Continuing the discussion, how long do these social norms last? Even Dan, I’m sure, is aware there are limits to this phenomenon. People may help move a couch for free, but they won’t move 100 couches for free, no matter how loyal. He describes a pleasant experience at Burning Man, where money is prohibited and people exchange goods and services in a barter-like economy — all he demonstrated is that without money people still expect some form of compensation. While acknowledging he probably couldn’t live at Burning Man forever, he did leave with a new respect for moneyless societies; however, that in itself is an irrational conclusion. The admission that he couldn’t survive in that environment permanently is a damning indictment of its failure as an ideology in theory and practice.
Continuing the previous discussion, in another chapter Dan Ariely describes the distinction between “social norms” and “market norms”. When people are asked to perform a task without monetary compensation a certain part of the brain is stimulated in forming the response; however, if even a single penny is introduced the brain switches modes to stimulate an entirely different part of the brain. Not surprisingly, the end result is quite counter-intuitive.
I’m reading an interesting book called “Predictably Irrational” by Dan Ariely that fascinates me on several levels. He describes many noble attempts to understand human irrationality, but unfortunately, continuously injects his own flawed commentary. I often take issue with his conclusions.
Today, a friend sent me an article that attempts to ridicule those opposed to excessive regulation. The blogger discusses the need to regulate food production in order to prevent companies from lying about the contents of their processed food and putting moldy tomatoes in ketchup. However, in the end he presents an interesting example of big business abusing government regulation as a weapon to establish an unnatural monopoly.
A single currency has been rumored as the goal of international bankers by conspiracy theorists for decades, it’s nothing new. The conspiracy goes much further, saying this is the first step on the road to one world government. Rockefeller has even admitted as much in his own auto-biography.
Many economists have long known that Chinese consumer demand must rise eventually to balance the excessive trade surpluses of previous years, but the government in Beijing has been actively preventing a shift in trading trends by manipulating the exchange rate through dollar recycling. Their intent is to maintain attractive prices and encourage further American consumption of their products; however, now that American demand is drying up despite cheap prices, there is no longer a reason to maintain an artificially low currency. It hurts China unnecessarily.
