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George Matafonov of Economics of Greed - Antivirus, invites you to reprint this article in your publication, ezine, or on your website.

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    Adam Smith the Real-life Grinch Who Stole Christmas and Won't Give It Back
    Copyright © 2004, George Matafonov

    At about this time each year, without fail, the lament will go 
    out about how the real meaning of Christmas has been lost. This 
    pre-Christmas tut-tutting is as much of a tradition as the 
    obligatory Christmas cards, and treated in the same casual way. 
    But for many, Christmas was stolen and Dr Seuss's Grinch didn't 
    do it.
    
    The economist Karl Polanyi was the first to notice the crime back
    in the 1940's. In his classic work, The Great Transformation: 
    The Political and Economic Origins of our Time, Polanyi drew 
    attention to a remarkable event without historical precedent 
    that discarded everything that had gone before. This was the 
    emergence in the nineteenth century of the market as the central 
    institution in our society, making the exchange of goods and 
    services the key feature of human life, bordering on becoming 
    the very reason for living. Understanding the nature of this 
    transformation is the key to unlocking the crime.
    
    But the latter day beneficiaries of this crime have become 
    masters of subterfuge. With teams of experts, they easily bog 
    down any attempt to get at the real story with complex economic 
    concepts and political jargon. To avoid this we remind them, 
    detective Goran style, that all systems, political, social and 
    economic have one thing in common-people.
    
    One of the tricks of the experts is to talk about these systems 
    as if they exist independently of people. This is one of the 
    oldest tricks in the book and enables the system to develop a 
    life of its own, to exist in its own right with its own goals, 
    ambitions and needs. It is important to remember these systems 
    don't exist in their own right-we make them, for us. Their 
    only goal is to provide a framework that encourages and enables 
    enough people to like one another enough to live and work 
    together, and that's all.
    
    Ultimately, it is all about how people interact with one 
    another. Finding the best way to interact has been the goal of 
    humanity since the earliest times. We've been searching for the 
    traits and characteristics that make humans like each other and 
    trust each other enough so they prefer to live in society, 
    rather than as a bunch of hermits. 
    
    Once we discovered these traits and characteristics, we then set 
    them up as ideal standards of behavior and called them virtues, 
    which found expression in our sense of decency and love. For 
    millennia, chief of these virtues was the idea of self-sacrifice.
    In other words, we found the best way to get people to like us 
    was to prove that we could be trusted to not only not harm them, 
    but also act consistently in their interest. People whom we can 
    trust in this way we call friends.
    
    We discovered there were levels of trust. The more we could 
    trust somebody the closer was our friendship. But the highest 
    level of trust was when we formed a relationship with another 
    person whom we could always rely on, no matter what, even if 
    it meant that one of us could personally lose out.
    
    We discovered that it was possible to form a relationship that 
    was so strong that each person in this relationship would not 
    think twice in putting down his or her life, for the sake of 
    the other. This we called love.
    
    With the discovery of love, we found the perfect standard for 
    society. We found that a society bound by the ideals of love 
    was not only incredibly strong and resilient, but the whole was 
    greater than the sum of the parts. Individually we were weak and 
    helpless, but cooperating as a society made us so powerful that 
    nothing seemed out of reach, nor impossible.
    
    In cooperating in this way, we discovered the secret of progress.
    Thus, the evolution of humanity can be seen as an evolution to 
    greater levels of cooperation extending from the clan to the 
    village, to the city and nation, and today, encompassing the 
    whole globe. Christmas is the celebration of the discovery of 
    this secret and veneration for one of its greatest teachers. 
    
    In gift giving, we remind ourselves of the central importance 
    of the selfless act, which is the foundation upon which trust, 
    friendship and love is built. In receiving a gift, we are 
    reminded of the practicality of this wisdom-the more selflessly 
    we give the more we receive. This is the secret of life.
    
    Leading up to the Great Transformation, we thought we had not 
    only discovered the secret of creating stable societies, but 
    that we had refined it to a fine art. Naturally, there were 
    disputes and disagreements, some resulting in war, but these 
    related to fringe issues: the central principles of human 
    relations were never in dispute.
    
    Imagine the surprise and shock when a group of thinkers in the 
    Middle Ages suggested this basis of society was so wrong, the 
    only option was to throw it out. That it needed to be replaced 
    with a new system, built on what amounted to an opposite set of 
    beliefs. The idea of self-sacrifice and selflessness was now 
    outdated, they said. According to this new thinking, the 
    opposite characteristic of selfishness was the key to building 
    a new society where trust was no longer necessary. These ideas 
    were initially received with shock and disdain, but eventually 
    they took seed finding expression in Adam Smith's Wealth of 
    Nations, a work of enormous scope and breadth, earning him the 
    title of father of the social science we call economics.
    
    According to these thinkers, this new economic system was able 
    to transform the vices of society into virtues through the 
    mechanism of the market. Thus pride, vanity and greed should no 
    longer be considered as bad, they said, but should be encouraged 
    and promoted as good because these were the engines of this new 
    society. 
    
    In this economic-based society, self-sacrifice, kindness and 
    altruism were to be avoided because these tendencies, they said, 
    created a class of people who were dependent on others. These 
    people could never fulfil their human potential, and rather 
    than being useful, contributing members of society, they became 
    parasites. As such, those who practiced self-sacrifice, kindness 
    and altruism were do-gooders of the worst kind. In their 
    misguided attempt at doing good, they were, in fact, doing 
    great, irreparable harm to those they were trying to help, 
    and to society in general.
    
    Even to this day, most people find it difficult or impossible 
    to reconcile these beliefs. I don't know of any parent who would 
    deliberately teach their children that sharing and being kind 
    to others was bad, and that being greedy and selfish was good. 
    Despite over one hundred years of indoctrination, most of us 
    still believe the self-centered, the greedy and the proud can 
    never be trusted and should be avoided. It is inconceivable that 
    these characteristics can form the basis of true friendship, let 
    alone love. 
    
    Yet, despite our continued misgivings, we continue to hold 
    the market as our central institution because the idea of 
    self-sacrifice-the gift of Christmas-has been stolen. As a 
    result, we are now tied to the market for our material needs, 
    even our very existence, forcing many of us to live a double 
    life. In private and family life, we try to live by the ideals 
    of love and altruism, but in our external dealings, we are 
    forced to live by the law of the market which is self-interest. 
    
    Living a double life makes it hard to bring up children in any 
    consistent way. The children hear their parents teach one set of 
    rules, but see them and the heroes of society behaving in exactly 
    the opposite way. And when the heroes of society are the greedy, 
    the vain and the proud; the job of the parents becomes almost 
    impossible.
    
    Living a double life is hard, if not impossible, because as 
    humans we need to live by a consistent set of beliefs. Eventually
    we gravitate to one set of beliefs, and because our most basic 
    need for survival is linked to the market, we start to adopt the 
    rules of the market as our own, sometimes imperceptibly. This 
    is why selfishness is now the distinguishing characteristic of 
    Western society. This is the reason our society is becoming a 
    society of the lonely, the divorced and the depressed.
    
    Polanyi argued that previously the market was imbedded in 
    society, meaning that all transactions in the market were merely 
    extensions of social relations.  In other words, extensions of 
    people relating to people and subject to the same considerations,
    where profit was merely an incidental by-product, not the sole 
    and only consideration. 
    
    As the economics of greed took hold, the market was extracted 
    out of this social context reversing all the normal rules of 
    social interaction in the process. In this new setting, 
    voluntary cooperation and altruism were driven out as people 
    were made to compete against one another. With competition 
    came greed and self-interest, and these were promoted as the 
    key virtues of a new type of human being-the Economic Man.
    
    The new system of economics was ruthlessly efficient, and 
    great strides were made in productivity, but at a huge cost-- 
    environmentally and socially. People surrendered their central 
    position in society, becoming just another commodity that could 
    be bought and sold in the marketplace. As a result, relations 
    between people came to be seen as extensions of market 
    transactions, and with this, the Great Transformation was 
    complete-people became nothing more than a means to an end for 
    other people. With this sleight of hand, the gift of Christmas 
    was not just stolen; it was replaced with unthinking consumerism.
    
    In the best tradition of Detective Goran, we place in front of 
    the culprits not only the indisputable evidence of their crime, 
    but also the repercussions. The pain and suffering of millions 
    that go hungry each day and without the basics of life while 
    a small minority live in luxury. The continued, heedless 
    destruction of our biosphere; the crime and the violence in our 
    streets, and the lies and the deceit that passes for politics.
    
    It is time to expose the hoax, cuff the culprits and reclaim 
    the gift of Christmas.  
    



    Writer's Resource Box:
    George Matafonov is author of Economics of Greed Antivirus: 
    Towards the Great Transformation back from Selfishness to 
    Cooperation. ( http://www.eofg.net )




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