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Economic Ideas: Plato, Aristotle, and the Ancient Greeks, Part 1

The ancient Greeks left a wealth of knowledge through their surviving writings on a wide variety of themes, including science, logic, philosophy, literature, and the arts.

In addition, the city-state of Athens is considered the birthplace of intellectual freedom and democracy – lasting legacies that helped to mold the ideas that have influenced the development of Western Civilization.

But, in comparison, their discussions on economics were often few and almost always relatively unsystematic.  A primary reason for this is due to the fact that for the ancient Greeks questions concerning “economics” were considered subservient to other themes considered far more crucial to human life and society.

For the Greek philosophers and social thinkers, the central themes were questions of “justice,” “virtue,” “the good,” and “the beautiful.” What today we call “economic” questions and problems were relegated to a narrow corner of evaluating how economic institutions and organization could be designed or modified to serve these “higher” ends or goals.

The Greek view of the society over the individual

An extension of this is an appreciation of the general view that the ancient Greeks had concerning the individual in society. Their conception was that the individual was dependent upon the society in which he was born for all that he could or did become as a person. That is, the community nurtured and molded the individual into a “civilized” human being.

The society took precedence, or priority, over the individual. The individual was born, lived, and died. The society and the State, however, they believed, lived on.

The more modern conception of man as free, autonomous agent who chooses his own ends, selects his own means to attain his desired ends, and in general lives for himself was an alien notion to the mind of the ancient Greeks.

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How Will You Cope With A Lower Standard of Living?

How Will You Cope With A Lower Standard of Living?

The forces are mounting that will eventually overwhelm most Americans and send their standard of living to unknown depths. Americans that have only known the post WWII prosperity are ill equipped and educated to deal with depression level living. Easy credit and instant gratification have created a nation of whining, self absorbed, entitlement minded people with no moral or mental toughness.

Doug Casey believes we are headed for what he calls a super depression created by the ending of a debt super cycle. The bigger the debt cycle the bigger the depression that follows. That’s how reality works and most people are not prepared for reality.

When this depression, which has already started, gets momentum, it will overwhelm the plans of a society that is expecting to get things like social security, pensions and payouts from retirement plans they have paid into for many years. All of those things will disappear almost overnight and leave society gasping and stupefied over what to do. Their reactions will be to yell and scream and try to identify who to blame but the only person they should blame is the one in the mirror.

Many very smart people have raised the alarm and done their best to warn the sleeping public, but those slumbering masses have ignored the warnings and hit the snooze button one more time. The masses do not understand economics, do not want to understand economics and they will pay dearly for that ignorance in the coming days.

When the real unemployment rate becomes common knowledge as it increases substantially, people will be left to survive on what resources they have saved up outside the banking system that cannot be stolen by the politicians and bankers. That is a key point here. The assets you have outside the system that cannot be stolen from you with a few key strokes on some computer.

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The climate emergency: time to switch to panic mode?

The climate emergency: time to switch to panic mode?

The latest temperature data have broken all records (image from “think progress“). At best, this is an especially large oscillation and the climate system will be soon back on track; following the predictions of the models – maybe to be retouched to take into account faster climbing temperatures. A worst, it is an indication that the system is going out of control and moving to a new climate state faster than anyone could have imagined. 

James Schlesinger once uttered one of those profound truths that explain a lot of what we see around us: it was: “people have only two modes of operation: complacency and panic.”

So far, we have been in the “complacency” mode of operation in regard to climate change: it doesn’t exist, if exist it is not a problem, if it is a problem, it is not our fault, and anyway doing something about it would be too expensive to be worth doing. But the latest temperature data are nothing but spine-chilling. What are we seeing? Is this just a sort of a rebound from the so-called “pause”? Or something much more worrisome? We may be seeing something that portends a major switch in the climate system; an unexpected acceleration of the rate of change. There are reasons to be worried, very worried: the CO2 emissions seem to have peaked, but that didn’t generate a slowdown of the rate of increase of the CO2 concentration in the atmosphere. If nothing else, it is growing faster than ever. And then there is the ongoing methane spike and, as you know, methane is a much more potent greenhouse gas than CO2.

What’s happening? Nobody can say for sure, but these are not good symptoms; not at all. And that may be a good reason to switch to panic mode.

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Why Is Market Fundamentalism So Tenacious?

Why Is Market Fundamentalism So Tenacious?

One of the great economists of the twentieth century had the misfortune of publishing his magnum opus, The Great Transformation, in 1944, months before the inauguration of a new era of postwar economic growth and consumer culture. Few people in the 1940s or 1950s wanted to hear piercing criticisms of “free markets,” let alone consider the devastating impacts that markets tend to have on social solidarity and the foundational institutions of civil society. And so for decades Polanyi remained something of a curiosity, not least because he was an unconventional academic with a keen interest in the historical and anthropological dimensions of economics.

As the neoliberal revolution instigated by Reagan and Thatcher in the 1980 has spread, however, Polanyi has been rediscovered.  His great book – now republished with a foreword by Joseph Stiglitz – has attracted a new generation of readers.

But how to make sense of Polanyi’s work with all that has happened in the past 70 years?  Why does he still speak so eloquently to our contemporary problems? For answers, we can be grateful that we have The Power of Market Fundamentalism:  Karl Polanyi’s Critique,written by Fred Block and Margaret R. Somers, and published last year. The book is a first-rate reinterpretation of Polanyi’s work, giving it a rich context and commentary.  Polanyi focused on the deep fallacies of economistic thinking and its failures to understand society and people as they really are. What could be more timely?

The cult of free market fundamentalism has become so normative in our times, and economics as a discipline so hidebound and insular, that reading Polanyi today is akin to walking into a stiff gust of fresh air.  We can suddenly see clear, sweeping vistas of social reality.  Instead of the mandarin, quantitative and faux-scientific presumptions of standard economics – an orthodoxy of complex illusions about “autonomous” markets – Polanyi explains how markets are in fact embedded in a complex web of social, cultural and historical realities.

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What you “Owe to Society”

What you “Owe to Society”

The “Club Dues” Theory of Taxation

Sadly this is an ancient thesis that’s being revived now in a country that was founded on denying it. The idea is well expressed in a recent book by Professor William E. Hudson, titled, The Libertarian Illusion: Ideology, Public Policy, and the Assault on the Common Good (Washington, DC: CQ Press, 2008).

Hudson states, on page 43, that “The ability that any of us have to earn income and acquire wealth depends only partly on our own individual efforts. It relies as well on the operation of political, economic, and social institutions that make it possible for any of us to ‘earn a living.’ . . .Viewed in this light, …deductions from my paycheck can be seen as reimbursements to society for that portion of my earnings derived from social goods.”

 

William E HudsonAuthor and confirmed etatiste William E. Hudson, a Professor of Political Science at Providence College where he teaches courses in American politics and public policy, and has also served in a variety of “administrative functions”. In the words of Hans-Hermann Hoppe: “[…] if practically all intellectuals are employed in the multiple branches of the state, then it should hardly come as a surprise that most of their ever-more voluminous output will, either by commission or omission, be statist propaganda.”

Screenshot via wn.com


The very same idea has been championed for years by one of President Obama’s favorite intellectuals, Cass Sunstein, for example in the book the latter co-authored with Stephen Holmes, The Cost of Rights: Why Liberty Depends on Taxes (W. W. Norton & Co., 1999).

Reimbursements to society! What a lie that is, given that society is nothing more than all of us together as individuals and that what we own, so long as we stole it from no one, ought to be left to each of us to allocate as we judge proper, not to the likes of the sneaky professor and his gang in centers of political power.

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The Individual and His Future

The Individual and His Future

“It’s instructive to read what authors wrote about core values a hundred or two hundred years ago, because then you can appreciate what has happened to the culture of a nation. You can grasp the enormous influence of planned propaganda, which changes minds, builds new consensus, and exiles certain disruptive thinkers to the margins of society. You can see what has been painted over, with great intent, in order to promote tyranny that proclaims a greater good for all.” (The Underground, Jon Rappoport)

Here I present several statements about the individual, written in 19th century America. The authors, Ralph Waldo Emerson, Henry David Thoreau, and James Fenimore Cooper were prominent figures. Emerson, in his time, was the most famous.

“All greatness of character is dependent on individuality. The man who has no other existence than that which he partakes in common with all around him, will never have any other than an existence of mediocrity.” James Fenimore Cooper

“The less government we have, the better, — the fewer laws, and the less confided power. The antidote to this abuse of [by] formal Government, is, the influence of private character, the growth of the Individual.” Ralph Waldo Emerson

“The former generations acted under the belief that a shining social prosperity was the beatitude of man, and sacrificed uniformly the citizen to the State. The modern mind believed that the nation existed for the individual, for the guardianship and education of every man. This idea, roughly written in revolutions and national movements, in the mind of the philosopher had far more precision; the individual is the world.” Ralph Waldo Emerson

“If a man does not keep pace with his companions, perhaps it is because he hears a different drummer. Let him step to the music which he hears, however measured or far away.” Henry David Thoreau

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The Era of Breakdown

The Era of Breakdown

The fourth of the stages in the sequence of collapse we’ve been discussing is the era of breakdown. (For those who haven’t been keeping track, the first three phases are the eras of pretense, impact, and response; the final phase, which we’ll be discussing next week, is the era of dissolution.) The era of breakdown is the phase that gets most of the press, and thus inevitably no other stage has attracted anything like the crop of misperceptions, misunderstandings, and flat-out hokum as this one.

The era of breakdown is the point along the curve of collapse at which business as usual finally comes to an end. That’s where the confusion comes in. It’s one of the central articles of faith in pretty much every human society that business as usual functions as a bulwark against chaos, a defense against whatever problems the society might face. That’s exactly where the difficulty slips in, because in pretty much every human society, what counts as business as usual—the established institutions and familiar activities on which everyone relies day by day—is the most important cause of the problems the society faces, and the primary cause of collapse is thus quite simply that societies inevitably attempt to solve their problems by doing all the things that make their problems worse.

The phase of breakdown is the point at which this exercise in futility finally grinds to a halt. The three previous phases are all attempts to avoid breakdown: in the phase of pretense, by making believe that the problems don’t exist; in the phase of impact, by making believe that the problems will go away if only everyone doubles down on whatever’s causing them; and in the phase of response, by making believe that changing something other than the things that are causing the problems will fix the problems.

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Our Social Depression

Our Social Depression

This erosion of opportunities to complete life’s stages and core dramas is rarely recognized, much less addressed.

The consequences of economic stagnation are not limited to finance: stagnation is causing a social depression. We can best understand this social depression by examining how the natural stages of human life are being disrupted.

Each stage has various tasks, goals and duties, which establish the foundation for the next stage.Confucian thought views life as a developmental process with seven stages, each roughly corresponding to a decade: childhood, young adulthood (16-30), age of independence (30-39), age of mental independence (40-49), age of spiritual maturity (50-59), age of acceptance (60-69), and age of unification (70 – end of life).

I see each stage as centered on a core human drama: for the teenager, establishing an identity and life that is independent of parents; for the young adult, finding a mate and establishing a career; for the middle-aged, navigating the challenges of raising children and establishing some measure of financial security; for those in late middle-age, helping offspring reach independent adulthood and caring for aging parents; early old age, seeking fulfillment now that life’s primary duties have been accomplished and managing one’s health; and old age, the passage of accepting mortality and the loss of vitality.

The End of Secure Work and the diminishing returns of financialization are disrupting these core human dramas and frustrating those who are unable to proceed to the next stage of life:

1. Teenagers are being pressured to focus their lives on achieving a conventional financial success (see “Training for Discontent” in From Left Field) that is becoming harder to achieve.

2. Young adults without secure full-time careers cannot afford marriage or children, so they extend the self-absorption of late adolescence into middle age.

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A Resilient Society

A Resilient Society

The final video in a four-part video series. Released in conjunction with Afterburn: Society Beyond Fossil Fuels.

Resilience is a word that’s gaining a lot of currency in recent years, as more and more people realize there are some shocks headed our way. But what would a more resilient society look like?

This video is the fourth in a four-part series by Richard Heinberg and Post Carbon Institute. The themes covered in these videos are much more thoroughly explored in Heinberg’s latest book, Afterburn: Society Beyond Fossil Fuels. (View the entire series here.)

Special thanks to New Society Publishers for partnering with us on this fantastic series and to Shutterstock.com for granting image rights.

…click on the above link to view the presentation…

 

Looking for Some Answers

Looking for Some Answers

A few months back John Michael Greer, over at the Archdruid Report, wrote an essay about how we might begin to tackle the huge mental and emotional burden of dealing with collapse. It was noted that, for the most part, the majority of people simply don’t want to think about or discuss the way in which we humans are accelerating towards an ecological brick wall and would instead prefer to either lose themselves in fantasy worlds of their own or others’ making. Thus, many people like to lose themselves in video games, TV series and dreams of cornucopian splendour where we will all shortly be living the good life, just as British PM David Cameron announced yesterday (if we vote for him). Surrounding yourself with people who think just like you do and only exposing yourself to information sources that bolster your hoped-for belief that ‘things are going okay’ and ‘the experts are in charge’ adds some comforting texture to this fantasy.

Since I stopped playing Dungeons and Dragons when I was about 13 I’ve not been particularly interested in fantasy worlds. For me, reality is where it’s at. But reality sometimes hurts, and so when reality does actually bite, there are two ways of dealing with it. The first is to anaesthetise yourself so that it doesn’t hurt as much – either by way of the above-mentioned mental escape avenues, or by literally anaesthetising your brain and nervous system with alcohol and drugs. Unfortunately for society as a whole, most people end up choosing the latter option, and we see spiralling problems of addiction, domestic violence, depression and many other ills as a result.

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Achieving Sustainable Societies: Lessons from Modelling the Ancient Maya | Solutions

Achieving Sustainable Societies: Lessons from Modelling the Ancient Maya | Solutions.

The ancient Maya provide an example of a complex social-ecological system which developed impressively before facing catastrophic reorganization. In order for our contemporary globally-connected society to avoid a similar fate, we aim to learn how the ancient Maya system functioned, and whether it might have been possible to maintain resilience and avoid collapse. The MayaSim computer model was constructed to test hypotheses on whether system-level interventions might have resulted in a different outcome for the simulated society. We find that neither collapse nor sustainability are inevitable, and the fate of social-ecological systems relates to feedbacks between the human and biophysical world, which interact as fast and slow variables and across spatial and temporal scales. In the case of the ancient Maya, what is considered the ‘peak’ of their social development might have also been the ‘nadir’ of overall social-ecological resilience. Nevertheless, modelling results suggest that resilience can be achieved and long-term sustainability possible, but changes in sub-systems need to be maintained within safe operating boundaries.

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Olduvai IV: Courage
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Olduvai II: Exodus
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