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(Download PDF) Economics Ethics and Power From Behavioural Rules To Global Structures 1St Edition Hasse Ekstedt Online Ebook All Chapter PDF
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Economic theory in its neoclassical form is sometimes regarded as free from values; it
is simply the theory of economic exchange. This can only hold true if we accept the
idea of “Homo Economicus” and the equilibrium economy. But in the real world,
away from neoclassical models, there is no intrinsic stability as such. Instead, stability
is created by the surrounding social, cultural and political structures. Clearly, it is
imperative that ethics features in the analysis of these economic and socio-political
structures.
Drawing on Aristotle, Kant, Hume and others, this book conceptualizes the
analysis of ethics and economic and social structures. It first considers the key
philosophical underpinnings and categories which frame the discussion of ethics
in economic theory and then considers individual ethics, social action, financial
structures and war. Throughout, ethics are examined in a multicultural context
with structural complexities, and the difficulties in finding a coherent set of ethics
which provides social cohesion and an open society are considered. A key part of
this is the comparison of two ethical principles which can be adopted by societies:
ius soli or loyalty to constitution, and ius sanguinis or loyalty to “Blood and Soil”.
The latter is argued to lead to problems of Us and the Other.
Introducing the possibility of integrating microscopic ethics into socio-political
structures and proposing the eventual existence of a global ethics, this volume is a
significant contribution to the emerging literature on economics, social structures
and ethics. It will be of particular interest to those working in business and public
administration and who have an education in socio-economic areas, but it also has
a broad appeal to students and academics in the social sciences.
Hasse Ekstedt
First published 2019
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN
and by Routledge
711 Third Avenue, New York, NY 10017
Routledge is an imprint of the Taylor & Francis Group, an informa business
© 2019 Hasse Ekstedt
The right of Hasse Ekstedt to be identified as author of this work has been
asserted by him in accordance with sections 77 and 78 of the Copyright,
Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced
or utilised in any form or by any electronic, mechanical, or other means,
now known or hereafter invented, including photocopying and recording,
or in any information storage or retrieval system, without permission in
writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or
registered trademarks, and are used only for identification and explanation
without intent to infringe.
British Library Cataloguing-in-Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Names: Ekstedt, Hasse, author.
Title: Economics, ethics and power : from behavioural rules to global
structures / Hasse Ekstedt.
Description: Abingdon, Oxon; New York, NY : Routledge, 2019. | Series:
Routledge frontiers of political economy | Includes bibliographical
references and index.
Identifiers: LCCN 2018013215 (print) | LCCN 2018013627 (ebook) |
ISBN 9781315271392 (Ebook) | ISBN 9781138281028
(hardback : alk. paper)
Subjects: LCSH: Economics—Moral and ethical aspects. | Economics—
Political aspects.
Classification: LCC HB72 (ebook) | LCC HB72 .E425 2019 (print) |
DDC 174/.4—dc23
LC record available at https://lccn.loc.gov/2018013215
ISBN: 978-1-138-28102-8 (hbk)
ISBN: 978-1-315-27139-2 (ebk)
Typeset in Bembo
by Apex CoVantage, LLC
Contents
Introduction 1
Structure of the book 7
Prologue 11
Introduction 11
Economic theory 12
Neoclassical axiomatic structure 14
The axioms 14
The axioms and aggregation 17
Barter and production 17
Homo Œconomicus, rationality and equilibrium 18
Arrow’s Impossibility Theorem 20
Methodological aspects 25
Disequilibrium 28
Money 31
The fundamental contradiction intrinsic to money 36
1 Ethics in philosophy 39
The myth 39
Ethics and epistemic cycles 41
Ethics and its connotations 42
Humans as moral creatures or calculating beasts 49
Aristotle 49
Thomas Hobbes 54
Reason and passion 57
Kant 57
Hume 66
vi Contents
Moore’s paradox 72
Kant – Hume – Russell 74
The art of defining and what we perceive 76
8 War 261
Introduction 261
Breakdown of ethics 263
The lessons from Clausewitz 265
Two examples from Sweden 268
Four generations of war 269
Is there a fifth generation of warfare? 270
Bibliography 277
Index 282
Illustrations
Figures
P.1 A sketch of the proof of the existence of general equilibrium 15
P.2 Additive aggregation 21
P.3 Mathematics and causality 26
P.4 Epistemic cycle 29
1.1 Mixture of perspectives 62
2.1 Epistemic cycle 83
2.2 Space-time 88
2.3 A space-time illustration 92
2.4 Reduction of dimensions 99
2.5 Potentiality of dimensions 100
2.6 Relation between commodities and utilities 105
3.1 Development of structural unemployment 129
3.2 Lexicographic preferences 135
3.3 Illustration of the entropy principle 143
4.1 A coastline map 161
5.1 Daily average costs for hip operations 180
5.2 The complexification of society 189
6.1 Price of liquidity 215
6.2 Investment horizons, discount rates and expected rates of return 217
6.3 Monetarism/Currency School 225
6.4 Securitization system 225
Pictures
4.1 Bathos – Logos – Pathos 149
4.2 The beach 161
4.3 The non-beach 162
5.1 Volenti nil impossibile 181
5.2 Podestas iudicialis 194
Illustrations ix
Diagrams
A.1 The general space-time situation 106
A.2 Distinction between spatial distance and time distance 107
A.3 Illustration of distortion of mass 108
Tables
Much of this book has its origin in more general conversations about recent
problems that have had a large impact on the world. It has not so much been a
matter of seminars and that kind of activities; it has more been quiet talks over
a glass of wine. Of course, I must as in earlier books pay my deep respect to my
teacher and very good friend, the late Professor Lars Westberg. He was never
under the illusion that the social sciences could be separated more than occa-
sionally, and he realized also that human beings are part of physics; so, as does
Aristotle, he could write both of physics and the soul.
In Lund I had a very inspiring conversation with Professor Johan Asplund
quite some years ago, but together with his writings, it has meant much to me.
I am also very grateful to Professor Björn Rombach, at the School of Public
Administration, for good discussions on Kant in general and particularly Kant’s
paper “Beantworten der Frage: Was ist Aufklärung?”, which appears in Chapter 4.
Since I read the German original, I discovered differences in different English
translations. Björn, who is bilingual in Swedish and German, helped me solve
the linguistic fox traps.
I also participate every year in the International Conference on Developments
in Economic Theory and Policy in Bilbao, Spain. These conferences are excel-
lent with respect to both intellectual standards and social standards. There is a
conscious ambition among the organizing group to contrast perspectives and to
introduce new ones. I have presented some parts of this book in the two latest
conferences and received very fruitful discussions and good suggestions.
Most important, however, has been my family. In particular, I have discussed
many things in this book with my daughter, Dr. Anna Ekstedt, who works as
a psychiatrist for children and adolescents, and we have had many discussions
about the problem of intellect and emotion and to what extent humans are
rational. She has provided me with background material of great value.
Most of all, my beloved wife, Barbro Ekstedt, former interpreter at the Euro-
pean Council, has supported me by reading outlines of ideas, checking my logic
as well as my language, and helping me in conceptualizations of aspects which
have been strange.
Introduction
“What is truth?”1
“What then is truth?” – From Pilate came the question:
Echo replied: From those sealed lips came forth
No word; but with the answer to the Riddle
The Nazarene went down beneath the earth.
But, God be praised, we have with us professors
To whom all knowledge of the truth is clear;
Legion their name – so many are their answers
Have reached by now the doubting Roman’s ear.
Strange, though, that Truth, the one and undivided,
So marvellously doth vary hue and shape,
That what is truth in Berlin or in Jena
at Heidelberg is but an idle jape.
It reminds me of Prince Hamlet and Polonious,
And that chameleon cloud – you know the tale;
“Do you see yonder cloud so like a weasel?
– So like a camel? – Very like a whale!”
And this too will be the fate of that most serious and decisive of words of
our own epoch of transition: one day the word Entnazifizierung will have
faded away because the situation it was intended to end will no longer exist.
But that won’t be for some time yet, because it isn’t only Nazi actions
that have to vanish, but also the Nazi cast of mind, the typical Nazi way of
thinking and its breeding ground: the language of Nazism.
A bit further in the book (pp. 13–14), Klemperer discusses Nazi propaganda
and the powerful speeches of Hitler and Goebbels and their influence, but he
concludes:
No, the most powerful influence was exerted neither by individual speeches
nor by articles and flyers, posters and flags; it was not achieved by things
which one had to absorb by conscious thought or conscious emotions.
Instead Nazism permeated the flesh and blood of the people through
single words, idioms and sentence structures which were imposed on them
in a million repetitions and taken on board mechanically and unconsciously.
...
But language does not simply write and think for me, it also increasingly
dictates my feelings and governs my entire spiritual being the more unques-
tioningly and unconsciously I abandon myself to it. And what happens if
the cultivated language is made up of poisonous elements or has been made
the bearer of poisons?
Thus, when the central power starts to change the language either by preferring
words or abandoning words, we can draw two conclusions: first, that the central
power is in for a very deep-going structural change of the ruling culture, and
second, that the systematic changing of words is not an occasional whim but a
thoroughly premeditated action.
This is a book on ethics in relation to individuals and macroscopic struc-
tures, so why bother about language? Why not tell how to behave as an ethical
creature? There is a huge variety of courses and consultants to explain how to
apply ethics to different areas. Many of them are probably valuable and some
are probably of less value. We have, however, no intention to discuss practical
applications of a concept called ethics, which appears to be a basic concept to
social life and consequently of the highest possible complexity. Aristotle treats
it as a basic tool to reach the highest good for the individual as for the society.
A course on ethics may need to be lifelong in order to cover some of the more
essential aspects of ethics.
Thus, ethics concerns every single aspect of human life, both for individuals
and for social creatures affecting the collective structures. It is not something
we learn but something we live. Therefore, we also have to analyze different
structures affecting our lives and setting the boundaries of our behaviour. It also
Introduction 3
concerns the difficult question of how the interrelation between microscopic
levels and macroscopic structures are created and developed. Since language is
the prime means of communication among individuals and between individuals
and collective bodies, language is certainly as important from an ethical point of
view as actions. But what happens, then, with the freedom to express oneself in
a democracy? Another good question is from the poem by Gustav Fröding that
began this introduction: What is Truth? If we should have some sort of ethical
standard, it is indeed practical to ask that question.
Currently we are in the middle of the worldwide #MeToo movement against
sexual harassment, which has had a particular impact in Western Europe and the
USA. The movement started in the US with the revelation that a powerful film
producer was using his power to force women to submit to his sexual desires. In
Sweden it has had an enormous effect and shaken the most prestigious institu-
tion in the country, the Swedish Academy, which selects the Laureates for the
Nobel Prize in Literature. The #MeToo movement has not only shaken society
with respect to sexual harassment; it has also been enlarged to other kinds of
abuse of formal power in order to force other people to submit to private plea-
sures or inappropriate professional behaviour. From an ethical point of view, the
campaign should be unnecessary, since the behaviour it focuses on is not any
form of acceptable behaviour in Europe or the USA. That also explains why
the effects have become so strong, why people in powerful positions in each
society have resigned and some organizations have run into a state of confusion
regarding what is going on. The campaign has occurred within ethical areas
where codes of behaviour have been pretty clear and consequently the breaking
of these codes are regarded as completely inappropriate by most people brought
up in Western civilization.
The ethics of a society are a mixture of explicit and implicit rules of behav-
iour. Aristotle defined ethics as a form of tool to achieve the highest good, since
no individual in a society can achieve the highest good for himself without the
assistance of other members of the society. This implies that human beings are
not to be regarded as independent atoms, which is at variance with the neoclas-
sical foundations of economic theory; rather, they need collectively accepted
rules of behaviour, some codified and some implicit, both belonging to an ethical
superstructure which is an integral part of culturally dependent socialization.
In this book, we will not analyze the different contents of ethical systems
but rather discuss the structures and particularly structural conflicts intrinsic to
any form of ethical system or between different forms of ethical systems. An
example of intrinsic conflicts are the two bases of any ethical system, the prin-
ciple of “thou shalt” and “thou shalt not”, where we will have conflicts between
doing good to other people even if we break the law. This was actually raised to
the highest level during the Nuremberg trials after WWII, when people were
sentenced to death because they obeyed the explicit and/or implicit wishes of
Hitler. Their defence was that if they had not obeyed, they would have been
killed, but that was not a relevant enough defence. We have many examples of
clashes between conscious human considerations and explicit law. Later in the
4 Introduction
book, we will discuss two important events: Kant’s small paper from 1784 on
“Beantworten der Frage: Was ist Aufklärung?”, and Herodotus’ summary of a dis-
cussion of different forms of government from 486 BC, which exactly analyze
this problem from different views.
With respect to clashes between ethical systems, we will discuss the classical
problem of Fides Punica initiated by Romans, first in relation to Carthage, then
to all societies not aligning to the principles of Roman culture and laws. This
is the problem of the Other and is of utmost importance in a globalized world.
Two fundamental concepts with respect to ethics are power and war. The
power structure of a society fundamentally affects the ethical structure, and
consequently, we have the problem of how to judge between ethical approaches
or systems. The American political scientist Robert Kaplan wrote a book on
intrinsic ethics and ethics towards the environment, where the survival of the
intrinsic ethics of a society, in his case the USA, considered a pagan ethos suit-
able in relation to the rest of the world necessary. We will compare and partly
contrast this view with the approach by Carl von Clausewitz with respect to
war as the continuation of politics by other means. War is the ultimate violence
between two countries, but what happens if the concept of a nation loses its rel-
evance and is replaced by other lines of demarcation? Clausewitz presumed that
the continuation of politics into war by other means was followed by a reversal
movement back to politics. Will such reversibility be possible?
From a scientific point of view, we may ask if it is possible to give a precise
definition of the concept of ethics. Unfortunately, we have to answer: prob-
ably not.
That is due to the intrinsic contradictions of the concept which are implicit
in the distinction between the principles “thou shalt” and “thou shalt not”.
However, not to be totally bewildered, we can continue Aristotle’s thoughts
on humans as subjects and local and temporal final causes: A necessary, but most
probably not a sufficient, condition for an ethical principle is that all humans must be
regarded as subjects and thus a final cause.
Consequently, we expect as human beings that our free will is somehow
recognized.
For those who have the opinion that free will does not exist, I would expect
a refutation of our basic principle without assuming that any human being has
better contacts with some sort of god than other human beings do. Or, to use
George Orwell’s words in Animal Farm: “All animals are equal, but some animals
are more equal than others”. Thus ethics as well as causality, alluding to Hume’s
distinctions, contradicts determinism, the need for ethical behaviour to appear
as some form of ordering life in an uncertain environment, where the human
being is the main source of uncertainty. It is, given that the humans are subjects
and thus final causes.
Although the general principle is probably incomplete, since it is basically an
abstract formulation of a part of “thou shalt not”, it is of such a generality that
it comprises both physical and mental assault, which should ideally be regarded
as equally serious.
16 Prologue
can use as representatives real numbers. From a mathematical point of view this is
of outmost importance. However, when we are outside the realm of the axiomatic
structure, concerning the character of the agents, we also leave the possibility of
representing the economic goods and agents as real numbers. That is why we
can say that if we are in general equilibrium, we are in a separate universe which
has no neighbourhood. Thus if we are thrown out of general equilibrium, we
implicitly say that we are in a space where we cannot represent goods and agents
by numbers; consequently there most probably does not exist a general theory
of disequilibrium, as opposed to general equilibrium in the neoclassical sense.
The first three axioms, which by all means are said to define rationality, which
is true in a very limited meaning, define an equivalence relation, together with
the presumption of symmetry: A = B ⇒ B = A. The equivalence relation implies
that if we have two sets X and Y, then to each Xi there exists one and only one Yj.
Thus:
P1: Let X represent a preference set and Y a choice set. We can then define a
function P on X and a function C on Y such that for any two x: xi P xj,
there exist two y: yk C yl.
P2: If now the preference set and the choice set are defined on the same
set X of elements, we will have a preference relation between two ele-
ments: xi P xj ⇔ xi C xj.
In Figure P.1 we sketch the skeleton of the proof of the existence of general equi-
librium. It is important to note that the fundamental mathematical issue underlying
the proof is to show that both the preference space and the choice space belong to
the same Euclidian space. That means that some of the axioms may look redundant
from an economic point of view, as Hausman (2012:13, footnote 1) writes:
The point, however, is that the proof of general equilibrium is purely mathemati-
cal and that none of the axioms are redundant.
The last three axioms imply together with the equivalence relation that we
define an ordered Euclidian (Cartesian) space.
Important correlates to this exercise are:
Corr. 2: For any i and j for a preference function Pa and a choice function
Ca holds that xi Pa xj ⇒ xi Ca xj and conversely xi Ca xj ⇒ xi Pa xj.
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The Project Gutenberg eBook of A little gipsy lass
This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
restrictions whatsoever. You may copy it, give it away or re-use it
under the terms of the Project Gutenberg License included with this
ebook or online at www.gutenberg.org. If you are not located in the
United States, you will have to check the laws of the country where
you are located before using this eBook.
Illustrator: W. Rainey
Language: English
By
by
William Rainey
Edinburgh:
Printed by W. & R. Chambers, Limited.
CONTENTS.
CHAPTER PAGE
I. LOTTY LEE 1
II. HOW ANTONY HAPPENED TO BE THERE 11
III. IN GIPSY CAMP AND CARAVAN 18
IV. 'EVER BEEN AN INFANT PRODIGY?' SAID LOTTY 34
V. THE QUEEREST SHOW.—A DAY IN THE WILDS 47
'THERE IS THAT IN YOUR EYE WHICH CRONA
VI. LOVES' 59
VII. POOR ANTONY WAS DROWNING! 69
VIII. THE MYSTERY OF THE MERMAN 79
IX. 'THE NEW JENNY WREN' 90
X. A LETTER AND A PROPOSAL 99
XI. BLOWN OUT TO SEA 111
XII. 'OUT YONDER, ON THE LEE BOW, SIR' 121
XIII. ON BOARD THE 'NOR'LAN' STAR' 132
XIV. A LITTLE STRANGER COMES ON BOARD 142
XV. 'I WANT TO DREAM THAT DREAM AGAIN' 154
XVI. SAFELY BACK TO ENGLAND 163
XVII. LIFE ON THE ROAD IN THE 'GIPSY QUEEN' 172
XVIII. SNOW-BOUND IN A MOUNTAIN-LAND 182
XIX. SPORTING-TIME IN WOODS AND WILDS 193
XX. IN THE DARK O' THE NEAP 204
XXI. THE WRECK OF THE 'CUMBERLAND' 214
XXII. THE AMBITIONS OF CHOPS JUNIOR 226
XXIII. 'WELL, CHOPS, TO RUN AWAY' 236
XXIV. 'I SAVED IT UP FOR A RAINY DAY' 248
XXV. 'WE'VE GOT A LITTLE STOWAWAY HERE, GUARD' 260
XXVI. THAT CROOKED SIXPENCE 272
XXVII. 'GAZE ON THOSE SUMMER WOODS' 283
XXVIII. 'HO, HO, HO! SET HIM UP' 290
LIST OF ILLUSTRATIONS.
PAGE
The girl simply lifted the latch and entered without ceremony Frontispiece.
Then that huge brown bear began to dance 50
He found himself in the water next moment ... with the Jenny
Wren on her side 71
And they had special tit-bits which they took from her hands 92
Presently the black hull of the bark was looming within fifty
yards over her 129
'Father, father,' she cried, 'I cannot, will not do this' 224
BOOKS FOR GIRLS
By May Baldwin.
LOTTY LEE.