Interesting critique of emergence in natural systems.
Is the brain the producer of consciousness, or is the brain a receptor?
MindMatters
Why the Mind Cannot Just Emerge From the Brain
Robert J. Marks in conversation with neurosurgeon Michael Egnor
An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
I often hear people in my line of work saying “Man, we’re going to look back on all this crazy shit and think about how absolutely weird it was!
No we won’t. Because it’s only going to get weirder.
It’s only going to get weirder, because that’s what it looks like when old patterns start to fall away.
The human mind is conditioned to look for patterns in order to establish a baseline of normal expectations upon which to plan out future actions. This perceptual framework exists to give us safety and security, so disruptions in the patterns upon which it is based often feel weird, threatening, and scary. They make us feel insecure, because our cognitive tool for staying in control of our wellbeing has a glitch in it.
When you’re talking about a species that has been consistently patterned towards its own destruction, though, a disruption of patterns is a good thing....
At some point, everyone reaches a crossroads in life: Do you decide to take that job and move to a new country, or stay put? Should you become a parent, or continue your life unencumbered by the needs of children?
Instinctively, we try to make these decisions by projecting ourselves into the future, trying to imagine which choice will make us happier. Perhaps we seek counsel or weigh up evidence. We might write out a pro/con list. What we are doing, ultimately, is trying to figure out whether or not we will be better off working for a new boss and living in Morocco, say, or raising three beautiful children.
This is fundamentally impossible, though, says philosopher L.A. Paul at the University of North Carolina at Chapel Hill, a pioneer in the philosophical study of transformative experiences. Certain life choices are so significant that they change who we are. Before undertaking those choices, we are unable to evaluate them from the perspective and values of our future, changed selves. In other words, your present self cannot know whether your future self will enjoy being a parent or not....
Having established the epistemological significance of transformative life choices, there still remains the question of how, exactly, we should make such decisions. Paul is still figuring this out. So far, her best proposal is that, while you can’t know which choice you’ll prefer, you can at least decide whether you want to experience a transformation.Perennial wisdom suggests the principle, It is always reasonable to go beyond reason to love. The transformational power of love is the strongest force in human life.
Neither history, nor the present-day pace of scientific discovery supports the notion of diminishing returns to technological innovation. The challenge for growth economists is that analytic models are poorly suited to capture, and set society’s expectations for, these impending disruptions. Some consequences will be too pervasive and long-term to show up clearly in the immediate data. Some will change our behaviours, and by doing so invalidate prevailing economic assumptions. And some will transcend the economic sphere entirely to touch higher human values.
Growth economics is powerful. At its best, it is an empirical science that helps determine how to lift human wellbeing – one of civilisation’s most important tasks. But it is unable to capture the dynamism of our new age of discovery for a reason. Much that matters is still beyond its sight.The authors argue in the post that big changes are in the works and that a this will result in a paradigm shift. Pessimism in growth economics is unwarranted pessimistic.
How can we redesign money— and our mind-set—for a mature economy or an ecological civilization?…
Perhaps the defining issue of our age is that the human economy has grown to a scale where it impacts the environment at every level: on land, in the oceans, and in the air. As Kenneth Boulding put it, we are transitioning from a cowboy economy, where the world is an open frontier, to a spaceman economy, where we are restrained by natural limits.
This transition, ecologist Eugene Odum argued, resembles that followed by ecosystems as they become established. At the early stages of an ecosystem’s development, available energy (whose ultimate source is the sun) is rapidly exploited by a few species in a sudden bloom of growth. As the ecosystem matures, the food chain switches from a linear chain—carnivores eating herbivores eating plants—to a more web-like, decentralized structure in which multiple species interact in increasingly complex ways. The waste of one organism is recycled as food for another, and resources such as nutrients and minerals are conserved. An example of a mature ecosystem is a tropical rain forest, where most of the nutrients are not in the ground but in the trees and the species that live in them. The land itself has little agricultural productivity, as farmers discover if they cut down the trees and try to grow soy or provide pasture for cattle.
Economies also develop in a similar manner. In a society of pioneers, wrote Odum, “high birth rates, rapid growth, high economic profits, and exploitation of accessible and unused resources are advantageous.” As the economy matures, the emphasis switches to “considerations of symbiosis (i.e., civil rights, law and order, education, and culture)” and the recycling of resources. However this transition is a work in progress: “Until recently mankind has more or less taken for granted the gas-exchange, water-purification, nutrient-cycling, and other protective functions of self-maintaining ecosystems, chiefly because neither his number nor his environmental manipulations have been great enough to affect regional and global balances. Now, of course, it is painfully evident that such balances are being affected, often detrimentally.” And matters have not improved in the ensuing half-century, as carbon dioxide emissions have climbed and the lifesupport abilities of the planet have continued to degrade. We have grown richer in monetary terms but the hidden charges are mounting up.…Very much worth the read.
As the Harvard political philosopher Michael J. Sandel explains, “We have drifted from having market economies to becoming market societies. The difference is this: A market economy is a tool—a valuable and effective tool—for organizing productive activity. A market society, by contrast, is a place where almost everything is up for sale.” In this case: “What role should money and markets play in a good society?Lots of info that raises more questions than the authors are able to answer, which they recognize, but these are the kinds of questions that we need to answer in a complex adaptive system subject to emergence.
What the physicists DO believe, however, is that markets and economies are great examples of what scientists have come to call “complex systems” — systems of many elements (people, firms, etc.) with strong interactions between those elements which create webs of non-linear feedback. The elements learn and adapt, their interactions create “emergent” coherent structures and fluctuations at the collective level, and these structures then act back downwards to influence the behavior of the elements. What happens in the system comes about through this interplay of bottom-up and top-down cause and effect. In this sense, economic systems share a deep character with many physical or biological systems from the earth’s crust to turbulent fluids to ecosystems. It’s this complex systems aspect of economics which makes physicists believe that ideas from physics (and other natural sciences) can be useful in economics.
This is precisely why many physicists, myself included, are convinced that modern economics is indeed, in an important sense, “held back because of a deficiency of mathematical tools and techniques”, to use Chris’s words. I can’t do better than to quote a short section from Brian Arthur’s excellent article Complexity Economics, which describes what many people (including physicists) believe is lacking from current economics:The Physics of Finance
Economists have long argued that they shouldn’t be expected to predict crises, such as the one that almost sank the global economy five years ago.
That depends on how you define the word “predict.”...
The answer is that predictions can be useful without being quite so precise. Scientists make valuable predictions all the time that have little to do with foreseeing the future, but develop our understanding of cause and effect....
In this sense of a causal relationship, quite a few people did foretell the financial crisis....
The challenge for economists is to find those indicators that can provide regulators with reliable early warnings of trouble....
One problem has been “physics envy” -- a longing for certainty and for beautiful, timeless equations that can wrap up economic reality in some final way. Economics is actually more like biology, with perpetual change and evolution at its core. This means we’ll have to go on discovering new ways to identify useful clues about emerging problems as finance changes and investors jump into new products and strategies. Perpetual adaptation is part of living in a complex world.Bloomberg
Economics has long had the ambition to become an “exact science”. Indeed, Walras, usually recognised as the father of modern economic theory, said in his Lettre no. 1454 to Hermann Laurent in Jaffe (1965):
“All these results are marvels of the simple application of the language of mathematics to the quantitative notion of need or utility. Refine this application as much as you will but you can be sure that the economic laws that result from it are just as rational, just as precise and just as incontrovertible as were the laws of astronomy at the end of the 17th century.”Furthermore his successors openly declared themselves as having the same goal...
This model of “perfect competition” is considered a useful idealization, and features such as the aggregate effects of the direct interaction between individuals are thought of as inconvenient “imperfections”. However, deviations between economic theory and reality may be of crucial importance in practice, and the consideration of the links between individuals and institutions cannot be written off as being of little relevance to the behaviour of the system as a whole. This is a lesson that is clear to all those, who are familiar with the analysis of complex systems.
One of the most important insights King makes is this: the idea of reducing macroeconomics to neoclassical microeconomics is an instance of the strong reductionist fallacy.
Strong reductionism has already failed, not only in biology, but also (more importantly) in the social sciences (King 2012: 226). There are fundamental emergent properties in macroeconomic systems that make their reduction to microeconomics impossible (King 2012: 226).
For example, a lower-order set of parts in a biological system may interact in ways that cannot be inferred by reductionist analysis (King 2012: 51). The principle of “downward causation” consists in the manner by which a “whole” (a system broadly defined) may affect, constrain or influence its parts.
In economics, we see macroeconomic phenomena that are irreducibly social in nature.
Nor does the strong version of methodological individualism work (King 2012: 60; see also Hodgson 2007). For interactions between individuals may cause “emergent properties” or (that is to say) novel properties not displayed by, or deducible from, the individuals in isolation.Social Democracy For The 21st Century
King gives two reasons for the continuing attraction of the neoclassical microfoundations delusion: physics envy and politics in the age of neoliberalism (King 2012: 229). Reductionist ontological thinking in economics is nothing less than the attempt to reduce macroeconomics to the aggregate of micro behaviour, and the assumption of individual rationality implies a socially rational outcome (King 2012: 229, quoting Denis 2009: 14). In other words, this method produces the delusion that laissez faire results in the best economic outcomes.
I think you’ve put your finger on a major issue here that is often not made explicit when ideas from complexity are applied to social systems. This has created a lot of confusion and miscommunication and we need more discussion at this level to clarify the issue. I think it was Popper who noted that since our actions in the world are strongly affected by our view or model of the world – and this changes with experience – then strongly predictive theories of the social world are logically inconsistent since they imply we can predict now how we will view the word tomorrow. Or to put it another way: if we can know now how we will view the world tomorrow then why are we not viewing the world like that now? Or to put it even more starkly – if you could produce a model that predicted the next theoretical breakthrough in physics then you’ve already made that breakthrough.
On the subject of coherent theories of collective action – well, there was the old classic by Mancur Olson “the logic of collective action” but that was from a purely rational action perspective. I would say that the more recent classic by Eleanor Ostrom “governing the commons” is the good start on this enterprise – based as it is on empirical work and self-organisation principles. What is true of both through is that importance of the group, how it is defined, where its boundaries are and how the behaviour of some relate others.Greg Fisher recommends The Romantic Economist: Imagination in Economics by Richard Bronk. Here is some information at Amazon:
Since economies are dynamic processes driven by creativity, social norms, and emotions as well as rational calculation, why do economists largely study them using static equilibrium models and narrow rationalistic assumptions? Economic activity is as much a function of imagination and social sentiments as of the rational optimisation of given preferences and goods. In this 2009 book, Richard Bronk argues that economists can best model and explain these creative and social aspects of markets by using new structuring assumptions and metaphors derived from the poetry and philosophy of the Romantics. By bridging the divide between literature and science, and between Romanticism and narrow forms of Rationalism, economists can access grounding assumptions, models, and research methods suitable for comprehending the creativity and social dimensions of economic activity. This is a guide to how economists and other social scientists can broaden their analytical repertoire to encompass the vital role of sentiments, language, and imagination.David Colander likes it, too: "The book is superb-a wonderful blend of common sense, erudition, and imagination." - David Colander, Christian A. Johnson Distinguished Professor of Economics, Middlebury College
Yes. The problem is that " modern " economics is just old Benthamite Utilitarianism in new mathematical garb
By Michael Emmett Brady VINE™ VOICE
The author has,in general,put his finger on the fundamental problem facing economics today as it is taught to undergraduate/graduate students in the average college/university economics class. The problem is that economics is just the latest use of cribbed mathematical and statistical techniques shoehorned to fit the latest version of Benthamite Utilitarianism,which is what all variants of neoclassical and Austrian economics are. The author correctly points out that the " Romantics " rejected Benthamite Utilitarianism He recommends their writings as a counter weight to Benthamite Utilitarianism. However,a more powerful antidote , in my opinion,would entail going back and digesting what was written in the Old and New Testament, as well as in the works of Aristotle, Plato, Augustine, Thomas Aquinas and Adam Smith. Smith ,for instance completely rejected both libertarianism and Benthamite Utilitarianism in Part V of The Wealth of Nations (1776). Unfortunately, Part V of the Wealth of Nations is not taught /covered in any undergraduate/graduate level course at any college /university in the world .
The discovery of irrational numbers caused a break in Greek mathematics between arithmetic and geometry. The Greeks could not accept the fact that some lengths were incommensurable with rational numbers. Therefore, they decided that numbers could not be associated with lengths. Unfortunately, this decision led to a division between arithmetic and geometry that was not reconciled until the time of Descartes. (Math Lair)Similarly, Aristotle had posited that the motion of heavenly objects must be circular because of the perfect form of the circle. This presupposition was at the root of the resistance to change in astronomy from a Ptolemaic system of epicycles to the simpler heliocentric Copernican system, later explained by Kepler, who was the first to use elliptical orbits.
If you want to argue against mainstream economics, a mainstream economist can dismiss you as ignorant of some model variation and as attacking a strawperson. Furthermore, this dismissal could be "justified" by just checking whether you have a degree from a small number of schools, and, if you do, just mocking you as not having fully learned what they are teaching. Thus, your time can be taken up with argument about whether you know what you are talking about. The mainstream economist never need get to the point of engaging a critique.The economics profession is broken and it cannot be fixed without replacing those who adhere religiously to discredited dogma, which looks suspiciously like a conservative preference for government as an adjunct to business rather than the ordering mechanism of society as a complex system in which emergence presents challenges that markets alone are not suited to address.