Bankers, Usury, and Wealth Today

“On Wall Street he and a few others—how many?—three hundred, four hundred, five hundred?—had become precisely that…Masters of the Universe. There was…no limit whatsoever. […] Moving the lever that moves the world was what he was doing.”

That was Sherman McCoy in Tom Wolfe’s brilliant 1987 novel, The Bonfire of the Vanities. As an expression of the age, it is right up there with Gordon Gekko’s “greed is good” from Oliver Stone’s 1987 Wall Street.

Over time, the popular perception of bankers as soulless and depraved hasn’t changed a bit. In 2011 a protest about the wealth distribution was dubbed Occupy Wall Street. Interestingly, no protests targeted the industries that generate even greater wealth: Silicon Valley, Hollywood, and major sports stadiums. Nor were the protests in the parking lots at Wal-Mart, Target, or Home Depot. The anger about the wealth distribution was directed straight at bankers.

As we have seen over the last couple of essays in this series, the contemporary discussion about wealth distribution is not really about inequality per se. Underneath the discussion about the wealth distribution is an often unstated belief that high levels of wealth were not earned in an appropriate manner. One avenue of this discontent is the latent belief that merchant activity is immoral, violating the principle that goods should always sell for their Just Price. The belief that a good has an inherent just price has vanished, but the implications of that belief still lingers a bit.

The most vehement criticisms of wealth are translated into criticisms of the financial industry. When, and why, did the financial sector begin to arouse such ire?

Read the Rest at Public Discourse

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The Rope Dancers

You almost certainly have never heard of the play The Rope Dancers by Morton Wishengrad.

Moreover, you have also almost certainly never heard of Morton Wishengrad in any context.

Having just read the play, I am stunned, truly stunned, that this play languishes in obscurity.

How obscure is it? There is no Wikipedia page for the play or for the author. Think about that. There is a Wikipedia page for everything I ever look up. Until now. If you start looking for discussions about the play, you’ll find a handful of old reviews of productions of the play, but I have not yet stumbled on anyone who simply wrote about the play.

You, the Reader, now suspect that this is one of those plays which deserves no critical attention. You will think that until you read one of the reviews of a performance. “A powerful play—tragedy almost in the classical sense—showing great psychological insight and making telling use of symbols.” “It is, in fact, one of the most uncompromising plays I have ever seen; if Mr. Wishengrad can maintain his integrity in the hurly-burly of Broadway, he may yet, in that respect at least, confirm his leading lady’s premature contention that he’s the finest American playwright since O’Neill.” “The power of realism, when employed by American writers, goes even further, with greater originality, depth, and art in Morton Wishengrad’s The Rope Dancers, a play that is as difficult to describe, as it is to assay.”

Unconvinced? The play was included in the anthology Best American Plays Fifth Series 1957- 1963, published in 1968.

It is not a perfect play. (The reviewer for the Kenyon Review was not a fan.) It won’t hold up to Shakespeare, Moliere, or Shaw. But, it fits right in with the mid-20th century American greats: Miller. O’Neill, and Williams. Again, it’s not Death of a Salesman, or Long Day’s Journey Into Night, or A Streetcar Named Desire, but it is far closer to them than a play that languishes in total obscurity should be.

The plot summary will make the play sound maudlin, which it most definitely is not. A woman (Margaret) and her 11 year old daughter (Lizzie) move into a 1950s New York tenement. Margaret is a hard women; an overly friendly new neighbor is treated rather roughly in a welcome-to-the-apartment-building visit. The daughter seems fragile, or at least is treated as fragile by her mother. Lizzie wears a white dress with a very bright pocket in which she constantly keeps her hand which is in a black mitten. She skips rope (symbolism alert) to rhymes she has invented (including one about President Rutherford Hayes!) The father (James) shows up after a bit; he is an impossibly charismatic drunk, who is as well-read as anyone I have ever met. Toss in a truant officer, trying hard to get Lizzie to school over the objections of her parents, and a Doctor, called in to deal with Lizzie’s ailment, St Vitus Dance. Well, that is her obvious ailment. Her other ailment, the source of great shame to Margaret, and by extension Lizzie, is the six fingers on Lizzie’s mittened hand.

And now you don’t really want to read the play because, like I said, it sounds like some sappy made-for-TV movie. It isn’t. The plot is there for the dialogue, which is incredibly sharp. The end of the play is fascinating once you get past the shock. The three main characters are deep and deeply fascinating. If you like reading mid-20th century American plays, I cannot recommend this play highly enough. (If you don’t enjoy the genre, then first read more Miller and Williams to develop your taste.)

The title of the play is a reference to Nietzsche’s Thus Spake Zarathustra. James reads a portion aloud in the middle of the play and, as is suspected since it is the source of the title, it provides the key. At the outset of Nietzsche’s book, Zarathustra wanders into a town in which a tightrope walker is about to perform. Zarathustra takes the opportunity to offer a lengthy series of cryptic remarks (if you have read Nietzsche, this does not come as a surprise). The rumination is about how man is a tightrope, a perilous link between where man starts and the unknown destination to which he is going. Man “is a bridge and no goal.” And so on. (If you want to piece all this together, read Zarathustra a few dozen times.) But for the purposes of the play the important line is the one James looks up from the book to quote from memory: “I love them that are in great scorn, for these are they that are great in reverence.”

The obvious scorn in the play is that between the estranged Margaret and James; and the great reverence is manifest right beneath that scorn. But stepping back, the whole play is an exercise in great scorn, which is simply a mask for great reverence. The play is a microcosm of the human condition, how we all are forced to wrestle with the aftermath of Original Sin, and the guilt we feel in the face of the effects of sin, and how our attempts to overcome those feelings of guilt inevitably fail. It is a demonstration of how we learn to work that part of ourselves of which we are most afraid into becoming a vital part of our identity, and how the removal of the evidence of guilt can lead to our own destruction. It has a surprisingly effective reflection of the nature of education, why we force children into school, and whether it is more important to learn knowledge or wisdom.

The depths of the play keep unfolding the longer you stare into it. So, why is this play completely unknown? Undoubtedly part of the explanation is the obscurity of the author, whose biography is not easy to piece together in the absence of a Wikipedia page. He was a writer for radio and TV serials, including a hundred episodes of The Eternal Light (which does have a Wikipedia page!). As far as I can tell, The Rope Dancers is his only play.

It was, however, a Broadway play, with a notable cast. The family was played by Siobhan McKenna (here is her Wikipedia page, which notes she received a Tony nomination for her performance in this play), Art Carney (here is his Wikipedia page, he was a mega star), and Beverly Lunsford (who would later go on to fame in Leave it to Beaver—not surprisingly, she also has a Wikipedia page). Even the actress who played the neighbor, Joan Blondell, has a long Wikipedia page.

Yet, Morton Wishengrad and The Rope Dancers languishes in obscurity. The only copy in print seems to be from one of those presses that just scans old library books. (The Mount Holyoke Library had three (3!!—was this once used in an MHC class??) copies of an old, out-of-print edition from Samuel French.) A play this good should really not be so hard to find.

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Do Goods Have an Inherently Just Price?

Now comes deceit betwixt merchant and merchant. And thou shalt understand that merchandise is in many sorts; that one is bodily, and that other is ghostly; that one is honest and lawful, and that other is dishonest and unlawful. Of that bodily merchandise that is lawful and honest is this: that, whereas God has ordained that a reign or a country is sufficient to himself, then is it honest and lawful that of the abundance of this country, men help another country that is more needy. And therefore there must be merchants to bring from that one country to that other their merchandises. That other merchandise, that men exercise with fraud and treachery and deceit, with lies and false oaths, is cursed and damnable”
Chaucer, “The Parson’s Tale”

Is wealth acquisition by people engaged in perfectly legal business ever immoral? For example, if the price of oil rises because of a disruption to the supply chain or production, there are loud cries of price gouging. The accusation of price gouging hinges on the idea that there is an inherently “just price” that the seller is departing from. Price gouging is thought to be immoral because buyers are being charged far more than the appropriate price. One implication of this view is that making a profit (especially a large one) is wrong because it probably means that the seller is charging far more than the good’s “just price.”

This idea that selling goods for more than the just price is immoral is ancient, and it was expounded by a variety Christian thinkers beginning with the Church fathers and culminating in Aquinas. Chaucer’s The Canterbury Tales illustrates this view, giving examples of how greed and desire for profit are morally blameworthy. As we will see, the “just price” framework doesn’t map neatly onto economies, but its legacy lingers on anachronistically in today’s economic debates.

Read the rest at Public Discourse

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Should Wealth be Distributed Evenly?

It’s because of you that anybody possesses
Anything radiant or beautiful or pleasing to mankind.
It’s all from wealth that these things stand.

—Chremylus talking to Plutus, the God of Wealth in Aristophanes’ Plutus (Wealth)

Wealth is a subject on the minds of many. To say that wealth is desirable is about as obvious as a statement can be. As I tell my students if they object, if you have a lot of wealth, you can always give it to your favorite charity (the publisher of Public Discourse, obviously). Yet for something so universally desired, wealth generates a lot of controversy. Why? In this and succeeding essays, we will isolate the aspects of the wealth debate in order to figure this out.

Much of the perennial controversy surrounding wealth is about the way it’s distributed. What is the proper distribution of wealth in a society? Would a random distribution be acceptable? If you casually ask people, there are two popular answers: 1) distribute it equally and 2) distribute it to whoever earned it. Which one is just? It is amazing how quickly discussions of this matter revert to the oft-debated: “Capitalism: Good or Evil?”

But, this discussion of capitalism is a red herring. Aristophanes, the fifth-century-BC comic Greek playwright, devoted an entire play to the matter. This play was written roughly two thousand years before there was anything that anyone would describe as a capitalist economic system, but the issues in the play about just distribution of wealth remain relevant today. Understanding this question of wealth distribution seems essential to building a good society, regardless of how its economy is organized.

Read the rest at Public Discourse

Imitating Captain Kirk

“This disposition to admire, and almost to worship, the rich and the powerful, and to despise, or, at least, to neglect, persons of poor and mean condition, though necessary both to establish and to maintain the distinction of ranks and the order of society, is, at the same time, the great and most universal cause of the corruption of our moral sentiments.”

More than 250 years later, Adam Smith’s observation from The Theory of Moral Sentiments is still a constant refrain in discussions of culture. The Culture War, which seems to be always with us, finds its fuel in exactly this corruption of our moral sentiments. Some rich or powerful person engages in yet another violation of long established community norms and the commentators come out of the woodwork declaring the end of civilization. People want to keep up with the Kardashians because they are so young and beautiful and rich, but what happens when they turn into objects of worship?

The solution? It seems obvious to many commentators that we need to tear down the corrupt moral culture and insist that people follow a better set of cultural norms. The strategy is frequently wholesale attacks on contemporary culture. If only we could prove to the population at large that the cultural norms of their objects of worship are terribly degrading to human soul. Perhaps an even stronger denunciation will finally get through to people.

But, as Smith goes on to note, the problem is deeper than the culture warriors want to admit.

It is from our disposition to admire, and consequently to imitate, the rich and the great, that they are enabled to set, or to lead, what is called the fashion. Their dress is the fashionable dress; the language of their conversation, the fashionable style; their air and deportment, the fashionable behaviour. Even their vices and follies are fashionable; and the greater part of men are proud to imitate and resemble them in the very qualities which dishonour and degrade them.

The admiration people have for the rich and great leads them to want to imitate their style and behavior. It is not, however, only the dress or language which people imitate, it is also their vices and follies. People are proud to imitate even the most degrading aspects of their behavior.

If Smith is right, then it is no wonder that the attacks on popular culture have so little impact. It does no good to tell people that the acts of the rich and famous are degrading if people are proud to imitate those acts even though they are degrading. The desire to imitate the successful runs deep in human character. As reading Smith makes clear, this is not a modern phenomenon; it seems to be a constant in human behavior.

What then can be done? Captain Kirk has an answer. 

Read the rest at AdamSmithWorks

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Star Trek and Adam Smith: Sympathy of the Vians

Adam Smith begins The Theory of Moral Sentiments with a discussion of sympathy:

“How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it, except the pleasure of seeing it.”


What follows is a lengthy exploration of the implications of the fact that we are sympathetic beings. Smith provides an array of examples meant to illustrate the nature of sympathy, but, for some odd reason, he never seems to have watched Star Trek.


The Star Trek episode “The Empath” (directed by John Erman and written by Gene Roddenberry and Joyce Muskat) is an extended exploration of the theme of sympathy.

If you want an example of what Adam Smith is talking about when he discusses the importance of sympathy, there may be no better example than the self-sacrifice of the Vians, the people who realized there is no greater love than to lay down their lives so that others might live.

Too see the argument, you can read the post at Adam Smith Works

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