Wednesday, February 20, 2019

760: Why Economics is a religion.....

Maybe you won't believe it, but this morning  I woke up with  a peculiar thought. For the past few days I have been reading a lot on Hayek.
My plan was to do a lecture on Hayek today and then move on to the next topic about the legacy of the 20th century, that shapes our world of today.
But it showed to be not that simple. The reason is, that with Hayek we have hit a nerve, a highly sensitive one of our capitalism.
Now you may wonder what that peculiar thought was, with which I literally woke up this morning. The first thing that came to my mind was, that economics is a religion, it is a theology.
Yes, I know it sounds weird, but let me explain. In essence economics deals with the question: how do people act with regard to livelihood?
What is the basic structure of any belief, any religion? You take a few axioms and accept them as undebatable truths and then you start building your theory.
Take for instance christianity with its ten commandments. The first one is: You shall have no other gods before Me.
It simply means: don't dare to question what comes next, for then you are in big trouble, fellow....
As second follows: You shall make no idols,  which simply means, that this "Me" doesn't accepts competition.
This said, there follow a few basic behavioral rules, which seem obvious for all social animals.
Be nice to your parents. Obvious, otherwise you go early to bed, no dinner. Don't murder. Of course not. You make others very angry with you when you do.
No adultery. Ok....Don't steal. You have to be blind not to notice that no one likes to be robbed.
Next step is to organize your society around these  axioms and you have a justified social structure. That is how we do it,
Now, why did I woke up with this weird thought that economics is a religion?
I try to understand what the influential thoughts of Hayek are, which have such a profound influence on the 21st century.
I thought...ok, good for one lecture and then we move on, but it didn't work that way. When you want to understand Hayek, 
first you have to read about this, but no you first have to read about that to get the whole picture and eventually I ran into Adam Smith (1723–1790). It all began with him.
During the 250 years of mercantilism the writers about economic issues were government officials and merchant.
Around 1750 psychological theories about human behavior emerged and within that context subjects like morals and economic behavior became important fields of interest for philosophers.
And there we meet him, Adam Smith. He formulated the theory that man primarily pursues his self interest and that this, unintended, also benefits the interests of the community as a whole.
In "The Wealth of Nations" (1776) he introduces the idea of "The invisible hand". 
It has become a metaphor for the efficiency and self-regulating nature of the market, the natural laws of production and exchange 
The invisible hand would bring about a state of harmony and prosperity through self-interest, competition and market forces, which is regularly used to justify the idea of ​​laissez-faire.
And when I read, what Hayek says about the free market, it occurred to me that this is true belief and on this belief you base all theories.
Doesn't this look like region...?
Thank you for your attention again...the floor is yours...
The Discussion
[13:19] .: Beertje :. (beertje.beaumont): thank you Herman
[13:20] herman Bergson: This Invisible Hand is the God of free market economics....
[13:21] Particle Physicist Bejiita (bejiita.imako): well i have heard this similarity between economics and religion indeed
[13:21] herman Bergson: ahh...
[13:21] Particle Physicist Bejiita (bejiita.imako): and i can say that i agree, it is like a religion
[13:21] Particle Physicist Bejiita (bejiita.imako): brainwashng people that greed egoism and overconsumption is a good thing while we trash our planet with no thought of it
[13:22] herman Bergson: That is indeed the real criticism Bejiita
[13:22] Particle Physicist Bejiita (bejiita.imako): money is everything
[13:22] CB Axel: A religion that says, "Go ahead and do whatever you want. Then call the results 'good.'"
[13:22] Particle Physicist Bejiita (bejiita.imako): yes
[13:22] Particle Physicist Bejiita (bejiita.imako): no afterthought
[13:23] herman Bergson: Deplete resources, trash th is all good if it increases the profits based on demand and supply
[13:23] Particle Physicist Bejiita (bejiita.imako): Trump is a good example, totally ignoring climate facts cause they threat his oil incomes
[13:24] Particle Physicist Bejiita (bejiita.imako): at least thats one part of it
[13:25] herman Bergson: I notice that there is little reason for debate here....we seem to agree on the subject :_)
[13:25] CB Axel: Even if that didn't benefit him he'd still not care about climate change. If it doesn't affect him, why should he care?
[13:25] Particle Physicist Bejiita (bejiita.imako): companies want to make money so bad they plow down everything in their way to get it
[13:25] herman Bergson: Indeed CB...that's him\
[13:25] Particle Physicist Bejiita (bejiita.imako): thats another part of it
[13:26] .: Beertje :. (beertje.beaumont): is the free market good for us?
[13:26] Particle Physicist Bejiita (bejiita.imako): the most scary thing is he refuse to realize that extreme cold is also an effect of global among and want to pollute MORE to increase the global warming
[13:26] herman Bergson: to some extend, Beertje
[13:26] CB Axel: My father doesn't believe that our climate change is man-made. He believes it's part of a natural cycle.
[13:26] Particle Physicist Bejiita (bejiita.imako): and i cant type today sig
[13:26] CB Axel: Yet my sister tried to make him care because polar bears are dying.
[13:26] Particle Physicist Bejiita (bejiita.imako): worked to hard n gym before maybee
[13:26] herman Bergson: But not in education and healthcare and social care
[13:27] Particle Physicist Bejiita (bejiita.imako): hehe
[13:27] Particle Physicist Bejiita (bejiita.imako): hands and arms are numb
[13:27] CB Axel: He doesn't care at all about polar bears. We've had extinctions before. We'll have them again.
[13:27] Particle Physicist Bejiita (bejiita.imako): he doesnt care but any others then himself
[13:27] CB Axel: I don't think he even cares that our climate may make man go extinct.
[13:27] Particle Physicist Bejiita (bejiita.imako): and his money bin
[13:28] Particle Physicist Bejiita (bejiita.imako): he is an extreme example of selfishness and greed
[13:28] herman Bergson: be honest CB.....that focus on the CO2 effect i on the climate....
[13:28] Particle Physicist Bejiita (bejiita.imako): greed
[13:28] herman Bergson: I believe it has, but is that really the cause of the warming up?
[13:28] CB Axel: I believe so.
[13:29] herman Bergson: The water flow in the oceans, el niño, for instances and changes there in
[13:29] CB Axel: The planet began warming quickly just after the industrial revolution.
[13:29] Particle Physicist Bejiita (bejiita.imako): it might not be all that there is to it but we know from lab tests that it and methane have these greenhouse effects
[13:29] Particle Physicist Bejiita (bejiita.imako): its prooven facts
[13:29] CB Axel: Yes. Methane is bad, too.
[13:29] Particle Physicist Bejiita (bejiita.imako): its even more bad then co2
[13:29] herman Bergson: farting cows are bad...! :-)
[13:30] Particle Physicist Bejiita (bejiita.imako): i was just gonna say that
[13:30] CB Axel: My theory is that increases in atmospheric methane comes as much from vegans eating beans as from the cows I eat. lol
[13:30] Particle Physicist Bejiita (bejiita.imako): hehe
[13:30] .: Beertje :. (beertje.beaumont): if the polar ice melts there will be masses of methane in the air
[13:30] Particle Physicist Bejiita (bejiita.imako): runaway effect
[13:30] .: Beertje :. (beertje.beaumont): it's not the fart of a cow that gives methane, it's his breath
[13:31] herman Bergson: when they cremate me I'll add to the CO2 too... :-(
[13:31] herman Bergson: Is that so Beertje? :-)
[13:31] .: Beertje :. (beertje.beaumont): yes
[13:31] CB Axel: Methane comes out of both ends.
[13:31] herman Bergson: Cows should brush their teeth!
[13:32] CB Axel: Brushing teeth doesn't stop belching. :-)
[13:32] .: Beertje :. (beertje.beaumont): they do by eating grass
[13:32] herman Bergson: oh dear...:-)
[13:32] .: Beertje :. (beertje.beaumont): wrong end of the cow Herman:)
[13:32] herman Bergson: But to get back to our point of today, which was confirmed by Bejiita....
[13:32] herman Bergson: economics looks like a religion because it is based on beliefs
[[13:33] Particle Physicist Bejiita (bejiita.imako): ah
[13:33] .: Beertje :. (beertje.beaumont): not on statistics?
[13:33] CB Axel: Can't those beliefs be tested by looking at the economies of countries with a lot of regulation?
[13:33] Particle Physicist Bejiita (bejiita.imako): statistics manipulated to look good
[13:33] herman Bergson: the beliefs are supported by results of statistics
[13:34] CB Axel: Who's statistics?
[13:34] herman Bergson: The beliefs are based on the 0observation of human behavior.
[13:34] Particle Physicist Bejiita (bejiita.imako): i use to say, there are lies, worse lies and statistics
[13:34] .: Beertje :. (beertje.beaumont): :)
[13:34] CB Axel: Like Bejiita said, statistics can be manipulated.
[13:34] herman Bergson: No Bejiit...
[13:35] herman Bergson: if I am not mistaken it was the british prime minister D'Israeli who coined that phrase :-))
[13:35] Particle Physicist Bejiita (bejiita.imako): its a classic here
[13:35] Particle Physicist Bejiita (bejiita.imako):
[13:35] herman Bergson: Oh became a classic indeed :-))
[13:35] CB Axel: I thought it was Mark Twain. LOL
[13:35] Particle Physicist Bejiita (bejiita.imako): hahah
[13:35] CB Axel: Lies, damn lies, and statistics
[13:35] herman Bergson: You may be right CB...
[13:36] Particle Physicist Bejiita (bejiita.imako): yes thats the correct one
[13:36] herman Bergson: your homework for Thursday.....Find out who said it :-)
[13:36] Particle Physicist Bejiita (bejiita.imako): sure
[13:37] Particle Physicist Bejiita (bejiita.imako): ill make some statistics on that!
[13:37] herman Bergson: :-))
[13:37] Particle Physicist Bejiita (bejiita.imako): want staple or pie chart?
[13:37] Particle Physicist Bejiita (bejiita.imako):
[13:37] herman Bergson: Pie chart of course
[13:37] CB Axel: Mmmm. Pie.
[13:37] Particle Physicist Bejiita (bejiita.imako): ill throw some raspberries o  that
[13:37] Particle Physicist Bejiita (bejiita.imako): on
[13:37] CB Axel wakes up There's going to be pie on Thursday?
[13:37] .: Beertje :. (beertje.beaumont): The phrase was popularised in the United States by Mark Twain, who attributed it to the British prime minister Benjamin Disraeli:
[13:38] Particle Physicist Bejiita (bejiita.imako): (referrintg to raspberry pi computer i will bake the statistc charts on)
[13:38] herman Bergson: A pie from Sweden, CB
[13:38] Particle Physicist Bejiita (bejiita.imako):
[13:38] Particle Physicist Bejiita (bejiita.imako): well ill have a check on it
[13:38] herman Bergson: wooohoo Beertje!
[13:38] herman Bergson: So I won the pie!!!!
[13:38] CB Axel: As long as it's not lutefisk pie.
[13:38] Particle Physicist Bejiita (bejiita.imako): EEEEW
[13:38] .: Beertje :. (beertje.beaumont): :))
[13:38] Particle Physicist Bejiita (bejiita.imako): or surströmming
[13:39] Particle Physicist Bejiita (bejiita.imako): i prefer tastier stuff
[13:39] CB Axel: I'm not familiar with surstromming.
[13:39] Particle Physicist Bejiita (bejiita.imako): its a swedish dish of basically rotten fish, the smell is equal to a Kraft pulp mill
[13:39] CB Axel: Ewww
[13:39] herman Bergson: holy cow, Bejiita!
[13:39] .: Beertje :. (beertje.beaumont): give me 'nonnevotten '
[13:40] Particle Physicist Bejiita (bejiita.imako): and the crazy is some loves that including my mother
[13:40] .: Beertje :. (beertje.beaumont): Herman knows what they are:)
[13:40] herman Bergson: I guess I'd better dismiss the class immediately before you come up with the recipe
[13:40] CB Axel: OK. Herman won the "who said that" round, but Bejiita wins "most disgusting pie" round. lol
[13:40] herman Bergson: He did!
[13:40] CB Axel: Nonnevotten?
[13:40] .: Beertje :. (beertje.beaumont): yes
[13:40] Particle Physicist Bejiita (bejiita.imako): u can be calm i will NOT make surströmming pie for you, prefer raspberries or maybe blueberries
[13:40] Particle Physicist Bejiita (bejiita.imako): or both
[13:40] herman Bergson: Where did you get that CB?????
[13:40] Particle Physicist Bejiita (bejiita.imako): yummy
[13:40] Particle Physicist Bejiita (bejiita.imako):
[13:41] CB Axel: From Beertje
[13:41] herman Bergson: lol
[13:41] CB Axel: Scroll up.
[13:41] .: Beertje :. (beertje.beaumont): grins
[13:41] herman Bergson: I see :-))
[13:41] .: Beertje :. (beertje.beaumont): Herman can't type blind....i can...

[13:41] herman Bergson: least let me dismiss class and thank you again  first :-)

No comments:

Post a Comment