Sapiens: A Brief History of Humankind
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Read between January 21 - July 10, 2020
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When capitalist governments and businesses consider investing in a particular scientific project, the first questions are usually, ‘Will this project enable us to increase production and profits? Will it produce economic growth?’ A project that can’t clear these hurdles has little chance of finding a sponsor.
Alex Wen
Hence, the importance of future value calculations in corporate finance and executive business plans during my MBA program.
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today a country’s credit rating is far more important to its economic well-being than are its natural resources. Credit ratings indicate the probability that a country will pay its debts. In addition to purely economic data, they take into account political, social and even cultural factors.
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belief in the free market is as naïve as belief in Santa Claus. There simply is no such thing as a market free of all political bias. The most important economic resource is trust in the future, and this resource is constantly threatened by thieves and charlatans. Markets by themselves offer no protection against fraud, theft and violence. It is the job of political systems to ensure trust by legislating sanctions against cheats and to establish and support police forces, courts and jails which will enforce the law.
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This is the fly in the ointment of free-market capitalism. It cannot ensure that profits are gained in a fair way, or distributed in a fair manner. On the contrary, the craving to increase profits and production blinds people to anything that might stand in the way. When growth becomes a supreme good, unrestricted by any other ethical considerations, it can easily lead to catastrophe. Some religions, such as Christianity and Nazism, have killed millions out of burning hatred. Capitalism has killed millions out of cold indifference coupled with greed. The Atlantic slave trade did not stem from ...more
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Learning how to harness and convert energy effectively solved the other problem that slows economic growth – the scarcity of raw materials.
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The Industrial Revolution yielded an unprecedented combination of cheap and abundant energy and cheap and abundant raw materials. The result was an explosion in human productivity.
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the Industrial Revolution was above all else the Second Agricultural Revolution. During the last 200 years, industrial production methods became the mainstay of agriculture.
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Just as the Atlantic slave trade did not stem from hatred towards Africans, so the modern animal industry is not motivated by animosity. Again, it is fuelled by indifference.
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In order to learn the necessary skills, evolution implanted in calves – as in the young of all other social mammals – a strong desire to play (playing is the mammalian way of learning social behaviour).
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For the first time in human history, supply began to outstrip demand. And an entirely new problem was born: who is going to buy all this stuff?
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Consumerism sees the consumption of ever more products and services as a positive thing. It encourages people to treat themselves, spoil themselves, and even kill themselves slowly by overconsumption. Frugality is a disease to be cured.
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Ecological degradation is not the same as resource scarcity. As we saw in the previous chapter, the resources available to humankind are constantly increasing, and are likely to continue to do so. That’s why doomsday prophesies of resource scarcity are probably misplaced. In contrast, the fear of ecological degradation is only too well founded.
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In 1847, British train companies put their heads together and agreed that henceforth all train timetables would be calibrated to Greenwich Observatory time, rather than the local times of Liverpool, Manchester or Glasgow. More and more institutions followed the lead of the train companies. Finally, in 1880, the British government took the unprecedented step of legislating that all timetables in Britain must follow Greenwich. For the first time in history, a country adopted a national time and obliged its population to live according to an artificial clock rather than local ones or ...more
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Village life involved many transactions but few payments. There were some markets, of course, but their roles were limited.
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Most human needs were taken care of by the family and the community.
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Romantic literature often presents the individual as somebody caught in a struggle against the state and the market. Nothing could be further from the truth. The state and the market are the mother and father of the individual, and the individual can survive only thanks to them.
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The deal between states, markets and individuals is an uneasy one. The state and the market disagree about their mutual rights and obligations, and individuals complain that both demand too much and provide too little. In many cases individuals are exploited by markets, and states employ their armies, police forces and bureaucracies to persecute individuals instead of defending them.
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Millions of years of evolution have designed us to live and think as community members. Within a mere two centuries we have become alienated individuals. Nothing testifies better to the awesome power of culture.
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The nation is the imagined community of the state. The consumer tribe is the imagined community of the market. Both are imagined communities because it is impossible for all customers in a market or for all members of a nation really to know one another the way villagers knew one another in the past.
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Nations existed in the distant past, but their importance was much smaller than today because the importance of the state was much smaller. A resident of medieval Nuremberg might have felt some loyalty towards the German nation, but she felt far more loyalty towards her family and local community, which took care of most of her needs.
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There is a positive feedback loop between all these four factors. The threat of nuclear holocaust fosters pacifism; when pacifism spreads, war recedes and trade flourishes; and trade increases both the profits of peace and the costs of war.
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To satisfy both optimists and pessimists, we may conclude by saying that we are on the threshold of both heaven and hell, moving nervously between the gateway of the one and the anteroom of the other.
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If we accept a mere tenth of what animal-rights activists are claiming, then modern industrial agriculture might well be the greatest crime in history. When evaluating global happiness, it is wrong to count the happiness only of the upper classes, of Europeans or of men. Perhaps it is also wrong to consider only the happiness of humans.
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happiness does not really depend on objective conditions of either wealth, health or even community. Rather, it depends on the correlation between objective conditions and subjective expectations.
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If happiness is determined by expectations, then two pillars of our society – mass media and the advertising industry – may unwittingly be depleting the globe’s reservoirs of contentment.
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So maybe Third World discontent is fomented not merely by poverty, disease, corruption and political oppression but also by mere exposure to First World standards.
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Buddha agreed with modern biology and New Age movements that happiness is independent of external conditions. Yet his more important and far more profound insight was that true happiness is also independent of our inner feelings. Indeed, the more significance we give our feelings, the more we crave them, and the more we suffer. Buddha’s recommendation was to stop not only the pursuit of external achievements, but also the pursuit of inner feelings.
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Most people wrongly identify themselves with their feelings, thoughts, likes and dislikes. When they feel anger, they think, ‘I am angry. This is my anger.’ They consequently spend their life avoiding some kinds of feelings and pursuing others. They never realise that they are not their feelings, and that the relentless pursuit of particular feelings just traps them in misery.
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