We do not often think about this, but every action that we take in our lives, interdependent society—buy a house, driving to work, dropping off the children at school, getting automobile maintenance done—requires the combined efforts of countless numbers of people acting in concert to enable business to be handled successfully. If you stop and think about it, this is very risky due to the fact that people can be unreliable, and the more people we depend on, they greater the risk become. As civilization grew and became more complex, people moved to cities and organized themselves into guilds and city-states and nations. Living with more people required learning to trust in new ways, and institutions developed—through religion, markets, and the rule of law—that enabled the development of ever-more complex societies and the coordination of ever-larger networks of people. This is the process that brought us to the modern economies and societies of the twenty-first century, even as our premodern tribal instincts continue to structure modern life. During the Medieval era, Lutheranism and Calvinism came into existence. The new religions were not the religious of a wealthy upper class but of the urban middle class, the poor in the cities, and the peasants. They carried an appeal to those groups because they gave expression to a new feeling of freedom and independence as well as to the feeling of powerlessness and anxiety by which their members were pervaded. However, the new religious doctrines did more than give articulate expression to the feelings engendered by a changing economic order. By their teachings they increased them and at the same time offered solutions which enabled the individual to cope with an otherwise unbearable insecurity. #RandolphHarris 1 of 19

What the psychological analysis of doctrines can show is the subjective motivations which make a person aware of certain problems and make one seek for answers in certain directions. Any kind of thought, true or false, if it is more than a superficial conformance with conventional ideas, is motivated by the subjective needs and interests of the person who is thinking. It happens that some interests are furthered by finding the truth, others by destroying it. However, in both cases the psychological motivations are important incentives for arriving at certain conclusions. We can go even further and say that ideas which are not rooted in powerful needs of the personality will have little influence on the actions and on the whole life of the persons concerned. If we analyze religious or political doctrines with regard to their psychological significance we must differentiate between two problems. We can study the character structure of the individual who creates a new doctrine and try to understand which traits in his personality are responsible for the particular direction of his thinking. Concretely speaking, this means, for instance, that we must analyze the character structure of Mr. Luther or Mr. Calvin to find out what trends in their personality made them arrive at certain conclusions and formulate certain doctrines. The other problem is to study the psychological motives, not of the creator of a doctrine, but of the social group to which this doctrine appeals. The influence of any doctrine or idea depends on the extent to which it appeals to the psychic needs in the character structure of those whom it is addressed. Only if the idea answers powerful psychological needs of certain social groups will it become a potent force in history. #RandolphHarris 2 of 19

Both problems, the psychology of the leader and that of his followers, are, of course, closely linked with each other. If the same ideas appeal to them, their character structure must be similar in important aspects. Aside from factors such as the special talent for thinking and action on the part of the leader, his character structure will usually exhibit in a more extreme and clear-cut way the particular personality structure of those to whom his doctrines appeal; he can arrive at a clearer and more outspoken formulation of certain ideas for which his followers are already prepared psychologically. The fact that the character structure of the leader shows more sharply certain traits to be found in his followers, can be due to one of two factors or to a combination of both: first, that his social position is typical for those conditions which mold the personality of the whole group; second, that by the accidental circumstances of his upbringing and his individual experiences these same traits are developed to a marked degree which for the group result from its social position. The doctrines of Protestantism and Calvinism, we are discussing the psychological situation of the social classes to which Mr. Luther and Mr. Calvin’s ideas appealed. Mr. Luther, as a person, was a typical representative of the “authoritarian character.” Having been brought up by an unusually severe father and having experienced little love or security as a child, his personality was torn by a constant ambivalence toward authority; he hated it and rebelled against it, while at the same time he admired it and tended to submit to it. #RandolphHarris 3 of 19

During Mr. Luther’s whole life there was always one authority against which he was opposed and another which he admired—his father and his superiors in the monastery in his youth; the Pope and the princes later on. He was filled with an extreme feeling of aloneness, powerlessness, wickedness, but at the same time with a passion to dominate. He was tortured by doubts as only a compulsive character can be, and was constantly seeking for something which would give him inner security and relieve him from this torture of uncertainty. He hated others, especially the “rabble,” he hated himself, he hated life; and out of all this hatred came a passionate and desperate striving to be loved. His whole being was pervaded by fear, doubt, and inner isolation, and on this personal basis he was to become the champion of social groups which were in a very similar position psychologically. Any psychological analysis of an individual’s thoughts or of an ideology aims at the understanding of the psychological roots from which these thoughts or ideas spring. The first condition for such an analysis is to understand fully the logical context of an idea, and what its author conscious wants to say. However, we know that a person, even if he is subjectively sincere, may frequently be driven unconsciously by a motive that is different from the one he believes himself to be driven by; that he may use one concept which logically implies a certain meaning and which to him, unconsciously means something different from this “official” meaning. Furthermore, we know that he may attempt to harmonize certain contradictions in his own feeling by an ideological construction or to cover up an idea which he represses by a rationalization that expresses it very opposite. #RandolphHarris 4 of 19

The understanding of the operation of unconscious elements has taught us to be sceptical towards words and not to take them at face value. The analysis of ideas had mainly to do with two tasks: one is to determine the weight that a certain idea has in the whole of an ideological system; the second is to determine whether we deal with a rationalization that differs from the real meaning of the thoughts. An example of the first point is the following: In Mr. Hitler’s ideology, the emphasis on the injustice of the Versailles treaty plays a tremendous role, and it is truth that he was genuinely indignant at the peace treaty. However, if we analyze his whole political ideology we see that its foundations are an intense wish for power and conquest, and although he consciously gives much weight to the injustice done to Germany, actually this thought has little weight in the whole of his thinking. An example of the difference between the consciously intended meaning of a thought and its real psychological meaning can be taken from the analysis of Mr. Luther’s doctrines with which we are considering. We say that his relation to God is one of submission on the basis of man’s powerlessness. He himself speaks of this submission as a voluntary one, resulting not from fear but from love. Logically then, one might argue, this is not submission. Psychologically, however, it follows from the whole structure of Mr. Luther’s thoughts that his kind of love or faith actually is submission; that although he consciously thinks in terms of the voluntary and loving character of this “submission” to God, he is pervaded by a feeling of powerlessness and wickedness that make the nature of his relationship to God one of submission. (Exactly as masochistic dependence of one person on another consciously is frequently conceived as “love.”) #RandolphHarris 5 of 19

From the view point of psychological analysis, therefore, the objection that Mr. Luther says something different from what we believe he means (although unconsciously) has little weight. We believe that certain contradictions in his system can be understood only by the analysis of the psychological meaning of his concepts. If we want to understand what was new in the doctrines of the Reformation, we have first to consider what was essential in the theology of the medieval Church. In trying to do so, we are confronted with the same methodological difficulty which we have discussed in connection with such concepts as “medieval society” and “capitalistic society.” Just as in the economic sphere there is no sudden change from one structure to the other, so there is no such sudden change in the theological sphere wither. Certain doctrines of Mr. Luther and Mr. Calvin are so similar to those of the medieval church that it is sometimes difficult to see any essential difference between them. Like Protestantism and Calvinism, the Catholic Church has always denied that man, on the strength of his own virtues and merits alone, could find salvation, that he could do without the grace of God as an indispensable means for salvation. However, in spite of all the elements common to the old and the new theology, the spirit of the Catholic Church had been essentially different from the spirit of the Reformation, especially with regard to the problem of human dignity and freedom and the effect of man’s actions upon his own fate. #RandolphHarris 6 of 19

Certain principles were characteristic of Catholic theology in the long period prior to the Reformation: the doctrine that man’s nature, though corrupted by the sin of Adam, innately strives for the good; that man’s will is free to desire the good; that man’s own effort is of avail for his salvation; and that by the sacraments of the Church, based on the merits of Christ’s death, the sinner can be saved. However, some of the most representative theologians like Mr. Augustine and Thomas Aquinas, though holding the views just mentioned, at the same time taught doctrines which were of a profoundly different spirit. However, although Mr. Aquinas teaches a doctrine of predestination, he never ceases to emphasize freedom of will as one of his fundamental doctrines. To bridge the contrast between the doctrine of freedom and that of predestination, he is obliged to use the most complicate constructions; but, although these constructions do not seem to solve the contradictions satisfactorily, he does not retreat from the doctrine of freedom of the will and of human effort, as being of avail for man’s salvation, even though the will itself may need the support of God’s grace. With regard to the latter point he says: “Whence, the predestination must strive after good works and prayer; because through these means predestination is most certainly fulfilled and therefore predestination can be furthered by creatures, but it cannot be impeded by them.” #RandolphHarris 7 of 19

On the freedom of will Mr. Aquinas says that it would contradict the essence of God’s and man’s nature to assume that man was not free to decide and that man has even the freedom to refuse the grace offered to him by God. Other theologians emphasized more than Mr. Aquinas the role of man’s effort for his salvation. According to Bonaventura, it is God’s intention to offer grace to man, but only those receive it who prepare themselves for it by their merits. This emphasis grew during the thirteenth, fourteenth, and fifteenth centuries in the systems of Duns Scouts, Ockam, and Biel, a particularly important development for the understanding of the new spirit of the Reformation, since Mr. Luther’s attacks were directed particularly against the Schoolmen of the late Middle Ages who he called “Sau Theologen.” Duns Scotus stressed the role of the will. The will is free. Through the realization of his will man realized his individual self, and this self-realization is a supreme satisfaction to the individual. Since it is God’s command that will is an act of the individual self, even God has no direct influence on man’s decision. Biel and Ockam stress the role of man’s own merits as a condition for his salvation and although they too speak of God’s help, its basic significance as it was assumed by the older doctrines was given up by them. Biel assumes that man is free and can always turn to God, whose grace comes to his help. Ockam taught that man’s nature has not been really corrupted by sin; to him, sin is only a single act which does not change the substance of man. The Tridentinum very clearly states that the free will co-operates with God’s grace but that it can also refrain from this co-operation. #RandolphHarris 8 of 19

The picture of man, is presented by Ockam and other late Schoolmen, shows him not as the poor sinner but as a free being whose very nature makes him capable of everything good, and whose will is free from natural or any other external force. The practice of buying a letter of indulgence, which played an increasing role in the late Middle Ages, and against which one of Mr. Luther’s main attacks was directed, was related to this increasing emphasis on man’s will and the avail of his efforts. By buying the letter of indulgence from the Pope’s emissary, man was relieved from temporal punishment which was supposed to be a substitute for eternal punishment, and as Seeberg has pointed out, man had every reason to expect that he would be absolved from all sins. At first glance it may seem that this practice of buying one’s remission from the punishment of purgatory from the Pope contradicted the idea of the efficacy of man’s efforts for his salvation, because it implies a dependence on the authority of the Church and its sacraments. However, while this is true to a certain extent, it is also true that it contains a spirit of hope and security; if man could free himself from punishment so easily, then the burden of guilt was eased considerably. He could free himself from the weight of the past with relative ease and get rid of the anxiety which had haunted him. In addition to that one must not forget that according to the explicit or implicit theory of the Church, the effect of the letter of indulgence was dependent on the premise that is buyer had repented and confessed. #RandolphHarris 9 of 19

Those ideas that sharply differ from the spirit of the Reformation are also to be found in the writings of the mystics, in the sermons and in the elaborate rules for the practice of confessors. In them we find a spirit of affirmation of man’s dignity and of the legitimacy of the expression of his whole self. Along with such an attitude we find the notion of the imitation of Christ, widespread as early as the twelfth century, and a belief tht man could aspire to be like God. The rules for confessor showed a great understanding of the concrete situation of the individual and gave recognition to subjective individual differences. They did not treat sin as the weight by which the individual should be weighed down and humiliated, but as human frailty for which one should have understanding and respect. Man’s quest for the New Being which overcomes existential estrangement ends in the acceptance of Jesus of Nazareth as the Christ. Peter’s confession at Caesarea Philippi—“Thou art the Christ”—marks the birth of Christianity, for it contains the two basic elements of the Christian message: the fact of Jesus of Nazareth and His reception as the Christ in an act of faith. The receptive side of the Christian events is as important as the factual side. And only their unity creates the event upon which Christianity is based. The absolute refusal for Mr. Tillich to use the name “Jesus Christ” is founded upon this distinction between the man from Nazareth and the mythological title “the Christ” which is paradoxically attached to him by faith. He therefore employs such phrases as “Jesus who is called the Christ,” or “Jesus who is the Christ,” or “Jesus as the Christ,” or “Jesus the Christ.” #RandolphHarris 10 of 19

The reality of the Christ will be discussed under the following headings: historical research and the Christ, the New Bring, theories of Christology, the significance of the Cross and the Resurrection, and the meaning of salvation. The very first step toward freedom is knowledge of the truth regarding the source and nature of experiences the believer may have had since his entrance into the spiritual life—experiences which possibly may have been perplexing, or else thought with deepest assurance to be of God. THERE IS NO DELIVERACE FROM “DECEPTION” BUT BY THE ACKNOWLEDGEMENT AND ACCEPTANCE OF TRUTH. And this facing of truth in regard to certain spiritual and “supernatural” experiences is like a keen-edge knife to a person’s self-respect and pride. It requires a very deep allegiance to the truth which God desires should reign in the inward parts of His children for a believer to readily accept truth which cuts and humbles. The “undeceiving” is painful to the feelings. The discover that he had been deceived is one of the keenest blows to a man who once thought that he was so “advanced,” so “spiritual,” and so “infallible” in his certainty of obeying the Spirit of God. The deceived believer laid claim to positions to which he had no right, for with the entrance of truth he discovers that he was neither so advanced, nor so spiritual, nor so infallible as he had thought. He built his faith about his own spiritual condition on assumption, and left no room for doubt—that is, true doubt, such as doubting a statement that afterwards turns out to be a lie. However, in due season doubt finds an entry to his mind and brings his house of infallibility to the ground. #RandolphHarris 11 of 19

He knows now that what he thought was an “advanced” experience was only a beginning, and that he is only on the fringe of knowledge. This is the operation of truth. In place of ignorance is given true knowledge; in place of deception, truth. Ignorance, falsehood and passivity—upon these three the enemy silently builds his castles, and unobtrusively guards and uses them. However, truth pulls his strongholds to the ground. By the entry of truth the man must be brought to the place where he acknowledges his condition frankly, as follows: I believe that it is POSSIBLE for a Christian to be deceived by psychopathological offenders. It is possible for ME to be deceived. I Am deceived by a psychopathological offender. WHY am I deceived? When the deception is of long standing, the psychopathological offender may get the believer himself to defend their work in him, and through him fight tenaciously to guard the cause of deception from being brought into light, and exposed as their work. They thus get the believer himself, in effect, to take their side, and fight for them to keep their hold, even after he had found out his condition and honestly desires deliverance. Trust is so fundamental to the human experience that philosophers, sociologists, psychologists, and anthropologists have all devoted a lot of attention to its study. Economic science is about more than just making money. It is about making choices. You may have read or heard that economics is about scarcity: economists use this term to remind us that every choice we make requires trade-offs. (At least all the interesting one do.) #RandolphHarris 12 of 19

If we lived in an Edenic paradise where all our desires were taken care of, then we could all have everything we wanted; scarcity reminds us that resources are finite and that choices must be made. Even if we had unlimited money, we have limited time, so we must make trade-offs. Choices that require trade-offs require us to understand the pros and cons of each choice in order to assess the costs and benefits and balance the potential rewards against the possible risks. At its heart, trust is about making a choice: Do I rely on this person, or do I not? Having trust means that you are willing to enter into a risky situation with another person because you believe in them. Trust is needed in situations where working with someone is better than working alone. However, working with someone brings risks: what if this person lets me down, or what is they prove to be unreliable? Trust matters when the choice to rely on someone is difficult, when trusting someone means taking a risk. Economists have spent a lot of time studying how people make decision under uncertainty, when pros and cons have to be evaluated, and when the benefits have to be weighed against the costs. The same tools that economists use to evaluate the riskiness of investing in the stock market can be applied to the choice we make to invest our trust in one another. Economics is also about picking apart the complex, rich tapestry of life into its individual threads. This is often accomplished through the use of math, which forces us to be more precise about that we are measuring and what we are assuming about how things work and how things interact. #RandolphHarris 13 of 19

Those who care about economics should also care about trust. Those who care about trust can learn and benefit from the tools employed by economists—tools that offer a different perspective from those employed by other social sciences. The future creates the possibility of punishment that can sustain honesty in the present. The matches are independent across time This creates the need for an information-transmission mechanism whereby others in the community may find out about the cheating of any one of them. In reality, traders will try to sustain bilateral relations so as to be able to sustain honesty by direct reciprocity. However, there are also many economic situations where repeated bilateral interactions are rare, and in others there is the risk of bilateral relationships being severed because one of the partners has to move, or retires, or dies. Therefore theory should examine situations where the person you trade with in the future is not the same as the one you contemplate cheating now, and independent matches are the simplest way to model this. If the trader cheats his current partner, he gets an immediate gain as usual in the prisoner’s dilemma. The potential cost is that his future partners may hear of this, in which case they will refuse to play with him. The option of not playing is what helps sustain cooperation. By localization of matches and information, if you cheat someone farther away from you, the news is less likely to reach potential future partners closer to you, and they are the ones you are more likely to meet in the future. #RandolphHarris 14 of 19

Therefore the likelihood of losing those trades, and therefore the expected future cost of cheating, is smaller when the current partner is father away. A countervailing effect is that the news is more likely to reach some traders who are father from you, and trades with them are more valuable. However, the probability of meeting them decays faster than the value of the trade increases. The overall result is that the net benefit from cheating increases with the distance between you and your current partner. Therefore the structure of equilibria, where people behave honestly with others within a certain distance of themselves, is intuitive. Note the nature of localization of honesty. It is not the case that the World splits into a number of disjoint communities, such that each of them can sustain honest dealing between any pair of its own members but honesty is infeasible if two traders from two different communities meet. Rather, we have overlapping neighbourhoods of honesty. Second Wave organizations accumulate more and more functions over time and get fat. Third Wave organizations, instead of adding functions, subtract or subcontract them to day slim. As a result, they outrace the dinosaurs when the Ice Age approaches. Second Wave organizations find it hard to suppress the impulse toward “vertical integration”—the idea that to make a BMW you also have to mine the iron ore, ship it to the steel mills, make the steel, and ship it to the auto plant. Third Wave companies, by contrast, contract out as many of their tasks as possible, often to smaller more specialized high-tech companies and even to individuals who can do the work faster, better and more affordably. #RandolphHarris 15 of 19

Carried to its limit, the corporation is deliberately hollowed out, its staff reduced to a minimum, its activities carried out at dispersed locations, the organization itself becoming a “nexus of contracts.” Minimalist, partly unseen organizations are now the linchpins of our World. While many of us may not work for them directly, we will be selling our services to them and the wealth of our societies will depend on them. This new form of “virtual” organization has been made possible by Third Wave information and communication technologies. There is an important idea of “congruence”—there must be some compatibility between the way the private sector and the public sector are organized if they are not to stifle one another. Today the private sector is charging ahead on a supersonic jet. The public sector has not even unloaded its bags at the airport entry. Evaluating a policy or program? Ask who is supposed to carry it out—verticalizers or virtualizers. The answer will provide a clue to whether it merely prolongs the unworkable past or helps the future. The decline of honesty as the size of the World grows beyond the limit of global self-governance has limited the capacity for processing information, with the result that, faced with the information overload available in this Internet age, they choose to look at what is coming from local sources that are know to them. Small communities can achieve full self-governance using their own information systems and do not need external governance. In very large communities, the benefits that are available for trade with distant partners can only be realized by instituting a system of external government at cost. Communities of an intermediate size fare worst: they are too large for self-governance. When an expanding economy reaches the size where external governance becomes just cost-effective, “it is darkest just before the dawn” for it. However, even very large communities with external governance may or may not be better than the optimal-sized self-governing small communities. #RandolphHarris 16 of 19

If we look at the new Department of Health, Education and Welfare, this appears to be the public agency at the national level which most fully comprises six types of service to families. Its man units are the Public Health Service, the Social Security Administration, and the Office of Education. The Children’s Bureau falls under Social Security, along with certain services to the aged and disabled. The only other protective agency in the government, directly concerned with families, is the Women’s Bureau in the Department of Labor. Because it was suggested for many years by professional bodies, there is now an Office of Parks and Recreation. Counseling agencies find a minor link with the National Institute of Mental Health, a research unit in the Public Health Service, but on the whole mental health responsibilities are left for the states to discharge through institutional care of the mentally disabled. Although the Department of Health, Education and Welfare tries to rationalize the miscellany of its components by referring to their common thread of family service, neither its structure nor its programs exhibit a comprehensive family policy. Beyond childhood, healthy is no longer thought of only as the absence of disease, but in terms of weight, appearance, energy, vivacity, longevity, and the joy of competent performance. Diet is undergoing unlimited elaboration according to standards of aesthetics, novelty, interest, and etiquette, and the same is true of an adult’s intimate life. On the strictly physical side, the mobilization of family agencies to pursue health as a value seems more clear-cut and unified than almost any other element of our implicit or explicit family policy. #RandolphHarris 17 of 19

It is at the margins where mental states produce physical symptoms that the organizations of the community to promote positive health in a unified manner is more questionable. The fatigued housewife with nothing to do is a numerous example; by proper organization of community resources, her leisure could be rewarding instead of unhygienic. Economic agencies: Any common-sense assumption that values in the economic sphere are simply reducible to the idea of more would fail to recognize what has been happening in American families, at least to those of the middle majority. Until very recently, it has almost universally taken for granted that progress was to be measured by the steady liberation of our citizens from conditions of necessity. However, a long succession of triumphs in turning conditions into means of scarcity of means into fullness, though gratifying in retrospect and provoking envy abroad, has brought us to the threshold of a peculiarly novel problem. The goal of progressively overcoming natural limitations was always a value. Since it motivated all alike, it awakened no problem of values. However, as the further conquest of limiting conditions more and more loses its importance, through success and becoming the routine of specialists, the problem of values strikes with full force. If we turn to the economic situation of the fortunate majority of American families, we find that despite the great variety among them, a common predicament of choice among values confronts us. The problem is not how can I produce enough to live, but what career shall I undertake? #RandolphHarris 18 of 19

Not how can I pay for necessities but, shall I take the job that pays most, or the one I shall enjoy most? Not the living wage, but the wage regarded as fair in relation to the incomes of those with whom comparisons count. Not to keep the wolf from the door, but to keep up with some set of Jones’ in their pattern of consumption, or leisure, or kinds of friends. The outstanding necessity is the necessity of choice, of selecting alternatives and sticking to them. On the side of consumption, the perspective for the extension of positive values can perhaps be summarized in the nation of development of personal style. The economic agency that can organize the procedure by which consumers can become effective critics of their own consumption will be advanced by this value. On the side of distribution, it is obvious that incomes in the United States of America are still very unequally distributed, though their per capita average has been rising steadily. Likewise leisure is unequal. Another value respecting income, in the pursuit of which American families welcome leadership, is that of further stabilization, including duration after retirement. On the side of production and employment, it is almost astonishing how definitely and widely Americans have come to prefer a salaried career in their favored occupations. The very concept of a career has come to express a complex value, which includes education, status, security, and satisfaction from one’s work, the nature and rewards of which evolve in an orderly way over the lifetime. Preparation of family members for pursuing careers is a transformed function of the family, and expansion of access to careers is a growing function of family agencies in this sphere. And a #RandolphHarris 19 of 19

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