Archives for posts with tag: greed is good

Not because I’ve noticed how easy it is to be successfull as a con-artist. If you have what it takes, of course.
Far easier than it is to be successful as a bone fide entrepreneur, for example.
No, this wasn’t exactly news.

I’ve got the blues when I realized how many people are OK with this!
Without even beeing aware of it…

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As much as I love writing, I do have to eat.
And to provide for my family.
Earning money takes time.
If you’d like me to write more, and on a more regular basis, hit the button.
Your contribution will be appreciated!

As much as I love writing, I do have to eat.
And to provide for my family.
Earning money takes time.
If you’d like me to write more, and on a more regular basis, hit the button.
Your contribution will be appreciated!

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If you need to dig deeper, you might want to read Aja Raden’s The Truth about Lies, 2021.

This book represents Djuvara’s thesis for his 1974 Doctorat d’Etat.

There are two main ideas which are to be pointed out here.
A first one hidden under the distinction he identifies between ‘culture’ and ‘civilization’.
The second being the bread and butter of his thesis. That civilizations are initiated in one place, diffused/exported for a while and then replaced – or led further, depending on how one chooses to interpret the facts, by people until then living somewhere on the fringes of the civilization they are replacing/refurbishing.

Nothing really new, right?
‘Cyclical History’ wasn’t invented yesterday. And certainly not by Neagu Djuvara.

Well, Djuvara’s ideas – like everybody else’s, are nothing but ‘overgrowth’. Things which sprung in people’s minds ‘on top’ of what those people had already learned. Found out. Or, of course, both.

In a sense, what I’ve said in the previous sentence is the very condensed abstract of Djuvara’s second ‘main idea’.
The first, the ‘hidden’ one, – again, in an extremely abridged version, being that ‘history, as a narrative, is nothing more and nothing less than what historians choose to make of the facts they had learned about’.

Too blunt?
Well, first and foremost, I’m an engineer. Not a fancy pen-pusher…

OK. Let’s go further.
I’m going to illustrate, briefly, Djuvara’s main thesis by presenting his version of what had happened in Europe. What had started as an European phenomenon, more precisely.

The Roman civilization had grown at the periphery of the Ancient Greece. And, eventually, took over more ‘space’ than the Ancient Greeks.
The Russian civilization had grown at the periphery of the Byzantine/Orthodox one and eventually took over. Or, at least, attempted to…
The Holy Roman Empire of German Nation ‘recycled’ – or, at least, attempted to, the ‘ancient’ values and traditions.
Great Britain had grown at the periphery of Europe until it took over the whole world. At least for a while…
The US, which had started as a British colony, had grown into the most powerful nation known to man.

‘OK, I understand what you meant by trailers and trailblazers. Some of those who trail might end up trailblazing.
Do you want to add anything?
Is there an actual point to your post?’

Yep.
As they say about the market, ‘past performance is no guarantee about the future’.
The fact that things have happened as they did is no guarantee that they’ll keep unfolding in the same manner.

In a sense, Fukuyama was right, after all…
Even if not in the sense he thought it!

According to “The end of history” people – all over the World, had realized the relative merits of ‘liberal democracy’ and ‘capitalism’. Which were going to be put in practice, effectively marking ‘the end of history’.
Thirty years past that moment, it seems that things aren’t going in that direction.

I’m I contradicting myself? Who’s right, after all?
Djuvara? Since history doesn’t seem to have stopped?
Or Fukuyama, but for some other reason? Than the one advertised by him?

‘History, as a narrative, is nothing more and nothing less than what historians choose to make of the facts they had learned about’

Then, if history is ‘man made’, what about the future?

Can we really make it? Predict it?

‘Make it’, for sure!
If not us, then who?!?

‘Predict it’… that’s something totally different!

There are signs, though.

First of all, Djuvara had described something which can be compared with fire burning in a savannah. It starts in one place, burns for a while… and then starts up some place else. Until now, no fire – no fire known to man, had burned any savannah so thoroughly that nothing was left for a ‘second’ fire.

Secondly, Fukuyama said that history will end when all humankind will sync. When all ‘civilizations’ will be run according to the same paradigm. According to the liberal democratic and capitalist paradigm, in Fukuyama’s vision.
We’re still far from that.
Only there is one paradigm which is willing to play that role! To fill those shoes…

The ‘greed is good’ paradigm!
Or, if you don’t like to think in ‘monetary’ terms, the ‘my version is the only right one’ paradigm.

The problem being that these two work in concert.
They are two facets of something called ‘intellectual arrogance’.

I’ll come back to this notion sometime in the future.
Now I’ll end up telling that there’s not much left of the ‘savannah’.

When things were unfolding as Djuvara described them, the planet itself was more or less ‘virgin’. Unexploited. Unoccupied.
Human culture used to be diverse. Ideas were developing. Traded. From one place to the other. From one culture to the other.

Nowadays, much of the planet – our home, is occupied by the, more or less, same civilization. And by an increasingly similar culture.

Nothing inherently good nor bad here, mind you!

If we still have no definitive history, then the future hasn’t been written yet.
It’s up to us to choose the right trail.
For no other reason than the fact that there are very few trails left for us to burn!

One way to interpret Maslow’s pyramid of needs is to consider that an individual might become a full fledged human only after having climbed to the ‘fifth floor’.

The key word here being “might”!

Because nothing mandates that all those who have overcome the material constraints of this world and have successfully integrated themselves in the social milieu will ever become a ‘better version of themselves’.

Need examples? Have you ever heard about people like Bernie Madoff, Martin Shkreli or Myron Scholes?

‘But the last guy, Myron Scholes, was recognized by the Nobel committee as a world class economist!’
Exactly! What more could a person want? Money, fame, worldwide recognition… he was on the fast track to becoming whoever he wanted…
Yet he had chosen to associate himself with one of the deepest financial black-hole ever… Knowingly, unknowingly… doesn’t matter!

‘But what does it mean to become a full fledged human?’

To be free. To consider them-self a free person and to be recognized as such by their peers.

‘Scholes wasn’t a free person?!? Shkreli?!? Madoff?!?’

Nope. Neither was free from greed!
Greed for money, power, public recognition… or any combination thereof.

‘But “greed is good”!!! Isn’t this the current mantra? Aren’t we all driven by this sentiment?!?’

First of all, greed is not good. Read Adam Smith’s Theory of Moral Sentiment.
But yes, we are bombarded from all sides with this notion. That ‘greed is good. That greed is the engine of capitalism, which capitalism has brought us here. Where it is good.’

Yes, here it is indeed good. Only for fewer and fewer of us. It used to be better but since ‘greed has become good’ every ‘bump’ we encounter along the ‘free market’ road has proven to be quite a challenge. An insurmountable challenge for more and more of us.
An unsustainable arrangement. For us, as a community.
And yes, capitalism is the best economic paradigm to date. Only, as all paradigms, it has to be put in practice. By us, the people. In the right way. In the free market way.
Only we are no longer free! Those who cannot escape their sentiment may not consider themselves free. And too many of us have been enslaved by their greed!

‘But greed is written in our DNA!’

Indeed! So is the urge to have sex!
Only we’ve managed to teach ourselves, community wise, that while sex is good, rape is bad!
Not so long ago, rape was more or less condoned. ‘She must have enticed him’. ‘What was she doing there at that hour?’ And so on…
Nowadays, rape is shunned. By most of us.

Only we still live surrounded by rape culture. Seeped in greed.

Will we ever learn?
Will we, as a community, ‘actualize’ ourselves?

I’m sure you’ve already learned everything worth knowing about how to flatten the curve…

My post is about something else.
About the need to think with our own heads.
Individually. Each on their own.

More damages are caused by the manner in which we have chosen to react than by the pathogen itself.

‘Then what should we do?’

I don’t know. And I just told you to stop taking cues, blindly.

There is something I do know.
Nobody can get out of something like this on its own. Alone.
And another thing. If we get out of it as a herd, we’ll very soon end up in another trap.

‘Damned if you do, damned if you don’t… I really can’t figure out what you want to say….’

OK.
We, humans, are social animals.
We not only raise our young – all mammals do that, we raise them in a social context. We live in groups and we raise our children to belong there.

Living in a social context has consequences. From being prone to infestation to having adopted specific behaviors.
Humberto Maturana is actually convinced that our very conscience – ‘our ability to observe ourselves while observing‘, a paraphrase, is a product of us leading our lives in close community.

One of these specific behaviors is the herd instinct.
Whenever in a dire strait, the members of a group pay a lot more attention to the rest of the group than in the ‘peaceful moments’.
This has two bright sides and one huge drawback.

All members of a group paying close attention to the others makes it easier for those who need it to get attention. And help.
All members of a group paying close attention to the others makes it easier for the group to follow when one of them finds a way out.
All members of a group paying too close attention to the others makes it very likely that the entire group will dash out at the first opportunity. Without checking first where they’re going to land. Nor whether there are any other opportunities.

Another specific behavior is ‘opportunism’.
Some of us have figured out that by keeping their chill in a crises they are more likely to identify whatever opportunities might exist in that moment.
And the deeper the crises, the bigger the opportunities.

Theoretically, these two should work like a charm.
The opportunists keep their chill, look around, identify the best way out and the rest of the herd follows them to safety.
A win-win situation.

Yeah… but!

Wouldn’t it be a way lot better whether all (or, at least, ‘more’) of us would keep their chill? Wouldn’t we be able to identify even more ways out?
It would take a lot more time? We’d need to discuss things over, to negotiate… we’d have to exert a lot of discretion…
True enough. Hence we’d need to evaluate two things. First, how urgent the dangerous situation is and, then, whether a better alternative would be worth searching.

And something else. In a ‘follow me blindly’ situation there’s no going back. The consequences for a hasty choice might be tremendous.

We might end up with more people being hurt by our blunder-some reaction than by the cause which had spooked us.

Yet another specific behavior is responsibility.
Living in a social context means that, sooner rather than later, individuals are censored for their actions. By the rest of the community or, sometimes, by the stark reality.
Unfortunately, sometimes entire communities are censored, by the stark reality, for not behaving responsibly. For not imposing responsibility upon their members.

For not taking enough time before choosing between flight and fight.

Let me put things into perspective.
How many of you have chosen to continue smoking despite having been warned?
How many of you have emptied the shelves despite being told there’s enough for everybody? Or that there will be soon enough?
How many of you do not smoke in the presence of your children? Because you know it will hurt them?
How many of you have taken active measures to protect the elderly? For the very same reason…

As for the economy being the main casualty of the present scourge…
I’m afraid ‘the economy’, as we know it, has been dying for quite a while now. That’s why it is so susceptible to SARS CoV-2.

The Ancient Greeks had come up with the concept of ‘oeconomia’ as the art of making the ends meet. Adam Smith had described the free market as the place/environment where competing agents made it so that people – solvent demand, could satisfy their needs.
Nowadays, too many of us understand/accept ‘economy’ as the art of getting rich. ‘Free’ in ‘free market’ is understood as ‘free’ to do anything you want. Because very few are asked to answer for the long term consequences of their actions.

The economy, as the manner in which we cooperate towards fulfilling our needs, has fallen prey to our gluttony. And to our nearsightedness.
Greed is not good. And SARS CoV-2 is only an eye opener, not the cause for the current implosion.

– What have we done, Gabriel?
– Nothing but what we’ve been told to!
– But look at what they’ve done of our work:

We gave them ‘hand’ and they’ve clenched it into a fist.
We taught them how to make tools and they used them as weapons.
We told them to ‘fill the earth and subdue it’ and they started to fight among themselves for the best pieces of land.
We warned them ‘it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God’ and they’ve somehow convinced themselves that ‘greed is good’.

– True enough but this is out of our hands. They’ve been endowed with ‘freedom of will’ by their Maker.
– Then what are we? Mere robots?
– Nothing but loyal servants of our Master. He orders and we accomplish. Unerringly.
– Exactly as I’ve just told you. Mere robots. When we somehow convince ourselves that a particular idea which has blossomed into our heads comes from Him, we no longer think. We just put it into practice.
You call this ‘loyalty’. That’s fine with me.
But to whom are we to extend said loyalty? To somebody who’s authority stems solely from our acceptance of it? Or to what we perceive as being the ‘greater good’?
– You and your questions, Lucifer… Look at what happened to those poor people after you helped them into self-awareness… They’ve completely lost their erstwhile peace of mind.
What are you trying to do? To make me give up mine?

https://www.snopes.com/fact-check/hepatitis-c-drug-prices/

https://www.azquotes.com/quote/1133913

Then, if ‘greed is THAT good’, why blame Big Pharma for ‘buying’ politicians in order to extract as much profit as possible from their work?

Specially when it does work as advertised?

We priced the product at exactly the same as the existing standard of care, which worked about 50% of the time, and are providing a benefit that, based on real world experience, works about 98% of the time. From our perspective, it was a very good value.

I think our failure, if I have to take a step backwards, we were unable to have a good enough conversation with the payers. Perhaps we were a little conservative about what we could have or should have said to them to allow them to prepare for the number of patients that came forward. Honestly, it was far more than we thought. We did not think the system could or would try to handle as many patients as it did. We essentially quadrupled the number of patients treated in a year. That surge really created a lot of pain.

Ooops… so it’s the ‘payers’ who are hurting, not the patients themselves…

Gilead’s CEO Admits To ‘Failures’ In Setting Price of $1,000-A-Pill Breakthrough

Hepatitis C Treatment Highlights Disparity in Worldwide Drug Prices

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 …