decades, rather than investing in America’s infrastructure, industry, and jobs, policymakers misallocated the wins from globalization. What was clear is that even thirty years ago, industrial jobs in the United States were already on the decline and exposing the economy to greater competition inherent in open international trade, further harming the American worker. The outcome was a missed opportunity to distribute the gains of globalization more widely (and in particular to America’s Rust Belt) and to fund a longer-term infrastructure investment strategy to galvanize the US economy.

The more monetized society is, the more anxious and hurried its citizens. In parts of the world that are still somewhat outside the money economy, where subsistence farming still exists and where neighbors help each other, the pace of life is slower, less hurried. In rural Mexico, everything is done mañana. A Ladakhi peasant woman interviewed in Helena Norberg-Hodge's film Ancient Futures sums it all up in describing her city-dwelling sister: "She has a rice cooker, a car, a telephone — all kinds of time-saving devices. Yet when I visit her, she is always so busy we rarely have time to talk." For the animal, child, or hunter-gatherer, time is essentially infinite. Today its monetization has subjected it, like the rest, to scarcity. Time is life. When we experience time as scarce, we experience life as short and poor. If you were born before adult schedules invaded childhood and children were rushed around from activity to activity, then perhaps you still remember the subjective eternity of childhood, the afternoons that stretched on forever, the timeless freedom of life before the tyranny of calendar and clocks. "Clocks," writes John Zerzan, "make time scarce and life short." Once quantified, time too could be bought and sold, and the scarcity of all money-linked commodities afflicted time as well. "Time is money," the saying goes, an identity confirmed by the metaphor "I can't afford the time.

predict. I have said in another context that it is a disadvantage of ‘the long run’ that in the long run we are all dead. But I could have said equally well that it is a great advantage of ‘the short run’ that in the short run we are all alive. Life and history are made up of short runs. If we are at peace in the short run that is something. The best we can do is put off disaster, if only in the hope, which is not necessarily a remote one, that something will turn up.29

The economy functions strictly and instrumentally according to iron conventions, imposed unequally on nations by the great transnational economic bodies; it establishes hierarchies of wealth and power; it enforces on the vast majority of the world's inhabitants a timetabled and regulated working life, while consoling them with visions of cinematic lives given meaning through adventure and coherent narrative (in which heroes make their lives free precisely by breaking the rules), and with plaintive songs of rebellion or love.

A prison is perhaps the easiest place to see the power of bad incentives. And yet in many walks of life, we find otherwise normal men and women caught in the same trap and busily making the world much less good than it could be. Elected officials ignore long-term problems because they must pander to the short-term interests of voters. People working for insurance companies rely on technicalities to deny desperately ill patients the care they need. CEOs and investment bankers run extraordinary risks—both for their businesses and for the economy as a whole—because they reap the rewards of success without suffering the penalties of failure. District attorneys continue to prosecute people they know to be innocent because their careers depend on winning cases. Our government fights a war on drugs that creates the very problem of black-market profits and violence that it pretends to solve. We need systems that are wiser than we are. We need institutions and cultural norms that make us more honest and ethical than we tend to be. The project of building them is distinct from—and, in my view, even more important than—an individual’s refining his personal ethical code.

I am little acquainted with the phenomenon as it shows itself at sea; but at Monticello it is familiar. There is a solitary mountain about forty miles off in the South, whose natural shape, as presented to view there, is a regular cone; but by the effect of looming, it sometimes subsides almost totally in the horizon; sometimes it rises more acute and more elevated; sometimes it is hemispherical; and sometimes its sides are perpendicular, its top flat, and as broad as its base. In short, it assumes at times the most whimsical shapes, and all these perhaps successively in the same morning.

Communism was a distinct possibility until the coup of 1989’.2 Yet it was obvious to any attentive visitor to the Soviet Union that something was amiss with the planned economy. Consumer goods were of dismal quality and in chronically short supply. In antiquated factories, pilfering, alcohol abuse and absenteeism were rife. It is hard to believe that any amount of computing power would have saved such a fundamentally flawed system. For the majority of Soviet citizens, the resulting mood of demoralization did not translate into political activity – just into fatalism and yet more black humour.

Apart from murder and rape, the most horrendous crimes punished by civilized authority stem back to the 'unpardonable sin'of kingship: disobedience to the sovereign. Murderous coercion was the royal formula for establishing authority, securing obedience, and collecting booty, tribute, and taxes. At bottom, every royal reign was a reign of terror. With the extension of kingship, this underlying terror formed an integral part of the new technology and the new economy of abundance. In short, the hidden face of that beautiful dream was a nightmare, which civilization has so far not been able to throw off.

The most-studied evidence, by the greatest number of economists, concerns what is called short-term dependence. This refers to the way price levels or price changes at one moment can influence those shortly afterwards-an hour, a day, or a few years, depending on what you consider "short." A "momentum" effect is at work, some economists theorize: Once a stock price starts climbing, the odds are slightly in favor of it continuing to climb for a while longer. For instance, in 1991 Campbell Harvey of Duke- he of the CFO study mentioned earlier-studied stock exchanges in sixteen of the world's largest economies. He found that if an index fell in one month, it had slightly greater odds of falling again in the next moth, or, if it had risen, greater odds of continuing to rise. Indeed, the data show, the sharper the move in the first, the more likely is is that the price trend will continue into the next month, although at a slower rate. Several other studies have found similar short-term trending in stock prices. When major news about a company hits the wires, the stock will react promptly-but it may keep on moving for the next few days as the news spreads, analysts study it, and more investors start to act upon it.

the planned destruction of Iraq’s agriculture is not widely known. Modern Iraq is part of the ‘fertile crescent’ of Mesopotamia where man first domesticated wheat between 8,000 and 13,000 years ago, and home to several thousand varieties of local wheat. As soon as the US took over Iraq, it became clear its interests were not limited to oil. In 2004, Paul Bremer, the then military head of the Provisional Authority imposed as many as a hundred laws which made short work of Iraq’s sovereignty. The most crippling for the people and the economy of Iraq was Order 81 which deals, among other things, with plant varieties and patents. The goal was brutally clear-cut and sweeping — to wipe out Iraq’s traditional, sustainable agriculture and replace it with oil-chemical-genetically-modified-seed-based industrial agriculture. There was no public or parliamentary debate for the conquered people who never sought war. The conquerors made unilateral changes in Iraq’s 1970 patent law: henceforth, plant forms could be patented — which was never allowed before — while genetically-modified organisms were to be introduced. Farmers were strictly banned from saving their own seeds: this, in a country where, according to the Food and Agriculture Organisation, 97 per cent of Iraqi farmers planted only their own saved seeds. With a single stroke of the pen, Iraq’s agriculture was axed, while Order 81 facilitated the introduction and domination of imported, high-priced corporate seeds, mainly from the US — which neither reproduce, nor give yields without their prescribed chemical fertiliser and pesticide inputs. It meant that the majority of farmers who had never spent money on seed and inputs that came free from nature, would henceforth have to heavily invest in corporate inputs and equipment — or go into debt to obtain them, or accept lowered profits, or give up farming altogether.

Here are my simple rules for identifying market tops and bottoms: 1. Market tops are relatively easy to recognize. Buyers generally become overconfident and almost always believe “this time is different.” It’s usually not. 2. There’s always a surplus of relatively cheap debt capital to finance acquisitions and investments in a hot market. In some cases, lenders won’t even charge cash interest, and they often relax or suspend typical loan restrictions as well. Leverage levels escalate compared to historical averages, with borrowing sometimes reaching as high as ten times or more compared to equity. Buyers will start accepting overoptimistic accounting adjustments and financial forecasts to justify taking on high levels of debt. Unfortunately most of these forecasts tend not to materialize once the economy starts decelerating or declining. 3. Another indicator that a market is peaking is the number of people you know who start getting rich. The number of investors claiming outperformance grows with the market. Loose credit conditions and a rising tide can make it easy for individuals without any particular strategy or process to make money “accidentally.” But making money in strong markets can be short-lived. Smart investors perform well through a combination of self-discipline and sound risk assessment, even when market conditions reverse.

This was no coincidence. The best short stories and the most successful jokes have a lot in common. Each form relies on suggestion and economy. Characters have to be drawn in a few deft strokes. There's generally a setup, a reveal, a reversal, and a release. The structure is delicate. If one element fails, the edifice crumbles. In a novel you might get away with a loose line or two, a saggy paragraph, even a limp chapter. But in the joke and in the short story, the beginning and end are precisely anchored tent poles, and what lies between must pull so taut it twangs. I'm not sure if there is any pattern to these selections. I did not spend a lot of time with those that seemed afraid to tell stories, that handled plot as if it were a hair in the soup, unwelcome and embarrassing. I also tended not to revisit stories that seemed bleak without having earned it, where the emotional notes were false, or where the writing was tricked out or primped up with fashionable devices stressing form over content. I do know that the easiest and the first choices were the stories to which I had a physical response. I read Jennifer Egan's "Out of Body" clenched from head to toe by tension as her suicidal, drug-addled protagonist moves through the Manhattan night toward an unforgivable betrayal. I shed tears over two stories of childhood shadowed by unbearable memory: "The Hare's Mask," by Mark Slouka, with its piercing ending, and Claire Keegan's Irishinflected tale of neglect and rescue, "Foster." Elizabeth McCracken's "Property" also moved me, with its sudden perception shift along the wavering sightlines of loss and grief. Nathan Englander's "Free Fruit for Young Widows" opened with a gasp-inducing act of unexpected violence and evolved into an ethical Rubik's cube. A couple of stories made me laugh: Tom Bissell's "A Bridge Under Water," even as it foreshadows the dissolution of a marriage and probes what religion does for us, and to us; and Richard Powers's "To the Measures Fall," a deftly comic meditation on the uses of literature in the course of a life, and a lifetime. Some stories didn't call forth such a strong immediate response but had instead a lingering resonance. Of these, many dealt with love and its costs, leaving behind indelible images. In Megan Mayhew Bergman's "Housewifely Arts," a bereaved daughter drives miles to visit her dead mother's parrot because she yearns to hear the bird mimic her mother's voice. In Allegra Goodman's "La Vita Nuova," a jilted fiancée lets her art class paint all over her wedding dress. In Ehud Havazelet's spare and tender story, "Gurov in Manhattan," an ailing man and his aging dog must confront life's necessary losses. A complicated, only partly welcome romance blossoms between a Korean woman and her demented

No one in their right mind would argue that passion and perseverance are unimportant, or that a bad day is a cue to quit. But the idea that a change of interest, or a recalibration of focus, is an imperfection and competitive disadvantage leads to a simple, one-size-fits-all Tiger story: pick and stick, as soon as possible. Responding to lived experience with a change of direction, like Van Gogh did habitually, like West Point graduates have been doing since the dawn of the knowledge economy, is less tidy but no less important. It involves a particular behavior that improves your chances of finding the best match, but that at first blush sounds like a terrible life strategy: short-term planning.

And sleep training? Guess who proposed that unique technique? Why, a surgeon-turned-sportswriter, of course, who wrote under the pseudonym Stonehenge. If babies “are left to go to sleep in their cots, and allowed to find out that they do not get their way by crying, they at once become reconciled, and after a short time will go to bed even more readily in the cot than on the lap,” Dr. John Henry Walsh wrote in his Manual of Domestic Economy in 1857. Besides doling out advice on infant sleep, John Henry also authored several books about guns, including The Shot-Gun and Sporting Rifle and The Modern Sportsman’s Gun and Rifle. (And he lost a big chunk of his left hand one day when a gun exploded in his grasp.)

It could be argued that one of democracy’s greatest weaknesses is the ability to reform itself. Reform of democracy must, however, be at the heart of a successful plan to improve economic growth and global prosperity. So far this chapter has detailed how the democratic system inherently contains incentives for policymakers to implement bad policy choices that undermine long-term economic success. Nevertheless, as we seek solutions to remedy democracy’s failings, we should acknowledge that politicians in a liberal democracy need not be malicious or even inept to fall prey to short-term thinking. They are wholly rational actors—responding to voters, succumbing to media pressure, and battling to stay in office, even if it means they do so at the expense of the economy’s longer-term success. When democracy works, it delivers economic growth and fundamental freedoms in a way that no other system can. And when it fails, it is rarely, if ever, replaced by a system that can do a better job of delivering for its population. Therefore, creating growth requires that we preserve democratic capitalism’s core strengths—freedom, efficient markets, transparency, and correctly constructed incentives—and reform its weaknesses. Something must be done to remedy the political class’s severe case of myopia, correcting the mismatch between long-term economic challenges and election cycles, safeguarding independent economic choices from political pressures, and eliminating dysfunction and gridlock.

Nature vs. nurture is part of this—and then there is what I think of as anti-nurturing—the ways we in a western/US context are socialized to work against respecting the emergent processes of the world and each other: We learn to disrespect Indigenous and direct ties to land. We learn to be quiet, polite, indirect, and submissive, not to disturb the status quo. We learn facts out of context of application in school. How will this history, science, math show up in our lives, in the work of growing community and home? We learn that tests and deadlines are the reasons to take action. This puts those with good short-term memories and a positive response to pressure in leadership positions, leading to urgency-based thinking, regardless of the circumstance. We learn to compete with each other in a scarcity-based economy that denies and destroys the abundant world we actually live in. We learn to deny our longings and our skills, and to do work that occupies our hours without inspiring our greatness. We learn to manipulate each other and sell things to each other, rather than learning to collaborate and evolve together. We learn that the natural world is to be manicured, controlled, or pillaged to support our consumerist lives. Even the natural lives of our bodies get medicated, pathologized, shaved or improved upon with cosmetic adjustments. We learn that factors beyond our control determine the quality of our lives—something as random as which skin, gender, sexuality, ability, nation, or belief system we are born into sets a path for survival and quality of life. In the United States specifically, though I see this most places I travel, we learn that we only have value if we can produce—only then do we earn food, home, health care, education. Similarly, we learn our organizations are only as successful as our fundraising results, whether the community impact is powerful or not. We learn as children to swallow our tears and any other inconvenient emotions, and as adults that translates into working through red flags, value differences, pain, and exhaustion. We learn to bond through gossip, venting, and destroying, rather than cultivating solutions together. Perhaps the most egregious thing we are taught is that we should just be really good at what’s already possible, to leave the impossible alone.

Keynes argued that when short-term and long-term interest rates had reached their respective lower bounds, further increases in the money supply would just be absorbed by the hoarding of money and would not lead to lower interest rates and higher spending. Once caught in this liquidity trap, the economy could persist in a depressed state indefinitely. Since economies were likely to find themselves in such conditions only infrequently, Hicks described Keynes’s theory as special rather than general, and relevant only to depression conditions. And this has remained the textbook interpretation of Keynes ever since. Its main implication is that in a liquidity trap monetary policy is impotent, whereas fiscal policy is powerful because additional government expenditure is quickly translated into higher output.

Since our civilization is irreversibly dependent on electronics, abolition of EMR is out of the question. However, as a first step toward averting disaster, we must halt the introduction of new sources of electromagnetic energy while we investigate the biohazards of those we already have with a completeness and honesty that have so far been in short supply. New sources must be allowed only after their risks have been evaluated on the basis of the knowledge acquired in such a moratorium. 
With an adequately funded research program, the moratorium need last no more than five years, and the ensuing changes could almost certainly be performed without major economic trauma. It seems possible that a different power frequency—say 400 hertz instead of 60—might prove much safer. Burying power lines and providing them with grounded shields would reduce the electric fields around them, and magnetic shielding is also feasible. 
A major part of the safety changes would consist of energy-efficiency reforms that would benefit the economy in the long run. These new directions would have been taken years ago but for the opposition of power companies concerned with their short-term profits, and a government unwilling to challenge them. It is possible to redesign many appliances and communications devices so they use far less energy. The entire power supply could be decentralized by feeding electricity from renewable sources (wind, flowing water, sunlight, georhermal and ocean thermal energy conversion, and so forth) into local distribution nets. This would greatly decrease hazards by reducing the voltages and amperages required. Ultimately, most EMR hazards could be eliminated by the development of efficient photoelectric converters to be used as the primary power source at each point of consumption. The changeover would even pay for itself, as the loss factors of long-distance power transmission—not to mention the astronomical costs of building and decommissioning short-lived nuclear power plants—were eliminated. Safety need not imply giving up our beneficial machines. 
Obviously, given the present technomilitary control of society in most parts of the world, such sane efficiency will be immensely difficult to achieve. Nevertheless, we must try. Electromagnetic energy presents us with the same imperative as nuclear energy: Our survival depends on the ability of upright scientists and other people of goodwill to break the military-industrial death grip on our policy-making institutions.

From 1942 until 1947, the Federal Reserve—at the behest of the Treasury Department—actively managed the government’s borrowing costs. Even as spending to fight World War II drove the federal deficit to more than 25 percent of GDP in 1943, interest rates trended lower. That’s because the Fed pegged the T-bill rate at 0.375 percent and held the rate on twenty-five-year bonds at 2.5 percent. As MMT economist L. Randall Wray put it, “the government can ‘borrow’ (issue bonds to the public) at any interest rate the central bank chooses to enforce. It is relatively easy for the central bank to peg the interest rate on short-term government debt instruments by standing ready to purchase it at a fixed price in unlimited quantities. This is precisely what the Fed did in the United States until 1951—providing banks with an interest-earning alternative to excess reserves, but at a very low rate of interest.

No society has succeeded in abolishing the distinction between ruler and ruled... to be a ruler gives one special status and, usually, special privileges. During the Communist era, important officials in the Soviet Union had access to special shops selling delicacies unavailable to ordinary citizens; before China allowed capitalist enterprises in its economy, travelling by car was a luxury limited to tourists and those high in the party hierarchy Throughout the 'communist' nations, the abolition of the old ruling class was followed by the rise of a new class of party bosses and well-placed bureaucrats, whose behaviour and life-style came more and more to resemble that of their much-denounced predecessors. In the end, nobody believed in the system any more. That, couple with its inability to match the productivity of the less bureaucratically controlled, more egoistically driven capitalist economies, led to its downfall.

We know exactly what we need to do in order to avert climate breakdown. We need to mobilise a rapid rollout of renewable energy – a global Green New Deal – to cut world emissions in half within a decade and get to zero before 2050. Keep in mind that this is a global average target. High-income nations, given their greater responsibility for historical emissions, need to do it much more quickly, reaching zero by 2030. It is impossible to overstate how dramatic this is; it is the single most challenging task that humanity has ever faced. The good news is that it is absolutely possible to achieve. But there’s a problem: scientists are clear that it cannot be done quickly enough to keep temperatures under 1.5°C, or even 2°C, if we keep growing the economy at the same time. Why? Because more growth means more energy demand, and more energy demand makes it all the more difficult – impossible, in fact – to roll out enough renewables to cover it in the short time we have left.

Too many countries now rely on food imports, and self-sufficiency in all raw materials is impossible even for the largest countries because no country possesses sufficient reserves of all minerals needed by its economy. The UK and Japan import more food than they produce, China does not have all the iron ore it needs for its blast furnaces, the US buys many rare earth metals (from lanthanum to yttrium), and India is chronically short of crude oil.[91] The inherent advantages of mass-scale manufacturing preclude companies from assembling mobile phones in every city in which they are purchased. And millions of people will still try to see iconic distant places before they die.[92] Moreover, instant reversals are not practical, and rapid disruptions could come only with high costs attached. For example, the global supply of consumer electronics would suffer enormously if Shenzhen suddenly ceased to function as the world’s most important manufacturing hub of portable devices.

I also worried about her morale. During Linda’s first season working for Amazon, she had seen up close the vast volume of crap Americans were buying and felt disgusted. That experience had planted a seed of disenchantment. After she left the warehouse, it continued to grow. When she had downsized from a large RV to a minuscule trailer, Linda had also been reading about minimalism and the tiny house movement. She had done a lot of thinking about consumer culture and about how much garbage people cram into their short lives. I wondered where all those thoughts would lead. Linda was still grappling with them. Weeks later, after starting work in Kentucky, she would post the following message on Facebook and also text it directly to me: Someone asked why do you want a homestead? To be independent, get out of the rat race, support local businesses, buy only American made. Stop buying stuff I don’t need to impress people I don’t like. Right now I am working in a big warehouse, for a major online supplier. The stuff is crap all made somewhere else in the world where they don’t have child labor laws, where the workers labor fourteen- to sixteen-hour days without meals or bathroom breaks. There is one million square feet in this warehouse packed with stuff that won’t last a month. It is all going to a landfill. This company has hundreds of warehouses. Our economy is built on the backs of slaves we keep in other countries, like China, India, Mexico, any third world country with a cheap labor force where we don’t have to see them but where we can enjoy the fruits of their labor. This American Corp. is probably the biggest slave owner in the world. After sending that, she continued: Radical I know, but this is what goes through my head when I’m at work. There is nothing in that warehouse of substance. It enslaved the buyers who use their credit to purchase that shit. Keeps them in jobs they hate to pay their debts. It’s really depressing to be there. Linda added that she was coping

The usual short story cannot have a complex plot, but it often has a simple one resembling a chain with two or three links. The short short, however, doesn't as a rule have even that much - you don't speak of a chain when there's only one link. ... Sometimes ... the short short appears to rest on nothing more than a fragile anecdote which the writer has managed to drape with a quantity of suggestion. A single incident, a mere anecdote - these form the spine of the short short. Everything depends on intensity, one sweeping blow of perception. In the short short the writer gets no second chance. Either he strikes through at once or he's lost. And because it depends so heavily on this one sweeping blow, the short short often approaches the condition of a fable. When you read the two pieces by Tolstoy in this book, or I.L. Peretz's 'If Not Higher,' or Franz Kafka's 'The Hunter Gracchus,' you feel these writers are intent upon 'making a point' - but obliquely, not through mere statement. What they project is not the sort of impression of life we expect in most fiction, but something else: an impression of an idea of life. Or: a flicker in darkness, a slight cut of being. The shorter the piece of writing, the more abstract it may seem to us. In reading Paz's brilliant short short we feel we have brushed dangerously against the sheer arbitrariness of existence; in reading Peretz's, that we have been brought up against a moral reflection on the nature of goodness, though a reflection hard merely to state. Could we say that the short short is to other kinds of fiction somewhat as the lyric is to other kinds of poetry? The lyric does not seek meaning through extension, it accepts the enigmas of confinement. It strives for a rapid unity of impression, an experience rendered in its wink of immediacy. And so too with the short short. ... Writers who do short shorts need to be especially bold. They stake everything on a stroke of inventiveness. Sometimes they have to be prepared to speak out directly, not so much in order to state a theme as to provide a jarring or complicating commentary. The voice of the writer brushes, so to say, against his flash of invention. And then, almost before it begins, the fiction is brought to a stark conclusion - abrupt, bleeding, exhausting. This conclusion need not complete the action; it has only to break it off decisively. Here are a few examples of the writer speaking out directly. Paz: 'The universe is a vast system of signs.' Kafka in 'First Sorrow': The trapeze artist's 'social life was somewhat limited.' Paula Fox: 'We are starving here in our village. At last, we are at the center.' Babel's cossack cries out, 'You guys in specs have about as much pity for chaps like us as a cat for a mouse.' Such sentences serve as devices of economy, oblique cues. Cryptic and enigmatic, they sometimes replace action, dialogue and commentary, for none of which, as it happens, the short short has much room. There's often a brilliant overfocussing. ("Introduction")

It is unlikely that those who provide housing, food, medicine or a host of other goods and services, can continue to provide us with the same quantity and quality of these when the costs involved in providing that quantity and quality of goods and services cannot be recovered. . This may not be immediately obvious, a reason why price controls are popular, but the consequences are long-lasting and usually get even worse over time. Homes do not disappear immediately when there is rent control, but they deteriorate over time without being replaced by newer and more suitable ones. Currently available medicines do not disappear when price controls are implemented, but new medicines for the treatment of cancer, AIDS, Alzheimer's and others will probably not continue to be developed at the same speed, when the money to pay for their development is no longer there. Present. But everything takes time to be noticed and the memory of most people may be very short-term and they cannot connect the bad consequences they suffer with the popular policies they supported a few years ago.

Ibn Khaldun wanted to discover the underlying causes of this change. He was probably the last great Spanish Faylasuf; his great innovation was to apply the principles of philosophic rationalism to he study of history, hitherto considered to be beneath the notice of a philosopher, because it dealt only with transient, fleeting events instead of eternal truths. But Ibn Khaldun believed that, beneath the flux of historical incidents, universal laws governed the fortunes of society. He decided that it was a strong sense of group solidarity (asibiyyah) that enabled a people to survive and, if conditions were right, to subjugate others. This conquest meant that the dominant group could absorb the resources of the subject peoples, develop a culture and a complex urban life. But as the ruling class became accustomed to a luxurious lifestyle, complacency set in and they began to lose their vigour. They no longer took sufficient heed of their subjects, there was jealousy and infighting and the economy would begin to decline. Thus the state became vulnerable to a new tribal or nomadic group, which was in the first flush of its own asibiyyah, and the whole cycle began again.

Unfortunately, however, there is another serious catch. Theory dictates that such discoveries must occur at an increasingly accelerating pace; the time between successive innovations must systematically and inextricably get shorter and shorter. For instance, the time between the “Computer Age” and the “Information and Digital Age” was perhaps twenty years, in contrast to the thousands of years between the Stone, Bronze, and Iron ages. If we therefore insist on continuous open-ended growth, not only does the pace of life inevitably quicken, but we must innovate at a faster and faster rate. We are all too familiar with its short-term manifestation in the increasingly faster pace at which new gadgets and models appear. It’s as if we are on a succession of accelerating treadmills and have to jump from one to another at an ever-increasing rate. This is clearly not sustainable, potentially leading to the collapse of the entire urbanized socioeconomic fabric. Innovation and wealth creation that fuel social systems, if left unchecked, potentially sow the seeds of their inevitable collapse. Can this be avoided or are we locked into a fascinating experiment in natural selection that is doomed to fail?

The specific economic form, in which unpaid surplus-labour is pumped out of direct producers, determines the relationship of rulers and ruled, as it grows directly out of production itself and, in turn, reacts upon it as a determining element. Upon this, however, is founded the entire formation of the economic community which grows up out of the production relations themselves, thereby simultaneously its specific political form. It is always the direct relationship of the owners of the conditions of production to the direct producers — a relation always naturally corresponding to a definite stage in the development of the methods of labour and thereby its social productivity — which reveals the innermost secret, the hidden basis of the entire social structure and with it the political form of the relation of sovereignty and dependence, in short, the corresponding specific form of the state. This does not prevent the same economic basis — the same from the standpoint of its main conditions — due to innumerable different empirical circumstances, natural environment, racial relations, external historical influences, etc. from showing infinite variations and gradations in appearance, which can be ascertained only by analysis of the empirically given circumstances.

Maj. Gen. Smedley D. Butler, often regarded as the most famous decorated US army officer of the early twentieth century, wrote a book after World War I aptly called War Is a Racket. Upon retirement in the 1930s, he gave speeches around the country to spread his message—a message that sheds light upon the hidden internal dialogue underlying US military history. In 1935, Butler boldly stated: I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902–1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.

Neoliberal economics, the logic of which is tending today to win out throughout the world thanks to international bodies like the World Bank or the International Monetary Fund and the governments to whom they, directly or indirectly, dictate their principles of ‘governance’,10 owes a certain number of its allegedly universal characteristics to the fact that it is immersed or embedded in a particular society, that is to say, rooted in a system of beliefs and values, an ethos and a moral view of the world, in short, an economic common sense, linked, as such, to the social and cognitive structures of a particular social order. It is from this particular economy that neoclassical economic theory borrows its fundamental assumptions, which it formalizes and rationalizes, thereby establishing them as the foundations of a universal model. That model rests on two postulates (which their advocates regard as proven propositions): the economy is a separate domain governed by natural and universal laws with which governments must not interfere by inappropriate intervention; the market is the optimum means for organizing production and trade efficiently and equitably in democratic societies. It is the universalization of a particular case, that of the United States of America, characterized fundamentally by the weakness of the state which, though already reduced to a bare minimum, has been further weakened by the ultra-liberal conservative revolution, giving rise as a consequence to various typical characteristics: a policy oriented towards withdrawal or abstention by the state in economic matters; the shifting into the private sector (or the contracting out) of ‘public services’ and the conversion of public goods such as health, housing, safety, education and culture – books, films, television and radio – into commercial goods and the users of those services into clients; a renunciation (linked to the reduction in the capacity to intervene in the economy) of the power to equalize opportunities and reduce inequality (which is tending to increase excessively) in the name of the old liberal ‘self-help’ tradition (a legacy of the Calvinist belief that God helps those who help themselves) and of the conservative glorification of individual responsibility (which leads, for example, to ascribing responsibility for unemployment or economic failure primarily to individuals, not to the social order, and encourages the delegation of functions of social assistance to lower levels of authority, such as the region or city); the withering away of the Hegelian–Durkheimian view of the state as a collective authority with a responsibility to act as the collective will and consciousness, and a duty to make decisions in keeping with the general interest and contribute to promoting greater solidarity. Moreover,

The reason you might be having trouble with your practice in the long run—if you were capable of building a practice in the short run—is nearly always because you are afraid. The fear, the resistance, is very insidious. It doesn’t leave a lot of fingerprints, but the person who manages to make a movie short that blows everyone away but can’t raise enough cash to make a feature film, the person who gets a little freelance work here and there but can’t figure out how to turn it into a full-time gig—that person is practicing self-sabotage. These people sabotage themselves because the alternative is to put themselves into the world as someone who knows what they are doing. They are afraid that if they do that, they will be seen as a fraud. It’s incredibly difficult to stand up at a board meeting or a conference or just in front of your peers and say, “I know how to do this. Here is my work. It took me a year. It’s great.” This is hard to do for two reasons: (1) it opens you to criticism, and (2) it puts you into the world as someone who knows what you are doing, which means tomorrow you also have to know what you are doing, and you have just signed up for a lifetime of knowing what you are doing. It’s much easier to whine and sabotage yourself and blame the client, the system, and the economy. This is what you hide from—the noise in your head that says you are not good enough, that says it is not perfect, that says it could have been better.

There is an excellent short book (126 pages) by Faustino Ballvè, Essentials of Economics (Irvington-on-Hudson, N.Y.: Foundation for Economic Education), which briefly summarizes principles and policies. A book that does that at somewhat greater length (327 pages) is Understanding the Dollar Crisis by Percy L. Greaves (Belmont, Mass.: Western Islands, 1973). Bettina Bien Greaves has assembled two volumes of readings on Free Market Economics (Foundation for Economic Education). The reader who aims at a thorough understanding, and feels prepared for it, should next read Human Action by Ludwig von Mises (Chicago: Contemporary Books, 1949, 1966, 907 pages). This book extended the logical unity and precision of economics beyond that of any previous work. A two-volume work written thirteen years after Human Action by a student of Mises is Murray N. Rothbard’s Man, Economy, and State (Mission, Kan.: Sheed, Andrews and McMeel, 1962, 987 pages). This contains much original and penetrating material; its exposition is admirably lucid; and its arrangement makes it in some respects more suitable for textbook use than Mises’ great work. Short books that discuss special economic subjects in a simple way are Planning for Freedom by Ludwig von Mises (South Holland, 111.: Libertarian Press, 1952), and Capitalism and Freedom by Milton Friedman (Chicago: University of Chicago Press, 1962). There is an excellent pamphlet by Murray N. Rothbard, What Has Government Done to Our Money? (Santa Ana, Calif.: Rampart College, 1964, 1974, 62 pages). On the urgent subject of inflation, a book by the present author has recently been published, The Inflation Crisis, and How to Resolve It (New Rochelle, N.Y.: Arlington House, 1978). Among recent works which discuss current ideologies and developments from a point of view similar to that of this volume are the present author’s The Failure of the “New Economics”: An Analysis of the Keynesian Fallacies (Arlington House, 1959); F. A. Hayek, The Road to Serfdom (1945) and the same author’s monumental Constitution of Liberty (Chicago: University of Chicago Press, 1960). Ludwig von Mises’ Socialism: An Economic and Sociological Analysis (London: Jonathan Cape, 1936, 1969) is the most thorough and devastating critique of collectivistic doctrines ever written. The reader should not overlook, of course, Frederic Bastiat’s Economic Sophisms (ca. 1844), and particularly his essay on “What Is Seen and What Is Not Seen.” Those who are interested in working through the economic classics might find it most profitable to do this in the reverse of their historical order. Presented in this order, the chief works to be consulted, with the dates of their first editions, are: Philip Wicksteed, The Common Sense of Political Economy, 1911; John Bates Clark, The Distribution of Wealth, 1899; Eugen von Böhm-Bawerk, The Positive Theory of Capital, 1888; Karl Menger, Principles of Economics, 1871; W. Stanley Jevons, The Theory of Political Economy, 1871; John Stuart Mill, Principles of Political Economy, 1848; David Ricardo, Principles of Political Economy and Taxation, 1817; and Adam Smith, The Wealth of Nations, 1776.

The intellectual justification for transphobia on the left is usually framed as concern about a mythological 'trans ideology', which is individualist, bourgeois and unconcerned with class struggle. As we've seen, however, the majority of trans people are working class, and the oppression of trans people is specifically rooted in capitalism. In short, capitalism across the world still relies heavily on the idea of different categories of men's work and women's work, in which "women's work" (such as housework, child-rearing, and emotional labour) is either poorly paid or not paid at all. In order for this categorization to function, it needs to rest on a clear idea of how to divide men and women. Capitalism also requires a certain level of unemployment to function. If there were enough work to go round, no worker would worry about losing their job, and all workers could demand higher wages and better conditions. The ever-present spectre of unemployment, on the other hand, enables employers to dictate conditions. Equally, in terms of severe crisis this 'reserve army' of unemployed people can be called into employment as and when the economy requires it. This system of deliberate unemployment needs ways to mark who will work and who will be left unemployed. In our society this is principally achieved through race, class, gender, and disability. Social exclusion and revulsion at the existence of trans people usefully provides another class of people more likely to be left in the ranks of the unemployed (even more so if they are trans and poor, black, or disabled - which is why unemployment is highest among these trans people).

The overall U.S. homeownership rate increased from 64 percent in 1994 to a peak in 2004 with an all-time high of 69.2 percent. Real estate had become the leading business in America, more and more speculators invested money in the business. During 2006, 22 percent of homes purchased (1.65 million units) were for investment purposes, with an additional 14 percent (1.07 million units) purchased as vacation homes. These figures led Americans to believe that their economy was indeed booming. And when an economy is booming nobody is really interested in foreign affairs, certainly not in a million dead Iraqis. But then the grave reality dawned on the many struggling, working class Americans and immigrants, who were failing to pay back money they didn't have in the first place. Due to the rise in oil prices and the rise of interest rates, millions of disadvantaged Americans fell behind. By the time they drove back to their newly purchased suburban dream houses, there was not enough money in the kitty to pay the mortgage or elementary needs. Consequently, within a very short time, millions of houses were repossessed. Clearly, there was no one around who could afford to buy those newly repossessed houses. Consequently, the poor people of America became poorer than ever. Just as Wolfowitz's toppled Saddam, who dragged the American Empire down with him, the poor Americans, that were set to facilitate Wolfowitz's war, pulled down American capitalism as well as the American monetary and banking system. Greenspan's policy led an entire class to ruin, leaving America's financial system with a hole that now stands at a trillion dollars.

After basic needs are met, higher incomes produce gains in happiness only up to a point, beyond which further increases in consumption do not enhance a sense of well-being. The cumulative impact of surging per capita consumption, rapid population growth, human dominance of every ecological system, and the forcing of pervasive biological changes worldwide has created the very real possibility, according to twenty-two prominent biologists and ecologists in a 2012 study in Nature, that we may soon reach a dangerous “planetary scale ‘tipping point.’ ” According to one of the coauthors, James H. Brown, “We’ve created this enormous bubble of population and economy. If you try to get the good data and do the arithmetic, it’s just unsustainable. It’s either got to be deflated gently, or it’s going to burst.” In the parable of the boy who cried wolf, warnings of danger that turned out to be false bred complacency to the point where a subsequent warning of a danger that was all too real was ignored. Past warnings that humanity was about to encounter harsh limits to its ability to grow much further were often perceived as false: from Thomas Malthus’s warnings about population growth at the end of the eighteenth century to The Limits to Growth, published in 1972 by Donella Meadows, among others. We resist the notion that there might be limits to the rate of growth we are used to—in part because new technologies have so frequently enabled us to become far more efficient in producing more with less and to substitute a new resource for one in short supply. Some of the resources we depend upon the most, including topsoil (and some key elements, like phosphorus for fertilizers), however, have no substitutes and are being depleted.

KEYNESIAN ECONOMICS AND STIMULUS Keynesian economics is based on the notion that unemployment arises when total or aggregate demand in an economy falls short of the economy’s ability to supply goods and services. When products go unsold, jobs are lost. Aggregate demand, in turn, comes from two sources: the private sector (which is the majority) and the government. At times, aggregate demand is too buoyant—goods fly off the shelves and labor is in great demand—and we get rising inflation. At other times, aggregate demand is inadequate—goods are hard to sell and jobs are hard to find. In those cases, Keynes argued in the 1930s, governments can boost employment by cutting interest rates (what we now call looser monetary policy), raising their own spending, or cutting people’s taxes (what we now call looser fiscal policy). By the same logic, when there is too much demand, governments can fight actual or incipient inflation by raising interest rates (tightening monetary policy), increasing taxes, or reducing its own spending (thus tightening fiscal policy). That’s part of standard Keynesian economics, too, although Keynes, writing during the Great Depression, did not emphasize it. Setting aside the underlying theory, the central Keynesian policy idea is that the government can—and, Keynes argued, should—act as a kind of balance wheel, stimulating aggregate demand when it’s too weak and restraining aggregate demand when it’s too strong. For decades, American economists took for granted that most of that job should and would be done by monetary policy. Fiscal policy, they thought, was too slow, too cumbersome, and too political. And in the months after the Lehman Brothers failure, the Federal Reserve did, indeed, pull out all the stops—while fiscal policy did nothing. But what happens when, as was more or less the case by December 2008, the central bank has done almost everything it can, and yet the economy is still sinking? That’s why eyes started turning toward Congress and the president—that is, toward fiscal stimulus—after the 2008 election.

However, it is important not to lose sight of exactly how the neoliberal system works. As David Harvey has demonstrated, by drawing on Karl Polanyi’s masterful work, the free market has never been incompatible with state intervention, and the management of crises is part of the neoliberal project. We therefore need to inquire into how this crisis was presented by recalling, if we take the American example, that President George W. Bush kept forcefully repeating that the foundations of the economy were solid. Then suddenly, in the fateful month of September, as if faced with the sudden surge of a more or less unexpected “economic hurricane,” he asked for $700 billion to avoid a severe economic meltdown. It was necessary to save the banks and businesses that were too big to fail. This complex crisis called for a reaction that was as fast as it was extreme, starting with $350 billion distributed by Treasury Secretary Henry Paulson, the former chairman and chief executive officer of Goldman Sachs. We should note in passing that this sort of crisis discourse recalls all of the exceptional measures put in place or intensified after September 11, 2001: the usa patriot Act, the Military Commissions Act, illegal wiretappings, extraordinary rendition, the network of secret prisons, the redefinition of torture by the Office of Legal Council, and so on. It is not by chance that this crisis was presented as a complex and uncontrollable natural phenomenon, whose severity was largely unforeseen, for it is similar to the historical logic outlined above. By naturalizing the economy and transforming it into an autonomous authority independent of the decisions made by specific agents, this historical order promotes passivity (we can only bow before forces stronger than us), the removal of responsibility (no one can be held accountable for natural phenomena), and historical nearsightedness (the situation is so critical that we must respond quickly, without wasting time by debating over distant causes: time is short!). If we were to step back and assess the overall situation, we would see numerous specters rising up in the cemetery that is neoliberalism, and we would need to begin questioning—following Polanyi—whether the very project of laissez-faire economics has ever been anything other than socialism for the rich or, more precisely, topdown class warfare enforced by state intervention

...the centrality of competitiveness as the key to growth is a recurrent EU motif. Two decades of EC directives on increasing competition in every area, from telecommunications to power generation to collateralizing wholesale funding markets for banks, all bear the same ordoliberal imprint. Similarly, the consistent focus on the periphery states’ loss of competitiveness and the need for deep wage and cost reductions therein, while the role of surplus countries in generating the crisis is utterly ignored, speaks to a deeply ordoliberal understanding of economic management. Savers, after all, cannot be sinners. Similarly, the most recent German innovation of a constitutional debt brake (Schuldenbremse) for all EU countries regardless of their business cycles or structural positions, coupled with a new rules-based fiscal treaty as the solution to the crisis, is simply an ever-tighter ordo by another name. If states have broken the rules, the only possible policy is a diet of strict austerity to bring them back into conformity with the rules, plus automatic sanctions for those who cannot stay within the rules. There are no fallacies of composition, only good and bad policies. And since states, from an ordoliberal viewpoint, cannot be relied upon to provide the necessary austerity because they are prone to capture, we must have rules and an independent monetary authority to ensure that states conform to the ordo imperative; hence, the ECB. Then, and only then, will growth return. In the case of Greece and Italy in 2011, if that meant deposing a few democratically elected governments, then so be it. The most remarkable thing about this ordoliberalization of Europe is how it replicates the same error often attributed to the Anglo-American economies: the insistence that all developing states follow their liberal instruction sheets to get rich, the so-called Washington Consensus approach to development that we shall discuss shortly. The basic objection made by late-developing states, such as the countries of East Asia, to the Washington Consensus/Anglo-American idea “liberalize and then growth follows” was twofold. First, this understanding mistakes the outcomes of growth, stable public finances, low inflation, cost competitiveness, and so on, for the causes of growth. Second, the liberal path to growth only makes sense if you are an early developer, since you have no competitors—pace the United Kingdom in the eighteenth century and the United States in the nineteenth century. Yet in the contemporary world, development is almost always state led.

Neoliberal ideology has radically altered our working lives, leaving us isolated and exposed. The ‘freedom and independence’ of the gig economy it celebrates, in which regular jobs are replaced by an illusion of self-employment, often translates into no job security, no unions, no health benefits, no overtime compensation, no safety net and no sense of community. In 1987, Margaret Thatcher said the following in a magazine interview: I think we have gone through a period when too many children and people have been given to understand ‘I have a problem, it is the Government’s job to cope with it!’ or ‘I have a problem, I will go and get a grant to cope with it!’, ‘I am homeless, the Government must house me!’ And so they are casting their problems on society, and who is society? There is no such thing! There are individual men and women and there are families, and no government can do anything except through people and people look to themselves first.8 As always, Thatcher was faithfully repeating the snake-oil remedies of neoliberalism. Precious few of the ideas attributed to her were her own. They were formulated by men like Hayek and Friedman, then spun by the think tanks and academic departments of the Neoliberal International. In this short quote, we see three of the ideology’s core tenets distilled: First, everyone is responsible for their own destiny, and if you fall through the cracks, the fault is yours and yours alone. Second, the state has no responsibility for those in economic distress, even those without a home. Third, there is no legitimate form of social organization beyond the individual and the family. There is genuine belief here. There is a long philosophical tradition, dating back to Thomas Hobbes,9 which sees humankind as engaged in a war of ‘every man against every man’. Hayek believed that this frantic competition delivered social benefits, generating the wealth which would eventually enrich us all. But there is also political calculation. Together we are powerful, alone we are powerless. As individual consumers, we can do almost nothing to change social or environmental outcomes. But as citizens, combining effectively with others to form political movements, there is almost nothing we cannot do. Those who govern on behalf of the rich have an incentive to persuade us we are alone in our struggle for survival, and that any attempts to solve our problems collectively – through trade unions, protest movements or even the mutual obligations of society – are illegitimate or even immoral. The strategy of political leaders such as Thatcher

We would prefer to say that such people cannot exist, that there aren’t any. It is permissible to portray evildoers in a story for children, so as to keep the picture simple. But when the great world literature of the past — Shakespeare, Schiller, Dickens — inflates and inflates images of evildoers of the blackest shades, it seems somewhat farcical and clumsy to our contemporary perception. The trouble lies in the way these classic evildoers are pictured. They recognize themselves as evildoers, and they know their souls are black. And they reason: “I cannot live unless I do evil. So I’ll set my father against my brother! I’ll drink the victim’s sufferings until I’m drunk with them!” Iago very precisely identifies his purposes and his motives as being black and born of hate. But no; that’s not the way it is! To do evil a human being must first of all believe that what he’s doing is good, or else that it’s a well-considered act in conformity with natural law. Fortunately, it is in the nature of the human being to seek a justification for his actions. Macbeth’s self-justifications were feeble — and his conscience devoured him. Yes, even Iago was a little lamb too. The imagination and the spiritual strength of Shakespeare’s evildoers stopped short at a dozen corpses. Because they had no ideology. Ideology — that is what gives evildoing its long-sought justification and gives the evildoer the necessary steadfastness and determination. That is the social theory which helps to make his acts seem good instead of bad in his own and others’ eyes, so that he won’t hear reproaches and curses but will receive praise and honors. That was how the agents of the Inquisition fortified their wills: by invoking Christianity; the conquerors of foreign lands, by extolling the grandeur of their Motherland; the colonizers, by civilization; the Nazis, by race; and the Jacobins (early and late), by equality, brotherhood, and the happiness of future generations. Thanks to ideology, the twentieth century was fated to experience evildoing on a scale calculated in the millions. This cannot be denied, nor passed over, nor suppressed. How, then, do we dare insist that evildoers do not exist? And who was it that destroyed these millions? Without evildoers there would have been no Archipelago. There was a rumor going the rounds between 1918 and 1920 that the Petrograd Cheka, headed by Uritsky, and the Odessa Cheka, headed by Deich, did not shoot all those condemned to death but fed some of them alive to the animals in the city zoos. I do not know whether this is truth or calumny, or, if there were any such cases, how many there were. But I wouldn’t set out to look for proof, either. Following the practice of the bluecaps, I would propose that they prove to us that this was impossible. How else could they get food for the zoos in those famine years? Take it away from the working class? Those enemies were going to die anyway, so why couldn’t their deaths support the zoo economy of the Republic and thereby assist our march into the future? Wasn’t it expedient? That is the precise line the Shakespearean evildoer could not cross. But the evildoer with ideology does cross it, and his eyes remain dry and clear.