Thursday, January 28, 2010

The Way the World Works II

Last Fall on October 27, 2009 I wrote Part I of this series. This Part II tries to explain another aspect of The Way the World Works.

To understand how human societies are structured, or should be structured, and how they change with time, we need to consider what human beings in their rational dimensions are trying to do, or accomplish.

The World at its deepest, most fundamental level exists in states and changes with time according to a principle of optimizing some End over all possible paths. For classical motions of physical bodies, that is the Principle of Least Action, where for all possible paths, the chosen one is that one with the Least Action ("Action" is a combination of kinetic and potential energy). For classical electrodynamic fields and gravitational fields, a similar Principle exists from which one can derive the State of Nature and its time evolution. And for quantum physics, the states of nature are those that produce the maximum probability amplitude when all paths (real and virtual) are summed with complex number phases that are the classical action.

For human actions, Aristotle in his great work, Nichomachean Ethics, showed that human beings act to maximize their happiness. And also the State, comprised of all humans in a community, would maximize the sum of all human happiness in it. A person has various means to increase his happiness: wealth, pleasure, honor, children, family unity, friends, charity, etc. All those are means to the End, which is happiness: For no one seeks happiness for the sake of something else. People do seek wealth, perhaps thinking it will increase their happiness, or pleasure, or honor, or security and happiness for their children, or for their friends, or security and continuity for their family, or do works of charity for others. All those rational (and instinctive) actions are means for maximize a generalized happiness.

In the same work, Aristotle shows that various "goods" (in the sense of that which is good) are points of excellence between extremes. These are the moral virtues of prudence, temperance , courage and justice. For example, courage is the habitual choice of a state between the extremes of cowardice and foolhardiness. The point of excellence depends on the facts of each situation, which a truly courageous person learns with training. [NOTE: this concept connects to Part I of this series noted above.] Again, social custom for these virtues applies a principal of optimization.

Modern economic theory also uses a principal of optimization: a vague term called "utility" is maximized by people in their rational choices; for firms, profit is maximized.

And consider how a serious rational decision is made by a thinking person: he/she would contemplate the future course of events and paths and alternatives, real and simply possible ones; and then choose the "best" one for him. Best in what way ? Most wealth ? Nope, many actions contradict that rule. Most honor ? Nope, again, many counter examples exist. To me, Aristotle was right: a thinking person choose that action, or path that seems to maximize his happiness. Of course, he might err. The future is often unknowable and not all facts are known when a decision must be made.

At the next level, a community would, or should, seek to maximize the happiness of all people in it.

But that's the subject of a coming blog post where I will use all this to propose how one can sketch out a consistent political and economic philosophy with these principles and what a State implementing it would look like.

As a teaser, I will herewith state that my prior thinking that a Populist Libertarian philosophy was correct was wrong and that it must be modified. This is an personal example of why one must keep reading and questioning one's ideas. Reading one book [Aristotle's Nichomachean Ethics] made me realize I had made a fundamental error: my prior thinking for the correct political and economic philosophy was maximizing a Means, viz. freedom, not an End, viz., happiness. Those are connected but are NOT the same.

Obama

I did not watch his speech. These State of the Union speeches have become exercises in mass propaganda. I will read accounts to find out if anything new or interesting was said.

Word of the Day

"Vulpine" - adjective [$10]
Vulpine means 1. of or like a fox; 2. crafty, cunning
Sentence: Odysseus in the Homeric epics had a vulpine nature that was both celebrated and condemned.

35 comments:

maverick said...

does Timmie make it?

Spin-em said...

why does todays blog..piss me off???...

mfl59 said...

Very embarassing how Congress treats little Timmy. A bunch of grandstanding knaves. What would you have done Lynch, you punk?

Bunkerman said...

nope, I think Timmie goes by spring or sooner.

The jobs aren't coming ...

Bunkerman said...

agree re Congress being knaves and / or fools.

Part of the problem is the people testiyfing have no guts.

They could make Congres look like fools, but often have to kowtow.

Bunkerman said...

re today's blog ... ?

It should enlighten and edify you.

And leave you salivating for the teaser posting.

It provided deep insights, practical application, myself admitting error and a fine word of the day.

;-)

Hmmm perhaps ... no "Market" commentary. That is a repeat of yesterday: I am doing nothing.

Bunkerman said...

maybe you are just grumpy since you freezing as the clouds muck up your solar power

:-)

Spin-em said...

If allowed,people make decisions that make them happy....there ya go 9 words

grandiose...more about the writer than the subject(Big Al agrees)....15 YARD PENALTY

Bunkerman said...

Oh, there are only two paragraphs regarding how the writer is going to use this thought near the end.

That's called "motivation" and there are two 'i's in motivation.

Your nine words are just an incomplete specification of the principle: confronted with two or three choices that make them happier, which do they choose ? Your nine words miss that, and that is most of human choice.

Of course it's a grand(iose) topic: it's been a part of philosophical study for 2,500 years and is connected to economic, behavior, social systems, physics and philosophy

I don't always write to the lower common denominator.

But I admit it's a very dry topic. Maybe it's a tactical 5 yard penalty to set up a better position for a field goal.

Bunkerman said...

well, in the helmet contest, spin is looking good on both contests: 1071 and 1178.

A choppy year and he will win the combined event.

Spin-em said...

looooool....I hear ya bunkster..I like the sunboy reference...GAIN OF 10 YARDS

Frosty said...

Sal what are our chinlleee plays...since your backing up the rickshaw...rooting for ya, give ya hand with your favs.

Frosty said...

Mrs B any adds today...I realize the "sasaugeking" is hiding under the bar in the swordroom...just thought I would check in with a real investor.

Bunkerman said...

Mrs. B is at sheep herding with the Kelpies.

Bunkerman said...

gues I'd better look at some charts.

Bunkerman said...

resource stocks are sure taking a beating. getting close to re-buy points.

mfl59 said...

Bud chinlee can ruin lives sir...tread carefully...

Bunkerman said...

re-bought somem FCX, MT for Int. Term. trades.

Bunkerman said...

will add more on continued drop. "time diversification"

Spin-em said...

another frosty arm twister....make sure it meets the happiness criteria meter bunklemeister....loool

Bunkerman said...

lolololol.

nah ... these were my pre-determined points to begin to re-buy.

My guess for S&P low first half was 1000.

Frosty said...

maybe dump as a post and less personable, but spx 1072 looks to me like an area for at least a deadcatbouncer.

mfl59 said...

Bunkerman what is the site where you order those audio courses?

thanks sir...

Bunkerman said...

www.teach12.com

Frosty said...

Sal, I called of the dogs...nonono prison rules today...nonoo fear...I promise nono hurt your feelings.

Frosty said...

Bunky...are you Greek sir.

mfl59 said...

thanks Bunkerman...

any courses in particular you would recommend?

Bunkerman said...

1071 doesn't look special to me, unless its a fibonacci point of some kind.

To me, right around 1085 looks like a suport range going back aew months.

Frosty said...

thanks Bunky...you would know better than I ie reading the tea leafs.

Bunkerman said...

it all depends on your interests.

I've bought many in history, philosophy, literature, art, music.

The courses on Egypt by Bleier are superb. Rufus Fears is a fine lecturer. The human language course by McWhorter is great.

None in sciences, math.

Bunkerman said...

the usual beefer trick is to break logical support to run stops, then cover their shorts on the ensuing sells.

That might be what happend this AM.

Frosty said...

Bunky...what did you say that ran everyone off today...getting a -10 on my bunker joy meter..."time diversification" indeed.

Bunkerman said...

not me, frosty. I have been supportive and helpful all day.

;-)

Frosty said...

http://www.youtube.com/watch?v=GYKJuDxYr3I&feature=related


from your high shcool days Bunk, that does nutten for ya

tejasjeff said...

Bman Where did you get your Kelpie from?
US breeder or import?