Faith, Meet Force
And The Moneyball Method
Because good systems begin at the beginning, Part I of The Moneyball Method deals with economic philosophy. And to break that down, the book sets up five choices that seem to conflict but are in fact compatible and complementary. Known as false dichotomies, they are theory vs. practice, reason vs. emotion, faith vs. force, moral vs. practical and fact vs. value. This brief essay will highlight faith vs force.
Faith
The previous essay asserted that reason is a uniquely human trait and an absolute necessity for man’s survival. In the definition, “direct understanding” implies natural evidence. And in the metaphysical world, there are countless examples including solar systems, subatomic structures, photosynthesis and electromagnetism.
In the civilized, man-made world there is the price mechanism of free markets and a structure of objective laws that protect them. But cultures that are decivilizing will ignore cause and effect and alter the definitions for concepts and language. When the subjective becomes the standard and feelings become knowledge, faith is being imposed.
In the absence of reason, there is faith: “belief that is not based on proof.” In other words, opinions and convictions that are not “intellectual knowledge, either by direct understanding of first principles or by argument.” And because faith makes it easy to avoid independent judgment, that leaves emotional whims to guide ideas and behavior. Inevitably, bad theory leads to bad practice and fallacies lead to anxiety.
Force
Therein lies the rub – force is the only way to achieve desired outcomes that are not consistent with reality and its effects. To wish something into existence does not make it so. Furthermore, force can be applied to make people act, but nothing can force people to think beyond their own survival.
In the context of socioeconomic systems, there are many examples of force that is justified by faith in a “higher power.” Those include State currencies, antitrust laws, income taxes and redistribution agencies – all for the mystical “common good.”
Moneyball
For individual investors, the fallacies become economic forecasts and market predictions that use projections for rates of return that are as reliable as faith. To remedy that, The Moneyball Method replaces them with the evidence of long-term price histories for the most reliable capital market assumptions. Why? Because there is order to the universe and market performance is uncertain.
The previous essay ended with a reference to the Serenity Prayer, but is wisdom, courage and serenity made possible by appeals to the supernatural? Of course not. Nor are vaccines, airplanes, smartphones or mass prosperity made possible through the initiation of force. Yet, both are real, if we so choose - and act. To further prove this theory, the next essay will deal with the moral vs. practical dichotomy.
https://www.amazon.com/Moneyball-Method-Middle-Class-Manifesto-Objective/dp/1696009111/