Archives for category: cooperation
« Older Entries
Newer Entries »

Democracy as a recurrent, self administered Rorschach test.

January 25, 2017 //
0

The Rorschach test consists of a trained specialist encouraging a subject to share his interpretations on 10 “ambiguous images“.
At the end of the discussion the trained specialist more or less ‘determines the fate’ of the subject, by filing his interpretation of the subject’s reactions.

The democratic process consists of everybody freely expressing their concerns about things.
Periodically some people are invested with enough power to solve the problems encountered by the community, in a manner consistent with the values agreed upon by that community. At the end of each such period the activity of these people is analyzed (interpreted ?!?) by those at the ‘receiving end’ of the political mechanism, with the intended goal of improving the ‘political process’.
The fate of the entire community being under a double determination. The diligence of the politicians invested to run the show and the diligence of the people when evaluating the results of the political process.

As you can see with a naked eye, there are a few striking similarities between  Democracy and the Rorschach test. Both depend heavily on the participants being honest and straightforward.

If the patient ‘doesn’t trust his doctor’ or ‘doesn’t feel like talking’ the ‘trained person’ will undoubtedly have problems in reaching a ‘fair conclusion’. Both will have to ‘suffer some consequences’.
If the ‘doctor’ has ‘ulterior motives’ and ‘unfairly labels’ his patient, it will be the patient to suffer the initial consequences but, eventually, those consequences will ‘bounce back’ to their source.

Same things happen in any society.
The difference between a democratic and an authoritarian one being that in a democratic environment ‘consequences’ become apparent, and are dealt with, a lot easier than in an authoritarian one.
This being the reason for which true, functional, democracies work better than any form of authoritarianism.

As long as both parties involved ‘interpret’ their roles appropriately, of course.

Tags , , , ,
Categories authoritarianism, Bounded rationality, Choices we make, collective identity, cooperation, democracy, effective communication, Frames of mind, man induced fragility, Mutual Respect, The kind of world we are building for our children

The sparkle of light at the end of the tunnel

January 24, 2017 //
0
the-sleep-of-reason
People have started to freak out after realizing the full scale of what has just happened.
Some see him as a just retribution for our past sins – and they are probably right about this – while others look at the whole situation as if it was a sort of a Rorschach test.
How about Trump as an opportunity?
The inverse of a Rorschach test since that is about the shrink trying to learn something while an opportunity is about the subject bearing the responsibility for the consequences …
An opportunity, and a prod, for the silent majority to remember that ‘The sleep of reason produces monsters‘?
The way I see it Clinton would have done everything in her power to lull us back into our erstwhile stupor while Trump, willingly and/or unwittingly, is already making enough noise… Even the Sleeping Beauty must have already heard something…
So, test or opportunity, now it’s up to us to find a way out of the current mess. Which, I have to repeat this, is our exclusive responsibility.
The problem being that for those inside, the ‘light at the end of the tunnel’ can be the actual exit or the head-light of a train engine barreling down towards them.
‘Lady Luck’ is a tough bitch and that’s why one should be really careful with these things.
PS. The ‘shrink’ already has a huge ‘blot’ to muse about. Some people never learn.
Emily Linroth being a spokeswoman for the National Park Service, the organization which has cleaned up “the National Mall following the inauguration and the Women’s March on Washington Saturday.“
https://www.khanacademy.org/humanities/becoming-modern/romanticism/romanticism-in-spain/a/goya-the-sleep-of-reason-produces-monsters
http://wtop.com/local/2017/01/nps-cleanup-going-well-after-inauguration-womens-march/
http://www.snopes.com/2017/01/22/womens-march-dumped-signs/
https://residualpoo.wordpress.com/2017/01/23/trash-talking-trash/
https://nicichiarasa.wordpress.com/2016/11/24/spin-doctors/
Tags , , , ,
Categories authoritarianism, Choices we make, collective identity, cooperation, effective communication, Frames of mind, Mutual Respect, Politically induced fragility, Rule of Law, The kind of world we are building for our children

History

January 20, 2017 //
0

history-written-by-the-victors

Quite a lot of people, most of them after misreading Machiavelli, have convinced themselves that ‘history is written by the victors’.

Even Winston Churchill, once a victor himself, had fallen into this trap.

Lately, more and more have started to doubt this assertion.

“History is written by the writers.”
Steve Theodore, professional game developer, amateur know-it-all

Ouch!

OK, let me dig deeper.

In reality, being able to write is not enough.

In order to be able to write about something, you have to survive it first.

And something else. Merely writing it would not necessarily preserve that information for further referral. For us to be able to read it. And be influenced by it.

So, the history that we are aware of today has been written by those who have survived the events, were smart enough to write and to understand the real importance of what they have just done. And to preserve the results of their effort.

But there’s more to it.
Basically there are at least two manners in which someone can describe something.
As close to what they honestly remember or in such a way as to bring as many benefits to the writer as possible.

I’m sure that you’ve already figured out what I’m hinting at.
Yes, the first manner of writing produces ‘true’ history while the second yields mere ‘propaganda’.

Which can be, indeed, useful.

On the shortest of times and only as long as the writer itself does not start to believe in his own writings!

Otherwise they’ll join the fate of the likes of Goebbels and …

goebbels-children

You know, Hitler’s very efficient ‘spin doctor‘ (“Think of the press as a great keyboard
on which the government can play.”) who, at the end of WWII and with the help of his wife Magda, had “murdered their six children and killed themselves as Soviet forces closed in on the bunker.” Would you call that a ‘victory’?
But we have to give him what was really his. He was a ‘man of his word’.
“If the day should ever come when we must go, if some day we are compelled to leave the scene of history, we will slam the door so hard that the universe will shake and mankind will stand back in stupefaction..”

So.
For some people to write history and for that history to remain as they have written it, the writers had to survive ‘it’, learn from what had happened to them that they were the in possession of very important information and decide to pass on that information, as truthfully as possible, to the next generations.
To help them survive if/when confronted with a similar ordeal.
And this very fact, that the history they had written taught someone how to survive, transforms the writer into the real winner.

In fact ‘history’ will be passed from one generation to another only as long as the next generation replaces peacefully the older one. Only as long as the older one helps the new generation to ascend into the future.

Otherwise, if the ‘children’ have to fight their ‘parents’ – as in ‘contradict what they had been taught by their teachers’ – in order to remain alive, they will also re-write the ‘history’ they had to fight against while struggling to survive.

Tags , , ,
Categories Bounded rationality, Choices we make, collective identity, cooperation, Culture, effective communication, Mindset, Psychology, The kind of world we are building for our children, Trust

Republic versus Democracy

January 16, 2017 //
1

For more than a year now I was struggling to understand the circumstances that have produced the current political mess in America.

I finally figured it out.

Confusion and dissatisfaction!

If you have enough people that are both confused and malcontent then all kind of ‘strange’ things will happen.

Only one of them won’t be enough to explain the whole gamut of what’s going on and that’s why I wasn’t satisfied by any of the many articles that pointed out one reason or another for the ‘popular discontent that brought the Donald to the White House’.
In fact no amount of ‘unhappiness’ can explain how two mature parties can nominate such lousy candidates. Neither Hillary Clinton nor Donald Trump fit, not even loosely, the profile of a decent President. That’s why the voter turn-out was the lowest in the last 80 years or so.

But if you add ‘confusion’… things begin to clear out.

And no, I’m not speaking here about the regular people being confused as a result of the ‘politicos’ having misbehaved horribly.
I’m afraid things are way deeper than this.
Even those who believe themselves to be educated in these matters seem to be swimming in a sea of thicker and thicker fog.

Take, for instance, the current debate about the differences between ‘republic’ and ‘democracy’.

“A republic is a representative type of government, and its goal is to simultaneously control the majority while protecting the minority. For example, in the republic of the United States, the government is limited constitutionally, and power is divided between the three branches of government.

A democracy is a type of government that grants eligible citizens the right to equal participation. This right is provided directly through the creation and development of laws or through elected representatives. The interest of the majority is the most important aspect in a democracy.

A republic is a representative form of democracy. A republic has an elected head of state, such as a president, that serves for a specific period of time. In a republic, the interest of the majority rules through its elected representatives. However, a republic has a constitution that protects the minority from being entirely overruled or unrepresented.”

See what I mean? Adding insult to injury this definitions were published by a site which calls itself ‘reference.com‘ …

I’m not going to pick truth from fiction in that quote, that would only add to the already too thick confusion.

Enough for me to say that ‘republic’ is indeed a manner in which societies are organized (a.k.a. ‘governed’) while ‘democracy’ is a manner in which societies decide for themselves. Yes, these two things have a lot in common but we should not confuse them.

There are republics which only pretend to be democratic – like the late Soviet Union or the current Democratic Republic of Korea, some which are democratic in a rather strange way – Iran for example, or which are slowly ‘loosing’ democracy behind – like Orban’s Hungary or Putin’s Russia. History has also a few examples of republics which had given up democracy all together. Hitler’s Germany, for instance.

On the other hand there are monarchies (OK, constitutional monarchies) which are perfectly democratic. The British Commonwealth, Sweden, Norway, Holland, Belgium…

What can explain the current confusion?
‘The interest of the majority is the most important aspect in a democracy’?!?
A major lack of understanding about what democracy really means?

A terrible confusion between the formal aspects of democracy – freedom to vote for what ever candidate accompanied by a fair account of the ballots – and the really important tenets of democratic behavior – honest, open and mutually respectful exchange of ideas about the current state of affairs between the interested members of the society?
My point being that true democracy is about the opportunity to rationally convince those around you/making yourself available to be convinced by rational arguments, not about the majority imposing its view on the minority. That is nothing but mob rule, a horrid perversion of what democracy was meant to be.

Basically, what happens – under all forms of social arrangements/forms of government: republic, constitutional or absolute monarchy – in a society is that people need to know where that society is headed to. Authoritarian societies are run by the ruler – and the people, willingly, unwillingly or with mixed spirits, agree for the time being – while the democratic societies entertain a certain ‘effervescence of ideas’ which bring forward the important problems that need to be resolved and what would be the socially acceptable manners for those problems to be fixed.

But in order for that ‘effervescence of ideas’ to be efficient, the ordinary people have to contribute in earnest to the exchange and the politicians need to pay close attention and to cooperate among themselves and with the rest of the society towards solving those problems.

That’s why I’d like you to remember when was the last time that people on the different sides of the political divide have actually talked together?
Why do we have a ‘political divide’ in the first place?

Aren’t we supposed to be ‘all together’ in our respective countries?

What’s gotten into us that made us fight each-other so bitterly?

Why do we succumb so easily to ‘divide and conquer’?

Why are there still so many politicos who keep using this method, despite the ample proof that has been provided to us, through out the history, that ‘divide and conquer‘ inevitably ends up in disaster?

http://politics.blog.ajc.com/2017/06/16/when-your-own-rhetoric-gives-you-license-to-commit-mayhem-and-worse/

Tags , ,
Categories altruism, arrogance, authoritarianism, Bounded rationality, Choices we make, collective identity, cooperation, corruption, democracy, effective communication, Mutual Respect, politics

Kompromat

January 12, 2017 //
0

Growing in a communist country, Romania, I was ‘exposed’, naturally, to all sorts of communist propaganda. ‘Embedded’ in almost everything.
One ‘sugar coating’ that was very popular among the apparatchiks of the day was ‘crime novels’. ‘James Bond’-like  ‘literature’ which was supposed to educate us, ordinary citizens  who could almost never get an exit visa to go to a ‘capitalist’ country,  about the perils ‘our’ trading agents/diplomatic personnel had to ‘negotiate’ when sent abroad to ‘serve the country’.
The most publicized ‘peril’ being the ‘prostitute trap’. Supposedly the ‘pure’ communist was trapped by a skillful prostitute into believing she was heavily enamoured  of him and then lured to an apartment were the couple would be filmed while ‘consummating’  their new found passion. Later, of course, the recording would have been used to exert pressure in order to influence the hapless fool into betraying his country.

The recent articles regarding ‘the art of kompromat’ tend to suggest that those ‘novels’ were nothing but yet another example of a wolf crying wolf… but who knows…

Fast forward to our times.

Is there anything clear in all this?

And no, I’m not wondering whether there is an actual tape of Trump ‘frolicking in bed’ with anybody. Even if it exists, it is well guarded. After all, such a tape is way more valuable as long as it is hidden away than when out in the open. The threat to reveal it works only as long as nobody else but the black-mailer and the victim know about its existence.

Then why all this brouhaha?

A preemptive strike meant to dull the effect of Putin actually publishing such a tape?
Putin trying to ‘soften up’ his intended target?
But what is Putin’s goal? He cannot dream of ‘controlling’ the President of the United States. Even when that position is fulfilled by someone like Trump… The actions of any POTUS are so public that any influence would very soon become apparent, on one side, and Trump, himself, is a very ‘unreliable’ person to start with.

But what if Putin has another, and way more insidious, goal?

What if he wants to compromise the very concept of democratic elections?
To ‘demonstrate’ to us that ‘the public’ is (has become?) incapable of electing a good man to lead it to the future?

Well… the problem with ‘kompromat’ is that it has to be tailored to its intended victim.
Just imagine what effect would have had a tape depicting Obama in bed with someone else but Michelle. Who would have believed such a thing?
But Obama was, to a degree at least – as Trump had very astutely estimated, vulnerable to a campaign focused on his birth certificate. We all know what kind of ‘passion’ the birthers have managed to instill into some of the die-hard conservatives.
And we should not forget that Trump had started his political life as a friend of the Clintons. His words, “that Hillary Clinton ‘had no choice’ but come to his third wedding“, are now world famous…

Now, bearing all these in mind, shouldn’t we ask ourselves how farfetched is Putin’s project of destroying our faith in democracy? Using ourselves as minions?

After all, Trump was elected democratically!

And do you remember those discussions about the US being intended as a Republic by the forefathers, and not as a Democracy? Or Orban’s – Hungary’s authoritarian prime minister, one of Putin’s close political friends, concept of ‘illiberal democracy‘?

“I voted for Trump because I think his illiberal tendencies are actually a feature rather than a bug. When he undermines rule of law, I see not a danger, but someone who is undermining a system that has become a game for elites with access to armies of lawyers. When he browbeats Congress, I don’t worry about “checks and balances” which have become a recipe for dysfunction, but rather see him as a man taking on useless political prostitutes servicing everyone who can write a sufficiently large campaign check. When he strong-arms multinational companies like Carrier, I see someone standing up to the worst aspects of globalization.”

Who built the world as it is right now? The one where the young adult who wrote the words quoted above, had grown up into and was modeled by?

We did it? With both its good-s and its bad-s?

It is us who kompromised it?
Then it is us who’ll have to fix it!
Or we’ll have to endure the yoke the likes of Putin and/or Trump will undoubtedly try to put on our shoulders.

 

 

Tags , , , ,
Categories authoritarianism, Bounded rationality, Choices we make, collective identity, cooperation, democracy, Frames of mind, man induced fragility, Politically induced fragility, The kind of world we live in

UN Security Council Drama

December 25, 2016 //
0

Israel has been backed up by the US ever since it was established.
They didn’t enjoy an unconditional carte blanche but the amount of help was  very consistent and, above all, very dependable .

Until a few days ago.
Nowadays Netanyahu, Israel’s PM, feels like he has been thrown in front of a bus by the departing President of the US, Barack Obama. Because the US ambassador, Samantha Powers, had abstained herself, instead of exercising her veto, about a resolution calling for Israel to “immediately and completely cease all settlement activities in the occupied Palestinian territory, including East Jerusalem.”

Ever since Israel has been reestablished by his original inhabitants Russia’s rulers have tried to use this situation in their advantage. Egypt, Syria, Iraq, and lately Iran, have received backing from Kremlin in their fight against Israel. By meddling into this conflict Russian rulers were simply trying to get international stature.

Recently Russia’s ambassador to the UN had used his veto power to block a resolution asking for the ceasing of the bombardments in Aleppo. Yet another proof that Russia’s leaders do not care about how they become respected on the international stage, as long as that respect is manifest. As in ‘the world listens when they speak’.

During the Obama administration the US refrained itself from such drastic measures. The US has refused – for now, at least – to re-engage in the brinkmanship game with the Russian leaders. Effectively denying the latter the kind of status they so strongly desire.

Israel has just become yet another collateral victim in this conflict.
Just as the Arabs have been for the last three centuries.
Caught, at first, in the middle of the endless colonial wars between England and France on one side and the Ottoman empire on the other. And later in the cold conflict between Russia and the US.

Tags , ,
Categories Bounded rationality, Choices we make, collective identity, cooperation, Frames of mind, man induced fragility, Mutual Respect, Politically induced fragility, The kind of world we live in, Trust, yes but

Communism

December 20, 2016 //
0

Theoretically it means “from each according to their abilities, to each according to their needs”.

Practically it looks like this.

famine-in-ucraine

In fact real life communism still is, and always was, about a whole country kow-towing to a dictator who pretends to care for nothing else but for the welfare of the people. His people!

The point being that each resource allocation game needs a referee. Otherwise all rational people would take as much as they could carry from the communal reserve – because it is free – and bring back as little as possible, hence nothing if not coerced to – because it implies some effort.

OK, any reasonable five years old would tell you that the communal reserve would very soon become empty if things would go like this – hence that presumably ‘rational’ behavior would be anything but – only it would be very rational to at least try, wouldn’t it? For how long it would work, no matter how short that interval…

And something else.
You are most likely familiar with ‘bad money drives out good’. There have been a lot of examples to prove this, one of them being Christ driving the money changers out of the Temple.
Some of you might not be familiar with how money worked in those days so here is it.
A coin was a simple ‘slab’ of precious metal, of somewhat constant weight, approximately round, which had been ‘stamped’ with the face of the local ruler. At first, in the minting shop, all coins belonging to the same edition were more or less of the same weight. But, since the edges of the coins were not ridged, ‘smart’ people started to ‘shave’ the coins.
And, after the first guy had started to shave them, each individual who got a coin would have been foolish not to shave it, just a little bit. Maybe the next guy would be foolish enough to accept it, after being shaved. To contest it the recipient would have had to go to the money changers and pay for their expertise. And this is how the coins became smaller and smaller…
Only the priests at the temple didn’t want to be fooled. So they hired some money-changers to vet the coins the believers brought to the Temple. The very money-changers that Christ had driven away. “God doesn’t need this kind of guardians. If we keep them here it would mean that we expect people to cheat. Even here, at the Temple. And if we expect them to cheat, they will surely do so!”

Only some people do cheat. And since some cheat, the rest will have to do something about it. Either make cheating the rule, which would lead nowhere, or make it so hard to cheat as to become impractical. Hence the ridges at the edges of the modern coins. Which can no longer be shaved because the ridges would make it obvious.

Coming back to our ‘communal reserve’ you would have to employ a guardian to make it sure that no one would take any more than they really need and that everyone periodically brings back stuff according to their abilities.
But how would that guardian determine what are the real needs and the real abilities of each of those individual members of the community?
And, even more importantly, what would stop the guardian from taking the whole ‘communal’ reserve into his private possession? As in acting like a communist dictator? Simply because ‘he needs it’?

The only alternative that worked was the free market. That where you sold your abilities and where you could buy things to fulfill your needs. Where prices were set at the meeting point between ask and demand.
But the same principle, bad money drive out the good, acts even here.
‘Smart’ people try to organize ‘monopolies’. Which, basically, is the same thing as they attempting to become the owners of the ‘communal reserve’.

This whole thing looks like an intractable vicious circle?
Take heart, that’s what ‘reeds’ are for.
We invented those, when we realized that we needed them, didn’t we?

reeded-coins

You still wondering what to use in order to transform that vicious circle into a virtuous one?
How about individual freedom coupled with a healthy dose of mutual respect?

Tags , , , , ,
Categories authoritarianism, Bounded rationality, Choices we make, collective identity, cooperation, corruption, effective communication, Frames of mind, freedom, Mutual Respect, Social justice, The kind of world we live in

Giving Money to a Teenager Government

December 19, 2016 //
0

teenager-government

Why am I am trying to make any sense of something said by a comedian?

orourke-trump

Because he’s right?

With a twist, of course!

While ‘government’, all of them, tend indeed to behave like ‘teenage boys’ their actual behavior depends very much on their up-bringing and on the amount of supervising their stakeholders/parents invest in them.

Which brings us to

the-government-you-deserve

Now all that is left for us to do – for ‘all’ of us, that is, including ‘the Government’ – is to remember that the individuals who make up the government also belong to the people. They cannot be essentially different from the people itself and they will, eventually, share the same fate as the rest of us.

Or even worse.

the-higher-you-are

The House Jack Built, Metallica

 

Tags , , , , , ,
Categories Bounded rationality, Choices we make, collective identity, cooperation, freedom, Mutual Respect, politics, Trust

I, the three legged stool.

December 9, 2016 //
0
For John Locke and his followers “what makes a person identical with herself over time is her remembering or being able to remember the events to which she was witness or agent.” (According mostly to the followers. What Locke actually said is something else, to which I’ll come back shortly)
Jesse Prinz has another opinion.

 

In this video Prinz seems to advocate that we maintain the continuity of our selves by sticking to a set of values. But this is only ‘skin deep’.
He didn’t actually say ‘what keeps us ‘together’ over time but ‘what people think that is ‘keeping us together’ as time passes’.
These two are not necessarily the same thing.
The way I see it memories are just the ‘resource’ from which our identity is continuously being built and the ‘values’ we stick to are the ‘blue-prints’ we use/update during the process but that the ‘driver’ behind all this is our self-awareness/free willing soul.
All three are interdependent.
As Locke observed, without our memories we would be like balloons drifting in a cloud of deep fog. We wouldn’t even be able to determine whether we were moving or not.
As Prinz said, without our values we’re like ships which have lost their ‘compass’.  Just imagine a boat sailing during a starless night or in a cloudy day. There are ways that experienced sailors can use to determine whether the ship is moving – relative to the surrounding water – but not even Black Beard nor Magellan would have been able to reach their destinations without ever seeing the Sun, some stars or using a compass.
Not to mention the fact, sorry Jesse, that without our memory we wouldn’t be able to remember today what set of values we had been using yesterday.
Finally, but not lastly, without our self-awareness/free willing soul we would be like perfectly sea-worthy ships which have been abandoned by their crews. Adrift in the middle of the sea, at the mercy of the elements. Elements themselves being not merciless but amoral…
I have a promise to keep. I said I would come back to Locke.
“ANOTHER occasion the mind often takes of comparing, is the very being of things, when, considering ANY-THING AS EXISTING AT ANY DETERMINED TIME AND PLACE, we compare it with ITSELF EXISTING AT ANOTHER TIME, and thereon form the ideas of IDENTITY and DIVERSITY. When we see anything to be in any place in any instant of time, we are sure (be it what it will) that it is that very thing, and not another which at that same time exists in another place, how like and undistinguishable soever it may be in all other respects: and in this consists IDENTITY, when the ideas it is attributed to vary not at all from what they were that moment wherein we consider their former existence, and to which we compare the present. For we never finding, nor conceiving it possible, that two things of the same kind should exist in the same place at the same time, we rightly conclude, that, whatever exists anywhere at any time, excludes all of the same kind, and is there itself alone.“
 I’m sure that by now you have already figured out what I mean.
It is “we” that ‘compares’ and ‘considers’ things, that forms “ideas of identity and diversity”, that sees “anything to be in any place in any instant of time”, that is “sure” of anything (or not)… and so on and so forth…
Without this “we” no discussion about memory nor values would have ever been possible
Without memories the “we” would go ‘hungry’. Or nuts.
Without values the “we” would be ‘toothless’. Or antisocial/in jail.
And all these have already been mentioned, albeit in different terms, by both Humberto Maturana and Stephane Lupasco.
PS.
Don’t tell me that none of you have ever thought, however passingly, of the other meaning of ‘stool’.
ganditorul

 

Tags , , , , , , , , ,
Categories Bounded rationality, cooperation, Psychology, yes but

Risk Management

December 9, 2016 //
0
Until not so long ago it was possible to buy unlimited coverage against the risks that scared you.
After things became too complicated and fraud a too widespread occurrence even the Lloyd’s gave up and started to introduce caps on insurance policies.
In fact Lloyd’s of London was the only place – that I knew of – where risk was understood, at least in part, in a ‘functionalist’ manner.
Risk is something that can be seen in two ways.
As yet another opportunity for making profit or something that has to be mitigated for the profit of the entire community.
Let me deal with the latter ‘option’ first.
“Bismarck was motivated to introduce social insurance in Germany both in order to promote the well-being of workers in order to keep the German economy operating at maximum efficiency, and to stave-off calls for more radical socialist alternatives. Despite his impeccable right-wing credentials, Bismarck would be called a socialist for introducing these programs, as would President Roosevelt 70 years later. In his own speech to the Reichstag during the 1881 debates, Bismarck would reply: “Call it socialism or whatever you like. It is the same to me.”
Somehow I don’t buy it that Bismarck was primarily motivated by the well-being of the workers.
But what the German industrial barons of the day needed in order to catch up with the British ones – the Albion was the industrial power house of that time, o tempora…- was more and more people willing to leave the relative safety of the country-side and come to the city to work in the newly built factories.
In order to appreciate the huge difference between these two situations we must remember that in those times families were a lot larger than they are now and that their members used to help each other in times of need. But this could happen only if the members of the same family remained in close vicinity and worked on very flexible schedules – agriculture or family owned shops. You cannot go help your ailing mother if you work in shifts and live two hundred miles away from her.
So, in order to ‘lure’ more and more people out of the fields, and in a very short time, Bismarck had to offer them a ‘safety net’.
OK, let’s accept the idea that, maybe, there are some risks that the society, as a whole, should concern itself with.
But how to fulfill this ‘social need’?
How to identify which risks should be dealt with in a collective manner and which should be left alone. Then how to manage the whole process?
‘State-wide’ or through privately owned/operated initiatives?
Does it really matter?
I don’t think there is a universally valid recipe here.
The Bismarck’s social insurance system worked in Germany.
Lloyd’s has functioned almost seamlessly for 3 centuries. In England.
Both systems, one centered mostly on profit and the other on the safety of those who took part in it, worked because they spread out both the risks and the profits.
Current systems, where only the risks are being mutualized while the benefits tend to become more and more centralized – by ‘design‘, by corruption or both – are no longer functioning properly.
Take ‘Obama Care’, for instance. Most people, including Donald Trump, agree that something has to be done about ‘public health’ but the whole thing isn’t yet working properly.
Instead of fighting among ourselves on whether the state/government should have anything to do with risk management how about considering for a moment where our current infatuation with ‘profit‘ has brought us?
Tags , , , , ,
Categories Bounded rationality, Choices we make, cooperation, corruption, Economy, Mindset, Money as goal, moral hazard, The kind of world we live in, Trust
« Older Entries
Newer Entries »