Archives for category: Trust

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 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 paying our employees as much as we can afford instead of as little as we possibly can?
Not only that this is would be a considerably shorter way to get more people out of poverty than any scheme concocted by any government, it would also 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.

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The current President of the United States describes himself as a man always making good use – as a manner of speaking, anyway, of all opportunities he ever identifies.

grab them by the pussy

Erotically as well as financially.

trump eminent domain

“Trump turned to a government agency – the Casino Reinvestment Development Authority (CRDA) – to take Coking’s property. CRDA offered her $250,000 for the property – one-fourth of what another hotel builder had offered her a decade earlier. When she turned that down, the agency went into court to claim her property under eminent domain so that Trump could pave it and put up a parking lot.

Peter Banin and his brother owned another building on the block. A few months after they paid $500,000 to purchase the building for a pawn shop, CRDA offered them $174,000 and told them to leave the property. A Russian immigrant, Banin said: “I knew they could do this in Russia, but not here. I would understand if they needed it for an airport runway, but for a casino?” “

Now, after climbing a new pinnacle of popularity, he has become, himself, a very lucrative opportunity.

donations for coming out

“The Hill reported Friday that Bloom worked with campaign donors and tabloid media outlets to arrange compensation for the alleged victims and a commission for herself, offering to sell their stories. In one case, Bloom reportedly arranged for a donor to pay off one Trump accuser’s mortgage and attempted to score a six-figure payment for another woman. The former ultimately declined to come forward after being offered $750,000, the clients told The Hill.”

The first question which crossed my mind after reading this was:
‘OK, so why would any one bring all this up? What difference does it make if those women get some money for telling their stories? It’s the facts themselves which are really important here, right?

‘But what if?’ was the second one…
What if, after seeding enough ‘oblique doubt’ into people’s minds, facts start to look rather different than at ‘face value’?

I told you so

Remember that XX-th century aphorism, “The best defense is a good offense”?
And the smoke screen tactics pioneered by the military but also very important to those who study the Bible?

“When studying the Bible with teens, the term “smoke screen” refers to a commonly deployed tactic designed to avoid exposure of the heart. Smoke screens, though not unique to teens, are important to understand and overcome.

Each of us have areas in our lives and places in our hearts we do not want exposed. Sometimes we are afraid of what others may feel about us; sometimes we realize these areas in our lives and places in our hearts need to change, but we don’t want to change them or even believe that we can.

Practically, smoke screens are often the emotion we express, the issue we lead with, or the confusion we claim, in order to deflect what is really going on in the heart. When emotions are present, the words that are flowing out of a teenager’s mouth are rarely communicating what is actually driving them.

Getting past a smoke screen takes understanding and the willingness to go deep. It takes understanding and depth to remain calm when our teen is using emotions to derail a conversation that might be getting to the heart of the matter at hand. We learn depth when we are willing to look into our own hearts and be honest about the smoke screens we use.”

From the airlift which kept the flame of liberty alight in West Berlin to “Trump’s decision (to stop supplying arms to Kurdish fighters in Syria) appeared to catch both the Pentagon and the U.S. State Department off guard. Officials at both agencies, who would normally be informed of changes in U.S. policy toward arming the Syrian Kurds, said they were unaware of any changes. The officials spoke on condition of anonymity. It was unclear whether the Trump administration notified the Kurds of the move before telling the Turks. Nor was it how much significance the change would have on the ground, considering the fight against Islamic State is almost over.

Ich bin ein Berliner

What happened to “Ich bin ein Berliner”?!?

I’m afraid that  too many people continue to not understand what’s ‘the big issue between the free world’ and the authoritarianism which still encroaches it. They should indeed ‘go to Berlin’!

Fake news

“Federal lawmakers on Wednesday released samples of 3,000 Facebook ads purchased by Russian operatives during the 2016 presidential campaign. The ads conveyed the wide range of influence Russian-linked groups tried to enact on Americans…”

Let’s zoom out in order to gain some perspective over all this.

Fake news are defined by Oxford Learner’s Dictionaries as “false reports of events, written and read on websites“.

The way I see it, “fake news” have a lot in common with counterfeit currency.
In more ways than one!

First of all, most money in current use is ‘fiat money’.
We are dealing with either printed pieces of paper or otherwise useless pieces of metal.
We ‘trust’ them for trading purposes simply because we are convinced that the institution which stand behind them – Central Banks, free(ish) markets and law enforcement, will do what they are meant to do. We trust that the Central Banks will not print too many of those pieces of paper, that the free(ish) markets will set a reasonable price to everything and that the police will manage to weed out (most of) those who try to circulate fake money.
Not even a return to ‘real’ money – a.k.a. gold,  wouldn’t insulate us from crooks. Gold coins can be, and had been, tampered with in so many ways. Human greed is a very powerful motivator but not necessarily a good mentor.

Which brings us to the reason for why fake money came to be.
Simply because some ‘industrious’ people ‘make’ them and some other, equally greedy, people knowingly distribute them.

In conclusion, we wouldn’t have to deal with fake money if money wasn’t essential for an efficient free market and we would have a lot less of it if greed were not such a widespread attitude. And no, a cash-less economy would not solve the problem. A printing press is no longer essential for faking money. Hacking skills have become  a good enough substitute.

Let’s translate this rationale to (fake) news.

We need to know what’s going on around us so we’ve developed an equivalent to the financial system. The mass media.
Which has a more or less equivalent set of ‘guardians’.
The ‘printers’ are responsible for the equivalence between their ‘product’ and the reality it represents while the market (readers, that is) is responsible for ‘setting the price’.

Of course, there are also differences.
‘Law enforcement’ has indeed a role to play in the news industry but its scope is a lot narrower than in the first case. And rightfully so. The ‘information’ market needs to be a lot more ‘flexible’ than the one dealing in ‘economic goods’. There’s a lot to discuss on this subject, I’ll leave it here.
There’s also no Central Bank to ‘tug at the sleeves’ of those who ‘jump the shark’.

As a consequence of these two differences, the ‘counterfeiters’ have an easier life and the consumers/victims a far greater responsibility for what’s going on. Simply because the consumers/potential victims cannot rely on any third party to do their job. To sniff out the ‘bad thing’.

But what if ‘it’s the thief who plays the victim’?
That very much depends on who the ‘thief’ is!

Let’s go back in time for a short while.
First to the American Revolutionary War. During which the British attempted to crash the American economy by injecting in it enough counterfeit money to cause hyperinflation. “No economy, no more war.” The British did manage to produce and distribute a huge amount of fake money yet the outcome was not the intended one. “Even when at one point the amount of counterfeit currency in circulation may have exceed the amount of legitimate currency, the economy hung on by its eye teeth and never fully collapsed.”
One and a half centuries later, the British had found themselves at the receiving end of the same game. “…during World War II the Nazis almost destroyed the credibility of the British pound sterling by producing near-perfect forgeries, The Telegraph reports. By the end of the war the forgeries were so rife that Bank of England notes would not be accepted by any neutral country on the Continent “except at a very large discount…”.
Hitler was even less successful than the British had been but the inflicted injuries were huge nonetheless.
Now, would Hitler have attempted this on his own, without the British establishing a precedent?
We’ll never know… Sufficient to say that the US has also used fake money, obviously fake this time. For propaganda reasons and not as an attempt to ‘crash the economies’ of the countries they were fighting.

To close the circle, we must ask ourselves how successful would Putin’s trolls have been if Trump wouldn’t have beaten so hard the ‘birther’ drum…

Seriously now, propaganda is a very efficient weapon. Maybe more efficient than guns.
But, and in total contrast with a gun, propaganda is useless against really determined people.
“Sticks and stones may break my bones but names can never hurt me” is true. But only as long as those being called names are in the right state of mind. As soon as they start feeling hurt, all hell comes loose.

If you think of it, Trump’s birther campaign, fake as it was – he had admitted that much, eventually, was a very successful ‘fake news campaign’. It had established Donald Trump as  shrewd  media manipulator.
Unfortunately, it had an even worse outcome. It had very much helped those who wanted the American public split into warring parties.

And who are now pushing these parties further and further apart.

PS. While researching for this post, I found out that “fake news” has been declared ‘word of the year’ for 2017. A fitting development… last year’s ‘champion’ was “post truth”…
What next? Doublethink?

Everything any (most?!?) of us cares about is:
‘What each of us gets, and when.’
Emphasis on ‘each of us’.

All of us?

 

trump on corker

 

corker on WH

OK, let me wrap my head around this.

So Corker doesn’t have enough guts to run for re-election without Trump’s blessing but has enough to openly tweet his mind about what’s going on in the White House?!?
A reality show run by the supposedly most powerful man on Earth?
Who’s about to transform the “Great” America into the biggest laughing stock of the world?

Am I the only one wondering whether any of these can be described as “adult” behavior?

There’s a glimmer of hope though.

401K is way bigger than 65K. And big enough to rise above 65K+57K+62K… I know, adding this numbers up doesn’t make much sense – there is a strong possibility that many individual readers may have liked more than one of these tweets, but still…

For some people the fog may have started to rise.

The fog generated by the fake news manipulated by the ‘Great Deal Maker’, that is.
Compare the comments which accompany those tweets.

 

 

A whole century has passed since the events described in Erich Maria Remarque’s Nothing New on the Western Front/Im Westen nichts Neues.

Not that we’ve learned much during this time…

1968

Brezhnev sends Russian troops to freeze back the Prague Spring.
Ceausescu, the communist dictator who ruled Romania at that time, refused to take part. He had even summoned enough courage to chastise the ‘outside intervention’.

Ceausescu praga

“No excuse can be found for…”

1978

Ten years later he was driven around London in a state carriage by Queen Elizabeth.
As a pat on the the back for his apparent independence from Moscow, as an attempt to weaken the communist ‘camp’ … both at the same time…
Never mind… We, Romanians, were very proud at that time while Elizabeth – and her advisers, must have had quite a heart-burn… specially later, after Ceausescu had started flying his true colors…

Ceausescu cu Lizica

1989

Romania’s was the second to last European communist regime to disintegrate and the only one which had ended in a self inflicted blood bath.  Ceausescu, and his wife – ‘the Presidential Couple’!, were shot at the end of a very short trial during which both had been found guilty of genocide, treason and subversion.

1989 Cu excavatorul la revolutie2005 Niagara

2014

Twenty five years later, Russia’s rising star was lionized by some in the European media.

the emperors clothes

Hungary’s Prime Minister was jokingly hailed as “the dictator” by the President of the European Commission.

Orban the dictator

 

Currently the Americans are trying to determine whether Putin has somehow influenced their last electoral process,

Putin Trump Hamburg

while Orban continues to build walls around Hungary.

hungary wall

Small wonder then for these two to become bosom buddies, regardless of what drives each of them…

Putin honorary

“Putin will receive the honor in the Parliament during his visit to the 2017 World Judo Championships in Budapest on Monday.”
“Putin will attend the judo by invitation of Prime Minister Viktor Orbán. It will be Putin’s second visit to Hungary this year.”

 

 

Seven years ago somebody was elected to the Senate of the United States.

Despite

“Candidate’s Words on Vietnam Service Differ From History”

Six years later, another guy became POTUS despite the newspaper who published the article above having mounted quite a vigorous campaign against him.

The really interesting thing is that the second guy uses the information published in the newspaper seven years ago to smear the first guy while constantly accusing the same newspaper of being a relentless purveyor of fake news…

trump blumenthal

Now, which is stranger?

That two guys had managed to muster enough public support to get elected into public office, despite their shoddy relationships with the truth?

Or that newspapers continue to bother themselves?

“Fabrications have long been a part of American politics. Politicians lie to puff themselves up, to burnish their résumés and to cover up misdeeds, including sexual affairs. (See: Bill Clinton.) Sometimes they cite false information for what they believe are justifiable policy reasons. (See: Lyndon Johnson and Vietnam.)

But President Trump, historians and consultants in both political parties agree, appears to have taken what the writer Hannah Arendt once called “the conflict between truth and politics” to an entirely new level.

From his days peddling the false notion that former President Barack Obama was born in Kenya, to his inflated claims about how many people attended his inaugural, to his description just last week of receiving two phone calls — one from the president of Mexico and another from the head of the Boy Scouts — that never happened, Mr. Trump is trafficking in hyperbole, distortion and fabrication on practically a daily basis.”

“We are the last (semi) stable democracy on the planet without a universal health care system. Elsewhere in the world, health care is a utility taken for granted, like safe tap water or electricity. They pay for it, just like we pay for garbage service or highways, and it costs far less than our broken system. That is not an opinion. That is a reality easily revealed with a bit of travel. Like embattled cult members, we deny ourselves better policy outcomes to protect our deluded beliefs about the nature of markets and preserve our odd pathologies around race. That’s a choice we make…”

Chris Ladd,
Why Republicans Cannot Replace the ACA, Or Accomplish Anything Else,
forbes.com, Jul 20, 2017

ACA means “Affordable Care Act”.

‘Affordable’ for whom?

For those left out, of course…
And who was going to pay the difference?
Those already in, obviously…

See what I mean?

Health care can be seen in many ways.
As yet another opportunity for profit to be made – one of the best actually, since health is such a valuable commodity.
As a ‘social benefit’ extended by the society at large to (all?) its constituents. America already takes care of its elders, children and veterans, doesn’t it?
A combination of the first two. A free market where many independent health care providers cater for the needs of their customers – free to choose among the various providers – while the bills are picked up by a third party, financed through public contributions.

The only problem with the third option being our current obsession with money.
For as long as we’ll let ourselves be governed by the current mantra, “greed is good”, we’ll continue to perceive health care as nothing but yet another opportunity for some to get rich at the expense of everybody else.

How about an Efficient (Health) Care Act?
Opening the market – by allowing the patients to freely choose their doctors and by preventing  monopolies – would drive down the costs.
Cutting the middle-men – the insurance companies would no longer be needed since the public contributions would be collected by a public authority – would also help.

Would such a scheme work?
As I mentioned earlier, not before we give up ‘greed‘.
In order to trust yet another public authority with even more money we’d need at least some hope about that authority being populated by really honest people.
We’d also need many more ‘health care providers’ who actually love to help their patients – and make a decent living out of it – instead of so many people becoming involved with this ‘industry’ simply because it is among the very ‘rewarding’ ones.
And when I say ‘health care providers’, I mean all of them. Not only the doctors and the nurses – most of them do love their jobs and perform them almost heroically. (Some of/too many of) the Big and Small Pharma, (some of) the hospital ‘owners’, etc., etc….

Should we extend this scheme to other areas? Education, for instance? You bet!

Should we apply the same ‘weltanschauung’ to the rest of the economy?
Minus the ‘single payer principle’, of course?
Well, last time I read his work, Adam Smith was talking about “the Nature and Causes of the Wealth of Nations” and about “Moral Sentiments“, not about greedy individuals becoming filthy rich at the expense of their fellow human beings.

“In almost every other race of animals each individual, when it is grown up to maturity, is entirely independent, and in its natural state has occasion for the assistance of no other living creature. But man has almost constant occasion for the help of his brethren, and it is in vain for him to expect it from their benevolence only. He will be more likely to prevail if he can interest their self-love in his favour, and show them that it is for their own advantage to do for him what he requires of them. Whoever offers to another a bargain of any kind, proposes to do this. Give me that which I want, and you shall have this which you want, is the meaning of every such offer; and it is in this manner that we obtain from one another the far greater part of those good offices which we stand in need of. It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages. Nobody but a beggar chuses to depend chiefly upon the benevolence of his fellow-citizens. Even a beggar does not depend upon it entirely. The charity of well-disposed people, indeed, supplies him with the whole fund of his subsistence. But though this principle ultimately provides him with all the necessaries of life which he has occasion for, it neither does nor can provide him with them as he has occasion for them. The greater part of his occasional wants are supplied in the same manner as those of other people, by treaty, by barter, and by purchase. With the money which one man gives him he purchases food. The old cloaths which another bestows upon him he exchanges for other old cloaths which suit him better, or for lodging, or for food, or for money, with which he can buy either food, cloaths, or lodging, as he has occasion.”

 

Before proceeding any further, let me introduce you to two other, more distanced, cousins of ours. Gorilla and Orangutan.

Orangutan leads a semi-solitary life in the Bornean and Sumatran Jungle. They are fairly large animals, males tip the scales at 200 pounds or so, and need a lot of food. They eat mostly fruit and, in times of scarcity, bark, flowers, insects and eggs.
It was their ‘eating habits’ which had shaped their social lives:
Food is often scarce in the rain forest and that is why the orangutan is a semi-solitary creature. In times of great abundance of food, orangutans may use the opportunity to socialize and gather in small groups.
Because they live solitarily, the young siblings must on one hand learn ‘everything’ before starting their adult lives and they don’t have anybody to learn from but their mothers. Hence they stick around for longest. A baby orangutan will nurse until about six and continue to live with their mothers for a few more years. Two or three for the males, five or six for the females – on top of everything else the females have to learn “mothering skills” and for them the only way to do it is to watch their own mother taking care of the next sibling.
As a consequence of all this, the females give birth only once every 8 years, “the longest time between births of any mammal on earth. (This results in only 4 to 5 babies in her lifetime.)” Not a very efficient survival strategy, for the species I mean…

Gorilla has adopted a different feeding strategy.
This is actually a joke. It wasn’t ‘the gorilla’ which has ever adopted anything, least of all ‘a survival strategy’. The ‘adoption process’ had been fueled by chance, had been ‘censured’ by  the realities of their living places and was later labeled as “evolution” by Charles Darwin.
Coming back to our distant cousins, gorillas are even larger animals than orangutans.
300-400 pounds, for the males, versus 200. Hence they need even more food.
An adult Grauer’s gorilla male is estimated to eat 30 kg of plants every day, an adult female about 18 kg.” The difference being that gorillas eat a lot of leaves.
When they have the opportunity to choose, they will surely pick up fruit but they are much more adapted to eating leaves than orangutans are. As a consequence they do not need to ‘spread around’ as thinly as orangutans do, the young can also learn from the rest of the pack so females can give birth every 4 years instead of every 8.

Is there any link between all this babbling and the stated subject of your post?

Actually yes.

As gorillas and orangutans are teaching us, together is easier than each by its own.
Being able to give birth every 4 years is a huge evolutionary advantage over having to wait 8 years before becoming pregnant again.

But this is not all we can learn from our cousins.
Male gorillas, at 300 to 400 pounds, are formidable defenders. Their only enemies, except for humans, are the leopards.
Compare 350 pounds with less than 100 for a chimpanzee/bonobo male.
That would be a good starting point to figure out why silver-backs – mature male gorillas who despotically reign over their 1 to 5 females – can afford to drive out their sons after they become sexually mature while the chimpanzee alpha males, who lead troops of up to 50 members, will allow other mature males to live by – and to have intercourse with some of the females living in the same group.
The second reason being that gorillas eat, almost exclusively, plant matter, supplemented with some insects, while chimpanzees form hunting parties in order to catch, kill and eat other animals, including monkeys. And one can ‘graze’ by himself while hunting is way easier in cooperation with others.

Feeding habits can explain quite a lot, isn’t it?

Let’s make a step further and turn back, as I promised in my previous post, to the differences between chimps and bonobos.
Well, bonobos hunt, just as efficiently as the chimps do, only they are less inclined to murder their neighbors.
Just one suspected killing observed during “92 combined years of observation at four different sites“, for the bonobos. In the other camp, 152 killings, 58 directly observed and the rest “counted based on detective work“, gathered over “426 combined years of observation, across 18 different chimp communities“.
The second difference, that I find interesting in the context of ‘capitalism’, is the size of the ‘colonies’. Bonobos live in way bigger groups than the chimpanzees. 100 versus 40 to 60, I’m not sure whether this had any impact over the relative fate of chimps or bonobos but it is surely relevant for how capitalism works. Stick around.

One more ‘animal story’ and I’ll wrap everything up.

“We previously reported that chimpanzees were unable to optimally select the smaller of two candy arrays in order to receive a larger reward. When Arabic numerals were substituted for the candy arrays, animals who had had prior training with numerical symbols showed an immediate and significant improvement in performance and were able to select reliably the smaller numeric representation in order to obtain a larger reward. Poor performance with candy arrays was interpreted as reflecting a response bias toward the intrinsic incentive and/or perceptual features of the larger array. In contrast, the Arabic numerals represent numerosity symbolically and appear to promote response choice on the basis of abstract processing of numerosity, with minimal interference from the inherent properties of the choice stimuli. The present study tested the hypothesis that, for mixed symbol-candy choice pairs, the requisite processing of the abstract numeral may foster a mode of numerical judgment that diminishes the interfering incentive/perceptual effects of the candy stimuli. The results were consistent with this hypothesis. Whereas performance on candy-candy arrays was significantly below chance levels, performance on numeral-candy choice pairs was significantly above chance and comparable with performance on numeral-numeral pairs.”

OK, OK, don’t shoot the messenger… those guys were writing a scientific paper, not a blog post… let me ‘translate’ it in simpler words.

There is a relatively simple psychological test involving two bowls full of candy.
One of them containing more pieces than the other.
The test consists of a child being asked to choose between those two bowls, after being told that the candy from the chosen bowl will be given to somebody else and the candy from the second bowl, the unchosen one, will be given to the child. The test is repeated a number of times and most of the children, 4 year olds and above, learn quite quickly to point to the bowl containing the smaller number of candy.
If, instead of children, chimpanzees are asked to choose between the two bowls, they continue to point to the bigger number of candy, even after the umpteenth repetition.
Now here comes the really interesting part.
Dr. Boysen and other scientists from Ohio State University, had previously taught a chimp, Sheba, not only to count but also to read numbers. One digit numbers…
When Sheba was subjected to the test, using real candy, she had responded exactly as the other chimps had done before her. She was unable to wrap her head around the notion that she will get the candy from the OTHER bowl. But as soon as the researchers had replaced the actual candy with digits written on small cartons… bingo! Sheba had become a lot wiser and had very quickly figured out that choosing the bowl with the smaller number (of candy) was a far better option.

Let me put two and two together.

Our cousins, the great apes, have given us a valuable lesson about cooperation.
Orangutans have to raise their offspring as single mothers. A very time consuming process which limits the number of siblings to 4.
Silver-backs don’t need much help to defend their families. So they can afford to drive off any potential competition… but they cannot hunt. Or do anything else ‘in concert’ with their peers.
Chimpanzees have learned to tolerate each-other, to a degree. They can form larger communities and engage in cooperative endeavors. Hunting and warfare.
Bonobos have developed a very efficient method to quell tension which may appear among themselves and to subdue rogue members of the community, without actually killing them. With no apparent benefit… except for us…

History is telling us, shouting at us even, that authoritarian regimes are short lived. Shorter and shorter lived, as we come closer to the present day.
Ancient Rome had lasted for almost a 1000 years. 2000 if we take Byzantium into account.
The British Empire was de facto dissolved, more or less peacefully, after less than 500 years, along with the rest of the European colonial empires.
The Russian Czarist Empire had buckled under its own weight after some four centuries, reinvented itself as the Soviet Union and faltered again after less than a century.
The rest of the ‘modern’ dictatorships have crumbled even faster, with only two notable exceptions: North Korea and Cuba.

Mighty commercial ventures, which had seemed impregnable in their heydays, are now almost forgotten memories. From the British East India Company to the now infamous ENRON…

Yet humankind, as a whole, had fared better and better.
OK, we did bring a lot of ‘man made’ misfortune over our own, collective head.
Only every little piece of that misfortune had been produced and inflicted in an authoritarian setting.

From Alexander the Great (?!?) to Hitler, history is full of ‘leaders’ who had somehow convinced their subjects to foolishly follow orders. Eventually, everybody got killed in the process. The leaders as well as the hapless subjects…
From John Law – ‘the son of a Scottish banker, a gambler and playboy who had killed a man in a duel‘ before insinuating himself at the top of France’s financial establishment during the first part of the XVIII-th century, where he had orchestrated a “system” closely resembling a Ponzi scheme – to Bernard Madoff, the economic and financial history is full of ‘tycoons’ who have led their their subordinates, and a considerable portion of the financial markets, to utter disaster.

And some of us still consider that ‘greed is good’… Maybe they should read again about Sheba and the candy bowls…

I can hear some of them protesting: “In the real world, there is nobody to switch the bowls! ‘Finders keepers, losers weepers'”
Yeah, right… tell that to some of those who had won the lottery… “About 70 percent of people who suddenly receive a windfall of cash will lose it within a few years, according to the National Endowment for Financial Education.

Then why are we still so obsessed with money?
Like Sheba was with those candy?
Why do we collectively continue to behave like a bunch of three years olds?

Maybe because money have proved, over the centuries, to be very reliable tools?
Because profit has been a very good measure for a company’s ability to survive? If corroborated with other indicators, but that’s another story…

At some point I mentioned that capitalism only works if the market where its wares are traded is really free. Meaning that that market has to work under the rule of law and that nobody in that market should allowed to become so powerful as to dominate the others.

Well, that was a lie.
Actually, capitalism works anywhere.
Those running the late Soviet Union have tried to convince the rest of the world that monopolies might work.  Various ‘business men’, including some very successful ones, try to convince us of the same thing. “Competition is for losers” they say… OK, I can understand why they keep trying… That’s what the entrepreneurs are for! “To boldly go where no man has gone before.”
My point being that markets which are not presently free will become free with the passage of time. No matter what!
No political arrangement has ever been strong enough to contain a dysfunctional economy. That’s why the Soviet Union, and the rest of the communist camp, had crumbled. That’s why we have a crises every time the government, with the best intentions, abruptly intervenes in the economy. Or fails to do so and allows monopolies to exist for too long…

Capitalism actually works.
Look around us.
I could give you a myriad examples. I’ll settle for two.
Romania, which less than 30 years ago was struggling under the communist yoke, now has one of the fastest internet in the world.
Some 40 years ago, when my uncle had emigrated to America, long-distance  phone calls were so expensive that he barely afforded to call his mother more than twice a year… nowadays two people can chat for hours across the planet, for free, over the internet. With video…

How about we letting it do its magic without some of us trying to drain ‘undeserved advantages’ from the process?
And no, those trying to ‘drain undeserved advantages’ are not the real culprits for what is going on!
A really free market is not one where a big bully with a huge stick makes sure that nobody steals from its neighbor.
That would be the definition for a police state!
A free market is one where people organize themselves, hire a normal guy with a smallish stick to take care of thieves and then call him every-time when they see a robbery taking place.

Nowadays too many of us actually admire the thieves and try to bribe the guardian.
While the rest idly walk by, as if what’s going on under their own noses is not going to affect them in a very short while …

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