- The terms are listed in alphabetical order, except where similar terms are grouped under a single heading to assist with comprehension. To find any particular term then, use your browser’s search button so you find the term regardless of its location.
- These are definitions of terms I have used in my work — as I use them. And in particular, those definitions with which I have either taken license, or that I have articulated with an increased degree of specificity over the common usage.
- An asterisk* after a term indicates a definition that is either of my own construction, or that I have altered significantly, or in which I emphasize some property other than is dominant in the conventional meaning.
- These definitions come from a variety of sources. But I should call out both Mises, and Dr. Paul M. Johnson of Auburn University whose glossary of political economy is more objective than the more common enthusiastic support of our democratic system that’s supported by most others.
A
A PRIORI / A POSTERIORI – (Archaic) (justificationism) A priori truths are truths that are known prior to or independent of experience. A posteriori truths are known from experience. A POSTERIORI – (Latin). Literally, following after. Known from experience. Applied to inductive reasoning, beginning with observed facts and inferring general conclusions from these. Opposed to A PRIORI. See also “INDUCTION.” A PRIORI – (Latin). Literally, from the former or preceding. Self-evident knowledge known by reason alone without any appeal to experience or sensory perceptions. Nonempirical. Opposed to A POSTERIORI. ABSOLUTE – Free from conditional limitation: operating or existing in full under all circumstances without variation or exception. Something that is independent of human perception, valuation and cognition. A final reference point. Compare “relative”. ABSTRACT ENTITIES, ABSTRACTIONS – Entities such as numbers, sets, propositions, properties and universals as opposed to empirical objects and stuff located at places and times. Abstract entities exist necessarily, timelessly, and spacelessly (e.g. the mind is an abstract entity.) AD HOMINEM, ARGUMENTUM AD HOMINEM (rhetoric)– Attempting to disprove what a person holds by attacking the person, more generally arguing in a way that may or may not be forceful against a particular person’s position, but does not advance matters for those who do not hold that person’s particular combination of beliefs. ADVERSE SELECTION (economics) (The Lemon Problem) – An abnormal distribution that increases risk, because of asymmetry of information. The tendency of people who can take advantage of benefits programs to pursue benefits programs while hiding their knowledge of their expected higher risk. The process by which the price and quantity of goods or services in a given market is altered due to one party having information that the other party cannot have at reasonable cost. Adverse selection leads US workers who anticipate high family medical expenditure to seek employers with superior health insurance coverage for their employees, thereby distorting the expected (normal) distribution of medical expenses for the company as a whole. The large number of “lemons” in the used-car market is the result of adverse selection. AESTHETICS (philosophy) – A branch of philosophy dealing with beauty and the beautiful, especially with judgments of taste concerning them. The philosophy or science of art. AGGREGATION / THE ERROR OF AGGREGATION (Numeracy) – Since under marginal utility theory, each object at each point in time, is unique (representing a quantity of 1), then POOLING and AGGREGATING each of these objects into a category, and assigning the category a numeric value for the purpose of mathematical analysis, whenever that analysis includes a change in TIME, will of necessity cause a LOSS OF INFORMATION by that process of aggregation. That lost information consists of the properties that made the ‘transaction’ rational at that point in time. Therefore, the information that was causally predictive, which was that information that made the item unique, is laundered from the analysis, rendering prediction from the remaining aggregate information impossible, except when the external circumstances NOT captured by the category, are irrelevant. For this reason, there is an INVERSE RELATIONSHIP BETWEEN AGGREGATION AND PREDICTION. ANALYTIC vs SYNTHETIC (archaic, justificationism)– 1) An analytic statement is one that is true by virtue of the meaning of its terms alone (e.g. all bachelors are unmarried males). An analytic statement is true by definition. A synthetic statement on the other hand is one in which what is affirmed in the predicate adds something to the subject (e.g. all ravens are black). Synthetic statements are verified by reference to the world. 2) An analytic process is the method by which one breaks an object into it’s properties and relations. A synthetic process is the method by which one looks for similarities across objects. 3) The general observation that even exceptional intellectuals rarely excel at both Analytic and Synthetic Methods, and therefore tend to either develop a cunning, short term, critical and analytical view of the world, or a wise, long term, and synthetic one. This is partly due to the variability of the properties of, and relations between, objects over time. Or better stated, I use the term sometimes to describe differences in COGNITIVE TIME BIAS, or just TIME BIAS (See TIME PREFERENCE). ANARCHY, ANARCHIC, ANARCHISM (politics)– Anarchy refers to a system of cooperation universal to all members of a population that does not include a class of individuals who specialize in violent coercion, and where people cooperate in a division of knowledge and labor, voluntarily, using entirely endogenous rather than exogenous incentives. More loosely, it refers to any of a variety of ideologies sharing the fundamental belief that the state and all similar forms of governmental authority are unjustified and oppressive and illegitimate and therefore ought to be abolished, with future social and economic cooperation to be carried out only by means of voluntary relationships and consensual agreements under conditions of perfect legal equality. In this system the SOCIAL ORDER PORTFOLIO is limited to abstaining from fraud, theft and violence. Specifically it does not contain land holding sentiments, and is therefore a middle and lower class set of properties. Counter Propositions-
- Synonym:
- – Social states where individual accountability and respect for life, property, institutions is abandoned and people adopt high time preferences, since any forgone opportunity will simply be consumed by someone else. The problem for any population is to force universal extension of TIME PREFERENCE such that time preference becomes TIME BIAS due to habituation. Since TIME-BIASING is an evolutionary process, and requires considerable time, and has no point of perfection, and is open to constant improvement, it is an expensive technology.
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- CLASS TERMINOLOGY ACCORDING TO THE SENTIMENTS HELD AND ACTIONS TAKEN BY INDIVIDUALS
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B
BANK, BANKING (economics) – A formal institution…….(undone) (cooperation without knowledge of the other parties – increase in division of cooperative activity)
Johnson: In the broadest sense of the term, “banking” is the business of accepting temporary responsibility for safeguarding other people’s money (“deposits”) and then lending out these funds (along with the bankers’ own funds) in order to earn interest for the bank’s own account. Banking firms thus earn their profits primarily by serving as “financial intermediaries” who mobilize the scattered savings of many households and firms (by offering safekeeping services and paying interest on at least some kinds of accounts) and then make these pooled funds available to suitable borrowers (to business firms that want to finance proposed investment projects or perhaps to consumers who want to finance big ticket durable consumers’ goods like automobiles or perhaps to governmental entities whose policy-makers have decided to spend more money than they have received in revenue collections). The bank pledges its own capital (and also buys outside deposit insurance) to guarantee that any depositor can get all his/her money back in cash no later than some contractually specified length of time after giving notice of withdrawal. The bank makes this somewhat risky guarantee even though it is quite predictable that some (hopefully small) percentage of the loans the bankers make using depositors funds will “turn sour” and not be repaid by the borrower. The bank’s profits arise mainly from the (positive) spread between its costs of securing and servicing deposits and its revenues from fees and interest on the loans extended. (Of course banks frequently seek to make additional profits selling other financial services to their clients and customers as well, but the business of accepting deposits and making loans is the defining core of the banking business.)
Not all firms engaging in “banking” in this broad sense are officially called “banks.” Savings and loan associations, credit unions and other miscellaneous thrift institutions provide similar services under other names. The laws of the United States and most other developed industrial countries provide for multiple types of financial intermediary institutions whose official “labels” normally depend upon the selected purposes for which they will loan money (business loans, consumer loans, real estate mortgages, etc.), the maximum time period for which they will contract a loan (2 years? 5 years? 30 years?), and the kinds of supplementary services (checking privileges, foreign exchange, management of trusts and estates, etc.) that they may provide for their customers beyond basic taking of deposits and extension of loans.
BARBARIAN* – (1) People who fail to suppress criminal, unethical, immoral and conspiratorial behavior, and therefore demonstrate it. (2) People who enforce an alternate and smaller range of property definitions that conflict with a broader range of property definitions. (3) People from a pre-market society. (4) Technically: those persons who do not pay the set of FORGONE OPPORTUNITY COSTS employed within a SOCIAL ORDER and it’s MARKET and that market’s PROPERTY DEFINITIONS.
BARTER (economics) – The direct trading of goods and services without the use of money.
From Johnson: Trading of goods or services directly for other goods or services, without using money or any other similar unit of account or medium of exchange. Although barter represents the earliest form of trade discovered by primitive man that made possible a more extensive division of labor beyond the limited bounds of a family or small clan grouping, it quickly encounters some practical limits to its efficiency as the division of labor becomes still more extensive and more specialized. Bartering requires what economists refer to as a “double coincidence of wants.” That is, for a voluntary barter exchange to take place, it is not enough for you just to find someone who has the exact good you want to acquire — he must also happen to want to “buy” the particular good that you have to trade for it at the same time. Finding someone whose immediate needs exactly complement your own in this precise way may take quite a lot of searching, which is costly in terms of time and effort. The primitive partial solution to this matching problem is to make one or more intermediate swaps with still other people in order to acquire some other item that will be more acceptable to the owner of the item you desire — but this will also tend to be very time-consuming. The more complex the division of labor, the more finely specialized the population’s productive roles, and the more numerous the variety of goods and services produced in an economy, the more costly and cumbersome barter trading will become because the likelihood of any two people having a double coincidence of wants shrinks dramatically. History strongly suggests, in fact, that the (sometimes gradual, sometimes amazingly rapid) replacement of a barter economy by an exchange economy employing some form of money to facilitate trade is a near-absolute necessity before much economic development beyond a rather primitive tribal level can occur.
BEHAVIORAL ECONOMICS (economics, psychology) – A branch of ECONOMICS that concentrates on explaining the economic decisions people make in practice, especially when these conflict with what conventional economic theory predicts they will do.
BLACK BOX (psychology) – A process whose internal operations are opaque (black), and incomprehensible due to complexity, or currently beyond our knowledge. WHen I use the term, I generally refer to the fact that complex human narratives and beliefs consist of many irrational sub-processes but which in total produce a positive outcome, despite their apparent irrationality.
CHINESE ROOM*
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CHINESE CHARACTER PROBLEM
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(psychology)
– A thought experiment by Searle that suggests that a computer no matter how sophisticated, does not ‘understand’, and cannot ‘understand’. When I use this term I refer to the fact that either a) understanding isn’t necessary to achieve seemingly complex outcomes, and b) that the people participating in a process may not indeed have any idea of the broader consequences of what they do. (Usually, I’m referring to bankers.)
BLACK MARKET (economics) – A market for goods and services that are subject to prohibition, regulation or taxation.
Johnson: A market in which certain goods or services are routinely traded in a manner contrary to the laws or regulations of the government in power. Typical reasons why the market goes underground in this way include the desire by substantial numbers of buyers and sellers to evade restrictive government price controls or inconvenient rationing schemes, to avoid paying heavy taxes on the good or service in question, or simply to be able to obtain forbidden goods or services that the government does not want the people to have at all. The size and relative importance of black markets vary greatly from one country to another and from one historical period to the next within any single country. In general, the greater the extent to which the government tries to dominate and control the economy, the larger the fraction of economic activity that takes place through the black market can be expected to be.
BLACK SWAN (numeracy, psychology, cognitive bias)– Refers to 1) the disproportionate role of high-impact, hard to predict, and rare events that are beyond the realm of normal expectations in history, science, finance and technology, 2) the non-computability of the probability of the consequential rare events using scientific methods (owing to their very nature of small probabilities) and 3) the psychological biases that make people individually and collectively blind to uncertainty and unaware of the massive role of the rare event in historical affairs.
BOUNDED RATIONALITY (psychology, cognitive bias) – A theory of human decision making that assumes that people behave rationally, but only within the limits of the INFORMATION available to them.
BOURGEOIS n. or adj., BOURGEOISIE, n. (French). (politics, economics) – The merchants, professional persons (doctors, lawyers, professors), employers and white collar workers, as distinguished from: (1) The clergy; (2) The nobility and the landed gentry; and (3) The manual workers and peasants called the proletariat. (4) The ‘fourth estate’, meaning the ‘press’.
BRAHMIN PROBLEM – (undone)
*BUREAUCRAT / BUREAUCRATIC / BUREAUCRACY (politics, economics, organizational theory) – (1) A group of individuals who hold functional roles in an organization, but who are insulated from the need to serve customers and consumers or react to prices, and so, they are ‘outside the market’ or EXTRA-MARKET individuals. ie: a person in any organization who is isolated from the market, and therefore does not practice ‘customer service’. (2) someone whose purpose in any organization is to resist the use of organizational resources for other than the purposes expressly determined by the leadership. (3) a government or large industry worker responsible for some small function who operates by rules or regulations rather than market signals.
(from Johnson)
In ordinary usage, “bureaucracy” refers to a complex, specialized organization (especially a governmental organization) composed of non-elected, highly trained professional administrators and clerks hired on a full-time basis to perform administrative services and tasks. Bureaucratic organizations are broken up into specialized departments or ministries, to each of which is assigned responsibility for pursuing a limited number of the government’s many official goals and policies — those falling within a single relatively narrow functional domain. The departments or ministries are subdivided into divisions that are each assigned even more specialized responsibilities for accomplishing various portions or aspects of the department’s overall tasks, and these divisions are in turn composed of multiple agencies or bureaus with even more minutely specialized functions (and their own subdivisions). Bureaucratic organizations always rely heavily on the principle of hierarchy and rank, which requires a clear, unambiguous chain of command through which “higher” officials supervise the “lower” officials, who of course supervise their own subordinate administrators within the various subdivisions and sub-subdivisions of the organization.
Bureaucratic organizations are typically characterized by great attention to the precise and stable delineation of authority or jurisdiction among the various subdivisions and among the officials who comprise them, which is done mainly by requiring the organization’s employees to operate strictly according to fixed procedures and detailed rules designed to routinize nearly all decision-making. Some of the most important of these rules and procedures may be specified in laws or decrees enacted by the higher “political” authorities that are empowered to set the official goals and general policies for the organization, but upper-level (and even medium-level) bureaucrats typically are delegated considerable discretionary powers for elaborating their own detailed rules and procedures. Because the incentive structures of bureaucratic organizations largely involve rewarding strict adherence to formal rules and punishing unauthorized departures from standard operating procedures (rather than focussing on measurable individual contributions toward actually attaining the organization’s politically assigned goals), such organizations tend to rely very heavily upon extensive written records and standardized forms, which serve primarily to document the fact that all decisions about individual “cases” were taken in accordance with approved guidelines and procedures rather than merely reflecting the personal preferences or subjective judgment of the individual bureaucrat involved.
The classic social scientific analysis of bureaucracy was that of the pioneer sociologist Max Weber in his 1922 book Economy and Society. Weber, like the good German he was, believed that a permanent, well-educated, conscientious, “non-partisan,” Prussian-style bureaucracy professionally committed to implementing whatever decisions the legitimate rulers of the state might arrive at was the best organizational form yet discovered for the rational and efficient pursuit of collective social goals in a modern society with a specialized and highly complex division of labor. In his writings, Weber devoted considerable attention to showing ways in which the gradual evolution of modern bureaucratic methods and values helped to remove the formidable obstacles to economic development, social advancement and political stability that had been inherent in the much less professionalized and systematized practices of government administration in feudal Europe and most other premodern societies.
While most other social scientific students of bureaucracy have recognized the historical importance of bureaucratic organizational techniques in creating the powerful, centralized nation-states (and other very large organizations such as modern business corporations and labor unions) that predominate in the industrialized world of the 20th century, it is fair to say that they have generally been considerably less one-sidedly approving of bureaucracy than Weber was. Despite their many advantages for dealing efficiently and effectively with routine, recurring problems in a fairly stable and predictable environment, bureaucratic methods also have their dark side. Hired and promoted largely on the basis of educational credentials and seniority within the organization and protected by civil service personnel practices designed to provide a high degree of job security, bureaucratic officials tend to be very well insulated from responsibility for the external consequences of their decisions and actions as long as they stay formally within prescribed procedures. Such sociologists as Robert K. Merton and Michel Crozier have shown that pressures on officials to conform to fixed rules and detailed procedures, when added to the narrow responsibilities of highly specialized agencies for pursuing only a select few of the many objectives that government has set, quite regularly leads bureaucrats to become defensive, rigid, and completely unresponsive to the urgent individual needs and concerns of the private citizens and outside organizations with which they come into professional contact. (“That’s not my department. I cannot help you.”) Because the salaries and promotion prospects of officials working in large bureaucracies seldom depend upon measurable success or efficiency by the organization in achieving its larger goals (which are often especially difficult to measure in government agencies and other non-profit oriented organizations that lack a clear “bottom line”) and because any departure from established routines always requires permission from remote higher levels of the hierarchy, large bureaucratic organizations tend to be very slow and cumbersome in making important policy decisions (the “buck-passing” phenomenon) and are especially dull-witted in recognizing and responding to the consequences of major changes in economic, social and technological conditions and circumstances outside the organization itself. In other words, individual officials working under bureaucratic incentive systems frequently find it to be in their own best interests to adhere rigidly to internal rules and formalities in a ritualistic fashion, behaving as if “proper procedure” were more important than the larger goals for serving their clients or the general public that they are supposedly designed to accomplish (the “red tape” phenomenon).
*BUSINESS CYCLE / TRADE CYCLE (economics) – the cyclic tendency for businesses, and all human organizations, to ‘school’ around a network of similar opportunities to the point where the market signals are distorted, and the opportunity is fully exploited, while the people, processes and relationships and contracts in the network of organizations have not predicted the collapse of the opportunity network, and therefore, there is a downward cycle while these relationships, habits, contracts, and all other forms of cooperation, fragment into smaller schools of individuals seeking other opportunities until they find another large opportunity network to cooperate in exploiting. See PSST / PATTERNS OF SUSTAINABLE SPECIALIZATION AND TRADE.
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- – A thought experiment by Searle that suggests that a computer no matter how sophisticated, does not ‘understand’, and cannot ‘understand’. When I use this term I refer to the fact that either a) understanding isn’t necessary to achieve seemingly complex outcomes, and b) that the people participating in a process may not indeed have any idea of the broader consequences of what they do. (Usually, I’m referring to bankers.)
C
The sequence of thinkers:
ORGANIZATIONS
-MACHIAVELLI->|
———PARETO->|
———SORREL->|
————->MICHELS->|
———————BURNHAM->—————->|
MORAL CODES
————DURKHEIM->|———–———>HAIDT->|—-> (ongoing)
PROPERTY AS CALCULATION
———WEBER->|
——–SIMMEL->|
————->MISES->|
———————|-ROTHBARD[1*]->–HOPPE–>|
RULE OF LAW
——————–HAYEK->————->|——->DOOLITTLE->
CRITICISM VS JUSTIFICATION
————————POPPER->|——————->|
EXISTANTIAL / OPERATIONAISM /
—POINCARE->|
———————-BRIDGMAN (PHYS)————————————————————————|
—————————BROUWER (MATH)————————————————————————|
—————————-MISES (ECON)————————————-————————————|
——————————————————MINSKY (CS)——————————————————|
NUMERACY
——POINCARE->|->MANDELBROT->TALEB->—-———->|——->(ongoing)
[1*] Block, Salerno, Herbner
CANON – A ruler or measuring rod. A body of literature containing the authoritative source or reference material on a subject. The western canon. Canon Law. Loosely “the authoritative reference commonly agreed upon by experts in that field.”
CANONICITY
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- (The half life of social class) – (undone) One’s Economic class can rise or fall depending upon a person’s choices – particularly because in a market society, resulting wealth is a function of a LOTTERY. A proletarian can become an athlete, or entertainer (synonyms) and enter the top earning position in society. They can amass fame and fortune. They can even obtain some degree of social influence and political power. But they do not necessarily enter the upper classes, because their habits, values, manners and ethics may not emphasize the very-long-term, and their sense of gratification may not emphasize suppression of the near term, in favor of the distant future – a sentiment of class that only comes with the certainty of one’s family retaining it’s position in that class. See POWER.
- – The record of historical transactions (states), rather than historical trajectories (velocities), and the necessary reliance upon correlation rather than causation in mathematical analysis.
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- – Factors that motivate and influence the actions of individuals. Something that an influencer can use to provide a motive for a person to choose a particular course of action. Organized cooperative activities in a social setting — such as cooperation for the purpose of economic production — depends upon each of the participants having some sort of incentive to behave in the required cooperative fashion. Different societies (and even different organizations within the same society) vary considerably in the nature of the incentive systems upon which they characteristically rely to organize their common projects. — per Johonson (with edits)
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- A person has a COERCIVE INCENTIVE to behave in a particular way when it has been made known to him that failure to do so will result in some form of physical aggression being directed at him by other members of the collectivity in the form of inflicting pain or physical harm on him or his loved ones, depriving him of his freedom of movement, or perhaps confiscating or destroying his treasured possessions.
- A person has a MORAL INCENTIVE to behave in a particular way when he has been taught to believe that it is the “right” or “proper” or “admirable” thing to do. If he behaves as others expect him to, he may expect the approval or even the admiration of the other members of the collectivity and enjoy an enhanced sense of acceptance or self-esteem. If he behaves improperly, he may expect verbal expressions of condemnation, scorn, ridicule or even ostracism from the collectivity, and he may experience unpleasant feelings of guilt, shame or self-condemnation.
- A person has a REMUNERATIVE INCENTIVE to behave in a particular way if it has been made known to him that doing so will result in some form of material reward he will not otherwise receive. If he behaves as desired, he will receive some specified amount of a valuable good or service (or money with which he can purchase whatever he wishes) in exchange.
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- >Reciprocity – People tend to return a favor, thus the pervasiveness of free samples in marketing. In his conferences, he often uses the example of Ethiopia providing thousands of dollars in humanitarian aid to Mexico just after the 1985 earthquake, despite Ethiopia suffering from a crippling famine and civil war at the time. Ethiopia had been reciprocating for the diplomatic support Mexico provided when Italy invaded Ethiopia in 1935. The good cop/bad cop strategy is also based on this principle.
- Commitment and Consistency – If people commit, orally or in writing, to an idea or goal, they are more likely to honor that commitment. Even if the original incentive or motivation is removed after they have already agreed, they will continue to honor the agreement. For example, in car sales, suddenly raising the price at the last moment works because the buyer has already decided to buy. See cognitive dissonance.
- Social Proof – People will do things that they see other people are doing. For example, in one experiment, one or more confederates would look up into the sky; bystanders would then look up into the sky to see what they were seeing. At one point this experiment aborted, as so many people were looking up that they stopped traffic. See conformity, and the Asch conformity experiments.
- Authority – People will tend to obey authority figures, even if they are asked to perform objectionable acts. Cialdini cites incidents such as the Milgram experiments in the early 1960s and the My Lai massacre.
- Liking – People are easily persuaded by other people that they like. Cialdini cites the marketing of Tupperware in what might now be called viral marketing. People were more likely to buy if they liked the person selling it to them. Some of the many biases favoring more attractive people are discussed. See physical attractiveness stereotype.
- Scarcity – Perceived scarcity will generate demand. For example, saying offers are available for a “limited time only” encourages sales.
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D
DARK ENLIGHTENMENT / ENLIGHTENMENT – (UNDONE)DATA vs INFORMATION – (UNDONE)
DEDUCTION, n. DEDUCTIVE, adj. – In logic, reasoning from the general to the specific. Reasoning from a general (or universal) premise, that is either assumed or known to be true, to an individual or particular instance of that generality. Example: All men act in an attempt to improve their situation; therefore, Mary’s act was an attempt to improve her situation. The derived conclusion is always implicit in the original premise and is necessarily as correct as that original premise.
DEDUCTIVE ARGUMENT – A deductive argument is one in which the premises make the conclusion certain.
DEFLATION – (undone)
From Johnson: The opposite of inflation — that is, a sustained fall over time in the general level of prices, normally measured by the annual percentage increases or decreases of a weighted index of prices of some large and representative sample of goods and services (both consumers’ goods and producers’ goods) regularly traded in the particular economy under consideration. Just as very large scale inflations are normally the result of large percentage increases in the money stock, large-scale deflations are normally the consequence of substantial reductions in the available money stock.
DEMOCRATIC – (undone)
DEMOCRATIC DEBATE / REPUBLICAN RHETORIC – (undone)
DEMOCRATIC SOCIALIST SECULAR HUMANISM (DSSH) or DEMOCRATIC SECULAR HUMANISM, THE DEMOCRATIC RELIGION – The modern reinvention of Christianity using law, money and credit. The contemporary religion of the western academic, political and leisure classes who are EXTRA-MARKET CITIZENS.
From Pareto:
The weakness of the humanitarian religion does not lie in the logico-experimental deficiencies of its derivations. From that standpoint they are no better and no worse than the derivations of other religions. But some of these contain residues beneficial to individuals and society, whereas the humanitarian religion is sadly lacking in such residues. But how can a religion that has the good of humanity solely at heart . . . be so destitute in residues correlated with social welfare? . . .[Because] the principles from which the humanitarian doctrine is logically derived in no way correspond with the facts. They merely express in objective form a subjective sentiment of asceticism. The intent of sincere humanitarians is to do good to society, just as the intent of the child who kills a bird by too much fondling is to do good to the bird. We are not . . . forgetting that humanitarianism has had some socially desirable effects. . . . But . . . humanitarianism is worthless from the logico-experimental point of view. . . . And so for the democratic religion in general.
The many varieties of Socialism, Syndicalism, Radicalism,Tolstoyism, pacifism, humanitarianism, Solidarism, and so on, form a sum that may be said to belong to the democratic religion, much as there was a sum of numberless sects in the early days of the Christian religion. We are now witnessing the rise and dominance of the democratic religion just as the men of the first centuries of our era witnessed the rise of the Christian religion and the beginnings of its dominion. The two phenomena present many significant analogies.
To get at their substance we have to brush derivations aside and reach down to residues. The social value of both those two religions lies not in the least in their respective theologies, but in the sentiments that they express. As regards determining the social value of Marxism, to know whether Marx’s theory of “surplus value” is false or true is about as important as knowing whether and how baptism eradicates sin in trying to determine the social value of Christianity–and that is of no importance at all.”
DEMONSTRATED PREFERENCE – The concept that an action reveals a choice and demonstrates, a man’s preferences; that is, that his preferences are deducible from what he has chosen in action. Thus, if a man chooses to spend an hour at a concert rather than a movie, we deduce that the former was preferred, or ranked higher on his value scale. Similarly, if a man spends five dollars on a shirt we deduce that he preferred purchasing the shirt to any other uses he could have found for the money. This concept of preference, rooted in real choices, forms the keystone of the logical structure of economic analysis, and particularly of utility and welfare analysis. –Rothbard
DEMONSTRATED PROPERTY – an expanded definition of property that is based upon the full scope of what humans consider to be property, based upon what they demonstrate that they consider to be property. Demonstrated Property is the definition of ‘property’ used in Propertarianism.
DENIAL, DENIER, DENIERS – See DEMOCRATIC SOCIALIST SECULAR HUMANISM.
RACE-DENIERS
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RACE-DENIAL
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CLASS-DENIERS
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CLASS-DENIAL
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IQ-DENIERS
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IQ-DENIAL
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INEQUALITY-DENIERS
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INEQUALITY-DENIAL
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DEONTOLOGICAL ETHICAL SYSTEM – System (s) that are based on principles in which actions, character, or even intentions are inherently right or wrong.
DESCRIPTIVE ETHICS – Sociological discipline that attempts to describe the morals of society, often by studying other cultures. Descriptive ethics describe moral behavior.
DETERMINISM – The doctrine that everything, especially one’s choice of action, is determined by a sequence of causes independent of one’s will. Strong determinism denies that any acts are truly free. Soft determinism holds that events can be both determined and yet human beings can perceive sufficient causality to effect outcomes with their knowledge and actions.
DETERMINISTIC – A process that results in predictable outcomes, especially one that appears chaotic and random but results in one of a limited series of outcomes regardless of initial state.
DICHOTOMY – Division into two parts, groups, or classes, especially when these are sharply distinguished or opposed.
DISCURSIVE REASONING – Thinking a problem through logically step by step from one premise to another in an attempt to arrive at an acceptable conclusion or explanation, as opposed to intuitive knowledge. NOTE: I use REASON as a synonym.
“THE DIRTY SECRET OF THE HUMAN GENOME PROJECT” / “THE GENETICS OF CLASS” / “THE CLASS IQ PROBLEM” – The politically unpleasant reality that our classes seem to be the result of genetic differences.
DISINFORMATION / MISINFORMATION – Disinformation is intentionally false or inaccurate information that is spread deliberately. It is synonymous with and sometimes called Black propaganda. It may include the distribution of forged documents, manuscripts, and photographs, or spreading malicious rumors and fabricated intelligence. Disinformation should not be confused with misinformation, information that is unintentionally false. Using POOLING and LAUNDERING a government or a large enterprise, can obscure causal information, and render causality OPAQUE, creating a grey area between DISINFORMATION and MISINFORMATION, where the use of LAUNDERED and POOLED financial data is converted into DISINFORMATION but the officers can blame ACCOUNTING METHODS or practicality of using existing regulations and claim it is MISINFORMATION that they are creating rather than DISINFORMATION. In other words, POOLING AND LAUNDERING are FRAUD. See TAGGED ACCOUNTING, POOLING AND LAUNDERING, FRAUD.
DISINTERMEDIATION – Cutting out the middleman. Or conversely, when you are the middleman and your customer and supplier cut you out of the process.
DIVISION OF LABOUR – Specialization allows a qualitative increase in productivity, and therefore a decline in prices. The logic of dividing the workforce into different crafts and professions is the same as that underpinning the case for FREE TRADE: everybody benefits from doing those things in which they have a COMPARATIVE ADVANTAGE and using INCOME from doing so to meet their other needs.
From Dr Paul Johnson:
The division of a complex production process into a number of simpler tasks, each one of which is undertaken by a different individual who typically (but not necessarily) specializes in one task (or a very few tasks) on a more or less permanent basis. The advantages of division of labor for enhancing human productivity were first extensively analyzed by Adam Smith in his 1776 classic The Wealth of Nations, where he coined the phrase. Whereas Smith’s famous analysis of the pin factory emphasized improvements in technical efficiency (the time and physical movement saved by workers no longer having to switch from one operation and set of tools to another), it also took note of the improvements in allocational efficiency made possible by developing and then taking advantage of workers’ differing skills and talents according to the (at that time not yet named) principle of comparative advantage.
In the broadest sense, the extension of the division of labor is the fundamental feature of a modern or developed economy, in which gigantic increases in the volume and variety of production have been attained — but at the cost of massively increasing economic interdependence within larger and larger populations spread over larger and larger geographical areas. In such a complex society, instead of each individual or family attempting to produce all or most of what it consumes, the individual specializes in producing only a few kinds of good or service (or perhaps only small components of a single good or service) and then acquires all other desired goods or services from the production of other specialists by means of mutual exchange (or, in non-market economies, perhaps through coercive or customary transfer).
It is worth noting that, while economists tend to emphasize the immense production- and efficiency-enhancing effects of a complex, geographically extensive, and highly specialized division of labor and the markedly higher average standard of living it makes possible, anthropologists, sociologists, and social-psychologists (as well as many philosophers, artists and social theorists) tend to focus more on other presumed non-economic side-effects of greater social differentiation that they typically view in a much more negative light — such as the development of a diminished sense of wholeness or personal authorship that may result in lessened emotional satisfaction from one’s work; greater difficulties in generating agreement on moral principles and a sense of social solidarity or “belongingness” when the far-flung members of society live their lives in such varied ways and develop such diverse interests; the insecurity of the individual’s social status when people are no longer assigned their place in society but must continually compete with others to retain or improve their own social positions; the loss of the sense of community mastery over one’s fate that comes with dependence upon distant and unknown people for the provision of most of one’s vital necessities, and so on. Analyzing and critiquing the many consequences of an advanced and highly specialized division of labor is among the central themes in the works of such pioneer modern social theorists as Jean-Jacques Rousseau, Karl Marx, Ferdinand Toennies, Henry Maine, Max Weber, and Emile Durkheim, to mention only a few, and these same topics still remain central to much of contemporary social thought.
DOCTRINE – Something taught; teachings. Something taught as the principles or creed of a religion, political party, etc. Doctrine refers to a theory based on carefully worked out principles and taught or advocated by its adherents as different from dogma which refers to a belief or doctrine that is handed down by authority as true and indisputable, and often connotes arbitrariness, arrogance, etc.
DOGMA, DOGMATIC – A concept or principle accepted as absolute truth on the basis of unquestioned acceptance of an authority’s statement to that effect rather than on the basis of logical reasoning or demonstrated proof.
DOMESTIC INDEPENDENCE / SPATIAL FREEDOM – People seek a monopoly over their home environments, and will choose to live in an apartment, condo, or house alone rather than share the expense, above almost all other preferences. People prefer household and spatial freedom over other goods – partly because of conformity and status signals, but largely due to egoism. The preference for domestic independence accounts for much of the change in household incomes. An increase in per-capital households.
DYNAMIC STOCHASTIC GENERAL EQUILIBRIUM MODEL / DSGE / DSGEM / DSEM– “Very elaborate models that attempt to us historical data for future prediction.”
Dynamic stochastic general equilibrium modeling (abbreviated DSGE or sometimes SDGE or DGE) is a methodology that attempts to explain aggregate economic phenomena, such as economic growth, business cycles, and the effects of monetary and fiscal policy, on the basis of macroeconomic models derived from microeconomic principles. One of the main reasons macroeconomists have begun to build DSGE models is that unlike more traditional macroeconometric forecasting models, DSGE macroeconomic models should not, in principle, be vulnerable to the Lucas critique, which states that it is naive to try to predict the effects of a change in economic policy entirely on the basis of relationships observed in historical data, especially highly aggregated historical data. However, these models are subject to necessary ignorance of future events, in particular, crisis and innovation, or more importantly, the SCHOOLING OF INTEREST that results in booms and busts, and the influence monetary policy and aggregation have upon exaggerating booms and busts.
I criticize this term because of abuses of the DSGE model due to INNUMERACY, THE ERROR OF AGGREGATION, PSEUDOSCIENCE (because the models are not predictive) and the consequential problems of POOLING AND LAUNDERING, and INSTITUTIONALIZATION OF SILLY IDEAS, as well as the laundering of knowledge held in the private sector by the use of fiat money and loose credit, and the distortion of the information system we call PRICES that results in a distortion of human efforts. In particular, I dislike MONETARY expansion without direct allocation of money to specific purposes, since once in the system, money and credit seek existing distortions, and simply serve to reward people for doing the wrong thing and contributing to boom and bust cycles.
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ECONOMICS – A theoretical social science which provides a comprehension of the meaning and relevance of purposive (conscious) human actions. It is not about things and material objects; it is about the meanings and actions of men. Economics is a science of the means men must select if they are to attain their humanly attainable ends which they have chosen in accordance with their value judgments. However, the valuation and selection of ends are beyond the scope of economics and every other science. Economics enables men to predict the “qualitative” effects to be expected from the adoption of specific measures or economic policies, but such predictions cannot be “quantitative” as there are no constant relations in the valuations which determine, guide and alter human actions. See POLITICAL ECONOMY.
The social science which studies how individuals, individuals in firms, in governments, and in organizations make choices; and how these choices determine the way wealth is produced and distributed.
The branch of the social sciences concerned primarily with analyzing and explaining human behavior in making decisions about the allocation of scarce resource
ECONOMETRICS – Correlative Statistical mathematics, and those that adhere to the Dynamic Stochastic General Equilibrium. The attempts of statisticians and mathematicians to discover economic laws and solve problems of human action by the use of statistical data which necessarily are a record of the past. Econometricians maintain that science is measurement and assume both a constancy and regularity in economic data that permits them to use precise mathematical measurement for testing and developing economic theory.
Actually, the only measurable magnitudes of human action are those related to historical facts. The ideas and value judgments which determine human participation in the market process are neither constant nor certain. All future human actions are thus uncertain variables which are incapable of either quantification or measurement. Consequently, the use of mathematics, as a means for determining economic theory applicable to future human actions, is futile. i.e. – quantitative economics is forever historical and non-predictive. (But that may be good enough.)
EGALITARIANISM / EGALITARIAN / (EQUALITARIANISM) – The belief that all men are biologically equal and that all inequalities in income, wealth and opportunity are the results of unscrupulous usurpation and expropriation of the masses by the capitalists. Egalitarians contend that governments should use their coercive powers to restore and maintain the equality with which all men are supposed to be born.
ELITE – A small group of people with a disproportionate amount of public decision-making power. The leadership that forms in any polity, because all polities require leadership, because all organizations require leadership. See PARETO PRINCIPLE.
ELITES are comprised of individuals who have mastered one or more of The Three Coercive Technologies, and who are leaders representing members of the three classes of society.
CHORD OF ELITES* – Since any society contains elites in all of the THREE COERCIVE TECHNOLOGIES, the distribution of these elites varies from social group to social group and can be represented as a “chord” or harmonic, of relative position, with each behing higher or lower than the other.
ENTREPRENEUR / ENTREPRENEURSHIP – (1) Entrepreneurship consists of the human capacity to recognize the opportunities for profit which exist in one’s environment. – De Soto. (2) In scientific economic theory, entrepreneurship means that all human actions are undertaken in the flux of time and thus involve speculation in the anticipation of future events. The entrepreneur attempts to act so as to produce a more desirable future situation than he anticipates would result from either no action or any other possible action on his part. (3) Someone who has the idea and and organization to mix together the other FACTORS OF PRODUCTION to produce something valuable. An entrepreneur must be willing to take a RISK in pursuit of a PROFIT. (4) (French) – Literally, undertaker. In general usage, an entrepreneur is a businessman, one who plans, organizes and directs, i.e., undertakes, a business enterprise, primarily for his own gain or loss. (5) When I use this term I refer to the individual human being who identifies opportunities which he can act, to take advantage of, in a market. Or more succinctly, someone who uses knowledge and time to identify opportunities and to profit from differences in opportunity costs, by the application of effort and or capital to the market. See INSTITUTIONAL COERCION, and THREE COERCIVE TECHNOLOGIES.
EMOTIONS — (……)
EMOTIONS ARE A REACTION TO CHANGES IN STATE
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EMPATHY, EMPATHIC – The ability to utilize observation and emotional imitation to experience sympathetically the emotions of another; the emotional penetration of another person,.
EMPIRE – A government over people with dissimilar interests. A form of conglomerate state encompassing a geographical area or set of areas containing diverse peoples or ethnic groups and ruled by a single central government authority that is primarily identified with one dominant people or ethnic group.
EMPIRICAL – “By Observation”. Assuming (a) Determinism (the regularity in the cause and consequence of events).
“Depending on the existence of a regularity in the causality and succession of natural events which permits the acquisition of human knowledge from experiments or experience because identical natural or physical conditions and events always produce identical results or consequences. The natural sciences are empirical. The social or human sciences are not.”
EMPIRICISM – Experimental method; search for knowledge by observation and experiment. A disregarding of scientific methods and relying solely on experience. The theory that the only source of human knowledge is experience. Empiricism assumes a regularity in the flow of events and proclaims that experiments and observation are the main instruments for the acquisition of knowledge. (Rather than deduction.)
ENTROPY, ENTROPIC – Generally, unalterable loss or inefficiency from a process. Or the tendency for all complex processes to have transaction costs. Specifically, the mathematical measure of the unavailable energy in a thermodynamic problem concerning the transfer of heat into mechanical energy or vice versa at a given temperature.
EPISTEMIC – An analysis of the causal relationship involved in the process of obtaining knowledge needed for decision making. Requiring knowledge. The process by which people gain and evaluate their knowledge. i.e. “an epistemic process”.
EPISTEMICALLY COMPLETE – the chain of causal knowledge can be understood as causally sufficient from first causes.
EPISTEMIC NECESSITY – A dependency of one scope of knowledge on another. “You must first know this in order to know that.” The rational process by which someone may possess sufficient information to be aware of it, and to make decisions upon it.
EPISTEMOLOGY – The study or theory of the origin, nature, methods, and limits of knowledge. Its central questions include the origin of knowledge; the place of experience in generating knowledge, and the place of reason in doing so; the relationship between knowledge and certainty, and between knowledge and impossibility of error; the possibility of universal skepticism; and the changing forms of knowledge that arise from new conceptualizations of the world.
EQUILIBRIUM – Generally, the tendency for a group of humans who see an opportunity to attempt to profit from it until all but the most efficient advantage has been consumed. A state or condition where opposing forces or offsetting influences are exactly equal and thus in balance, i.e., a state of rest or inaction. Equilibrium can exist only so long as there are no new data, forces or influences capable of changing or disturbing existing conditions. Equilibrium is thus a state or condition which is impossible of achievement where market conditions or processes are constantly affected by the disturbing element of new human actions. See “Evenly rotating economy” and “Mathematical economics.”
ESOTERIC / EXOTERIC
Esoteric: Knowledge or terms of obscure or uncommon meaning. Intended for or understood by only a chosen few, as an inner group of disciples or initiates, said of ideas, doctrines, literature, etc. Beyond the understanding or knowledge of most people. Often used as a pejorative, meaning that the knowledge is platonic, self-aggrandizing or not materially useful, except in highly specialized contexts.
Exoteric : . Understandable by the public. Not limited to a select few or an inner group of disciples; suitable for the uninitiated. “Endeavor to speak in a manner comprehensible to the common people.” – Spinoza
ETHICS – The study of standards of conduct and moral judgment; moral philosophy. The system or code of morals of a particular person, religion, group, profession, etc. The end result of ethical deliberation is called morality, which is the substance of right and wrong.
ETHICAL – 1) an action or exchange adhering to established norms. 2) I use the term to also include the fourth quadrant, where one party is more knowledgeable than the other yet counters the normative prescription in order to benefit the person with less knowledge.
ETHICAL RELATIONSHIP – The relationship created between individuals or groups by any given ETHICAL SYSTEM. (Note: Capital refers to Propertarian definitions of property including physical, built, institutional, normative and human capital.)
- PRODUCTIVE ETHICAL RELATIONSHIP / MUTUALLY PRODUCTIVE ETHICS / PRODUCTIVE ETHICS– Adds to the capital of both parties.
- ASYMMETRIC ETHICAL RELATIONSHIP / ASYMMETRICALLY PRODUCTIVE ETHICS / ASYMMETRIC ETHICS – Adds to the capital of one party, but not the other.
- PARASITIC ETHICAL RELATIONSHIP / PARASITIC ETHICS – Adds to the capital of one party at the expense of the other party.
- PREDATORY ETHICAL RELATIONSHIP / PREDATORY ETHICS – Regardless of the effect upon the capital of one party, damages or destroys the capital of the other party.
ETHICAL SYSTEM – Set of normative behaviors expected of citizens in any social order. The set of Forgone Opportunity Costs citizens are expected to pay for membership in a social group. In particular, when the actions of individuals must be policed by the self.
Suppose it is obvious that someone in need should be helped. A utilitarian will point to the fact that the consequences of doing so will maximise well-being, a deontologist to the fact that, in doing so the agent will be acting in accordance with a moral rule such as “Do unto others as you would be done by” and a virtue ethicist to the fact that helping the person would be charitable or benevolent.
The three ethical systems can also be used to describe a spectrum from the most epistemologically simple (Virtue Ethics), to moderate complexity (Deontological) to the most complex (Teleological), In effect, people must first learn virtue ethics which allow them to imitate behavior, then learn to operate by rational rules, to operate by developing mastery of outcomes. Or put more deterministically, some people can progress beyond imitation if given the tools to do so. But imitation is enough.
- VIRTUE ETHICS / ARETAIC ETHICS A normative ethical system consisting of the study of virtues, or the creation of a moral character. Category of ethics that focuses on the virtues produced in people, not the morality of specific acts. A recognition that there is more to the moral life than simply making right decisions, many people that believe that matters of virtue and character are equally, if not more, important than the way in which we resolve moral dilemmas. (See TELEOLOGICAL ETHICS and DEONTOLOGICAL ETHICS)
- DEONTOLOGICAL ETHICS / DEONTOLOGY / DEONTOLOGICAL / DEONTOLOGICAL SYSTEM – A normative ethical system which consists of the study of duties or rules, which can be taught or learned.
- TELEOLOGICAL ETHICS / TELEOLOGY / TELEOLOGICAL / TELEOLOGICAL SYSTEM – A normative ethical system which consists of the study of outcomes, or the ends or purposes of actions. Two forms of this system include utilitarianism and egoism. Emphasizes the consequences of actions (consequentialism).
ETHICAL EGOISM – A form of teleological ethics which maintains that the right thing to do is whatever is in a person’s self interest.
EUGENIC / DYSGENIC – Dysgenics (also known as cacogenics) is the study of factors producing the accumulation and perpetuation of defective or disadvantageous genes and traits in offspring of a particular population or species. ie: Adverse sexual selection, tending to promote the deterioration of the traits of a population or species. Eugenics is the study of factors producing the accumulation of advantageous genes and traits in offspring of a particular population or species. ie: advantageous selective breeding, tending promote the distribution of advantageous traits in the population or species. NOTE: I use these terms casually as the accidental outcome of certain mating practices, rather than as an intentional political policy.
EXCHANGE ETHIC / BAZAAR EXCHANGE ETHIC / GHETTO ETHICS vs WARRIOR EXCHANGE ETHIC / ARISTOCRATIC ETHICS vs MORAL EXCHANGE ETHIC / CHRISTIAN ETHICS – The BAZAAR EXCHANGE ETHIC in which a deal is considered ethical if he dealer can get away with a transfer at the time of exchange, rather than the WARRIOR EXCHANGE ETHIC, in which both parties are responsible for informational asymmetry, and the longer term satisfaction of the partner in exchange. The MORAL EXCHANGE ETHIC implies perfect satisfaction of both parties over the long term, due to complete symmetry of the long term value of exchange. The M.E.E. then, is an absolutist and idealistic framework and impossible.
NOTE: I rely on a deontological method by arguing that if:
a) all individuals have a monopoly of control over themselves, and
b) all individuals have a monopoly of control over their property, and
c) all primary exchanges are voluntary and
d) expectations are symmetrical (each party is responsible for making sure the other is fully informed) and
e) the exchange causes no involuntary transfers
Then
f) an action is moral, in the only meaningful sense of the word.
This ethical model places a burden on both parties, that the other will not regret his decision due to ignorance about the object being transferred at the moment it is transferred. And further than the exchange causes no secondary (external) transfers.
The ‘Moral Ethic’ differs from the ‘Bazaar Ethics’ of libertarian doctrine, in that I require symmetry of expectations, which I call “warrior ethics” – effectively warrants – on all transactions, so that the fraud that is encouraged by Bazaar ethics is avoided. In effect, I explicitly preserve the right of violence as a means of enforcing peaceful transactions. The Moral Ethic differs from the Warrior ethic, in that I explicitly require that the exchange causes no involuntary transfers – ie: there are no externalities.
EVENLY ROTATING ECONOMY – See STATIONARY ECONOMY
EVIL CORPORATIONS – I use this term to refer to those organizations that use INTER-TEMPORAL POOLING and LAUNDERING as well as CHEAP CREDIT, and CAPITAL MARKETS to isolate themselves from market effects, and to deprive consumers of choice, to deceive consumers, or at least fail to serve consumers, systematically, and to hide under free market doctrines. i.e. Privatizing wins and socializing losses. For example, consumers cannot boycott the company, and if they do, the company will just shift to an alternate market. i.e. PREDATORY MARKET SWITCHING. For example, the fact that cell phone companies both participate in redistribution, engage in predatory pricing schemes where they profit heavily from people’s accidents, or when they, like insurance companies, make it so hard to correct their errors and overcharges that people simply give up and take the abuse. Furthermore there is no incentive to remain a customer. THey profit from CHURNING. The turnover of customers who have no choice but to return, only because government regulation of airwaves grants them a partial monopoly. In theory, privatization of frequencies would allow greater competition into the market.
EX – “out of”
EX NIHILO – Literally, “out of nothing”; The view of creation held by theism that in the beginning God created something out of nothing as opposed to making it out of some eternal stuff or out of himself.
EX DEO – Literally, “out of God”; The view of origins held by pantheism and panentheism that affirms God produced the world out of himself, that the world is part of God.
DEUS EX MACHINA = (Latin). Literally, a god out of a machine, from the ancient theatrical practice of using a machine to produce on stage a god capable of solving problems human beings are unable to solve. Hence, reliance on providential intervention or other unspecified means for the solution of an otherwise unsolvable human problem.
EX MATERIA – Literally, “out of matter”; the of origins that asserts the universe has taken shape out of preexisting matter or stuff either by a Former, abstract entities, or by some natural process (as in atheism).
EXCHANGE / AUTISTIC EXCHANGE / SYMMETRIC EXCHANGE:
Exchange – Exchange is a voluntary interaction between two individuals in which both forfeit ownership of an object to the other, to the benefit of both. A common misconception about exchange is that it occurs when the value of the two objects being traded are equal. However, were the values equal in the eyes of either party, no exchange would take place, as they would be just as well off without it. Thus, when an exchange takes place, both parties gain from the transaction: they are better off with the object they have attained than with the one given up. This is a fundamental source of wealth, and illustrates the value of the division of labor.
Murray N. Rothbard imagines a state of affairs where exchange is nonexistent to illustrate its importance:
“If anyone wishes to grasp how much we owe to the processes of exchange, let him consider what would happen in the modern world if every man were suddenly prohibited from exchanging anything with anyone else. Each person would be forced to produce all of his own goods and services himself. The utter chaos, the total starvation of the great bulk of the human race, and the reversion to primitive subsistence by the remaining handful of people, can readily be imagined.”
Symmetric Exchange – I use the term ‘symmetric exchange’ to distinguish between the common perception that an objective value – a normative price – exists, under which exchange would be ‘fair’, and those exchanges where expectations of both parties are sufficiently similar that a warranty is implied. (See BAZAAR ETHIC and WARRIOR ETHIC.) I support the proposition that a HIGH TRUST SOCIETY requires the WARRIOR ETHIC, and that, in practice, a HIGH TRUST SOCIETY cannot emerge under the BAZAAR ETHIC, and it can only emerge under the WARRIOR ETHIC, which relies upon SYMMETRIC EXCHANGE.
Autistic Exchange – Action always is essentially the exchange of one state of affairs for another state of affairs. If the action is performed by an individual without any reference to cooperation with other individuals, we may call it autistic exchange.
EXEGESIS – (Fr. Gr. “To lead out”). Exposition. Explanation. Critical interpretation of a text.
EXTERNALITY, EXTERNALITIES – An economic side-effect. Externalities are costs or benefits arising from an economic activity that affect somebody other than the people engaged in the economic activity and are not reflected fully in PRICES.
POSITIVE EXTERNALITY, NEGATIVE EXTERNALITY
Positive Externality: A positive externality is a side-effect produced by taking an action that causes an involuntary increase in an individual’s inventory of property-in-toto* (Most normative commons are constructed by way of positive externalities)
Negative Externality: A negative externality is a side-effect produced by taking an action that causes an involuntary decrease in an individual’s inventory of property-in-toto* (Immoral actions produce negative externalities, moral actions do not)
(*’Propertarian’ property defined as that which we demonstrate to be our property by defense of it. Not private property which is a contractual expression of which disputes a community will organize to apply violence against and which not.)
EXTRA- MARKET* – “outside the market”. Ie: people who work in jobs where they are isolated from the need to produce on speculation. Academics, Politicians, the majority of white collar workers, union laborers – leaving only professionals, small business owners, mid sized business executives, and capitalists involved in the market activity as an oppressed minority lacking political representation.
EXTRA-GODELIAN COMPUTING* / A “RUNCIBLE“(tm) – A computational software device consisting of numerous real time inputs, a Reflector for normalizing, a “pattern factory” that produces adaptive entities that are spawned into threads, and which both search and store an advanced data structure represented as an n-dimensional spatial manifold. A non-neural-network form of artificial intelligence. NOTE: I am involved tangentially in this work and own the rights to the name RUNCIBLE for this purpose. NOTE 2: Since google makes it’s advertising profit by portraying approximate results, a RUNCIBLE would answer the questions precisely and avoid the opportunity to display ads. Therefore a RUNCIBLE is humorously referred to in our circles as a “GOOGLE KILLER”.
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- PRODUCTIVE ETHICAL RELATIONSHIP / MUTUALLY PRODUCTIVE ETHICS / PRODUCTIVE ETHICS– Adds to the capital of both parties.
- ASYMMETRIC ETHICAL RELATIONSHIP / ASYMMETRICALLY PRODUCTIVE ETHICS / ASYMMETRIC ETHICS – Adds to the capital of one party, but not the other.
- PARASITIC ETHICAL RELATIONSHIP / PARASITIC ETHICS – Adds to the capital of one party at the expense of the other party.
- PREDATORY ETHICAL RELATIONSHIP / PREDATORY ETHICS – Regardless of the effect upon the capital of one party, damages or destroys the capital of the other party.
- VIRTUE ETHICS / ARETAIC ETHICS A normative ethical system consisting of the study of virtues, or the creation of a moral character. Category of ethics that focuses on the virtues produced in people, not the morality of specific acts. A recognition that there is more to the moral life than simply making right decisions, many people that believe that matters of virtue and character are equally, if not more, important than the way in which we resolve moral dilemmas. (See TELEOLOGICAL ETHICS and DEONTOLOGICAL ETHICS)
- DEONTOLOGICAL ETHICS / DEONTOLOGY / DEONTOLOGICAL / DEONTOLOGICAL SYSTEM – A normative ethical system which consists of the study of duties or rules, which can be taught or learned.
- TELEOLOGICAL ETHICS / TELEOLOGY / TELEOLOGICAL / TELEOLOGICAL SYSTEM – A normative ethical system which consists of the study of outcomes, or the ends or purposes of actions. Two forms of this system include utilitarianism and egoism. Emphasizes the consequences of actions (consequentialism).
EX NIHILO – Literally, “out of nothing”; The view of creation held by theism that in the beginning God created something out of nothing as opposed to making it out of some eternal stuff or out of himself.
EX DEO – Literally, “out of God”; The view of origins held by pantheism and panentheism that affirms God produced the world out of himself, that the world is part of God.
DEUS EX MACHINA = (Latin). Literally, a god out of a machine, from the ancient theatrical practice of using a machine to produce on stage a god capable of solving problems human beings are unable to solve. Hence, reliance on providential intervention or other unspecified means for the solution of an otherwise unsolvable human problem.
EX MATERIA – Literally, “out of matter”; the of origins that asserts the universe has taken shape out of preexisting matter or stuff either by a Former, abstract entities, or by some natural process (as in atheism).
EXCHANGE / AUTISTIC EXCHANGE / SYMMETRIC EXCHANGE: Exchange – Exchange is a voluntary interaction between two individuals in which both forfeit ownership of an object to the other, to the benefit of both. A common misconception about exchange is that it occurs when the value of the two objects being traded are equal. However, were the values equal in the eyes of either party, no exchange would take place, as they would be just as well off without it. Thus, when an exchange takes place, both parties gain from the transaction: they are better off with the object they have attained than with the one given up. This is a fundamental source of wealth, and illustrates the value of the division of labor. Murray N. Rothbard imagines a state of affairs where exchange is nonexistent to illustrate its importance: “If anyone wishes to grasp how much we owe to the processes of exchange, let him consider what would happen in the modern world if every man were suddenly prohibited from exchanging anything with anyone else. Each person would be forced to produce all of his own goods and services himself. The utter chaos, the total starvation of the great bulk of the human race, and the reversion to primitive subsistence by the remaining handful of people, can readily be imagined.” Symmetric Exchange – I use the term ‘symmetric exchange’ to distinguish between the common perception that an objective value – a normative price – exists, under which exchange would be ‘fair’, and those exchanges where expectations of both parties are sufficiently similar that a warranty is implied. (See BAZAAR ETHIC and WARRIOR ETHIC.) I support the proposition that a HIGH TRUST SOCIETY requires the WARRIOR ETHIC, and that, in practice, a HIGH TRUST SOCIETY cannot emerge under the BAZAAR ETHIC, and it can only emerge under the WARRIOR ETHIC, which relies upon SYMMETRIC EXCHANGE. Autistic Exchange – Action always is essentially the exchange of one state of affairs for another state of affairs. If the action is performed by an individual without any reference to cooperation with other individuals, we may call it autistic exchange. EXEGESIS – (Fr. Gr. “To lead out”). Exposition. Explanation. Critical interpretation of a text. EXTERNALITY, EXTERNALITIES – An economic side-effect. Externalities are costs or benefits arising from an economic activity that affect somebody other than the people engaged in the economic activity and are not reflected fully in PRICES.POSITIVE EXTERNALITY, NEGATIVE EXTERNALITY
Positive Externality: A positive externality is a side-effect produced by taking an action that causes an involuntary increase in an individual’s inventory of property-in-toto* (Most normative commons are constructed by way of positive externalities)
Negative Externality: A negative externality is a side-effect produced by taking an action that causes an involuntary decrease in an individual’s inventory of property-in-toto* (Immoral actions produce negative externalities, moral actions do not)
(*’Propertarian’ property defined as that which we demonstrate to be our property by defense of it. Not private property which is a contractual expression of which disputes a community will organize to apply violence against and which not.)
EXTRA- MARKET* – “outside the market”. Ie: people who work in jobs where they are isolated from the need to produce on speculation. Academics, Politicians, the majority of white collar workers, union laborers – leaving only professionals, small business owners, mid sized business executives, and capitalists involved in the market activity as an oppressed minority lacking political representation. EXTRA-GODELIAN COMPUTING* / A “RUNCIBLE“(tm) – A computational software device consisting of numerous real time inputs, a Reflector for normalizing, a “pattern factory” that produces adaptive entities that are spawned into threads, and which both search and store an advanced data structure represented as an n-dimensional spatial manifold. A non-neural-network form of artificial intelligence. NOTE: I am involved tangentially in this work and own the rights to the name RUNCIBLE for this purpose. NOTE 2: Since google makes it’s advertising profit by portraying approximate results, a RUNCIBLE would answer the questions precisely and avoid the opportunity to display ads. Therefore a RUNCIBLE is humorously referred to in our circles as a “GOOGLE KILLER”.F
FAITH – 1. A spectrum describing anything from a limited expression of trust, to an unquestioning belief that does not require proof or evidence, to an irrational belief held despite consistent evidence to the contrary. (See this post on faith for a full discussion.) 2. FAITH AS “MYSTICALLY ATTRIBUTED ANTHROPOMORPHIZED INTUITION”: Some people use the term ‘faith’ in a way that combines the mystical loading of the term as it is used in the religious context, with the concept of intuition, as a means of non-rational information processing. This usage of the term ‘faith’ confused me at first. But it is an attribution of action by divinity, mysticism or the supernatural to the pre-cognitive processing of ‘system 1’ in the brain: our intuition. In that sense, the process of anthropomorphization has been applied to system 1. In that sense faith is trust in the anthropomorphized processing of system 1 information. And since system 1 is heavily loaded by genetic psychochemistry then further programmed just as easily by myth and experience as it is by reason, this magical attribution of anthropomorphic influence to system 1 processing is understandable. And since this system is highly likely to produce positive outcomes even if it is non-rational, and in many circumstances, produce outcomes that are superior to reason, then it is entirely rational to rely upon it’s outputs, even if it is questionably rational to attribute it to anthropomorphized mystical intervention.Full Propertarian Definition Here: A Definition Of Faith
FALSIFICATION / FALSIFY / FALSIFIED – A proof or demonstration that something is untrue of unfounded. In order for something to be truly true, it must be open or submitted to one or more methods of objective methods of falsification,
FEUDAL / FEUDALISM / (Synonym MANORISM / MANORAL) – The social and political order of allegiance, land tenure and military service which gradually developed over large parts of Central and Western Europe after the collapse of the Roman Empire. The land was divided into fiefs or feuds, each with a manor occupied by a vassal or noble (member of the Second Estate) who was beholden for his tenancy to a superior lord, king or emperor to whom he owed tribute and military service. Below each vassal were the subtenants, known as serfs or villeins. Its main characteristic was that all political and military power was vested in the hands of the owners of the land. It slowly disappeared step by step as the modem ages replaced the Middle Ages.
FORGONE OPPORTUNITY COST* – Perhaps better stated, ‘The Costs Of Forgone Opportunities’. An Opportunity Cost paid when choosing between certain personal gain, and the discipline, deprivation or effort expended to adhere to the norms of manners, ethics, morals, conventions and rituals. The essential coinage of social order. The cost of what we choose NOT to do, as members of a society. The subjective assessment attributed by an individual to his or her sacrifices, deprivations, frustrations, and acts of discipline, when contributing to the social order by observing manners, ethics, morals, rituals, laws and cultural norms. (i.e. a strong young man pays a cost for not sealing someone else’s property, even when he could get away with it. These forgone opportunities for self satisfaction are costs. People treat them as such. And human behavior is observably and measurably correlative with the precept that people treat some portfolio of social, ‘IDENTITY’, norms as property. See IDENTITY, OPPORTUNITY COST, FOUNTAIN MONEY. Analogous To: Discipline, Self-sacrifice.
French “Money From The Wishing Well.”, French “the costs of discipline”: “les coûts de discipline” French “wish payment”, Latin “Fountain Money” viaticus fontis. German “wish payments”:”Wunsch Zahlungen”. German “wish money” “wollen Geld”, german “foutain Coin”: “brunnen-munze”. Old English (anglo-saxon) “payment”:”sceatt” . Dutch wish :“wens”
FRAMING – The collection of narratives, anecdotes and stereotypes that make up the emotional weights which individuals rely upon to understand and respond to information. An extension of IDEAL TYPES to include the association between lack of knowledge and the utility of emotions in evaluating uncertainty.
FRAUD*, FRAUDULENT – In the broadest sense, a fraud is an intentional deception made for personal, group, or organizational gain or to damage another individual regardless of gain or loss. (A hoax also involves deception, but without the intention of gain, or of damaging or depriving the victim; the intention is often humorous.) I use the term FRAUD largely in relation to LAUNDERING and POOLING
FREEDOM
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Personal Freedom
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Political Freedom
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National Freedom
Articles
A Short Essay On The Reality Of Freedom
FUNGIBLE, n. and adj. – Interchangeable. Something with multiple purposes. Capable of mutual substitution in use or satisfaction of a contract. A commodity or service whose individual units are so similar that one unit of the same grade or quality is considered interchangeable with any other unit of the same grade or quality. Examples?tin, grain, coal, sugar, money, etc.
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GENERATION, GENERATIONS, GENERATIONAL – (undone)
CYCLE THEORY – (undone)
SAECULUM
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TURNING
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TURNINGS
– A full generational cycle of 100 years comprising four “seasons” of approximately 22-25 years each; these seasons represent youth, rising adulthood, midlife, and old age. A saeculum is a length of time roughly equal to the potential lifetime of a person or the equivalent of the complete renewal of a human population. The term was first used by the Etruscans. Originally it meant the period of time from the moment that something happened (for example the founding of a city) until the point in time that all people who had experienced that moment in time had died. At that point a new saeculum would start. See GENERATIONS.
GENETIC FALLACY – The fallacy of confusing the origin of a justification, with the utility of the principle of it. The fallacy of confusing the origin of a belief with its epistemological warrant, and faulting the belief because of its origin.
“THE GEOMETRY OF PROPERTY*” – (undone) property as geometric, calculable.
GHETTO ETHICS– literally, the ethics of the medieval urban ghetto.
As a ‘state within a state’ residents of the ghetto can conduct exchange as if they are state actors by relying upon high trust exchange in-group, while using low trust exchange out-group. However, in any polity, each of us cannot act as a ‘state’ by applying low trust with some and high trust with others because the net result is a near universally low trust society for the vast majority. In such an environment demand for the state and its interventions as a proxy for trust remains high, since low trust is by definition the use of cunning and deception to obtain discounts and premiums that the opposite party would not tolerate willingly. In other words, low trust ethics are parasitic, and impose high transaction costs on the population. The underlying point I’m making is the absurdity of using the model of a state within a state to advocate for a stateless society. In that lens the entire rothbardian project is… well, absurdly illogical. Laughable even. Aristocratic egalitarianism (the protestant ethic) suppresses all cheating such that demand for the state is low because transaction costs and conflicts are minimized, while the velocity of production and exchange is high.
GOD – (undone – use my definition) See DEITY.
In general usage: (undone).
I use the term to describe (undone).
GODELIAN* – From Mathematician Kurt Gödel who stated that any system of logic that was sufficiently rigorous to allow for testability would inherently be closed. A closed system. A system that necessarily, because of its methodology, leaves some set of possibilities outside its scope. I use this term to describe the use of a methodology, particularly a quantitative methodology, to fail to account for invention, or to miss a scope of solutions because the methodology specifically makes that solution opaque. See POPPERS RAILROAD FALLACY.
GOODS / SERVICES – Goods are objects that can satisfy people’s wants. Services are actions performed by human or machine that satisfy people’s wants.
GOODHART’S LAW / CAMPBELL’S LAW – Goodhart’s law, states that once a social or economic indicator (index) or other surrogate measure is made a target for the purpose of conducting social or economic policy, then it will lose the information content that would qualify it to play such a role. The law was named for its developer, Charles Goodhart.
GOVERNMENT – The social institutions established for the monopolistic exercise of compulsion and coercion which, because of man’s imperfection, is necessary for the prevention of actions detrimental to the peaceful inter-human cooperation in a definite system of social organization. Because men are not faultless, government (the police power) is an indispensable and beneficial institution, as without it no lasting social cooperation or civilization could be developed or preserved. A durable system of government must rest on the might of an ideology acknowledged by the majority. The concept of a perfect system of government is both fallacious and self-contradictory, since this institution of men is based on the very imperfection of men. From the liberal (q.v.) viewpoint, the task of government consists solely and exclusively in guaranteeing the protection of life, health, liberty and private property against violent attacks. As far as the government confines the exercise of its violence to the suppression and prevention of antisocial actions, there prevails what reasonably and meaningfully can be called liberty. See PERFECT GOVERNMENT. See RULE / GOVERN / INSURE.
ANARCHY
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– (undone)
DEMOCRACY – (undone)
MONARCHY / ABSOLUTE MONARCHY / CONSTITUTIONAL MONARCHY / PROPERTY MONARCHY – A form of rule in which there is a single head of state, a monarch, with the title of King (or Queen) or its equivalent; in which the monarch holds his or her office for life; in which the position of monarch normally descends by rules of heredity only to members of a specific royal family; and where the monarch is popularly believed to be possessed of a religious or similar symbolic significance for the state and its institutions that legitimate his or her privileges. When the monarch rules with full or nearly full executive, legislative and judicial powers practically unlimited by constitutional or legal restrictions, the system is often referred to as an “ABSOLUTE MONARCHY.” When the powers of the monarch are effectively limited and restricted by law (at least to insure respect for the subjects’ recognized rights to personal freedom and property and often also to limit the monarch’s powers of legislation and taxation), the system is normally referred to as “CONSTITUTIONAL MONARCHY.” 2) Under a Calculative Social Order, the system would be referred to as a “PROPERTY MONARCHY”, or a HOPPIAN MONARCHY. A PROPERTY MONARCHY is one in which the monarchic family owns the limited offices of state, but has no legislative authority, only veto power – A monarch has long term incentives to maintain the STOCK OF SOCIAL CAPITAL for future generations rather than consuming all social capital in order to retain political power.
RATIONAL GOVERNMENT / CALCULATIVE GOVERNMENT / PERFECT GOVERNMENT* / THE CREDIT SOCIETY – A set of institutions that enforce investment, cooperation, calculation, production and redistribution between classes of individuals with different desires, capacities and resources operating on different time preferences, despite the limits of any individual, or group’s ability to perceive the totality of the cooperative process, inputs, outputs, or actions.
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The Perfect Government consists of :
I. a HEREDITARY MONARCH (Cultural Perpetuity), a PRIVY COUNCIL (Ascent), a SENATE (commerce), a HOUSE (services and redistribution), a BANK (calculation), EXAMINERS (auditors),
II. an INFLEXIBLE CONSTITUTION based upon the ONE LAW, a NARROW JUDICIARY (constitutionality).
III. a REGIMENTAL MILITARY (Semi-private) and a MILITIA (private), .
IV. Universal suffrage in the HOUSE, Limited suffrage in the SENATE. Strong requirements of experience for seat-holders.
Where these institutions endeavor to increase PRODUCTIVITY, by issuing loans with ABSOLUTE ALLOCATION OF PROCEEDS rather than enact unacceptable incalculable laws that make use of POOLING AND LAUNDERING, and thereby allow bureaucrats to profit from class warfare.
Where SOCIAL REGULATION and therefore SOCIAL PREFERENCE COMPETITION is left to local governments, and local cultures.
Where TAXES and therefore TAX COMPETITION are left to local governments
Where ACTUARIAL POOLING OF RISK is prohibited in favor of PERSONAL ACCOUNTABLE LENDING.
Where educators are highly regulated and highly compensated.
Where SOCIAL SERVICES depend upon variations in STATE PROCEEDS, and delivered by PRIVATE INSTITUTIONS in competition with one another to better serve the public.
Where SOCIAL INSURANCE SCHEMES are CALCULABLE and funded by the ABSOLUTE ALLOCATION OF PROCEEDS from PRODUCTIVITY obtained via LOANS.
Where FEDERAL ACTIONS are limited to loans for infrastructure, transporation, communication, social insurance, and the conduct of war in defense of land, trade routes, these institutions, life, and property.
REPUBLIC – (undone)
THE GREAT TRANSFORMATION / THE GREAT TRANSFORMATIONS – Can refer to any of the following:
The title of a book by Karl Polanyi about the transformation of England into a market economy. Polanyi contends that the modern market economy and the modern nation-state should be understood not as discrete elements, but as the single human invention he calls the Market Society.
The title of a book by Karen Armstron about the invention of monotheistic religions during the Axial Age, which spans roughly 900 B.C.E. to 200 B.C.E. Armstrong observes, violence, political disruption and religious intolerance dominated Axial Age societies, so Axial religions responded by exalting compassion, love and justice over selfishness and hatred. I take the position that these monotheistic religions are a catastrophic human failure, because they suggest submission and other-worldliness, which are strategies of avoidance, rather than focusing societies on attempting to solve the problem of politics, cooperation and calculation in large numbers. As such, I see them as immoral inventions.
1) SPEECH REVOLUTION – Language (prehistory) Bands and Tribes – The period approximately 50,000 years ago, when modern humans rapidly expanded, and theoretically developed modern “speech” (as distinct from ‘language’). The topic is heavily debated, but in general I use the term LINGUISTIC REVOLUTION or the more correct SPEECH REVOLUTION to refer to this period of rapid human expansion.
2) AGRARIAN REVOLUTION / NEOLITHIC REVOLUTION – (farming + markets + religion + law) Chiefdoms and City States – The “neolithic agrarian revolution” that occurred about 8000BC, arising from the domestication of plants and animals. I use this term to refer to the broad set of social institutions (habits) and social technologies for cooperation that accompanied this transformation, including cities, the division of labor, and non-human knowledge transfer via writing, the necessary individual ignorance of EVENTS that arises from increases in population and specialization, even though there were increases in individual procedural knowledge (skills), as well as the development of classes (landowners, craftsmen, and slaves/peasants). This should not be confused with the EUROPEAN AGRARIAN REVOLUTION – the period in the 18th century during which there were many advances in cultivating technology that led to higher productivity of crops.
3) INDUSTRIAL REVOLUTION – (energy + science + politics + credit law) Political Systems and Nation States. Starting in the later part of the 18th century, in England, there was a transition from previously manual labour and draft-animal–based economy towards machine-based manufacturing. It started with the mechanisation of the textile industries, the development of iron-making techniques and the increased use of refined coal. Trade expansion was enabled by the introduction of canals, improved roads and railways. Average income and population began to exhibit unprecedented sustained growth and for the first time, the common people were able to participate as consumers. In the two centuries following 1800, the world’s average per capita income increased over 10-fold, while the world’s population increased over 6-fold. GDP per capita was broadly stable before the Industrial Revolution and the emergence of the modern capitalist economy.
4) SCIENTIFIC AND TECHNICAL REVOLUTION – (Computational Revolution, or the Digital Revolution or The Information Revolution.) I do not tend to view these so called revolutions as affecting the social order, just improving upon the industrial revolution, and a derivative of the industrial revolution. I suspect that in retrospect, I will feel that the digital revolution will eventually alter the human social order, since my interest is ‘calculation’ and computers and information networks allow us to achieve that which would have been ‘magic’ in the past, I suspect that we are only beginning that transformation. And I suspect, as do many others, that the point at which we invent machines that can ‘calculate in the broader sense’ that human society will permanently change yet again, because productivity and quality of life will alter dramatically after that point (should we achieve it.) I recognize that Greece began the industrial revolution over two thousand years ago, but could not sustain it, and that we descended into ignorance for over a thousand years. I also understand that contemporary humans could fail just as the greeks did.
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- – A full generational cycle of 100 years comprising four “seasons” of approximately 22-25 years each; these seasons represent youth, rising adulthood, midlife, and old age. A saeculum is a length of time roughly equal to the potential lifetime of a person or the equivalent of the complete renewal of a human population. The term was first used by the Etruscans. Originally it meant the period of time from the moment that something happened (for example the founding of a city) until the point in time that all people who had experienced that moment in time had died. At that point a new saeculum would start. See GENERATIONS.
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HAPPINESS :
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Pleasure’
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Pleasure is a positive emotional reaction to stimuli. is not the same as happiness. It is a response that supports ‘learning’. It is evolution’s way of training us to want more of a good thing by associating positive stimuli with new memories.
‘Prospective Happiness’ is the presence of opportunity for obtaining stimuli, obtaining social status, obtaining group membership, obtaining mates, and then learning to be successful at obtaining what one desires through the execution of one’s plans.
‘Retrospective Happiness’ is the absence of stress, the presence of comforts, welcoming membership in a group, the security of the familiar, and the knowledge that one’s plans and actions, no matter how small, will achieve or have achieved, frequently lead to successful ends.
Happiness is both a reward for our anticipation of the opportunity for stimulation, and our reward for the exercise of good judgement in obtaining that stimuli. The priority that each of us give to these different properties of Prospective and Retrospective Happiness are different, and dependent upon a combination of our abilities and skill at forecasting, planning, succeeding, obtaining group membership, and avoiding stress.
HAYEK / HAYEKIAN – (undone) See MISESIAN, ROTHBARDIAN, HOPPEIAN, POPPERIAN, MANDELBROTIAN, GAUSSIAN.
HAYEKIAN KNOWLEDGE – (undone)
HE WHO BREEDS WINS / The principle that “THE FERTILITY OF THE PEASANTRY WILL OVERCOME THE PRODUCTIVITY OF THE MIDDLE CLASSES” – (undone)
HEURISTIC, AN HEURISTIC PROCESS – A process that involves learning. Where people make decisions based on approximate rules of thumb, not strict logic.
HIERARCHY – A group of persons or things arranged in order of rank, grade, class, primacy, importance, authority, etc.
HOPPE, HOPPEIAN – (undone) See MISESIAN, ROTHBARDIAN
HUMANISM – (humanist) Any system of thought or action based on the nature, dignity, interests and ideals of man; specifically, a modern, non-theistic, rationalist movement that holds that man is capable of self-fulfillment, ethical conduct, etc. without recourse to supernaturalism.
HUMAN ACTION, (abbrev. ACTION) Purposeful behavior; an attempt to substitute a more satisfactory state of affairs for a less satisfactory one; a conscious endeavor to remove as far as possible a felt uneasiness. Man acts to exchange what he considers will be a less desirable future condition for what be considers will be a more desirable future condition. Thinking and remaining motionless are actions in this sense. Human action is always rational (q.v.), presupposes causality and takes place over a period of time.
HYPOTHESIS – A seemingly reasonable explanation, supposition, or assumption proposed as a tentative answer to a problem in the absence of known or proven facts or causes. A hypothesis must not contain anything at variance with known facts or principles. Weak version of THEORY.
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- Pleasure is a positive emotional reaction to stimuli. is not the same as happiness. It is a response that supports ‘learning’. It is evolution’s way of training us to want more of a good thing by associating positive stimuli with new memories.
I
IDEAL TYPE – A useful, rough generalization of a specific but loose concept helpful for the description and interpretation of history. Usually refers to overextension of a simplistic analogy and therefore an ERROR. The BELL CURVE is an ideal type (and an erroneous one.) See FRAMING.IDENTITY* – An idealistic narrative, visual, and imaginary aspirational image, usually heroic, or missionary (ie: motherhood, environmentalism, political action) and representative of class, culture, race, generation, age, political and religious role, gender role – that people use to determine group sentiments and memberships, and which they use to make decisions when most decisions are forced by insufficient information, long distance between time and effect, or tie-breakers.
IDENTITY SET*, IDENTITY PORTFOLIO – The set IDENTITIES Individuals collect as tools for decision making. Humans do not keep a single identity. They have multiple cultural, class, generational, professional, heroic, empathic, familial, stylistic and other identities that they use and change during their lives. Particularly in the anonymity of a mobile, heterogeneous, consumer society.
IDEOLOGY – A comprehensive and coherent set of basic beliefs about political, economic, social and cultural affairs that is held in common by a sizable group of people within a society. Such interrelated ideas and teachings purport both to explain how political, economic, social and cultural institutions really do work and also to prescribe how such institutions ought ideally to operate.
Ideology consists of a utopian goal, methodologies and decision making principles used to achieve that goal, as well as the FORGONE OPPORTUNITY COSTS that must be absorbed and paid in pursuit of that goal — rather than exploiting the current opportunities that one would seize, or current habits one would follow in the absence of the utopian goal, methods, principles — and most importantly, the perception of irrationality by others in making those FORGONE OPPORTUNITY COST sacrifices in order to achieve that goal. Furthermore, the term is most often used in the derogative, because it implies a CONFLICT of forgone opportunity costs – usually between social classes or social groups, OR, it implies an irrational faith in the chance of success of achieving one’s goals, OR it implies the irrational state of affairs that would result if one’s goals were achieved. Political ideologies fit all these criteria: irrational, class-based goals that would be more beneficial to one class than another, and forgone opportunity costs, and in some cases, direct costs, paid to achieve those goals.
(undone – incorporate social portfolio costs into this definition – justifying theft.)
IGNORANCE / SOURCE OF IGNORANCE – The idea that some knowledge actually prevents the acquisition of further useful knowledge. Some knowledge enforces ignorance. (Islam for example.) I do not chastise people for failing to know something. I criticize people for using a source of ignorance in order to simplify a problem.
INCENTIVE / INCENTIVES – (See coercion.)
INDUCTION n. INDUCTIVE, adj. – In logic, assuming the truth of a general (or universal) premise from the knowledge that individual or particular instances of the generality conform to the premise. Example: Assuming that all men speak English because all the men you know speak English. Perfect induction is when the premise is based on the knowledge of all instances. In such cases, the induction is merely the statement of a known totality or generality. Imperfect induction is when the premise is based on the knowledge of less than all the individual instances, i.e., on a sample. In the sciences of human action, imperfect induction can never provide scientific certainty. At best, it provides only a probability. However, imperfect induction is an epistemological basis of the natural sciences.
INDICATIVE STATEMENTS – A statement which asserts an alleged fact which has ontological implications and the statements can be either true or false. (i.e. “the apple is red” is an indicative statement which can either be true or false)
INDUCTIVE ARGUMENT – An inductive argument is one in which the premisses make the conclusion probable, that is, more probable than not.
INDUSTRIAL REVOLUTION – The rapid changes in the transition from medieval (agrarian and craft) methods of production to those of the free enterprise system which took place from about 1760 to 1830, primarily in England. A term of Marxian origin loaded with emotional connotations in order to fit economic history into the theories of Fabianism (q.v.), Marxism (q.v.), Historicism (q.v.) and Institutionalism (q.v.).
“THE INESCAPABLE IQ PROBLEM” – That despite our ability to educate people, and despite the general rise in IQ worldwide from the accidental environmental reinforcement of patterns, that there appear to be certain conceptual barriers that affect cultural, racial, and national groups because of the 105 points needed to repair machines, the 122 needed to invent machines, and the 135 needed to invent ideas, and to lead large groups of people. These numbers indicate that certain societies will have a difficult time producing economically competitive products given the current distribution of IQ in their populations.
INFLATION / MONETARY INFLATION / PRICE INFLATION – Increases in money supply that decrease purchasing power and appear to increase prices. In popular nonscientific usage, a large increase in the quantity of money which results in a drop in the purchasing power of the monetary unit, falsifies economic calculation and impairs the value of accounting as a means of appraising profits and losses. INFLATION (PRICE INFLATION) – A sustained and continuous increase in the general price level. NOTE: there is a difference between rising prices, and inflation. Inflation is the general decline in the value of money. Price inflation, or rising prices, is due to an increase in the demand for, or scarcity of, a good or service.
INNUMERACY – Mathematical illiteracy. In particular, a failure to understand statistics and probability, and in particular, the limits of probability and statistics. (See LUDIC FALLACY.)
INSTITUTIONS vs ORGANIZATIONS – Institutions are the “rules of the game”, consisting of both the formal legal rules and the informal social norms that govern individual behavior and structure social interactions (institutional frameworks). Organizations, by contrast, are those groups of people and the governance arrangements they create to coordinate their team action against other teams performing also as organizations. Firms, Universities, clubs, medical associations, unions etc are some examples. (-from North)
INSTITUTIONAL COERCION – Any set of INSTITUTIONS that in interfere with the free trade of goods between individuals. ie: freedom means ‘freedom from institutional coercion.’ See INSTITUTIONS, ENTREPRENEURSHIP, THREE COERCIVE TECHNOLOGIES.
NOTE: Institutional coercion, if used as a pejorative, is misleading because it does not take into account the fact that (1) markets must be created and created at high cost and effort, and (2 )the institution of property, and non-corruption must be created, also at high cost and effort, and (3) there do exist certain shareholder goods (territory, natural resources) that must be somewhat privatized in order for economic calculation to occur, but which full privatization would require a transfer from, and failure to compensate shareholders for that transfer. Territorial defense, respect for property, and adherence to manners, morals, and ethics — and observance of, and contribution to opportunity cost frameworks (religion or cults) all are required of shareholders. And as long as these actions are met, the ‘citizens’ are indeed ‘shareholders’ and have some limited ownership interests in the market, in the territory and it’s resources, and in the formal (legal) and habitual (cultural) institutions of the group. Therefore some coercion using all three kinds of COERCIVE TECHNOLOGIES is necessary in order to create the institutions that make the market possible. Once these institutions are created, it then requires a significant effort to monitor and suppress privatization either by individuals and groups in the market (fraud), and institutional individuals (corruption and institutional coercion), and individuals who seek to avoid both institutions and the market (theft).
IMPERATIVALISM – A form of a non-cognitivist metaethical theory that states that moral statements are not indicative statements of fact. Instead the view holds that moral statements are merely moral commands. “X is right” is merely the command “do x!”.
IMPUTATION – In economics, the concept that the price of the good our service that you’re selling determines the prices that producers will pay for the things that went into it. This is the opposite of what we intuit. We assume that if a thing takes three components x, y and z, the the price will be x+y+z. Instead, the price that consumers are willing to pay for the finished product determines what manufacturers are willing to pay for the components that went into it. In economic terms, inputs are called ‘factors’, and imputation is expressed as ‘factor prices are determined by the output price’. This insight helped undermine the Marxian labor theory of value.
INTELLIGENCE – Demonstrable intelligence consists of at least four primary properties. 1) “g” or general intelligence – the ability to identify patterns in time. 2) short term memory – the workspace that operates within the two-or-three-second limit 3) general knowledge – or the number of patterns you have accumulated through study, and experience 4) the correspondence of one’s goals with reality. It is this last part that generally forms a resistance to the development of intelligence, because if a person believes that people can fly, or are equal in ability, or that they are a victim, or in the supernatural, or in an omnipotent evil god, then they have created a barrier to demonstrable intelligence, because he or she will not correctly identify patterns that actually correspond to reality. When I use the term I am not attempting to favor or criticize the average person, because average people while numerous, are not as consequential to the sate of affairs as are people with above average intelligence (innovators) or below average intelligence (barriers). Like Class and Race, people who are from the lower end, deny the reality that the people in the upper end believe is patently obvious. Regardless of current convention in the popular media, there is no dispute among scientists that there are meaningful, and largely heritable differences in IQ, and that these differences are testable.
INTELLIGENCE QUOTIENT (IQ) – An intelligence quotient, or IQ, is a score derived from one of several different standardized tests designed to assess intelligence. In particular to asses ‘g’ or General Intelligence : the rate of pattern recognition in time.
INTERTEMPORAL* vs TEMPORAL* – Intertemporal describes any relationship between past, present and future events or conditions, especially where uncertainty affects the ability to estimate future events and conditions. Versus Temporal, “of fleeting moment”, describing those conditions which do not require longer term speculation. In my work, these carry connotations of a spectrum beginning with knowledge and relative certainty and progressing to ignorance and uncertainty. See RISK and UNCERTAINTY.
INTERTEMPORAL REDISTRIBUTION / INTERTEMPORAL TRANSFERS – Transferring costs between generations. For example, by implementing Social Security as a pay-as-you-go system rather than a savings account with return on investment, the first generation was able to spend its money rather than save it, and the following genration must pay for the previous generation, thus the second generation’s wealth was consumed by the first. This course of events altered the culture, habit and technology of saving in western civilization. Whereas had the money been implemented as forced savings, or subsidized savings, and would have provided the required public service while also maintaining calculability and intertemporal redistribution.
INTERVENTIONISM – The policy of resorting to governmental decrees and coercion to direct market activities in a manner different from the primary desires of consumers as expressed by the practices, prices, wage rates and interest rates of an unhampered market economy.
INTRACTABLE – A problem is intractable if it is Impossible to solve with current knowledge, no matter how hard one works at it.
IRRATIONAL – In common unscientific usage, means illogical, or poor reasoning. Irrational does not mean incorrect or impractical reasoning, but the total absence of any reasoning. More accurately describes that which lies beyond the bounds of what can be comprehended, explained, justified or rejected by human reasoning and science. See RATIONAL.
- Ideology consists of a utopian goal, methodologies and decision making principles used to achieve that goal, as well as the FORGONE OPPORTUNITY COSTS that must be absorbed and paid in pursuit of that goal — rather than exploiting the current opportunities that one would seize, or current habits one would follow in the absence of the utopian goal, methods, principles — and most importantly, the perception of irrationality by others in making those FORGONE OPPORTUNITY COST sacrifices in order to achieve that goal. Furthermore, the term is most often used in the derogative, because it implies a CONFLICT of forgone opportunity costs – usually between social classes or social groups, OR, it implies an irrational faith in the chance of success of achieving one’s goals, OR it implies the irrational state of affairs that would result if one’s goals were achieved. Political ideologies fit all these criteria: irrational, class-based goals that would be more beneficial to one class than another, and forgone opportunity costs, and in some cases, direct costs, paid to achieve those goals.
- NOTE: Institutional coercion, if used as a pejorative, is misleading because it does not take into account the fact that (1) markets must be created and created at high cost and effort, and (2 )the institution of property, and non-corruption must be created, also at high cost and effort, and (3) there do exist certain shareholder goods (territory, natural resources) that must be somewhat privatized in order for economic calculation to occur, but which full privatization would require a transfer from, and failure to compensate shareholders for that transfer. Territorial defense, respect for property, and adherence to manners, morals, and ethics — and observance of, and contribution to opportunity cost frameworks (religion or cults) all are required of shareholders. And as long as these actions are met, the ‘citizens’ are indeed ‘shareholders’ and have some limited ownership interests in the market, in the territory and it’s resources, and in the formal (legal) and habitual (cultural) institutions of the group. Therefore some coercion using all three kinds of COERCIVE TECHNOLOGIES is necessary in order to create the institutions that make the market possible. Once these institutions are created, it then requires a significant effort to monitor and suppress privatization either by individuals and groups in the market (fraud), and institutional individuals (corruption and institutional coercion), and individuals who seek to avoid both institutions and the market (theft).
K
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- – Medium term and short term pairings with or without a marriage ceremony that produces offspring, whereupon the parents cease cohabitation, and state redistribution finances directly or indirectly the support of the mother’s household.
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- – (UNDONE)
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- Awareness. Knowledge of Use. Knowledge of Construction.
- I distinguish between knowledge of how to use a concept and knowledge of its construction. One can testify to knowledge of use, without possessing knowledge of construction. But one cannot make a truth claim dependent upon a concept whose knowledge of construction one does not possess.
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- Knowledge is a rational means of
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- , and technology is a tool even if it is irrational by our current standards.
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- – I use the term Technology to refer to any concept, formula, recipe or process that allows humans to achieve an end in the material world. I imply that the technology can be taught, must be learned, and is not biologically innate. In other words, I consider most technologies to be habits that we have learned to imitate, and where our understanding of the causality underlying the technology is limited at best, but very likely something the vast number of people are completely ignorant of. Nor do I attribute any weight to the human sentiments or emotional reactions that they attach to that knowledge. Implied in my usage is that humans may understand that a technology works to solve a problem without fully understanding exactly why that technology works, and that they have emotional attachments to that knowledge that may or may not be relevant.
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- The term “useful knowledge” was used by Simon Kuznets (1965, pp. 85–87) to refer to the type of knowledge that was the source of modern economic growth. Technology in its widest sense is the manipulation of nature for human material gain, I confine myself to knowledge of natural phenomena and regularities that exclude the human mind and social institutions. A great deal of important knowledge, including economic knowledge, involves people and social phenomena: knowledge about prices, laws, relationships, personalities, the arts, literature, and so on.
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- – the knowledge that catalogs natural phenomena and regularities (“knowledge of what”)
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- -(undone) The result of democracy. Where the minority live under the tyranny of the majority, and the majority claim legitimacy for their dominance by virtue of the democratic process.
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- = (undone)
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- Definitions, such as the dictionary, are just a record of common usage. You can define a falsehood, such as “ghosts”, and people can use the term. But whether ghosts exist or not is not a function of the content of the definition, but whether the content is a true or false expression. It is through the enumeration of, and criticism of, the properties of definitions that we determine truth or falsehood of statements. Not the ‘conventionality of usage’.
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- 1) CONVERTIBILITY:
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- 2) DEGREE OF RESERVE (FRACTIONAL syn. UNSOUND MONEY vs FULL RESERVE syn. SOUND MONEY)
- 3) REPRESENTS A FLOATING NUMBER or SOLID WEIGHT OR VOLUME
- A volume of grain
- A Shell
- A Cigarette
- A weight OR volume, of metal powder
- A weight AND volume of solid metal
- A certified (stamped or scribed) weight of solid metal (coin)
- A certificate for a weight of solid metal coin, or other commodity
- A certificate for an option under which some conditions you may exchange the certificate with it’s issuer. (credit money)
- A certificate or other manufactured object the use of which, as a medium of exchange, is legislatively mandated.
- A certificate or other manufactured object the use of which, as a medium of exchange is legislatively mandated AND mandated to the exclusion of all such mediums of exchange.
- INDIVIDUAL CALCULATION FAVORS SINGLE CURRENCY
- COSTS FAVOR SINGLE CURRENCY
- FIAT MONEY AS PREVENTION FROM SHORTAGE
- FIAT MONEY AS INSURANCE
- DISSIMILAR SOCIAL ORDERS FAVOR MULTIPLE CURRENCIES
- INCALCULABILITY and DISTORTION
- EXACERBATED RISK
- USE OF MONETARY POLICY : UNEMPLOYMENT VS IDEAS AND PRODUCTION
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- : I use the term ‘moral’ to refer to a rule that prohibits involuntary transfer within some structure of reproduction, inheritance, property rights, and production.
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- : Having no moral relevance. I use this term when I refer to violence as an amoral concept. It is the use of violence that is moral or not, not violence itself, which can be used for moral or immoral or amoral ends.
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- : I use the term immoral to refer to the violation of the prohibition on involuntary transfer within a given structure of reproduction, inheritance, property rights and production.
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- – Creating a rule, law or contract that encourages immoral behavior. For example, Fire insurance gives people an incentive to commit arson, especially if they are operating a failing business and decide that they’d rather have the cash from the insurance proceeds on the buildings than the buildings themselves. Or, placing a bounty on rats, that encourages the breeding of rats. See PERVERSE INCENTIVES, UNINTENDED CONSEQUENCES, INCENTIVES.
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NATION – A large aggregation or agglomeration of people sharing a common and distinctive racial, linguistic, historical and/or cultural heritage that has led its members to think of themselves as belonging to a valued natural community sharing a common destiny that ought to be preserved forever. See NATIONALISM, NATION STATE.NATION STATE – A form of state in which those who exercise power claim legitimacy for their rule partly or solely on the grounds that their power is exercised for the promotion of the distinctive interests, values and cultural heritage of a particular nation whose members ideally would constitute all, or most of, its subject population and all of whom would dwell within the borders.
NATIONALISM – An ideology, or rather a whole category of similar ideologies, based on the premise that each nation (or at least the ideologist’s own nation) constitutes a natural political community whose members should all live together under the authority of “their own” independent nation state. When the people of one nation live in large numbers in a multi-ethnic state or in states with government(s) dominated by political elites drawn from another nationality, nationalism often becomes an ideology justifying rebellion or secession in order to create or recreate a nation state for the heretofore subjugated nation. When substantial numbers of people seen as belonging to the nation live outside the borders of their own nation state, nationalism often becomes an ideology justifying an aggressive foreign policy striving to expand the state’s borders to include them. Nationalist ideologies usually claim that their respective nation possess special national characteristics or virtues that make them morally and intellectually superior to all other nations and should qualify their nation state for a special or privileged role in the world at large.
NATURAL LAW – The principle that human beings possess unalterable tendencies, and that we should develop policies that acknowledge those tendencies, rather than rely upon idealistic fantasies about the plasticity of human nature.
NATURALISM – The ideology that focuses on the self-sufficiency of nature. It is the view that the world is self-contained, and that the self-sufficiency of nature lies in the undirected natural laws of science. (see also SCIENTISM)
NECESSITY, NECESSARY, NECESSARY AND SUFFICIENT (undone) – A proposition is necessary if it could not have been false. We can contemplate various possibilities describing how things might have been, but are not; if in all these possibilities a proposition is true, then it is true in all possible worlds or true of necessity.
NEOLIBERALISM – a market-driven approach to economic and social policy based on neoclassical theories of economics that maximise the role of the private business sector in determining the political and economic priorities of the state. (Hayek’s book The Constitution of Liberty] is still probably the most comprehensive statement of the underlying ideas of the moderate free market philosophy espoused by neoliberals.)
NIHILISM – Believing in Nothing. The denial of the existence of any basis for knowledge or truth. The general rejection of customary beliefs in morality, religion, etc. The belief that there is no meaning of purpose in existence.
NON-COGNITIVIST METAETHICAL THEORIES – Deny that moral statements are indicative statements, which can be either true or false. Emotivism and imperativalism are examples.
NON-CONTRADICTORY (THE PRINCIPLE OF NON-CONTRADICTION) – The law of logic that it is not the case that p and not p (e.g. it is not the case that I exist, and I don’t exist at the same time) A contradiction is the final, logical stopping point.
NON-SEQUITUR – (Lat., it does not follow) An argument in which the conclusion does not follow from the premisses.
NORM, NORMS,NORMATIVE – (undone)
NORMATIVE CLAIM
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– A claim that is applicable in most situations (i.e. on the cultural relativists view the claim “X is right” merely means “we in our culture like x.” In that case the claim “X is right” is not a normative claim whatever since that claim can vary from culture to culture).
NORMATIVE ETHICS – The discipline that produces moral norms or rules as its end product. Normative ethics prescribe moral behavior.
- – A claim that is applicable in most situations (i.e. on the cultural relativists view the claim “X is right” merely means “we in our culture like x.” In that case the claim “X is right” is not a normative claim whatever since that claim can vary from culture to culture).

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