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7 - Economic and cognitive development in a market society

Published online by Cambridge University Press:  18 December 2009

Robert E. Lane
Affiliation:
Yale University, Connecticut
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Summary

The nuclear cataclysm is over. The earth is covered with gray dust. In the vast silence no life exists, save in a little colony of algae deep in a leaden cleft long inured to radiation. The algae perceive their isolation; they reflect upon the strivings of all life, so recently ended, and on the strenuous task of evolution to be begun anew. Out of their reflection could emerge a firm conclusion: “Next time, no brains.”

Ian McHarg, “Man and Environment”

In Chapter 4 we noted the lack of empirical relation between intelligence and education, on the one hand, and measures of happiness, on the other. Stimulated by this finding, and by other considerations, we questioned the actual compatibility of one pattern of cognition, the economists' version of rationality, and happiness. If happiness were our sole maximand, any incompatibility between happiness and cognition should cause us to lose interest in cognition. Such is not the case because our criteria for judging the market is two-fold; it embraces both hedonic well-being and a version of human development embracing complex cognition. In pursuing this interest in market effects on cognition here, we will now examine a very long period embracing what have been called “stages of civilization.” For this purpose we will go beyond what we have called the exchange effect, the effect of market operations on those who participate in those operations, to the affluence effect, the effect of market-induced prosperity on those who benefit from it.

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The Market Experience , pp. 115 - 136
Publisher: Cambridge University Press
Print publication year: 1991

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