Friday, July 26, 2024

Review of The National System Of Political Economy by Friedrich List

This book review was written by Eugene Kernes   

Book can be found in: 


Watch Short Review

Excerpts

“Afterwards, when the dominion of the seas had passed into the hands of the Dutch another policy became prevalent in reference to piracy.  When the Hanseatic League were supreme at sea, the pirate was considered as the enemy of the civilised world, and extirpated wherever that was possible.  The Dutch, on the contrary, regarded the corsairs of Barbary as useful partisans, by whose means the marine commerce of other nations could be destroyed in times of peace, to the advantage of the Dutch.” – Friedrich List, Chapter 2: The Hansards, Page 11

“History everywhere shows us a powerful process of reciprocal action between the social and the individual powers and conditions.  In the Italian and the Hanseatic cities, in Holland and England, in France and America, we find the powers of production, and consequently the wealth of individuals, growing in proportion to the liberties enjoyed, to the degree of perfection of political and social institutions, while these, on the other hand, derive material and stimulus for their further improvement from the increase of the material wealth and of the productive power of individuals.” – Friedrich List, Chapter 10: The Teachings of History, Pages 60-61

“History teaches that arts and trades migrated from city to city, from one country to another.  Persecuted and oppressed at home, they took refuge in cities and in countries where freedom, protection, and support were assured to them.” – Friedrich List, Chapter 10: The Teachings of History, Page 62


Review

Is This An Overview?

What cannot be produced domestically, needs to be obtained through international trade.  Sovereign states are limited in what they can produce due to resources, industry, and politics.  States prefer and benefit from free and unrestricted trade when they have an agrarian economy, as they can export surplus agriculture products in exchange for manufactured products and metal resources.  Trade policies change to become more restricted when the state develops their culture and industry. 

 

States borrow skills and manufacturing ability from others, but then protect them domestically.  Competition has the effect of improving the production ability of the competitors, but when domestic producers want more market share, they use their power to appeal to political representatives.  Domestic producers ask for restricting foreign competition, and the politicians tend to oblige. 

 

Social and political institutions effect the ability to produce material wealth.  States that had more liberty, had more production ability.  Liberty brings with it industry, invention, and enterprise.  People who are persecuted in a state, take their skills to states that would support them.  Infrastructure accompanies the development of manufacturing ability, to enhance access to the market.

 

Caveats?

This book is difficult to read, with antediluvian references.  A diverse history of trade is presented, but more research will be needed to understand any state or situation.  Various economic ideas remain valid, but their explanations have been improved.  


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest this book?
•What is free trade?
•Who benefits from free trade?
•When do states impose trade barriers?
•How did piracy effect trade? 
•How did states obtain and develop their own industries?
•How were infant industries handled?
•How did monopoly power effect geopolitics? 
•What do social and political institutions effect material wealth and productive ability?
•How many people can survive off a piece of land? 
•How does the production of wealth effect states?
•Is international trade needed?
•How does political power effect trade?
•How does industry effect agriculture? 
•What is capital?
•What is rent? 
•What is the history of trade for France?
•What is the history of trade for Germany?
•What is the history of trade for Italy?
•What is the history of trade for Netherlands?
•What is the history of trade for Portugal?
•What is the history of trade for Russia?
•What is the history of trade for Spain?
•What is the history of trade for United Kingdom?
•What is the history of trade for United States of America?

Book Details
Original Language: German
Translated Into:       English
Publisher:               CreateSpace Publishing
Edition ISBN:         9781544034942
Pages to read:          239
Publication:             2017
1st Edition:              1841
Format:                    Paperback  

Ratings out of 5:
Readability    1
Content          3
Overall          2






Monday, July 22, 2024

Review of Misunderstanding Financial Crises: Why We Don’t See Them Coming by Gary Gorton

This book review was written by Eugene Kernes   

Book can be found in: 
Intriguing Connections = 1) What Goes Into An Economic Crisis?


Watch Short Review

Excerpts

“Panics are not irrational events.  Panics happen when information arrives about a coming recession.  It is the fact that there are potential problems with banks that causes a run.  It is not the other way around, that runs cause problems for banks.  We will see that this underlying problem of runs is distorted when consumers and firms do not run because they expect the government to act; but runs are still the underlying problem.” – Gary Gorton, Chapter 1: Introduction, Page 5

“Banks create debt so that people and firms have a way to transact.  To produce debt that people and companies find useful for transactions is not easy.  It would be best if this debt were riskless, like modern government-produced money, because then it would be very easy to transact.  People and companies would accept the money without questions.  But private firms cannot create riskless debt, and that is the basic problem.  Unlike other products, bank debt comes with a kind of contractual warranty: if you don’t want it anymore, the bank has to return all your cash.  But there cannot be enough cash, because the cash is lent out, leading to a multiplying process creating more than a dollar of bank debt for each dollar of cash.  The cash cannot be returned fast enough.” – Gary Gorton, Chapter 1: Introduction, Page 6

“Markets are liquid when all parties to a transaction know that there are probably not any secrets to be known: no one knows anything about the collateral value and everyone knows that no one knows anything.  In that situation it is very easy to transact.  The situation where there is nothing to know or nothing worth knowing – no secrets – is desirable and allows for efficient transactions.” – Gary Gorton, Chapter 4: Liquidity And Secrets, Page 48


Review

Is This An Overview?

Financial crises are inherent in a market system.  Financial crises occurred before and after a centralized currency, before and after the development of a central bank.  Each crisis has different characteristics, but a common structural cause.  Financial crises occur when people and firms do not want the product of a bank.  The product of a bank, is debt.  Debt is used for transactions.  Different eras have different forms of bank debt, such as banknotes and repurchase agreements.  The debt is not riskless, and banks do not hold the cash needed to repay all the debt, as they lend out cash. 

 

Debt is used for transactions, which depends on the lack of secrecy.  That each party knows the value of the collateral being exchanged, and neither knows more than the other.  But when people become uncertain of the value of bank debt, people trigger a bank run.  No matter the form of the debt, crisis are caused by an avoidance of what the bank have to offer.  Crisis are triggered by the panic that ensues. 

 

A panic caused by problems with the banks, rather than panics causing the bank problems.  A financial crisis is when many consumers and firms are demanding more cash from the banking system than what the banks can provide, a contractual demand that the banking system cannot satisfy.  Events that cause a crisis are unpredictable, but the financial systems’ fragility can be observed.  Financial system fragility depends on the amount of credit outstanding.  Before a financial crisis, there is a credit boom that increases the financial systems’ fragility. 

 

Caveats?

This book provides an introduction to the cause of financial crises.  More research would be needed understand any specific crisis.  

 

The book can be difficult to read.  There are a variety of excerpts provided to be historic evidence to claims, but they have mixed results.  The excerpts can help explain the situation or be distracting.


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest this book?
•Does using math in economics make economics more scientific? 
•How is economic knowledge formed?
•Why did economists not think a crisis was possible?
•What is the Quiet Period? 
•What is the cause of a panic?
•What is a financial crisis?
•Is each crisis different? 
•What is the purpose of debt?
•Does debt have a contractual warranty?
•How does the bank use cash? 
•What are the kinds of bank debt?
•What happens when the government intervenes? 
•What is the Free Banking Era?
•What is a banknote detector?
•How does secrecy effect transactions and debt?
•What is liquidity?
•What is ‘breaking the buck’?
•What is securitization? 
•What is ‘flight-to-quality’?
•What are clearinghouses?
•What happens during a boom period that affects a crisis? 
•What are credit booms?
•Do banks want to use the discount window during a crisis? 
•Why is the banking system considered too big to fail? 
•What is moral hazard?


Book Details
Publisher:               Oxford University Press
Edition ISBN:         9780199922901
Pages to read:          217
Publication:             2012
1st Edition:              2012
Format:                    Hardcover 

Ratings out of 5:
Readability    3
Content          4
Overall          3






Thursday, July 18, 2024

Review of Aztecs: A History From Beginning to End by Henry Freeman

This book review was written by Eugene Kernes   

Book can be found in: 
Intriguing Connections = 1) What Is The Power Of Belief Systems?


Watch Short Review

Excerpts

“The deity Coatlicue has both female and male qualities, which is often the case in the Aztec cosmology.  As the decapitated Aztec goddess of the earth, she wore a skirt made of snakes and a necklace of severed human hands and excised human hearts.  Her role as both creator and destroyer of life has been emphasized in interpretations and also symbolizes the ambivalence of nature.” – Henry Freeman, Page 9 

“In adopting the Toltec form of ruling with different ruling “houses,” their system was not really a true fit to the European notion of empire, but more like a confederate system of allied lineage and calpulli clan structures.  This allowed for autonomous home rulers when they conquered areas and a system of tribute collection that enforced their dominance and gave them economic control over conquered populations.  Calpullis are considered the fundamental unit in the social pecking order of Aztec society.” – Henry Freeman, Page 14

“Theirs was an anthropomorphic world, and the sacrifice of the two gods meant that there was a cosmic responsibility to sacrifice to continue the new age.  Scholars do not think that the Aztecs tolerated challenges to the established social order.  Priests, shaman, and magicians gained immense status, as they were able to use scientific knowledge, astrology, and religious beliefs that they coveted to support their authoritative predictions.” – Henry Freeman, Page 24


Review

Is This An Overview?

Through their belief system, Aztecs valued life as they understood life to be transient.  That nature was cyclical, that nature could give life and take life away.  Sacrificing to their deities was part of their code for living, for the deities sacrificed, and the people needed to continue the practice.  Status affected what was to be sacrificed, but none could escape the inevitable catastrophes.  Science and religion were intertwined, and reinforced each other.  They had techniques for hydraulic engineering, which were used to reclaim swamp territory.  The political system was based on an alliance of clans, a decentralized network.  Geopolitics caused tension between different groups, with alliances forming to overcome tyranny of another.  Trade existed along with a tribute system.  An Aztec market was part of the culture, which had various guilds that held enough power and authority to enforce behavior. 

 

Caveats?

This is an introductory book.  To understand more about the Aztecs would require more research.  This book provides various sources for learning about the complexity of Aztec society. 


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest this book?
•What are Mexican origin myths?
•Who was Coatlicue? 
•What are the references to the different Suns?
•Who sacrificed what?
•Why were sacrifices part of the culture?
•How authority structured?
•How did trade effect society?  What role did the market have in society? 
•What power did the guilds have?
•What happened to the Tepanecs?
•Was there social mobility? 
•What was the class structure?
•Where did the Aztecs build their temple?
•How did science and religion effect each other?
•How many souls did the individual have?
•What happened to people when they died?


Book Details
Publisher:               Henry Freeman
Edition ISBN:         2940153340340
Pages to read:          33
Publication:             2016
1st Edition:              2016
Format:                    eBook 

Ratings out of 5:
Readability    5
Content          3
Overall          3






Sunday, July 14, 2024

Review of The Shock Doctrine: The Rise of Disaster Capitalism by Naomi Klein

This book review was written by Eugene Kernes   

Book can be found in: 
Book Club Event = Book List (01/25/2025)



Watch Short Review

Excerpts

“A more accurate term for a system that erases the boundaries between Big Government and Big Business is not liberal, conservative or capitalist but corporatist.  Its main characteristics are huge transfers of public wealth to private hands, often accompanied by exploding debt, an ever-widening chasm between the dazzling rich and the disposable poor and an aggressive nationalism that justifies bottomless spending on security.”– Naomi Klein, Chapter Introduction: Blank Is Beautiful, Page 18

“The principle was simple: countries in crisis desperately need emergency aid to stabilize their currencies.  When privatization and free-trade policies are packaged together with a financial bailout, countries have little choice but to accept the whole package.  The really clever part was that the economists themselves knew that free trade has nothing to do with ending a crisis, but that information was expertly “obfuscated.”” – Naomi Klein, Chapter 9: Crisis Works, Page 206

“That is pretty much the philosophy: stay in government just long enough to get an impressive title in a department handing out big contracts and to collect inside information on what will sell, then quit and sell access to your former colleagues.  Public service is reduced to little more than a reconnaissance mission for future work in the disaster capitalism complex.” – Naomi Klein, Chapter 15: A Corporatist State, Page 398


Review

Is This An Overview?

With disaster comes opportunity, a market opportunity.  Disasters are used to impose drastic changes on society, using shock therapy, rather than gradual changes.  Disasters are a shock to the system that enables policies to be accepted that would not have been acceptable otherwise.  To receive support or loans, sovereign states facing disaster are given conditions which generally include privatization, deregulation, and reduction in social spending. 

 

This has the effect of enacting policies that are favorable to markets, and gives access to foreign firms to buy resources and buyout domestic firms.  Resources and firms are sold relatively cheap, as the economy is facing disaster.  This is how disaster capitalism works.  Disaster makes sovereign states vulnerable to accept policies they would not otherwise accept, policies that are a form of colonialism.  The effect of shock therapy is to transfer public wealth to private individuals and groups, increase debt, and exacerbate inequality.  This situation is created by government and businesses working together.

 

The form of the disaster is not relevant.  Whether caused by nature or political conflict.  Although there had been many disasters available to which shock therapy was applied, there were disasters that were created.  When the democratic process chose means that were not favorable to those who were ready to take advantage of a disaster, methods were used to create a crisis such as the removal of democratically elected leaders and policies.  Replacing them with favorable leaders.  Undermining the democratic process, often with violent means.  Instituting and imposing authoritarian measures while claiming to that they are for liberty and the improvement of society.

 

Before disaster capitalism, societies wanted to avoid crises as that hurt the economy and the people.  Due to disaster capitalism, disaster has become profitable.  Rather than losing money due to a disaster, the economy benefits from a crisis.  Even when imposing a crisis on another economy.  Various firms profit from war activities, and then reconstruction efforts.  Firms are being rewarded with rebuilding what they enabled to destroy.  While war activity is compensated, the victims of disaster are not appropriately compensated.

 

Caveats?

The effects of shock therapy are considered from a variety of events from diverse sovereign states.  Many details are provided on the events, but there can be too many details or lack relevance which takes the focus away from a systematic account of the topic.  Even with the details provided, the reader would need to do more research to understand each event. 

 

This book challenges the myths of how effective economic policies have been.  The problem is that the author challenges the myths by providing myths.  This book is a form of destructive tribalism, in which the ideas and people who are the target of the book, are assumed to have an essence.  That anyone who engages with them shares all the same terrible ideas throughout time.  All the harm that is done, the author holds the target group responsible.  When a totalitarian sovereign state considers and changes their economy to be even a little more aligned with the target group, the target group is considered to be responsible for all the totalitarianism.  When the opponents of the target group have power and effect policies that are similar to what the target group wanted, the target group is considered responsible. 

 

Much like how the author criticizes the target group for wanting a pure market system without government, the author wants the targets to appear purely evil. The targets of the book are provided a one-sided narrative, and are given responsibility for every negative consequent.  The author references books written by the targets, but the content in those books that contradict the author’s claims are not referenced. 

 

The focus of the book is when the target group uses disasters for policy opportunities, even though there were a few references to non-target groups using disasters for policy opportunities.  By focusing only on a single target group and making them responsible for everything, has the effect of hiding and empowering other groups who use disasters for their benefit.  


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest this book?
•What is disaster capitalism? 
•What is shock therapy? 
•What was the outcome of Hurricane Katrina? 
•What are demands of International Monetary Fund policies? 
•How is the democratic process treated for states undergoing shock therapy? 
•How does shock therapy effect inequality?
•What does it mean to be corporatists?
•How does torture (a.k.a. coercive interrogation) work?
•Can a person be repatterned? 
•How is a state tortured? 
•What happened to the U.S. domestic and foreign policy after 9/11?
•How is Friedman involved in shock therapy?
•What is the source for problems with the economy according to Friedman? 
•How are Keynesians involved in shock therapy? 
•What happened to the communist versus capitalist struggle after the collapse of the Soviet Union? 
•What does it mean to have a mixed economy? 
•What defines an enemy combatant?
•Why use an academic to create policy rather than a firm? 
•What kind of bailout package do states in a crisis receive? 
•Who benefits from shock therapy?
•Who loses from shock therapy?
•What kind of statistics did the International Monetary Fund provide? 
•What language is used to make shock therapy appear necessary? 
•How does shock therapy effect the culture of the state its applied to? 
•How do companies get their contracts? 
•How do government employees think of their government? 
•How did shock therapy effect Argentina?
•How did shock therapy effect Asian Tigers?
•How did shock therapy effect Bolivia?
•How did shock therapy effect Chile?
•How did shock therapy effect China?
•How did shock therapy effect Iraq?
•How did shock therapy effect Israel?
•How did shock therapy effect Poland?
•How did shock therapy effect Russia?
•How did shock therapy effect South Africa?
•How did shock therapy effect Sri Lanka?
•How did shock therapy effect United Kingdom?
•How did shock therapy effect United States of America?


Book Details
Publisher:               Picador [Henry Holt and Company]
Edition ISBN:         9780312427993
Pages to read:          587
Publication:             2007
1st Edition:              2007
Format:                    Paperback 

Ratings out of 5:
Readability    5
Content          4
Overall          3






Wednesday, July 10, 2024

Review of A Guide to the Good Life: The Ancient Art of Stoic Joy by William B. Irvine

This book review was written by Eugene Kernes   

Book can be found in: 
Genre = Philosophy
Book Club Event = Book List (11/30/2024)



Watch Short Review

Excerpts

“As a result of the adaptation process, people find themselves on a satisfaction treadmill.  They are unhappy when they detect an unfulfilled desire within them.  They work hard to fulfill this desire, in the belief that on fulfilling it, they will gain satisfaction.  The problem, though, is that once they fulfill a desire for something, they adapt to its presence in their life and as a result stop desiring it - or at any rate, don’t find it as desirable as they once did.  They end up just as dissatisfied as they were before fulfilling the desire.” – William B. Irvine, Chapter Four: Negative Visualization, Page 75

“Stoics value their freedom, and they are therefore reluctant to do anything that will give others power over them.  But if we seek social status, we give other people power over us: We have to do things calculated to make them admire us, and we have to refrain from doing things that will trigger their disfavor.  Epictetus therefore advises us not to seek social status, since if we make it our goal to please others, we will no longer be free to please ourselves.  We will, he says, have enslaved ourselves.” – William B. Irvine, Chapter, Page 174

“Stoicism, understood properly, is a cure for a disease.  The disease in question is the anxiety, grief, fear, and various other negative emotions that plague humans and prevent them from experiencing a joyful existence.  By practicing Stoic techniques, we can cure the disease and thereby gain tranquility.  What I am suggesting is that although the ancient Stoics found a “cure” for negative emotions, they were mistaken about why the cure works.” – William B. Irvine, Chapter Twenty-One: Stoicism Reconsidered, Page 244


Review

Is This An Overview?

Having a philosophy of life can prevent an individual from mis-living life.  To not waste the chance one has at living.  By having a philosophy of life, an individual can find effective strategies to attain life goals, and adjust behavior to increase the likelihood of attaining the goals.  The goal of the Stoics was to live a virtuous life, a life of tranquility.  Tranquility found through a lack of negative emotions.  The Stoics did not want to remove all emotions, just to limit the effect of negative emotions.  Stoics practiced preventing and overcoming negative emotions, rather than repressing emotions.  Stoicism is a cure for negative emotions that prevent a joyful existence.  Stoic methods can help an individual handle social relations, insults, grief, anger, fame, luxury, and various other aspects of life.

 

The Stoics use various practices to find tranquility such as negative visualization.  Thinking of a potential loss can create behaviors to prevent the loss, and find appreciation of what the individual has.  Negative visualization overcomes hedonic adaptation.  Stoics practice voluntary discomfort, voluntary self-denial of what they have or can have.  Voluntary self-denial prepares the individual for situations in which they are not voluntarily deprived, provides an appreciation for the comforts they do have, and builds willpower that develops self-control to enable freedom to choose one’s behavior.  Stoics create an appreciation of each day when reflecting on mortality.  But they do not worry about what they cannot control, such as mortality, as that would be futile.  Stoics focus on what they can control, such as the state of mind.  Finding contentment by changing oneself.

 

How To Explain Stoic Philosophy?

A Stoic practice of negative visualization, thinking about a potential loss, can change behavior to prevent the problem.  If the problem was inevitable, then the person can be emotionally prepared to handle the problem.  People are insatiable, for when what is wanted is obtained, the happiness derived is adapted to.  Adapting to happiness reduces the effect of happiness, causing the individual to want more.  Through negative visualization, people can think of losing what they do have, which makes them understand the value of what they have. 

 

Stoics reflect on mortality, the finite time they have available, to bring about an appreciation of each day.  To make the day fulfilling and productive, rather than waste the time they have available to them.  Reflecting on mortality changes the state of mind when carrying out activities, to not take their experiences for granted.  Stoics think about what they have control over, as that can lead to a change in a future situation.  They avoid thinking about things they cannot control, as that would be a waste of time.

 

Caveats?

The author uses and updates Stoic claims, which are given a complex understanding.  The Stoic claims can still be misunderstood, and the application of some methods can harm rather than improve a situation.  The claims made provide a foundation, but need to be adjusted and improved upon using local, tacit experiences and cultural values.

 

Claims provided on the effect of Stoic values and why people avoid Stoicism, have stereotypical reactions.  Stereotypical reactions based on age and other social features.  Stereotypical reactions are popular in the media, but are not representative of people’s diverse views. 

 

The explanation for why a philosophy of life is needed, can be effective, but makes life appear static.  As if a chosen goal, one chosen earlier, cannot change.  That all of life needs to be about strategies for accomplishing the goal. 

 


Questions to Consider while Reading the Book

•What is the raison d’etre of the book?  For what purpose did the author write the book?  Why do people read this book?
•What are some limitations of the book?
•To whom would you suggest this book?
•What is your philosophy of life?
•How have the Stoics, and the philosophy of Stoicism been misunderstood?  
•What is a general goal of Stoics?
•How were Stoics treated in Rome?
•Why did Stoicism decline?
•What is virtue?
•What is tranquility? 
•What is a sage to the Stoics?
•What are the similarities and differences between Stoicism and Buddhism? 
•What is the difference between Stoicism and Roman Stoicism? 
•Is asceticism required of Stoicism?
•How do Stoics treat wealth?
•How should Stoics treat public affairs? 
•Who were the Stoics? 
•What is negative visualization?
•What is hedonic adaptation? 
•How does negative visualization effect mortality? 
•What to control? 
•What is up to the individual? 
•Are Stoics fatalistic? 
•Why practice self-denial?  Why experience voluntary discomfort?
•How to develop self-control? 
•How to become a Stoic? 
•What do Stoics think of other people? 
•How should a Stoic handle other people?
•How to handle an insult? 
•How have political correctness effected people’s ability to handle an insult?
•How to handle grief? 
•What is angle to the Stoics?
•How to handle anger?
•How does fame effect the person who becomes famous? 
•How to handle the effects of luxury? 
•How to handle aging? 
•How to handle death?
•How to handle emotions? 
•Is there need for a deity in Stoicism?
•How would a Stoic consider taking drugs? 


Book Details
Publisher:               Oxford University Press
Edition ISBN:         9780199792627
Pages to read:          274
Publication:             2008
1st Edition:              2008
Format:                    eBook 

Ratings out of 5:
Readability    5
Content          4
Overall          4