Archives for category: cooperation

The early believers were convinced that God’s ‘real’ name could not be uttered by their ‘mortal’ lips.

Their logic was simple. Using a single word to ‘differentiate’ something from everything else is somewhat arrogant. It implies that the ‘god-father’ knows all that there is to be known about that something – or at least enough to give credence to that naming.

As faith became stronger, so did the self confidence of those involved in the process.
When writing about their beliefs, some of them circumvented the initial shyness by using multiple names to describe the object of their adoration – hoping that in this manner they’ll get close enough to the real thing.
“To begin with, God is referred to by a number of names in the Bible—not just a single name. By some counts there are more than 20 different names for God mentioned in the Bible. And each of these names has great significance. Each one tells us something important about God—His character and how He relates to us.”
Others still stick to the ‘no name’ policy, refer to their God using a title, Allah – the ‘One and Only Who Deserves to Be Worshiped’ – instead of a ‘proper’ (?!?) name, and use a number of attributes to describe him. Such a large number of attributes as to make it evidently clear that stringing attributes is in no way enough to ‘exhaust’ the inner nature of any god. Of anything, really.
“”If We had sent down this Quran upon a mountain, you would have seen it humble itself and shatter out of fear of God.  Such are the parables which We put forward to mankind that they may reflect. He is Allah, there is no deity but He.  He is the Knower of the unseen and the seen.  He is ar-Rahman (Most Compassionate), ar-Raheem (Most Merciful).  He is Allah besides Whom there is no deity.  He is al-Malik (Sovereign), al-Quddus (Most Pure), as-Salaam (Giver of peace), al-Mumin (Giver of security), al-Muhaiman (Vigilant), al-Aziz (Migthy), al-Jabbar (Overpowering), al-Mutakabbir (Glorious).  He is pure from whatever they ascribe to Him.  He is Allah, al-Khaliq (Creator), al-Bari (Perfect Maker), al-Musawwir (Fashioner); to Him belong the most beautiful names.  Whatever is in the heavens and the earth glorifies Him.  He is al-Aziz (Mighty), al-Hakeem (Wise).” (Quran 59:21-24)”

After writing for long enough about their beliefs, the worshipers had become emboldened enough to transform their convictions into precepts. To be not only followed by the believers themselves but also imposed upon others.

And this is how various groups of people have traveled from “The Truth Shall Make You Free” to defining heresy as being the most heinous crime… so heinous that the congregations felt the need to punish it in the most eloquent manner.
Does it seem logical that heretics were burned alive, with their mental faculties intact, to give them one last chance to repent before being sent into the “eternal fire”? Could it be that burning an individual at the stake was seen as a merciful death, as a means of giving that person one last chance to save his or her soul before final damnation??? I have read that “burning at the stake was believed by some medieval authorities and scholars to liberate the sinner from his or her formerly damned state and offer some hope of salvation to the now ‘cleansed’ soul”.

After some of us have somehow survived that era, a few parts of the world have become ‘the lands of the free’.
The countries where a majority of the inhabitants believe that “your right to swing your arm leaves off where my right not to have my nose struck begins.”

It’s here that things get really interesting.

The quote defining freedom as stemming from the relation between your fist and my nose logically leads us to observe that those who define liberty in this manner are a bunch of tired, and maybe wised up, fist-fighters.
Who have finally reached the understanding that it’s better to negotiate it rather than fight over it.

‘Negotiate? What is here to be negotiated?’
‘The distance between our noses? How close am I allowed to bring mine to yours before you becoming allowed to defend your intimacy?
After all, if my nose is so far away that you’ll never be able to touch it, this particular definition of liberty ceases to make any sense while if you’re never allowed to punch mine then I’ll be able to use it to crowd you out of your own life.
And vice-versa.
Capisci?’

Which points out the cruel reality that we cannot negotiate everything.

To start any negotiation we must first have something in common.
A common language would be fine indeed but I have something else in mind.
Both sides involved in any negotiation need to share the same attitude.

This is the hardest thing to convey.
To convince the other side that you’re going to keep your end of the bargain.
Only after both sides have reached this ‘belief’, they will feel free enough to discuss the real issues.
This is where ‘religion’ comes in handy. It teaches us that all people are to be treated equally – all of them have been molded in a single cast, and that they share a spark from the same divine fire.
God created mankind in his own image, in the image of God he created them“.

“I am astonished that you are so quickly deserting the one who called you to live in the grace of Christ and are turning to a different gospel, which is really no gospel at all. Evidently some people are throwing you into confusion and are trying to pervert the gospel of Christ. But even if we or an angel from heaven should preach a gospel other than the one we preached to you, let them be under God’s curse! As we have already said, so now I say again: If anybody is preaching to you a gospel other than what you accepted, let them be under God’s curse!

Am I now trying to win the approval of human beings, or of God? Or am I trying to please people? If I were still trying to please people, I would not be a servant of Christ.” (Galatians, 1:6-10)

 Which brings us back to the original question.

Is any liberty possible, outside the one we continuously build ourselves, through constant negotiation?
Is any bona-fide negotiation possible without a healthy dose of mutual respect among all those involved in it?
Why do we, grown-ups, still need our father to constantly remind us to stop bickering?

a-mans-ethical-behavior

 

 

(http://www.bibleinfo.com/en/questions/names-of-god)

https://www.islamreligion.com/articles/10827/chapter-59-verses-21-24/

http://biblelight.net/burn-heretics.htm

https://quoteinvestigator.com/2011/10/15/liberty-fist-nose/

http://biblehub.com/niv/galatians/1.htm

 

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“Try” implies intent, right?
Towards the professed goal… otherwise it makes no sense…

Which begets yet another question:
‘But how do we determine intention?’
‘The ‘perpetrator’ must have wished for it, given what they’ve done/said!’ ?!?

Let me give you something to chew on…

 

Jordan Peterson, (12 Rules for Life, 2018) is a smart guy who has just published a rather controversial book – read ‘all about it’ here.
Cathy Newman, a “presenter for Channel 4 News” has recently become “a minor Internet phenomenon, thanks to the journalist’s extraordinary interviewing style.”
The excerpt above belongs to that interview but, unfortunately, proves that there is nothing extraordinary about this interviewer’s style. Oversimplification has become a pattern rather than an exception.

But why?
What’s going on here?
Why would seemingly sensible people, in pursuit of commendable goals, put themselves in such untenable positions? “A British broadcaster doggedly tried to put words into the academic’s mouth.” A rather harsh commentary, specially when published by the Atlantic, a magazine promoting more or less the same ideas as those ‘defended’ so passionately by Newman.

The “invisible gorilla” to the rescue.

Not familiar with the concept? Click on the link.

I won’t bother you with the details of this very modern experiment but I’m gone quote a ‘classic’ Romanian proverb
‘As soon as people gaze long/deep enough into a single spot/subject, their knowledge horizon becomes ‘their’ point of view’.
At this point, I have a confession to make. I don’t know how classic it is, nor whether it is actually a proverb. I was introduced to it by my 7-th grade history teacher, Mr. Bucataru. More than 40 years ago, at least 20 before the ‘invisible gorilla’ strolled across the basket ball court, ‘blissfully’ unnoticed by half of the people ‘present’ for the occasion.

So.
Was Newman really trying to sound dumb? As in ‘assuming the perceived dumbness as a cost towards a more valuable goal’?

Or was she so absorbed by the ‘more valuable goal’ – which ever that might be, I cannot pretend to know what she was after, that she wasn’t even aware that her very behavior was detrimental to whatever she attempted to achieve?

Could it be that sometimes we concentrate so much on whatever we consider to be  ‘the occasion’ that we fail to actually be there?

Why Can’t People Hear What Jordan Peterson Is Saying?”

Conor Friedersdorf, the Atlantic, Jan 22, 2018

If this book has a blind spot, it’s largely a function of the fact that Peterson is a professor. If you’re an academic, especially a Canadian academic, living in a real city, you rarely (if ever) meet right-wing crazies. But you’re exposed to left-wing crazies on a fairly regular basis. This tends to skew and distort your conception of where the crazies are to be found mightily….
.
.
I share Peterson’s deep discomfort with any mode of analysis that reduces individuals to the status of group representatives. But to say that this pernicious mode of analysis is solely a function of “Marxism” or “postmodernism” is a gross oversimplification. Among other things, it makes it seem like this is a uniquely left-wing problem—when clearly it’s not. Right-wing reactionary racists regularly reduce individuals to the status of group representatives. And they’re doing pretty well politically lately.

John Faithful Hamer, Commiting Sociology, Feb 2, 2018.

“So you’re saying … we should live like lobsters?” or: Why does politics make us stupid?

Pascal Boyer, Blog, Cognition and Culture, Feb 1, 2018

PS. I’ve just realized that the ‘Romanian proverb’ I mentioned above is somewhat related to Nietzsche’s: “Beware that, when fighting monsters, you yourself do not become a monster… for when you gaze long into the abyss the abyss gazes also into you.”
And since ‘becoming a monster’ basically means loosing the ability/willingness to fit into the society where you have been born,  the logical conclusion of Nietzsche’s advice is ‘never attempt to fight monsters by yourself’. It’s easier to retain your humanity when belonging to a team and even more so when the teams involved in any competition behave fairly and respectfully to each other.

“If you say that an idea or action goes against the grain, you mean that it is very difficult for you to accept it or do it, because it conflicts with your previous ideas, beliefs, or principles.”

In other words, going ‘against the grain’ – if you do it sensibly, of course, is a better survival strategy than ‘going with the flow’.

Simply because going against the grain will prod you to discover a solution for the next challenge while going with the flow will hone your expertise in solving the last problem you have encountered.

prison gender
I get the hang of it, and I fully agree with it, but I’m afraid this has to be rephrased.
Actually, I’m not at all sure that being incarcerated would automatically change my ‘gender’.
And while I fully support gender equality in the work place, I have this deep feeling that there’s something more involved here.
Functionally, which excludes any attempt to establish an hierarchy, men and women are simultaneously complementary and equal.
I’m not talking exclusively about making/raising kids here.
Otherwise we wouldn’t have been so different.
And the differences wouldn’t have been so complementary.
Insisting on any of ‘equal’ or ‘complementary’ would be worse than wrong.
It would be either neutering or disempowering.
As in counterproductive. A.k.a. dysfunctional.

Autumn of 2008.
The Bucharest Stock Exchange assembled a conference for the investors where some relatively junior guys working for the ‘Global Banking Establishment’ tried to uplift our mood by outlining their bosses’ envisioned reaction to the crises. Something which would later be known as  ‘quantitative easing’.
I asked one of them:
‘The current crises is the straight consequence of money having been used improperly. Are you sure that throwing a fresh amount of it on the market would make things any better?’.
‘Well, nobody has come yet with a better idea…’

Almost ten years later, it seems that ‘throwing fresh money at it’ did revive the market.
Dow Jones has climbed through the clouds, unemployment is low, inflation is low, interest rates are also low…

Some 120 economies, accounting for three quarters of world GDP, have seen a pickup in growth in year-on-year terms in 2017, the broadest synchronized global growth upsurge since 2010.“, according to the IMF.

Only the very same words could have been used to describe the 1990’s…

But there is something that at least some of us have noticed.

income-inequality-08

©Elliot Wave International (www.elliotwave.com)

Both major economic crises which have scarred us in less than a century have been closely predated by spikes in ‘income inequality’.

To make things worse, we are confronted by yet another fast moving development which pushes us towards uncharted waters.
Large scale replacement of ‘human capital’ by industrial robots, some of them driven by ‘artificial intelligence’.

Reaction has been mixed.

Some of the very rich have pledged to make available to charity important chunks of their estates while other ‘concerned parties’ promote  heavier involvement of the government – ‘guaranteed universal income’, etc., etc…
All these in the name of an illusive ‘equality’.

‘On the other side of the isle’, where inequality is seen as being not only natural but also harmless, people are happy with what’s going on and see no problem in everything continuing to march to the same beat.

I argued earlier that ‘heavy involvement of the government’ has already been experimented. And failed. Check the fate of every communist dictatorship.
Actually, check the fate of all dictatorships.
You’ll find that whenever a society becomes too centralized, that thing alone considerably diminishes its survival chances.
Same outcome whenever people in a group/community evaluate things using a single yardstick/from a single perspective.
To make things worse, the speed of the degenerative process becomes catastrophic when decision making becomes centralized while the reduced number of decision makers are partially blinded by too many of them using a single yardstick to do their job.

We are fast approaching that situation.

Extreme wealth polarization means that economic resources become concentrated in very few hands. Hence economic decision making.
And since policies cannot be put in place without resources…

The funny thing is that this concentration of power/decision making take place regardless of property remaining private or communism taking over.
As long as those who control the whole system are too few, ‘who owns it’ makes no difference.
Absolute monarchies faltered in the very same way as their communist successors.

It doesn’t matter whether an universal basic income would be supported by a tax exacting government or by a small coterie of ‘concerned investors’, sooner or later any such arrangement would become sour.

One other thing.
Claims for equality might become so deafening as to impede clear thinking.

Just as money is a very good tool/servant but a lousy goal/master, equality is a commendable goal but a lousy tool.
Human beings ‘work best’ as autonomous individuals who cooperate freely inside what has been described as ‘free market’.
Whenever that market was cornered, either from outside – by the government, or from inside – too many of the players acting in ‘concert’/sync because they had been ‘mesmerized’, remember the ‘Tulip mania” of yore? – it had faltered. Sometimes abysmally.
Attempting to fit everybody in a ‘one size fits all’ mould would be catastrophic.
Just as catastrophic as when less and less people can develop and express their true potential. Remember that we haven’t changed, biologically, during the last 50 000 years or so. But, generation after generation, we’ve been able to do more and more things simply because each generation made it easier for the next one. Most of the times, anyway.
Let’s not change this.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I keep hearing about this issue and I can’t stop wondering about how parallel to each other are those defending this idea with those denying its merits.

Pro:

-Robots are eating more and more jobs so more and more people will end up hungry.
-AI will make robots so productive that it will be far more efficient to use robots than human workers.
-A decent income is a human right.

Con:

-This is a socialist move, hence it will end up in failure – no other reason offered.

As it is obvious to all, both sides score big.

Yes, including ‘a decent income is a human right’ and ‘all socialist ideas end up in failure’.

Then what are they fighting each-other about?!?

Let me rephrase that.
WHY are they fighting, in the first place?

Because neither listen to what the other has to say… as simple as that…

Let me discuss some of the practicalities involved.

Robots eating up jobs and AI being able to continually increase financial efficiency are so evident that they do not deserve much consideration.

‘All socialist moves ended up in failure’.
We need to define socialism in order to make sense of this sentence.
Mainly because ‘socialism’ is one of the most abused words nowadays, on a par with liberalism. Sometimes they are even considered synonyms…
Well, ‘liberalism’ comes from liberty and  bona fide liberalism is concerned with individual freedom.
Socialism, on the other hand, comes from social. And is concerned with the the workings of the entire society.
The point being that there are two types of socialism. One which is ‘somewhat’ synonym with liberalism – the ‘reverse’ side of liberalism, actually, while the latter is the exact opposite.

I’m not making any sense?

Let me start from the other side.
All forms of socialism which have failed have been excessively centralized forms of government. And it was because of that excessive centralism that they had failed, not because of being ‘socialist’. The evident proof being that the same thing has happened with all right-wing dictatorships, which had used the very same excessively centralized decision making mechanism – the totalitarian government …

Which brings us back to the problem at hand.

For Universal Basic Income to work – or Guaranteed Basic Income, as some insist on calling it, it has to be financed.
Through taxes, right? Which means that those owning the robots would have to be somehow convinced to give up a huge proportion of their profits… Then why bother in the first place…? Why start any businesses, at all?
We’ll have the government run the whole show? Remember what history teaches us about centralized decision making?

So?!?

Well, not all is lost while there’s still hope!

Let me rearrange the arguments.

We not only live in an inherently limited space, with inherently limited resources, but we’ve also finally started to understand our predicament. Which calls for as much efficiency as possible.
Only for a different kind of efficiency than that we’ve accustomed ourselves to.

Until recently, we’ve been trying to get as much money under our belts as possible. Without much regard for anything else.
That’s why we’ve been cutting down secular forests, feeding almost all the fish we’ve been pulling from the oceans to the domestic animals we were raising for their meat, polluting our breathing air, selling our fellow humans which happened to had a different skin color than ours into slavery… As if there was no tomorrow…

Slowly, we’ve started to realize that this won’t work for very much longer.

That no matter whether we’re responsible for the global warming – or if it’s real at all, sooner or later we’ll exhaust the planet.
OK, it is highly plausible that we’ll discover/learn to use new classes of resources.
But this eventuality doesn’t constitute, in any way, a valid reason for us to continue squandering the meager resources we have at our disposal.

Hence the need for increased efficiency.

Only this has to be a different kind of efficiency. The kind that focuses on minimizing waste instead of maximizing profits. The kind that recycles because it makes obvious sense, not because it is cheaper.

Along the same path we’ll discover that it would make a lot of sense to help the less developed nations to catch up with the most advanced ones.
For starters, because the ‘advanced economies’ no longer need cheap workers. They use robots instead.
Secondly, because better living people tend to have less children than those struggling to survive. And we’ve already agreed about the planet being rather limited…

Nothing too fancy… until now, right?

Well, the next item will be trickier..

Remember that Ford had raised dramatically the wages he paid to his workers?
With tremendous results?

OK, his reasons were not the ones, generally but erroneously, attributed to him.
He didn’t do it to ‘encourage’ his workers to buy cars from him… or because of philanthropy…

Actually, it was the turnover of his staff.

At the time, workers could count on about $2.25 per day, for which they worked nine-hour shifts. It was pretty good money in those days, but the toll was too much for many to bear. Ford’s turnover rate was very high. In 1913, Ford hired more than 52,000 men to keep a workforce of only 14,000. New workers required a costly break-in period, making matters worse for the company. Also, some men simply walked away from the line to quit and look for a job elsewhere. Then the line stopped and production of cars halted. The increased cost and delayed production kept Ford from selling his cars at the low price he wanted. Drastic measures were necessary if he was to keep up this production.”

But, whatever Ford’s reasons were, the long term results have been abundantly clear.
Nowadays people who build cars are being paid well enough to afford buying the same kind of cars they are building. At least in the advanced economies…

What happened was that Ford, in order to keep the assembly line going, paid his workers as much as he afforded to. With spectacular results.
While nowadays most employers tend to ‘compensate’ their employees with as little as possible. Which makes perfect economic sense… doesn’t it?

The same economic sense which used to drive us into “cutting down secular forests, feeding almost all the fish we’ve been able to pull from the oceans to the domestic animals we were raising for their meat, polluting our breathing air, selling our fellow humans which happened to had a different skin color than ours into slavery… As if there was no tomorrow…”

See what I mean?
Instead of attempting to mandate a ‘Guaranteed Basic Income’, calculated by the central government and financed through forcefully levied taxes, how about hiring as many people as it would make sense, let them work as little days per week as they want and pay them as much as we can afford to instead of programmatically replacing as many of them with robots and paying the remaining ones as little as we possibly can?

OK, some of us won’t get as rich, as fast, as our grand-fathers did… So what? None of us can eat even close to what our grand-fathers used to… and food is a lot cheaper, anyway…

This is would be a considerably shorter way to get more people out of poverty than any scheme concocted by any government and it would have the same snow-ball effect as Ford’s wage increase had.

Economists describe this as Rostow’s ‘take off effect’.

 

For attaining adequate finance for take off it is necessary that:

(a) The community’s surplus over consumption does not flow into the hands of those who will utilize it by hoarding, luxury consumption or low productivity investment out-lays;

(b) Institution for providing cheap and adequate working capital be developed;

(c) One or more sectors of the economy must grow rapidly and the entrepreneurs in these sectors must plough back a substantial portion of their profits to productive investment; and

(d) Foreign capital can profitably be utilized for building up social and economic overheads.”

 

Obviously, any attempt to instate a guaranteed basic income, (except for those too young, too old or otherwise un-able to pull their weight, of course) would grind any ‘take-off’ to a stand-still.

And no, getting people out of poverty is not a valid goal, per se.
Poverty is a relative thing, which relies more  on feelings than on hard reality.
The real problem with poverty is that it reduces the ability of poor individuals to lead meaningful lives. Poor people are a lot less autonomous than self sufficient ones, meaning that decision making ability is impaired by the fact that they need to focus their attention on the short term time span.

This whole thing has long term consequences on societal level.

Remember what I said about centrally planned socialist countries constantly failing.
About all dictatorships eventually crumbling under their own weight, because of too much decision power being concentrated in too few hands?

Excessive wealth polarization produces the same results. Economic decision becomes too concentrated, political decision follows through and…

What next?
The world has already experimented with communism. Didn’t work.
It also experienced two economic meltdowns, exactly when wealth polarization was at relative peaks.

income-inequality-08

When are we going to learn anything from what happens to us?
Why do we continue to waste the accumulated lessons collectively known as ‘history‘?

 

ignoramus

Imagine now that Reagan, or his speech writer, would have used a single different word …

It isn’t that people are ignorant, it’s just that they know so much that isn’t so.

From a friend’s FB wall:

“African proverb:
Every morning in Africa, a gazelle wakes up.
It knows it must run faster than the fastest lion or it will be killed.
Every morning a lion wakes up.
It knows it must outrun the slowest gazelle or it will starve to death.

It doesn’t matter weather you are a lion or a gazelle.
When the sun comes up, you better start running.”

(from The World Is Flat, by Thomas L. Friedman)

It seems that the modern world is gradually becoming more and more ‘African’.
We’re so busy running ourselves out that we’re failing to remember the essential.

That we’re people.
Neither gazelle nor lion!
And that most of us have long ago left the jungle and now live in cities!

How about ‘taking five‘ from our incessant quest for trinkets and use the time to remember “togetherness”?
As in “communion”?

In the civilized world, ‘Dog eat dog’ was supposed to be an exception, not an everyday occurrence…

Ruthless acquisition or competition, as in With shrinking markets, it’s dog eat dog for every company in this field. This contradicts a Latin proverb which maintains that dog does not eat dog, first recorded in English in 1543. Nevertheless, by 1732 it was put as “Dogs are hard drove when they eat dogs” (Thomas Fuller, Gnomologia).”

PS.
After reading this, my son pointed out that lions are the only cats which hunt cooperatively on a constant basis.
Could this be the reason for which they are seen as the royals of the animal world?

We were discussing ‘worst possible scenarios’ on Facebook and somebody mentioned ‘climate change’.
I must add here that the exchange was ‘framed’ by ‘skin in the game‘, a concept used by Nassim Nicholas Taleb in his rather don-quixotic quest for more responsible decision makers.

OK, the whole domain of climate change is riddled with epistemological holes.
Linear models are used to approximate processes we barely know anything about.
‘Starting points’ have been, again and again, been proven wrong.
I could go on for hours.

I’ll make a small parenthesis here and inform you that according to a fresh study things might be far worse than we’ve reckoned. This paper, published by Nature.com, suggests that Earth’s oceans used to be far cooler than we’ve previously thought they were.

In this context, one of the participants made the following remark:
the burden (of proof) should fall on those calling for changes, for the rather obvious reason that we could suggest changes all day long. Only a few can be implemented.

Hard to argue with that, right?

But which changes are we talking about here?

A change in our manner of interacting with Mother Nature?
Costly, indeed, financial wise, but nowadays technologically possible.

Or about the changes we’ve already – unwittingly, most of them, imposed upon our ‘spaceship’?

We’ve dramatically changed the ‘use of land’. Agriculture and transport – yes, roads and railways have a huge impact – have changed the very nature of what’s going on on a considerable portion of the Earth’s surface.
We’ve dramatically changed the composition of the atmosphere. And I’m not talking about CO2 yet. CFCs, pesticides, NOx and SOx gases, etc., etc….
And, last but not least, we’ve reversed a trend which had been going on for hundreds of millions of years. Photosynthesis used to transform atmospheric CO2 into organic matter, some of which has been steadily accumulated as coal and crude oil.

So, about which changes should we worry first?

Or, in SITG terms, whose skin should bear the brunt of change?

Ours or our children’s?

“Between 1970 and 2010, the number of administrators in health care grew more than 3000%, while the number of physicians grew about 200%, according to the Bureau of Labor Statistics. During that same 40 years, U.S. health-care spending rose 2300%. Doctors’ fees account for only 8 cents of the health care dollar. Where do you think the other 92 cents are going?”  (Marni Jameson Carey, Focus on Health Coverage Misses the Point, Forbes.com, Oct 24, 2017)

A few years ago I was arguing that profit was overrated.
It seems that Forbes, a magazine which cannot be accused of any socialist tendencies, has reached a somewhat similar conclusion.

Even more interesting is the solution proposed by Forbes to the health care problem.

A return to the free market!

Free from what? Who says the American health care market is not free?
Well, click on the quote above and see what Forbes has to say about this…

But what happened? How did we get here?

Well, the free market described by Adam Smith was an environment where people used to fulfill their needs by selling their wares.
The butcher sold meat and bought everything else he needed, the brewer sold beer and bought everything else he needed, the baker… and so on!
OK, there  was a certain kind of competition which kept the things in check. The butchers competed against other butchers, the brewers…
And because of this competition, all traders – those who wanted to survive, anyway – streamlined their operations and became more and more efficient. Hence profitable.

I mentioned the link between the survival of a commercial enterprise and its ability to generate profit.
Apparently, it doesn’t make much sense to elaborate on this. Bear with me, please.

The whole point of the free market is the division of labor. Besides its freedom, of course.
Each of us does what he knows better and then we trade our respective wares. This way all of us fare better than if each of us would have had to produce everything each of us needs to survive.
In this scenario, competition – between ‘bakers’, for example – is actually a tool which makes it so that the market, as a whole, doesn’t waste resources. When the less efficient bakers are ‘encouraged’ to find something else to do, the entire market is better off. And so on.
In this sense, profit is only one indicator – and a very good one – of how able to survive is a certain commercial venture. But not the only goal of the entrepreneur who started/runs the enterprise. What he wants is to make an as good as possible living by doing what he knows best, in close collaboration with the other participants to the free market.

Adam Smith had written his books some two and a half centuries ago.
And the free market had served us well, for a while.
Just look at what we’ve accomplished in these two and a half centuries.

But, just as Forbes points out, things are no longer going in the right direction.

Why?

Simply because the market is no longer free!

Not only because some of the participants have become ‘heavy’ enough to crush all competition. This is only the lesser part of the problem.
The really big one, and so well hidden that it’s almost invisible, is that too many of us have become obsessed with the same thing. Money!

Life-of-modern-people

Profit has become THE absolute goal of everything we do. Too many of those who participate in the free market no longer want to collaborate with the others but simply want to get rich. By any (legal) means.

Some say this is a good thing.
They invoke Adam Smith’s words as a justification for their beliefs.

I beg to differ.

The simple existence of our current obsession has profoundly altered the very nature of the market. Which is no longer free.

Because WE are no longer free. When too many of us are obsessively concentrated on the same thing, they will necessarily disregard all other options. And the rest have no other option but to follow.

This is not freedom!

Mesmerized people can not be described, by outside observers, as being free.
Regardless of how they consider themselves.

 

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