Greenspan has learned too late but perhaps there is still time for the rest of us
by
Donald Devine
What
an absolutely astounding admission former Fed boss Alan Greenspan makes about
his new book The Map and The Territory:
“Not a single major forecaster of note or institution caught it [the 2008 crash]. The Federal Reserve has got the most elaborate econometric model, which incorporates all the newfangled models of how the world works—and it missed it completely. I was actually flabbergasted. It upended my view of how the world worked.”
That this
epitome of Washington brilliance and establishment power really thought the
little models could actually forecast the future takes one’s breath away! One
could expect that such models would be used as rough guides to action and to
keep naive investors calm but that he was surprised the models did not predict
specific events is incredible, especially for someone who supposedly had
believed in markets. He admits he just now realizes that irrational fears
influence how people behave! But we are supposed to trust these guys with $3
trillion sitting in the Fed, telling us they have a way out because the models
are scientific, right?
Nobel
Laureate F.A. Hayek predicted that people in the future looking back would
“discover that the most widely held ideas which dominated the twentieth
century” like scientific planning “were all based on superstitions…an
overestimation of what science has achieved.” Hayek noted more than a half
century ago that there were more intercortical connections in one person’s mind
in a few moments than there are atoms in the entire solar system. While the
material world still largely remains a mystery to science, human behavior is a
real black hole. With billions of people’s minds and untold interactions
between them the total human complexity is overwhelming. No super-mind in some
Federal Reserve or White House can comprehend this complexity, much less
control it. The progressive pretension to understand what they cannot possibly
know is the true source of today’s discontent.
The number
of books today rediscovering this truth is becoming a torrent. The Discovery
Institute’s Stephen Meyer hit number seven on the New York Times bestseller list with his stunning new
book, Darwin’s Doubt. The title reflects the fact that even
Charles Darwin had one great doubt about his materialistic theory of human
evolution, that natural selection by random mutation is the sole explanation of
life on earth. Specifically, he questioned whether what was called the Cambrian
Explosion of 500 million years ago could have occurred that recently (out of an
estimate of only 3 billion total years of life on earth). How could higher life
arise over such a short period of time, and where were the fossils
demonstrating such a progression of forms?
Much of
Meyer’s detailed book systematically analyzes attempts to fill in the fossil
record and to explain the short time period. In sum, he demonstrates
conclusively that modern science is no closer to explaining the missing data
than it was 150 years ago when Darwin predicted it would soon show up. The odds
that these links will appear after all this time is remote. More important, to
mutate into new body parts we now know would require new genetic/DNA and
epi-genetic/non-DNA biological information be placed into already enormously
complex information sequences that would often be lethal to them–while to
transition to new life requires being viable at every stage. The odds against
this are very great and the evidence we do have is against it.
We know so
much more than did Darwin. His contemporary and supporter Ernst Haeckel
believed (as Darwin presumably did) that a cell was a mere lump of matter. Now we
understand (something) more about real cells. They are not lumps but incredibly
complex with DNA and cell structure both playing a role in its integrity. We
have just begun to understand how the two percent of DNA thought to be
functional (rather than “junk”) might work. But we have even more recently
discovered that some epigenetic information may be just as important as DNA in
the cell although we do not know quite how. Then comes the prestigious journal Nature to report that the ENCODE project now
estimates that at least 80 percent of DNA actually serves some biochemical
purpose. Seventy-eight percent we thought was cell junk now must be taken
seriously. This is really getting complicated!
George
Gilder, the influential author of the bestselling Wealth and Poverty, thinks he has an explanation in his
recent blockbuster, Knowledge and Power. He offers a “science of information”
as the way to understand the complexity. His theory is a mathematical model of
entropy (or disorder) based on the logic of physical entropy where at one
extreme the world is considered totally disordered and unexplainable. The
opposite is a small part of reality that seems to be ordered so that we
understand it. “Surprise” or change or “noise” is when new information
increases what is ordered and understood. New understanding requires a low
entropy channel relatively interference free. All information can be explained
in this context, he argues, and so information theory would seem to solve the
problem of complexity. But there is a kicker–the creation or change process
itself “defies every logical and mathematical system.”
The
materialist reductionism of the modern scientific worldview throws up its hands
at this lack of system. Its complexity so increases the number of interactions
required to sustain evolution, for example, it must invent “parallel universes”
out of whole cloth to explain what is inexplicable in the universe that we
actually live in. In the real world, DNA codes can define the amino acids that
form proteins but the proteins cannot specify the codes that define their
antecedents. Indeed, only human intelligence can pierce through the immense
disorder to create new understandings. There is a hierarchy–human intelligence
reveals the physical world as the human programmer defines the physical
computer. The GeneChip can search millions of bits of information but without
intelligence there is no logic how to search in a complex reality greater than
the atoms in the universe, Gilder concludes, using the same analogy Hayek used
back in 1944.
In his new
book Mind and Cosmos New
York University philosopher Thomas Nagel concludes that simple materialism
cannot fully explain the world as we now understand it, especially the mind. He
attempts to develop a third way between materialism and theological explanation
but was widely criticized by his academic friends for such unorthodoxy in
challenging materialism as a sufficient cause. As far as religion, Nagel
replied, “It isn’t just that I don’t believe in God and naturally hope I’m
right in my belief. It’s that I hope there is no God! I don’t want there to be
a God; I don’t want the universe to be like that.” But he still insisted that
materialism by itself cannot explain mind.
Nagel even
spoke respectfully of the Christian philosopher Alvin Plantinga, who has
probably written the most radical argument questioning the lack of science
supporting Darwinism and the whole materialist hypothesis it rests upon. While Where the Conflict Really Lies has no argument against evolution explaining how some material change takes
place, he argues it cannot explain the more complex systems. As his title
suggests, Plantinga is mostly interested in refuting that traditional religion
is in conflict with real science. He refutes the popular alleged conflicts
between the two, explains why the real conflicts are superficial and why the
two realms are mostly in concord.
In ending
his argument, Plantinga quotes materialist molecular biologist James Shapiro
that “there are no detailed Darwinian accounts for evolution of any fundamental
biochemical or cellular system only a variety of wishful speculations.”
Materialism-only is an assumption not an empirical conclusion.
Materialism-only, particularly in Darwinism, Plantinga concludes, is simply a
religious-like assumption. Hayek’s term “superstition” would seem apt.
What
difference does this make? The practical side is that all modern public
administration rests upon the superstition of a naturalist science fully
explaining human action, which in turn can be manipulated by government experts
to provide for society’s welfare. Until we develop a more sophisticated idea
than this simplistic materialism in trying to explain our complex human social,
economic and political life we can expect the same “flabbergasted” results.
Greenspan has learned too late but perhaps there is still time for the rest of
us.
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