The "What is Money?" Show
Austrian Economics and Complex Systems with Rahim Taghizadegan (WiM376)
Episode guests
Podcast summary created with Snipd AI
Quick takeaways
- Hayek emphasizes the need for a different approach in understanding complexity of social phenomena compared to natural sciences.
- Understanding human beings as storytelling creatures can help navigate through false ideologies and demagoguery.
- Positive change often arises from technology, discovery of patterns, and coping with life's challenges, rather than through politics.
- Bitcoin is a discovery that combines previous innovations in a new way and its adoption and success relies on peer-to-peer discovery and individual fit.
- Incentives, beyond material interests, encompass social, psychological, and moral factors, and play a key role in shaping behavior and creating systems for positive change.
Deep dives
The distinction between simple and complex phenomena
Hayek discusses the distinction between simple and complex phenomena, arguing that the natural sciences focus on simpler phenomena while the social sciences deal with the complex. He highlights the limitations of applying the methods of the natural sciences to social phenomena and emphasizes the need for a different approach in understanding complexity.
The role of epistemology in understanding knowledge
Hayek explores the field of epistemology, which deals with how knowledge is acquired and understood. He emphasizes the importance of distinguishing between simple and complex phenomena in shaping epistemological stances, and notes that the success of natural sciences led to a skepticism towards other branches of philosophy.
The need for guiding narratives and mythologies
Hayek argues that as traditional religious institutions crumble, societies seek new guiding narratives and mythologies to provide meaning and structure. He suggests that understanding human beings as storytelling creatures who are shaped by their tools and technologies can help in navigating through false ideologies and demagoguery.
The limitations of politics in bringing about positive change
Hayek expresses skepticism towards politics, viewing it as a means of imposing top-down control and disrupting the organic order of society. He suggests that positive change often arises from technology, discovery of patterns, and being a good example in coping with life's challenges.
Bitcoin as a Discovery
Bitcoin is seen as a discovery rather than an invention, as it combines previous innovations in a new way. It is a carrier technology that opens new possibilities. Its adoption and success depends on peer-to-peer discovery and individual fit with ends and means. Bitcoin's importance lies in its monetary protocol, which bridges people and fosters cooperation and communication. It is a useful tool for economic change and cultural progress. Its significance can be compared to other historical innovations, although its ultimate impact remains to be seen.
The Role of Incentives
Incentives are a powerful force that influences human action. They can shape behavior by aligning interests and motivations. However, it is important to note that incentives are not solely driven by material interests. They also encompass social, psychological, and moral factors. Incentives are a key leverage point for engineering efforts, as they can provide the guiding framework for desired outcomes. Understanding and aligning incentives can help create systems and structures that promote cooperation, productivity, and positive change.
The Importance of Money
Money plays a crucial role in connecting individuals across space and time. It serves as a protocol for economic interaction, facilitating cooperation, trade, and the exchange of value. Sound money protocols are essential for economic calculation and long-term planning. By preserving purchasing power and reducing the impact of depreciation, money with stable value incentivizes saving and investment over immediate consumption. The nature of money and its incentives has a profound influence on economic activity and can shape society at large.
Incentives and Human Action
Incentives are drivers of human action, but their influence extends beyond material interests. Human behavior is complex and influenced by a variety of factors, including social, psychological, and moral incentives. While incentives play a significant role in shaping behavior, they do not provide a complete understanding of human action. Other factors, such as individual values, beliefs, and cultural norms, also contribute to the choices people make. When engineering systems and structures, it is important to not solely rely on incentives, but to consider the broader context and motivations behind human actions.
The importance of private property and responsibilities
Private property is seen as a protocol that facilitates social cooperation and is characterized by the concept of responsibility. It allows individuals to say no to certain things, fostering efficiency and win-win situations. It keeps producers honest and ensures fair negotiations. The entrepreneurial promoter becomes an important change agent within the framework of private property. Additionally, private property is a check against the violation of property rights, which can drive moral decay in society. Bitcoin, with its strong emphasis on property rights, offers an example of a system that optimizes social cooperation and enhances individual responsibility.
The role of culture and gradual change in societal transformation
Long-term change and societal transformation occur due to cultural shifts and gradual processes. It involves finding a match between personal values and the existing world, rather than attempting to radically change everything. The importance of ridicule and openly questioning prevailing narratives is emphasized, rather than attempting to convince the majority through logical arguments alone. While change may start with small steps and entrepreneurial actions, cultural shifts require time and the acceptance of responsibility for change. Bitcoin, with its focus on responsibility and potential for cultural change, offers an avenue for incremental transformation.
Rahim Taghizadegan joins me to discuss what Jungian psychology and Austrian economics have in common, the problem with the deterministic worldview, the nature of incentives, and whether Bitcoin is a fundamental innovation.
Rahim Taghizadegan is an economist, author, physicist, philosopher, investor, and entrepreneur. He is the last Austrian economist of the Austrian School in the direct tradition.
// GUEST //
Twitter: https://twitter.com/scholarium_at
Website: https://scholarium.at/
// SPONSORS //
In Wolf's Clothing: https://wolfnyc.com/
iCoin Hardware Wallet (use discount code BITCOIN23): https://www.icointechnology.com/
CrowdHealth: https://www.joincrowdhealth.com/breedlove
Wasabi Wallet: https://wasabiwallet.io/
Bitcoin Apparel (use discount code BREEDLOVE): https://thebitcoinclothingcompany.com/
Feel Free Tonics (use discount code BREEDLOVE): https://botanictonics.com
Carnivore Bar (use discount code BREEDLOVE): https://carnivorebar.com/
// OUTLINE //
00:00:00 - Coming up
00:00:44 - Intro
00:02:17 - Helping Lightning Startups with In Wolf's Clothing
00:03:03 - Introducing Rahim Taghizadegan
00:03:47 - Rahim's Journey from Austrian Economics to Bitcoin
00:05:20 - Switching the Field of Interest
00:07:10 - Recommended Books
00:08:35 - Jungian Psychology & Austrian Economics
00:11:37 - The Complexity Theory
00:13:38 - Behavior vs. Action
00:18:19 - Praxeology
00:19:17 - Distinguishing Human from Animal
00:23:11 - 20th Century Crisis
00:30:10 - Innovation Led to Social Change
00:36:14 - Fighting Against the Demagogues
00:42:28 - Preservation of Privilege
00:43:24 - Guiding Light and the Narrative of Mythology
00:45:44 - Human Capability of Rational Argumentation
00:47:30 - Following the Leader
00:51:35 - Rules vs. Regulation
00:53:10 - Differentiating Epistemology & Philosophy
00:55:16 - Replacing Philosophy with Science
01:01:05 - Simplicity vs. Complexity
01:02:23 - Secure Your Bitcoin Stash with the iCoin Hardware Wallet
01:03:19 - Mismanagement of Science
01:07:07 - Science is Not the Only Answer
01:10:38 - DDT Pesticide Disaster
01:12:53 - The Line Between Proper Intervention and Abuse
01:16:02 - From Newtonian Theory to Einsteinian Theory
01:19:41 - Problem with the Newtonian Worldview of Human Beings
01:22:29 - Difference Between Theory and Observation
01:26:43 - Attributes of Real Science
01:29:04 - Tradition of Speculation & Exaggeration
01:33:38 - Choosing the Right Facts
01:35:23 - Verifying the Ideals
01:38:13 - Spotting the Irregularities and Discussing Metaphysics
01:43:27 - Axiom of Action
01:46:11 - Predicting Human Behaviour
01:49:22 - The Freedom to Choose
01:52:31 - The Metaphor of Language & Money
01:55:28 - Bitcoin is an Idealized Money
01:57:46 - Is Bitcoin Discovered or Invented?
02:00:17 - Take Control of Your Healthcare with CrowdHealth
02:01:18 - A Bitcoin Wallet with Privacy Built-In: Wasabi Wallet
02:02:10 - Bitcoin a Fundamental Innovation
02:03:42 - Can Bitcoin Be Established in Today’s World?
02:07:40 - The Nature of Incentives
02:11:06 - How Incentives Influence Action
02:17:32 - Fiat Currency Incentivizes Debt
02:21:09 - How Incentives Interact with Morality
02:25:25 - Restructuring the Incentives
02:29:13 - Private Property & Social Cooperation
02:32:20 - Being an Entrepreneur of Change
02:37:02 - Bitcoin Enhances Private Property
02:39:33 - The Feedback Loops of Bitcoin
02:41:27 - How to Find Rahim's Work
// PODCAST //
Podcast Website: https://whatismoneypodcast.com/
Apple Podcast: https://podcasts.apple.com/us/podcast/the-what-is-money-show/id1541404400
Spotify: https://open.spotify.com/show/25LPvm8EewBGyfQQ1abIsE?
RSS Feed: https://feeds.simplecast.com/MLdpYXYI
// SUPPORT THIS CHANNEL //
Bitcoin: 3D1gfxKZKMtfWaD1bkwiR6JsDzu6e9bZQ7
Sats via Strike: https://strike.me/breedlove22
Sats via Tippin.me: https://tippin.me/@Breedlove22
Dollars via Paypal: https://www.paypal.com/paypalme/RBreedlove
// WRITTEN WORK //
Medium: https://breedlove22.medium.com/
Substack: https://breedlove22.substack.com/
// SOCIAL //
Breedlove Twitter: https://twitter.com/Breedlove22
WiM? Twitter: https://twitter.com/WhatisMoneyShow
LinkedIn: https://www.linkedin.com/in/breedlove22
Instagram: https://www.instagram.com/breedlove_22
TikTok: https://www.tiktok.com/@breedlove22
All My Current Work: https://vida.page/breedlove22
Remember Everything You Learn from Podcasts
