In 1776 Adam Smith writes The Wealth of Nations “with the theory of the invisible hand that regulates everything on the planet. But Adam Smith did not become with it, only the father of modern economics with the emergence of social Darwinism that where such “invisible hand that regulates everything” was the setting for the poor, blacks and women somehow justify their ‘lack of adaptation’ to the social environment, to the law of evolution where can only survive the species more skilled. Adam Smith influenced many sectors of the society and recently I realized that the self-help books I read so much about teenage had a very significant part of this theory. Then at the end of his life seems he wanted or realized the “loopholes” of his then famous book “The Wealth of Nations” and wrote the “Theory of Moral Sentiments” but it seems that did not have the same impact as the first that satisfies well over expectations of status quo of the social elite. Today after several economic theories where even the characters of Catholic church as Thomas Aquinas has a captive chair with his theory of the “just price” and his criticism of the supply and demand system was more maturely approached by John Locke hundreds of years later. Now after millennia of economic theories and the great geniuses with their famous phrases, we have the same economic scenario where the privileged are increasingly privileged and the exploited are increasingly alienated to remain exploited. And yet the contrast increases when we see geniuses of modern economics as John Forbes Nash, who is even Nobel Prize in economics in 1994, simply being ignored by pages of academic research as Wikipedia. John Nash is the author of the theory of games and the “Nash Equilibrium” that is a situation where, in a game involving two or more players, no player stands to gain by changing his strategy unilaterally. To better understand this definition, suppose there is a game with n participants. During this game, each of n participants select their optimal strategy, ie, one that brings you the greatest benefit. So if each player reaches the conclusion that he has no way to improve his strategy given the chosen n–1 by their opponents strategies (strategies of the opponents can not be changed) then chosen by the participants of this game strategies define a ‘Nash equilibrium “. That is, an interaction with two or more people which will ensure the best outcome is when everyone in the group do not only what is best for himself but also for others. John Nash says further, “the calculation with the same variable offers several solutions for the same problem“, just that it is more likely to happen from the moment that everyone in two or more social situations is really willing to work and not sabotage everything as happens when a member for personal or not, matters not feel at a disadvantage in the situation, or just want all the benefits for himself.
Extracted text in full, with minor corrections made by me, from the blog LIVRES PENSADORES, whose link is below.
Note: I found today , 03.04.2016 , the blog “Livres pensadores” has been removed . I could not find another valid link.
On the River Nile, North Africa crocodiles live in large numbers. They are huge predators, some individuals being up to thirty feet. They are carnivores, of course, and their main food is the wildebeest which annually cross the rivers in their migratory movements. Despite being predators, crocodiles live in perfect harmony with nature. These huge animals cooperate with each other in obtaining food and respects the rules of coexistence with other animals in nature. There are numerous videos on YouTube (Animal Planet) showing scenes from the daily lives of crocodiles. For example, they expect a whole herd of wildebeest cross the river and attack the last individuals, those weaker or tired, the laggards. But here is a curious fact: only a crocodile attacking a Wildebeest. A struggle of life and death where the Gnu almost always loses out.. Yes, mostly because there are situations where the Gnu can escape death. It is curious to note that when a crocodile is overwhelming a Gnu, other crocodiles do not interfere. They stay all watching the fight. It is a struggle of one against one. It’s not an unfair fight. The crocodile uses all his strength to try to subdue the Gnu and this uses all his strength to try to escape at any cost. Sometimes this fight lasts more than an hour, and like any other fight, there are times when the crocodile is winning and there are times when the Gnu is winning. If the Gnu is unable to escape, it will be eaten. Only after the fight is set, that is, only after the gnu is completely overwhelmed, is when the other crocodiles approach and begin to ‘split’ the meal. It’s amazing that even in the world of predators, there may be fairness and sharing of food. Although they have never met a guy named John Forbes Nash, the crocodiles know and apply the “Nash Equilibrium” in their relationships with their peers and with the environment. Therefore, year after year they all live well, the community thrives, and there is food for everyone.
Crocodiles, like other reptiles, are beings whose brain structure is very simple and primitive. Only reptilian brain. There is no limbic brain (emotional) or cortex (rational). They are animals completely cold and emotionally empty. Their biological functions are simply feeding, mating and defending the territory. They do not have any form of communication or expression, language or whatever it is. And yet, they can naturally apply a principle of mutual cooperation, which puts us humans at a disadvantage because we are taught from early years just to compete, compete, compete, rarely cooperate. Now imagine that you can teach something to a crocodile. Imagine that you can take two individuals in the community, two alpha males, and teach to one of them, philosophy of Adam Smith. To the other individual would be given a course of Theology and would be given him a Bible. Now that both are properly graded, one with PHD in economics and another with PHD in Theology, release them in the community and leave them there. Go back a year later to see the result.
When you get back there in the community of crocodiles, you will have a rather unpleasant surprise: you’ll find a significant portion of individuals in abject poverty. No more wildebeest, plus there’s an absurd food shortages. What happened with Gnus? A half–dozen crocodiles, led by PHD in economics (remember?), decided to set up a great company to beneficiate Gnus. Gnus are captured, stored in cold storage (refrigerator) and then sold at gold price to the other crocodiles in the community. As it is a large company, several smaller firms had to be established, obviously for some more ‘smart’ crocodiles, to attend the needs of the largest enterprise with inputs, machinery, maintenance, supply of labor, etc. Crocodiles quickly learned the philosophy of Adam Smith, because there is even a database of unemployed labor crocodiles, which ensures that those employees will be well resigned and lay low and will not make many claims. Training courses have also been introduced so the crocodiles who want to have a job and so they could buy a juicy Gnu, will have to be properly trained. For those who are not qualified, it remains only to be self-employed (but how?).
But how is is possible that crocodiles have accepted all this inversion of values in their society? Simple: because they have primitive brains and are suggestible and easily influenced by fear. Remember the crocodile with PHD in Theology? Yeah … He joined the crocodile with PHD in economics and together they created a structure of type “Chief and Shaman.” The chief hired the hippos to be the local police. Hippos, although not carnivores or predators, are a well-tempered animals. A bite from a hippo can divide a crocodile in half, then the crocodiles, which previously coexisted peacefully with the hippos in a climate of respect, now fear hippos, as they are at the service of Chief. The Shaman, undertook the ‘brainwashing’ of crocodiles, relatively easy task since crocodiles have no neocortex, so they do not think or reason. They have only two basic reactions or primitive emotions; fear and aggression. So it is very easy to insert in their primitive minds the concepts of ‘sin’, ‘hell’ and ‘guilt’. Once inserted these concepts, it is extremely easy to control them and convince them to accept their condition as ‘slaves’ in a system of the proletariat. Once inserted these concepts, the fear will be responsible for keeping them indefinitely in their psychological structure and aggression will take care to protect them from any attempt to ‘deconversion’. Is also easy to insert in their primitive minds the concept of ‘hope’ and so, in the days of reptilian cult, waving with ‘The Return of the Great Alligator‘, a crocodile of a divine kind, that one day many years ago walked on the waters of the Old Nile, hunting Wildebeest and ‘sharing’ with underprivileged. Thus, the crocodiles remain conformal and resignedly awaiting the return of “Great Alligator” and, on the day when He returns, there will be no more hunger or poverty, or slavery. There will be a juicy Gnu for each crocodile. And they will wait forever because once the structure of “Social Darwinism“ has been established, based on the philosophy of Adam Smith on the crocodiles society, there is no possibility of return, even in the long term. Things tend to get worse and worse, but anyway, there is ‘hope’. They say that hope is the last to die and it is because hope dies along with the resigned crocodile, who spent a lifetime waiting for the return of the “Great alligator”.
Meanwhile, crocodiles society evolves. Now there is an ‘Exchange Gnus‘ based on ‘Nile Street’ and its main speculators earn a lot of money at the expense of the work of ‘proletarian‘ crocodiles. As Nile Street speculators have refined taste, they order young female alligators from “Pantanal” and pay a small fortune just to have sex. Some prefer the eastern, so they order female Malaysian crocodiles. Nile Street speculators do not eat Gnus, anyway Gnu is food for poorer ‘proletarian’ crocodiles, so they order anywhere in the world, not caring about the freight, ‘paws crab‘ by a mere cost of US$ 400 to dish, freight not included. They are also very strict about dress, so they use expensive sports shoes made of crocodile leather! Their females, also very demanding, use purses and belts made of crocodile leather! This ‘Nile Street’ staff literally ‘tear the leather’ of the people shamelessly.