The Irreverent Buddhist

EDIT: Here’s was great video from the Wall Street Journal Online. Rational Vs Irrational Economics. “They” moved it. I’m trying to find it again so this post makes sense.

Now what has this got to do with Buddhism? A lot actually. The rational economics viewpoint assumes people make rational thought out decisions based on their own calculated best interests.

Buddhism tells us that most of the time most people have no idea why they are doing what they are doing: Out of the boiling pot of their unconscious mind some thought bubbles float up into consciousness, the mind clings to them, makes a story around them and this leads to action. Modern psychological theories of cognitive dissonance agree and so does M. Scott Peck in his seminal work “The Road Less Travelled”. Actually he says 99% of people don’t know why they are doing what they are doing 99% of the time.

Buddhism tells us that people are conditioned by their upbringing, society, culture, language and experience into who they are and identify with a false identity, sense of self or “ego”, that consists of these false identifications or clinging.

Irrational economics tells us people are irrational in their decision making but that this irrationality is predictable. Buddhism agrees. This makes sense. We can predict irrational behaviour in around 99% of people most of the time according to M. Scott Peck and he’s a very well respected Psychiatrist and writer.

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A good article from Rob Horning at popmatters.com

It seems as though nothing was going to make us give up consumerism voluntarily—not global warming, not the recognition of the hedonic treadmill, not the tech crash, not the blight of hipsterism, not the forced nostalgia, not the hypermediation of every aspect of life, not anything. Now that we may have no choice but to abandon consumerism, it feels as though it’s too late—that there is no redemption in a forced choice, only misery.

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On July 26th 2007 I predicted the current state of global markets in this post.

There is a false idea in the market now that the worst may be over but I promise you it has just begun. The long term support levels for the Dow Jones Industrial Average are in the range of 2,500 - 4,500 points. We are very likely to see the Dow Jones under 7,500 by Christmas - if not under 5,000. This may happen much more quickly than that - the ostriches have mostly lifted their heads from under the stand and are looking around them wondering what to do. Most seem to quickly turn into lemmings and jump off the cliff when they take in the landscape.

Every time the market rises a little the sellers will arrive.

The problems with the economy are structural, deep-rooted and will not be solved by each country nationalising it’s banking industry or part thereof. Though this surely marks Capitalisms’ greatest failure point yet it merely delays the inevitable in terms of economic downturn by a matter of days or weeks.

The current state of the markets recognises that - the gains made since the weekend are quickly being lost as wise investors are continuing to sell, whilst the sheep who think “it can’t get worse” pour good money after bad into the dying markets.

There will be significant global economic hardship over the coming two years.

Equities are still significantly overpriced in major markets, asset values having divorced from reality in 1992 or thereabouts and having never returned to an appropriate level.

What is an appropriate level? An ordinary family needs to be able to buy an ordinary house without being mortgaged to an impossible level. On this basis the UK and US housing markets are something like 50% overpriced.

The equity markets are going to yoyo for a while - but do not be in doubt - the trend will be strongly downwards, and for some time to come.

Super-Bank-Bail-Out-Rescue-Man will not do the job.

Open Source Economics And politics, Politics, economics

Democracy:

“Rule by the people, especially as a form of government; either directly, as in Ancient Greece, or through elected representatives as in many modern societies (representative democracy); A government under the direct or representative rule of the people of its jurisdiction.”

As in many fields now open source is the buzz word I wondered if it is time to start looking at open source economics and politics. I am not going to write a long essay on the subject now. I am going to do it piecemeal - a long slow exploration. Hopefully some real people will register on the site and comment on this project. That would make this article the beginning of an open source project in itself - as for regular commentators who show both intelligence and relevance I would give them authorship rights on the subject.

I would like to move freedomforall.net in a new direction. I will not make it a real “free for all” yet because of the spam issue yet I would certainly be interested in finding some co-authors from similar and contradictory positions.

Back to the subject. Or rather question. Is it time for open source economics and politics. I think the answer is directly related to the definition of democracy. The one I have quoted above is the best I found on a quick websearch to support the direction I believe this discussion (or monologue?) will go. “Government of the people, by the people, for the people”, is my preferred definition.

That one says that in the United Kingdom I do not live in a democracy - a conclusion I recall reaching when I was about 12 or 13 years old and have never changed my mind about.

Matthew

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