Of Austrian Economic Thought

                    The Austrian School of economic though emerged in the Austrian Empire in late 19th and early 20th century and its theories are based on methodological individualism.  Methodological individualism is the idea that social phenomena come from the intentions and actions of individuals.  Also, the school came about partially to criticize Marxism and the historical methods of analysis economist in Germany used. This school of thought first appeared in the work of Carl Menger when he published the book,  "Principles of Economics".  This book is considered to be one of first treatise on marginal utility of the modern era.  Also, the school's introduction of subjectivist approaches in economics led to the marginalist revolution of the 1870's.  Also, the "Physcological School" or "Vienna School" began to develop around Menger's work.  Menger's work was carefully read by  Eugen Böhm von Bawerk and Friedrich von Wieser.  Lengthy critics of Karl Marx were written by Böhm-Bawerk in the 1880's and 1890's.  This work was part of these three economist's participation in the Methodenstreit in the late 1800's.  The Methodenstreit (Method Dispute) was a dispute between Marxist in Germany, Austrian economist, and other economist that either supported or opposed Marxism. 
               Frank Albert Fetter led Austrian economic thought in the U.S in the early 20th century.  Fetter's wrote a comprehensive work on Austrian economic thought titled, "The Principles of Economics" which restored American interest in the Austrian school.  Also, a few important economist were trained at the University of Vienna during the 1920's.  Eventually, these economists participated in private seminars held by Ludwig Von Mises.  Among these economists were Gottfried Haberler, Friedrich Hayek, Fritz Machlup, Karl Menger (son of Carl Menger), Oskar Morgenstern,Paul Rosenstein-Rodan and Abraham Wald, among others.  Most recognized the profound techniques the Austrian School developed for micro-economic analysis.  However, many of the Austrian school's theories on macro-economics were rejected due to lack of empiricalism and mathematical models.  This problem led to many economists rejecting Austrian economic thought in favor of the mathematical models developed by John Maynard Keynes among others.  By the mid 20th century there was no distinct Austrian school in the U.S.  Also, during this time, the Austrian school began to split due to a disagreement about whether or not neo-classical economic models could be used effectively.  Mises fiercely criticized the neo-classical models and was a staunch libertarian believing that any government intervention would only harm the economy.  However, Friedrich Hayek found many of the neo-classical models usefull and was not entirely opposed to government intervention.  In 1974 Hayek won the Nobel prize for economics alongside Swedish economist Gunnar Myrdal.  Thus, public interest in the Austrian school increased and Hayek's research was instrumental in the reemergence of laissez-fair thought in the 1900's. 
            Many of the ideas developed by first wave Austrian economists have become widely accepted in modern economics.  Those theories include Carl Menger's theories on marginal utility, Friedrich von Wieser's theories on opportunity cost, and Eugen Böhm von Bawerk's theories on time preference.  Also, Menger and Böhm-Bawerk's criticisms of Marxian economics made noteworthy contributions to modern economics.  In 1981, Frich Machlup compiled the usually ideas of economists that are part of the Austrian school. 

            "Methodological individualism: in the explanation of economic phenomena, we have to go back to the actions (or inaction) of individuals; groups or "collectives" cannot act except through the actions of individual members. Groups don't think; people think.

Methodological subjectivism: in the explanation of economic phenomena, we have to go back to judgments and choices made by individuals on the basis of whatever knowledge they have or believe to have and whatever expectations they entertain regarding external developments and especially the perceived consequences of their own intended actions.

Tastes and preferences: subjective valuations of goods and services determine the demand for them so that their prices are influenced by (actual and potential) consumers.

Opportunity costs: the costs with which producers and other economic actors calculate reflect the alternative opportunities that must be foregone; as productive services are employed for one purpose, all alternative uses have to be sacrificed.

Marginalism: in all economic designs, the values, costs, revenues, productivity and so on are determined by the significance of the last unit added to or subtracted from the total.

Time structure of production and consumption: decisions to save reflect "time preferences" regarding consumption in the immediate, distant, or indefinite future and investments are made in view of larger outputs expected to be obtained if more time-taking production processes are undertaken.

He included two additional tenets held by the Mises branch of Austrian economics:

Consumer sovereignty: the influence consumers have on the effective demand for goods and services and through the prices which result in free competitive markets, on the production plans of producers and investors, is not merely a hard fact but also an important objective, attainable only by complete avoidance of governmental interference with the markets and of restrictions on the freedom of sellers and buyers to follow their own judgment regarding quantities, qualities and prices of products and services.

Political individualism: only when individuals are given full economic freedom will it be possible to secure political and moral freedom. Restrictions on economic freedom lead, sooner or later, to an extension of the coercive activities of the state into the political domain, undermining and eventually destroying the essential individual liberties which the capitalistic societies were able to attain in the 19th century.", "Austrian School" 

                    In the late 18th century and early 19th century Austrian economist  Eugen Böhm von Bawerk developed the Austrian theory of capital and interest.  This theory states that interest rates and profits are determined by two factors, namely supply and demand in the market for final goods and time preference.  Also, the theory links capital intensity with the degree of roundaboutness of production processes.  Böhm-Bawerk stated that he law of marginal utility necessarily implies the classical law of costs.  Therefore, Some Austrian economists disagree with the idea that interest rates are affected by liquidity preference.  According to Mises, inflation was caused by an increase in the money supply.  The economic calculation problem is a criticism of socialism that began when Max Weber pointed it out in 1920.  Also, that some year Mises published an essay titled, "Economic Calculation in the Socialist Commonwealth" in which he argued that the pricing mechanism in socialist systems wouldn't work simply because the government built all of the equipment necessary for production.  Therefore, all of the capital goods put into factories were internal transfers and not purchases.  Thus, government officials would be unable to price goods and services accurately and resources would be allocated inefficiently. Later on Mises had conversations about Weber's ideas with his student Friedrich Hayek.  Hayek incorporated Weber's ideas into his work including a book titled, "The Road To Serfdom".  The Austrian school emphasizes the organizing power of markets.  Hayek argued that market prices reflect information, the whole of which is not one to any one individual, which determines the allocation of resources in an economy.  According to the economic calculation problem, since socialist systems lack the individual incentives and pricing mechanisms found in capitalist systems, socialist economic planners lack the incentive or the information necessary to make good decisions.  The debate of the economic calculation problem rose into the mainstream in the 1920s and 1930s.  Eventually, this particular period of debate became known as the socialist calculation debate. 

                    Mises developed the Austrian business cycle theory and Hayet later expanded upon the theory.  This theory states that booms are caused by excessive lending that results from low interest rates and low reverves held by banks.  Eventually, once the banks run out of money to lend there is a recession because the debt fueled economic cannot continue while businesses and consumers are burdened with debt.  This leads to bankruptcies, foreclosers, and mass unemployment. Much of the Austrian school believes that a recession is necessary to rebalance the economy after a long period of malinvestment caused by excessive lending.  In other words, the Austrian school teaches that duing a boom excessive lending causes inefficient investments or malinvestment and an inefficient allocation of resources.  Therefore, only a recession can cause resources to be reallocated efficiently as debt is slowly either paid off or defaulted on.   Ludwig von Mises argued that central banks allow commercial banks to lend money at artificially low interest rates and creates a period of inefficent debt fueled growth.   Friedrich Hayek however argued against perfect competition in the banking industry and that central banks were absolutely necessary to ensure the stability of the financial system.  It is import to note that some economist within the Austrian school argue for a gold standard because fiat currency, which is back by the government issuing the currency, is not based on the free market.  Although, some Austrian economists disagree with this assessment.  The Austrian school tends to be libertarian believing that the government should not intervene in the economy.  While some modern economists within the school are more accepting of government intervention.  

                     Some economist still argue that modern Austrian economic thought ignores mathematical models in favor of analyzing individual behavior.  Also, economists disagree over whether socialism works.  Some have pointed to the low rates of poverty and relatively low income inequality in socialist countries such as Sweden.  While others have argued that these socialist government are using resources less efficiently then the private and therefore is slowing down economic growth.  It is important to note that these socialist countries have components of both capitalism and socialism.  In these countries people are free to choose their career, start a business, and make decisions for themselves as a consumer.  While the government engages in massive social welfare programs such as universal health care and retains control over certain industry leaving all the other industries to the free market.  It is important to note that the Austrian business cycle theory has some truth to it because as we saw in both the 2008 recession and the crash of 1929 debt was heavily involved in both cases.  Investors over burdened themselves with debt to buy stock throughout the Roaring 20's and prime mortgage lending fueled the housing bubble.  However, the theory lacks components such as explanations for involuntary unemployment and why investors become euphoric during asset bubbles.  The problems with a gold standard emerged during the Great Depression when the Federal Reserve could not print more money because there was not enough gold available to back the currency.  Eventually, this led to the U.S, along with most countries around the world, moving to a fiat currency that is only back by the guarantee of the federal government.  The Austrian school's explanation for inflation fails to take into account supply and demand for goods and services while it argues that inflation is caused by an increase in the money supply.  As we saw with oil prices in the 1970's and 1980's inflation was caused by high oil prices due to an embargo on several Middle Eastern countries.  Austrian economic thought is useful for micro-economic analysis and rarely useful for macro-economic analysis.  Although, there are problems with solely relying on mathematical models for economic analysis.  

References

   "Austrian School" 

https://en.wikipedia.org/wiki/Austrian_School

      

Of Game Theory

                     The mathmatical modeling of strategic interaction between rational decision makers is referred to as game theory.  In 1713 in a letter written by Charles Waldegrave he analyzed different strategies for the two person version of the card game le Her and he wrote this letter to his uncle and French diplomat James Waldegrave.  Eventually, these set of strategies for the two person card game became known as the Waldegrave Problem and the letter was the first known conversation about Game Theory.  Former U.S president James Madison made a model of the possible behaviors of states under varoious systems of taxation.  This model would become recognized a game theory model.  In 1838, French philosopher and mathmatician,  Antoine Augustin Cournot published a book titled, "Researches into the Mathematical Principles of the Theory of Wealth".  However, Cournot's work provides a model that is a limited version of John Nash's later equilibrium.  German logician and mathmatician  Ernst Zermelo published a book titled, "On an Application of Set Theory to the Theory of the Game of Chess" in 1913.  This book lead to more in depth analysis of strategic interaction.  Danish economist Fredik Zeuthen found that the mathmatical model is a winning strategy by utilizing Brouwer's fixed point theorem.  In 1938, French mathmatician and politician, Émile Borel published a book titled, "Applications [of probability theory] To Games of Chance; Professed Course at the Faculty of Sciences of Paris".  In this book Borel developed a minimax theorem for two-person zero-sum matrix games only when the pay-off matrix was symmetric.  Borel also proposed that that non-existence of mixed-strategy equilibria in two-person zero-sum games would occur.  However, this idea was later found to be incorrect.
                    In 1928 game theory emerged as a distinct field of study when Hungarian-American mathmatician, physicist, computer scientist, and polymath John von Neumann published a paper titled, "On the Theory of Games of Strategy".  In this paper Von Neumann's original proof utilized Brouwer's fixed-point theorem on continuous mappings into compact convex sets. Thus, this become a standard method in game theory and mathematical economics.  In 1944 Von Neumann published a book titled,  "Theory of Games and Economic Behavior" which he co-authored with Oskar Morgenstern.  In the second edition of this book, Von Beumann proposed  an axiomatic theory of utility, which revived Daniel Bernoulli's archaic theory of utility (of the money) as a seperate field of study.  Also, Von Neumann's 1944 book was the culmination of his research into game theory.  This elementary literature consists of a way to find  mutually consistent solutions for two-person zero-sum games.  Throughout the 1950's research into game theory primarily focused on cooperative game theory in which some of the parties involved in the strategic interaction would mutually agree to follow a certain strategy.  Also, the agreement between these parties were assumed to enforceable.
                       In 1950, a mathmatical model of the prisoner's dilema was developed, and an experiment was performed by exceptional mathmaticians Merrill M Flood and Melvin Dresher, as a portion of the RAND campany's research into game theory. RAND did research into game theory because of its possible application to the arms race between the Soviet Union and the U.S.  During this time period, American mathmatician, John Nash developed a criteria  for mutual consistency of players' strategies applicable to a wider variety of games than the criterion proposed by von Neumann and Morgenstern.  Also,  Nash found that every n-player, non-zero-sum (not just 2-player zero-sum) non-cooperative game has this model.  This model became known as the Nash Equilibrium.  During the 1950's research into game theory increased dramatically as the U.S government hired game theorist to help them understand the strategic interaction between the U.S and the Soviet Union.  Also, the ideas of the core, the extensive form game, fictitious play, repeated games, and the Shapley value were developed.  In Addition, game theory was starting to be applied to philosophy and political science during this era.
                 In 1979, American political scientist Robert Axelrod attempted to set up computer programs as players and found that in tournaments between them the winner was often a basic "tit-for-tat" program that works together on the first step, then in later stages just does whatever its opponent did on the last step. The same winner was also usually obtained by natural selection; a fact widely taken to explain cooperation phenomena in evolutionary biology and the social sciences.  In the 1970's, the research of British thereotical and mathmatical evolutionary biologist and geneticist John Maynard Smith and his  evolutionarily stable strategy led to game theory to be deeply applied to biology especially evolution.  Today game theory techniques are used by many social scientist, biologist, and economist to model strategic interaction between people, organizations, and even, in the case of biologists, animals.  Game theory can be applied to any situation involved strategy.

References

"Game Theory"

https://en.wikipedia.org/wiki/Game_theory

Of The Death Of Money

                     For the last decade China has been manipulating its currency to make its currency weaker against the United States dollar.  Thus, allowing China to flood the U.S market with cheap goods.  When a country has a currency relatively weaker than other countries currencies that country can easily export goods to other countries as its goods are cheaper.  Conversely, if a country has a currency that relatively stronger than other countries currency than that country would struggle to export goods as that country's goods would be more expensive.  As I've mentioned in previous blogs central banks strive to keep inflation high enough to ensure that growth can occur while keeping inflation low enough so that prices do not increase faster than wages.  Typically, an industrialized country such as Japan would want an inflation rate of 2%.  It is important to note that 2% is a normal inflation target for central banks in countries such as the U.S and Japan.  Inflation has been relatively low in the U.S in recent years.  However, the price of health care and college tuition continue to sky rocket.  While wages remain relatively stagnate.  It is important to note that health care expenses is the leading cause of bankruptcy in the U.S and student loan debt in America is well over a trillion dollars.  This could lead to yet another financial crises if for some reason college graduates are unable to find work.  Also, the U.S federal government in over $20 trillion of debt.  Much of this debt is owed to other countries and this too could result in a financial crises.
                Despite this concerning situation I think the economy is going to slow burn not crash.  In other words, the economy the economy will slowly become more and more inefficient until it is unable to support more debt fueled growth rather than suddenly crash.  Catherine Austin Fits has frequently pointed out in her quarterly wrap ups that the economy is not going to crash its going to slow burn.  Indeed, when a financial market crashes it does not happen out of a void there is a lengthy process leading up to that event.  One the biggest problems with the mainstream media is that it makes it seem as if events are happening suddenly out of a void.  In reality these events had a long process leading up to them.  I would discourage readers from paying too close of attention to mainstream media.  Instead read about subjects that you are interested in and find alternative media outlets on websites such as You Tube.  Also, one could probably find a podcast for just about every subject.        
                As I've pointed out in previous blogs, debt as monetized currency is coming to an end for reasons I've pointed out in this blog and previous blogs.  When this happens there will be a void that would have to be filled.  Some people have argued that there will be hyper-inflation.  I do not think that Americans will lose confidence in the U.S dollar because they have been raised to believe that it has value.  Also, if they lose trust in the U.S dollar they have few alternatives to use as currency.  Electronic currencies such as Bitcoin have proven to have volatile values and it would be difficult for Americans to switch to using the currency of a foreign country.  Therefore, hyper-inflation should not occur.  As I've pointed out in a previous blog the government can try to fill this void by printing money through the central bank or individuals could fill the void by establishing debt free money simply by saving money and localizing the economy.  Localizing the economy would mean that consumers would buy from locally owned businesses when possible and people with time and money to invest would invest regionally and locally.  This course of action would stabilize the economy and further stabilize the currency.  Middle class and working class individuals would have the most to gain from a localized economy.  

Of Western Esotericism

                    Western Esotericism is a movement that has its origins back to the Hellenistic Eastern Mediterranean, then it continued into the middle ages and the renaissance period as the works of ancient Greek and Roman philosophers were translated before its emergence from the enlightenment as a "modernist occult" movement with esoteric lodges appearing in Europe and North America in the early 1900s. Finally, in the early 20th century it became a multi-disciplinary subject in America that encompasses theology, alchemy, and the arts used primarily to study the impact of esotericism on Western culture and Christianity.  It is important to note the medieval Greeks and Byzantines of South Eastern Europe never lost ancient Greek and Roman tradition, so they would have indeed been able to carry on the esoteric traditions of the ancient Greeks and Romans.  Arabic cultures are well known for their translations of ancient Greek and Roman philosophy during the medieval era.  This allowed North African and Middle Eastern civilizations to make notable advancements in math, medicine, and engineering.  Scholarship was promoted throughout much of the Near East, North Africa, Greece, and Byzantine throughout the middle ages and renaissance.
               Western Esotericism includes the tribal religions that most of ancient Europe had before the spread of Christianity throughout the early Middle Ages.  Indeed, these esoteric traditions combined with those of ancient of ancient Greece and Rome had a profound impact on Christianity and Western culture.   It is important to note that ancient Egyptian and Sumerian culture influenced Greek and Roman culture.  Thus, western culture and Christianity was indirectly influence by ancient Egyptian and Sumerian culture. The study of these cultural influences is often referred to as Western Esotericism and few scholars still study it to this day.  In my view, the "modernist occult movement" is evidence that these ancient esoteric traditions were indeed passed down and perhaps even practiced by secret societies.  If this is true then that means that western culture and Christianity is still being directly influence by these ancient traditions to this day and that is high octane speculation.  I would say that there is maybe a 20% chance that this is indeed true.  Also, if some people read ancient Greek and Roman philosophy or ancient Sumerian literature such as The Epic of Gilgamesh it would be yet another way that these ancient traditions could influence western culture.  It is important to note that Irish Folklore, Norse Sagas, and other ancient literature from pre-Christian Europe would also be good to read.

Of Health And Wellness

                     In theory one can stay healthy by consuming a healthy diet while exercising regularly.  Some people cannot exercise because of health problems or physical limitations.  It is important that well eating healthy is important it is usually uncessary and unhealthy for one to over analyze his diet to ensure that it is healthy.  As long as someone has an overall healthy diet than that person should be able to stay healthy. However, sometimes there are independent forces that could adversely effect someones health such as a virus that causes an illness or a chronic health problem that developed over time.  In some extreme cases of this a doctor may be needed.  Organic food is healthier than other food because fruit and vegetables often absord pesticides and have GMOs in them.  Organic food deos not have GMOs or pesticides in them.  Also, meat without GMOs may be healthier than meath with GMOs in it.  It is important to note that if you have questeions about exercsing or a healthy diet than you should talk to a registered dietition or a personal trainer.   

Of The Problems With Mormonism

                    Joseph Smith claimed to have dug up plates that contained a new testiment to the bible. Smith claimed that "seer stones" were found with the plates.  He put the plates into in a hat in a dark room and used the seer stones to supposedly translate the text while another man wrote down what Smith was saying.  Smith claimed that the plates could not be seen by anyone besides him or that person would die upon seeing the plates.  Also, he claimed the texts were written in reformed Egyptian and the discoveries from the Rosetta Stone that would have been necessary to translate the texts if in fact they contained a new testiment of the bible did not make to North America by the time the book of Mormon was published in 1830.  Also, the book of Mormon claims that two tribes of Isrealites lived in North America from circa 650 BC to around 330 AD.  According to Mormon tradition, a small group of Isrealites sailed to North America in 650 AD and the split into two tribes happened much later.  Also, these tribes practiced the teachings of Methodist hundreds of years before Jesus was born while retaining their Jewish customs and beliefs.  It also asserts that these two tribes had their own priesthood independent of the priest hood that God had promised to only certain tribes of Isreal.  Indeed, according to the book of Mormom, none of the tribes God promised priesthood to was in North America.  God even told the priests that no one else would be promised priesthood by him.  It is not possible that God would promise another group of Isrealites priesthood after promising one group of Isrealites exclusive priesthood.  God is not a deciever.  Also, it is not logical that Jewish people could have practiced Methodist teaching hundreds of years before Jesus was born. 
                 The book of Mormom claims that the Jews in North America built temples, cities, and shrines.  There is no archealogical evidence that such a group of Jews had ever lived in North America.  Indeed, these ancient people lacked the technology neccessary to obliterate their cities and temples to the point where no evidence would survive.  The book of Mormom also claims that the two tribes of Isreal that supposedly lived in North America had a war.  According to Mormon tradition, the Nephites were with God and the Lamarites rebelled against God.  The book of Mormom asserts that at the end of the war God punished the Lamarites by darkening their skin and that this group became the Native Americans that we know of today.  It is important to note that Mormons believe that men can become Gods by living a good life and women can only become God's if their husbands allow them to.  This claim implies that Mormoms believe that God was once a man.  This a form of polythiesm not legitamite Christianity.  Christians believe in one eternal God now and forever.  Also, Christians do not believes that men and women can become Gods.
             Joseph Smith was a criminal and a con man.  Four years before he published the Book of Mormon Smith was convicted of being a con-artist and imposter in the state of New York.  He was claiming to be a necromancer and a charlatan.  He was wanted in Ohio for fraudulent banking practices.  Smith profited by publishing the Book of Mormon because he charged money for it.  After he founded the Mormon Church Smith and his followers moved to Utah.  The Mormons engaged in polygamy.  Also, the Mormons would often make up the majority of a town's population and vote as a block to ensure the political dominance of the Mormon church.  Since its founding Mormonism has spread far and wide.  The Mormon church requires newly confirmed members to spend at least two years doing missionary work.  Mormonism has spread to countries such as Spain and the U.K. 

References

"Conclusions About Mormonism"

https://www.padfield.com/2005/mormon-comparisons.html

Of the Lawsuit Against Monsanto By Vietnamese Legal Organization

                    Several months ago Monsanto was ordered by a court to pay $289 million dollars to an American citizen who claims that Monsanto's weed killer caused his cancer.  Monsanto supplied the U.S with Agent Orange during the Vietnam War.  Agent Orange was used to burn through the jungle that the Vietnam soldiers hid in.  The chemical agent has been known to cause debilitating health problems, birth defects, and infertility.  In spring 2017, after  Monsanto Tribunal in The Hague, the Netherlands spent six months investigating and two days testifying, came to the conclusion that Monsanto produced a chemical agent that greatly harmed the environment in Vietnam.  Monsanto rejected the ruling and claimed that the company was not at fault because Monsanto produced Agent Orange for the U.S government to use.  However, the firm still agreed to pay American war veterans that suffered from the effects of Agent Orange $180 million as a result of a class-action lawsuit against the company.  This case could set a president for the case that the Association for Victims of Agent Orange/Dioxin (VAVA) plans to bring once again against Monsanto.
                    In 2004 the organization tried to file a class action lawsuit against Monsanto three times and the case was rejected because the court claimed that there not enough evidence that the diseases of Vietnamese people exposed to Agent Orange was caused by Agent Orange and that Monsanto is blameless as it produced Agent Orange for the U.S to use.  Recent advances of science has made it easier to link diseases and birth defects to exposure to Agent Orange.  The Vietnamese government estimates that 4.8 million people were exposed to Agent Orange.  There are still babies being born in Vietnam with birth defects because the grandfather was exposed to agent orange.  It is important to note that the Vietnamese government shells out approximately $431.1 million a year provide monthly allowance and cover health care and physical rehabilitation expenses for victims of Agent Orange.  The lawsuit that the Association for Victims of Agent Orange/Dioxin plans to bring against Monsanto would cover three million Vietnamese victims of exposure to agent orange.  Also, American lawyers have sided with Vietnam on this issue and Vietnam has been trying to get international support on this issue.  The Association for Victims of Agent Orange/Dioxin is hopeful that this support combined with the recent precedent set by the recent settlement that came as a result of a lawsuit against Monsanto will help their case be successful.  The case will take place in U.S courts under U.S law.
               Bayer recently brought Monsanto.  It is important to note that the German chemical company  Bayer used to be part of IG Farben.  IG Farben used to be a major contractor for the government under NAZI Germany.  Given that Monsanto was facing a potential lawsuit it will be interesting to see how Bayer and Germany protect themselves from the liabilities.  Not to mention that Bayer could now be sued for the damage Monsanto's GMO seeds did to the environment and the harmful effects on health that Monsanto's weed killer is notorious for.  

References

  

I.G. Farben

I.G. Farbenindustrie AG German Industry and the Holocaust

   http://www.holocaustresearchproject.org/economics/igfarben.html 

Of The Problems With John Dewey's Philosophy

                      John Dewey lived from 1859 to 1952.  Dewey introduced many ideas that helped shape modern education.  He graduated from the University of Vermont in 1879.  He spent two years as a high school teacher and one year as an elementary school teacher in a small town.  Dewey grew tired of teaching and left his post to pursue a doctorate in psychology at Johns Hopkins University.  In 1884 he graduated and accepted a position as faculty at the University of Michigan and he worked there the first several years after receiving his PhD.
                In 1894 Dewey elected to join the newly founded University of Chicago where he conducted experiments to test his theories.  He conducted experiments that involved activities similar to a mouse running through a maze or a dog learning to respond to a bell.  Eventually, he performed his experiments in a class room setting.  Dewey believed that the job of the teacher was to create an environment where the students would learn and perform the task that teachers wanted them to.  In other words, he believed that children can and should be trained.  Eventually, this thinking led to classical subjects that have traditionally been part of a high school level education such as Greek and Latin being eliminated from K through 12 schools.  Also, art and music was is not taught nearly as much as it used to be.  For the most part schools are abandoning the arts and humanities as science and technology becomes the main focus.  Some people would argue that the arts and humanity are no longer important and it is no longer necessary to spend time teaching kids the arts and humanities.  However, the arts and humanities are necessary to be connected to music and texts that are deeply connected to traditional western culture.  Furthermore, the arts and humanities are vital for people to develop human characteristics and creativity.
               Dewey believed that most of the decisions people made was merely a response to the environment or simply out of habit.  Dewey believed that most decisions people make did not require much thought.  This line of thought is reductionist in nature.  It assumes that people make decision based on spur of the moment feelings rather than rational thought.  Indeed, politicians have justified giving the government more control over the economy on the basis that most people are not capable of making rational decisions.      

Of The Rise Of Africa

                  Throughout the colonial era from the 1500's to the late 1800's European traded with various African civilizations and colonized much of Africa, eventually imposing their own economic and political system.  Also, the European colonist imposed Christianity onto the natives in many cases.  During this time European colonists took an exorbitant amount of resources out of Africa either by trading peacefully or forcefully taking control of an area and harvesting the resources from that area.  The English would establish their own government in the area when they took over a region for the purpose of harvesting the resources from the region.  When the French did this they allowed a respected native man to rule as a puppet for France.  When the Europeans did this they had governance over the natives living in that region.  European languages are still widely spoken in many African countries.  When the first World War took place from 1914 to 1918 much of the fighting took place in North Africa as European nations still had colonies there.  Indeed, resources such as rubber came into European nations from Africa to help the war effort.  World War 1 was the first Total War because it was the first war in which countries devoted their full resources to the war.  This brought a boom the manufacturing industry and some European countries.  However, after the war ended it took time for industry to switch from making guns to "butter".  This difficulty in switching back to consumer products result in high levels of inflation.
              Eventually, technological advances such as the radio and the latest car brought the economy into the Roaring 20's.  The Roaring 20's was characterized by a rising middle class, growth of a financial elite, and jazz.  Also, then American President Coolidge followed a hands-off economic policy.  Thus, keeping the role of government limited.  The stock market soared to new heights as investors brought more and more shares of stock on margin.  Buying on margin allows an investor to buy shares of stock by borrowing money. The Federal Reserve lowered interest rates and even more people borrowed money to buy stock.  Meanwhile, farmers were deeply in debt as overproduction caused prices of crops and meat to sink.  Eventually, overproduction spread to manufacturing as factories had warehouses full of inventory.  On October 29, 1929, Wall Street was forever changed when Black Tuesday hit and the stock market crashed.  Many people lost their life savings and people who borrowed money to buy stock had the most to lose.  There a run on banks as many people withdrew large sums of many from banks en mass causing many banks to fail.  It is important to note that throughout American history up to this point due to regulations that made it difficult for banks to operate in multiple states, so most banking was done with a locally owned and operated bank.  The Great Depression hit as many people lost their jobs as business shut down.  Eventually, many people struggled to survive as food became scarce and many farms were foreclosed.  Sometimes if a farm was going to be foreclosed, the farmers friends would take down advertisements for the auction so that no one else would come.  Then when the foreclosure auction took place the farmers friends would bid low to buy the farm and then give the farm back to the farmer.  People moved from one place to another thinking that one area would be more prosperous then the rest of the country.  In 1933 Franklin D. Roosevelt was elected president of the United States.  Roosevelt implemented a series of regulations and programs that became known as The New Deal.  Roosevelt started the Works Progress Administration which put many people to work.  Also, he created the first social security program for the elderly and widowed.  He passed regulations that encourage workers to unionize.  The Glass Steagall Act of 1933 was into law under his administration.  This law separated commercial banking from risky investment banking.  Furthermore, he created the FDIC (Federal Deposit Insurance Corporation) to insure deposits up to a certain amount.
             In 1939, when Germany invaded Poland, World War 2 started.  The U.S did not get involved in World War 2 until 1941 when Pearl Harbor was bombed by the Japanese.  This war proved to be far more wide spread and devastating.  I will explain World War 2 further in depth in later blogs.  In the aftermath of World War 2, many European countries abandoned their colonies allowing the natives and the European colonist to govern themselves.  Eventually, violence erupted as people could not agree on the results of elections.  Also, Europeans drew up the borders for African countries and in many cases accidental put several ethnic groups into one country.  These ethnic groups did not get along.  Civil war broke out in many countries.  This conflict stunted economic development in many African countries.
        Recently some African countries have held elections that both sides have accepted the results of.
 Also, Africa is slower becoming more politically stable.  However, terrorist groups such as ISIS and Boko Haram still terrorize North and West Africa respectively.  It is important to note that 2010 there was a regime change in Tripoli, Libya, and Egypt.  The presidents of these countries had been in office for forty years with no legitimate elections to justify their lengthy administrations.  This may lead to North African nations becoming stable Democracies.  Also, Sudan split into Sudan and South Sudan.  This may lead to more stability in the country.
          In recent years, China's One Belt, One Road Project has extended into Africa.  China has been giving loans to African countries for China to build infrastructure there.  In other words,  African nations are borrowing money from China to pay China to extend its One Belt, One Road Project into Africa.  This could lead to more economic growth in Africa as upgraded infrastructure helps businesses and individuals.  Also, the improved infrastructure will facilitate trade and foster entrepreneurship.  It is important to note that South Africa is seizing land from white farmers and giving the land to other people.  Often times the people that the government gives the land to do not know how to take care of it and agriculture suffers.  This could lead to starvation and violence in South Africa.
          As I've mentioned in an earlier blog, Mummer Qaddafi was named chairman of the African Union.  He immediately proposed the formation of a unified state with a single currency.  In March 2009 the African Union released a document about running a central bank under an African gold standard for a single currency for the whole continent of Africa.  This idea may have brought peace and prosperity to the continent of Africa.  However, there are problems with a gold back currency.  Under a gold back currency the government is limited in the amount of money it can issue by the gold supply.  Also, inflation tends to be higher under a gold standard.
   

References

"Why South Africa's Gov't Plans to Strip Land From White Farmers"

https://www.rt.com/news/420181-south-africa-land-redistribution-explained/