Sapiens - by Yuval Noah Harari

An Animal of No Significance

This is a key to understanding our history and psychology. Genus Homo’s position in the food chain was, until quite recently, solidly in the middle. For millions of years, humans hunted smaller creatures and gathered what they could, all the while being hunted by larger predators. It was only 400,000 years ago that several species of man began to hunt large game on a regular basis, and only in the last 100,000 years – with the rise of Homo sapiens – that man jumped to the top of the food chain.

That spectacular leap from the middle to the top had enormous consequences. Other animals at the top of the pyramid, such as lions and sharks, evolved into that position very gradually, over millions of years. This enabled the ecosystem to develop checks and balances that prevent lions and sharks from wreaking too much havoc. As lions became deadlier, so gazelles evolved to run faster, hyenas to cooperate better, and rhinoceroses to be more bad-tempered. In contrast, humankind ascended to the top so quickly that the ecosystem was not given time to adjust. Moreover, humans themselves failed to adjust. Most top predators of the planet are majestic creatures. Millions of years of domination have filled them with self-confidence. Sapiens by contrast is more like a banana-republic dictator. Having so recently been one of the underdogs of the savannah, we are full of fears and anxieties over our position, which makes us doubly cruel and dangerous. Many historical calamities, from deadly wars to ecological catastrophes, have resulted from this over-hasty jump.

The Tree of Knowledge

The truly unique feature of our language is not its ability to transmit information about men and lions. Rather, it’s the ability to transmit information about things that do not exist at all. As far as we know, only Sapiens can talk about entire kinds of entities that they have never seen, touched or smelled. Legends, myths, gods and religions appeared for the first time with the Cognitive Revolution. Many animals and human species could previously say, ‘Careful! A lion!’ Thanks to the Cognitive Revolution, Homo sapiens acquired the ability to say, ‘The lion is the guardian spirit of our tribe.’ This ability to speak about fictions is the most unique feature of Sapiens language.

Fiction has enabled us not merely to imagine things, but to do so collectively. We can weave common myths such as the biblical creation story, the Dreamtime myths of Aboriginal Australians, and the nationalist myths of modern states. Such myths give Sapiens the unprecedented ability to cooperate flexibly in large numbers. Ants and bees can also work together in huge numbers, but they do so in a very rigid manner and only with close relatives. Wolves and chimpanzees cooperate far more flexibly than ants, but they can do so only with small numbers of other individuals that they know intimately. Sapiens can cooperate in extremely flexible ways with countless numbers of strangers. That’s why Sapiens rule the world, whereas ants eat our leftovers and chimps are locked up in zoos and research laboratories.

Any large-scale human cooperation – whether a modern state, a medieval church, an ancient city or an archaic tribe – is rooted in common myths that exist only in people’s collective imagination. Churches are rooted in common religious myths. Two Catholics who have never met can nevertheless go together on crusade or pool funds to build a hospital because they both believe that God was incarnated in human flesh and allowed Himself to be crucified to redeem our sins. States are rooted in common national myths. Two Serbs who have never met might risk their lives to save one another because both believe in the existence of the Serbian nation, the Serbian homeland and the Serbian flag. Judicial systems are rooted in common legal myths. Two lawyers who have never met can nevertheless combine efforts to defend a complete stranger because they both believe in the existence of laws, justice, human rights – and the money paid out in fees.

Yet none of these things exists outside the stories that people invent and tell one another. There are no gods in the universe, no nations, no money, no human rights, no laws and no justice outside the common imagination of human beings. People easily understand that ‘primitives’ cement their social order by believing in ghosts and spirits, and gathering each full moon to dance together around the campfire. What we fail to appreciate is that our modern institutions function on exactly the same basis.

What happened in the Cognitive Revolution?

New abilityWider consequences
The ability to transmit larger quantities of information about the world surrounding Homo sapiensPlanning and carrying out complex actions, such as avoiding lions and hunting bison
The ability to transmit larger quantities of information about Sapiens social relationshipsLarger and more cohesive groups, numbering up to 150 individuals
The ability to transmit information about things that do not really exist, such as tribal spirits, nations, limited liability companies and human rightsa. Cooperation between very large numbers of strangers
b. Rapid innovation of social behaviour

History’s Biggest Fraud

Scholars once proclaimed that the agricultural revolution was a great leap forward for humanity. They told a tale of progress fuelled by human brain power. Evolution gradually produced ever more intelligent people. Eventually, people were so smart that they were able to decipher nature’s secrets, enabling them to tame sheep and cultivate wheat. As soon as this happened, they cheerfully abandoned the gruelling, dangerous and often spartan life of hunter-gatherers, settling down to enjoy the pleasant, satiated life of farmers.

That tale is a fantasy. There is no evidence that people became more intelligent with time. Foragers knew the secrets of nature long before the Agricultural Revolution, since their survival depended on an intimate knowledge of the animals they hunted and the plants they gathered. Rather than heralding a new era of easy living, the Agricultural Revolution left farmers with lives generally more difficult and less satisfying than those of foragers. Hunter-gatherers spent their time in more stimulating and varied ways, and were less in danger of starvation and disease. The Agricultural Revolution certainly enlarged the sum total of food at the disposal of humankind, but the extra food did not translate into a better diet or more leisure. Rather it translated into population explosions and pampered elites. The average farmer worked harder than the average forager, and got a worse diet in return. The Agricultural Revolution was history’s biggest fraud.

Who was responsible? Neither kings, nor priests, nor merchants. The culprits were a handful of plant species, including wheat, rice and potatoes. These plants domesticated Homo sapiens, rather than vice versa.

Building Pyramids

The humanities and social sciences devote most of their energies to explaining exactly how the imagined order is woven into the tapestry of life. Three main factors prevent people from realising that the order organising their lives exists only in their imagination:

a. The imagined order is embedded in the material world. Though the imagined order exists only in our minds, it can be woven into the material reality around us, and even set in stone. Most Westerners today believe in individualism. They believe that every human is an individual, whose worth does not depend on what other people think of him or her. Each of us has within ourselves a brilliant ray of light that gives value and meaning to our lives In Modern Western schools teachers and parents tell children that if their classmates make fun of them, they should ignore it. Only they themselves, not others, know their true worth.

In modern architecture, this myth leaps out of the imagination to take shape in stone and mortar. The ideal modern house is divided into many small rooms so that each child can have a private space, hidden from view, providing maximum autonomy. This private room almost invariable has a door, and in many households it is accepted practice for the child to close, and perhaps lock, the door. Even parents are forbidden to enter without knocking and asking permission. The room is decorated as the child sees fit, with rockstar posters on the wall and dirty socks on the floor. Somebody growing up in such a space cannot help but imagine himself ‘an individual’, his true worth emanating from within rather than from without.

Medieval noblemen did not believe in individualism. Someone’s worth was determined by their place in the social hierarchy, and by what other people said about them. Being laughed at was a horrible indignity. Noblemen taught their children to protect their good name whatever the cost. Like modern individualism, the medieval value system left the imagination and was manifested in the stone of medieval castles. The castle rarely contained private rooms for children (or anyone else, for that matter). Someone growing up in such conditions naturally concluded that a man’s true worth was determined by his place in the social hierarchy and by what other people said of him.

b. The imagined order shapes our desires. Most people do not wish to accept that the order governing their lives is imaginary, but in fact every person is born into a pre-existing imagined order, and his or her desires are shaped from birth by its dominant myths. Our personal desires thereby become the imagined order’s most important defences.

For instance, the most cherished desires of present-day Westerners are shaped by romantic, nationalist, capitalist and humanist myths that have been around for centuries. Friends giving advice often tell each other, ‘Follow your heart.’ But the heart is a double agent that usually takes its instructions from the dominant myths of the day, and the very recommendation to ‘follow your heart’ was implanted in our minds by a combination of nineteenth-century Romantic myths and twentieth-century consumerist myths. The Coca-Cola Company, for example, has marketed Diet Coke around the world under the slogan ‘Diet Coke. Do what feels good.’

c. The imagined order is inter-subjective. Even if by some superhuman effort I succeed in freeing my personal desires from the grip of the imagined order, I am just one person. In order to change the imagined order I must convince millions of strangers to cooperate with me. For the imagined order is not a subjective order existing in my own imagination – it is rather an inter-subjective order, existing in the shared imagination of thousands and millions of people. In order to understand this, we need to understand the difference between ‘objective’, ‘subjective’, and ‘inter-subjective’.

An objective phenomenon exists independently of human consciousness and human beliefs. Radioactivity, for example, is not a myth. Radioactive emissions occurred long before people discovered them, and they are dangerous even when people do not believe in them.

The subjective is something that exists depending on the consciousness and beliefs of a single individual. It disappears or changes if that particular individual changes his or her beliefs. Many a child believes in the existence of an imaginary friend who is invisible and inaudible to the rest of the world. The imaginary friend exists solely in the child’s subjective consciousness, and when the child grows up and ceases to believe in it, the imaginary friend fades away.

The inter-subjective is something that exists within the communication network linking the subjective consciousness of many individuals. If a single individual changes his or her beliefs, or even dies, it is of little importance. However, if most individuals in the network die or change their beliefs, the inter-subjective phenomenon will mutate or disappear. Inter-subjective phenomena are neither malevolent frauds nor insignificant charades. They exist in a different way from physical phenomena such as radioactivity, but their impact on the world may still be enormous. Many of history’s most important drivers are inter-subjective: law, money, gods, nations.

There Is No Justice in History

How can we distinguish what is biologically determined from what people merely try to justify through biological myths? A good rule of thumb is ‘Biology enables, culture forbids.’ Biology is willing to tolerate a very wide spectrum of possibilities. It’s culture that obliges people to realise some possibilities while forbidding others. Biology enables women to have children – some cultures oblige women to realise this possibility. Biology enables men to enjoy sex with one another – some cultures forbid them to realise this possibility.

Culture tends to argue that it forbids only that which is unnatural. But from a biological perspective, nothing is unnatural. Whatever is possible is by definition also natural. A truly unnatural behaviour, one that goes against the laws of nature, simply cannot exist, so it would need no prohibition. No culture has ever bothered to forbid men to photosynthesise, women to run faster than the speed of light, or negatively charged electrons to be attracted to each other.

In truth, our concepts ‘natural’ and ‘unnatural’ are taken not from biology but from Christian theology. The theological meaning of ‘natural’ is ‘in accordance with the intentions of the God who created nature’. Christian theologians argued that God created the human body, intending each limb and organ to serve a particular purpose. If we use our limbs and organs for the purpose envisioned by God, then it is a natural activity. To use them differently than God intends is unnatural. But evolution has no purpose. Organs have not evolved with a purpose, and the way they are used is in constant flux. There is not a single organ in the human body that only does the job its prototype did when it first appeared hundreds of millions of years ago. Organs evolve to perform a particular function, but once they exist, they can be adapted for other usages as well. Mouths, for example, appeared because the earliest multicellular organisms needed a way to take nutrients into their bodies. We still use our mouths for that purpose, but we also use them to kiss and speak. Are any of these uses unnatural simple because our wormlike ancestors 600 million years ago didn’t do those things with their mouths?

The Arrow of History

After the Agricultural Revolution, human societies grew ever larger and more complex, while the imagined constructs sustaining the social order also became more elaborate. Myths and fictions accustomed people, nearly from the moment of birth, to think in certain ways, to behave in accordance with certain standards, to want certain things, and to observe certain rules. They thereby created artificial instincts that enabled millions of strangers to cooperate effectively. This network of artificial instincts is called ‘culture’.

During the first half of the twentieth century, scholars taught that every culture was complete and harmonious, possessing an unchanging essence that defined it for all time. Each human group had its own world view and system of social, legal and political arrangements that ran as smoothly as the planets going around the sun. In this view, cultures left to their own devices did not change. They just kept going at the same pace and in the same direction. Only a force applied from outside could change them. Anthropologists, historians and politicians thus referred to ’Samoan Culture’ or ’Tasmanian Culture’ as if the same beliefs, norms and values had characterised Samoans and Tasmanians from time immemorial.

Today, most scholars of culture have concluded that the opposite is true. Every culture has its typical beliefs, norms and values, but these are in constant flux. The culture may transform itself in response to changes in its environment or through interaction with neighbouring cultures. But cultures also undergo transitions due to their own internal dynamics. Even a completely isolated culture existing in an ecologically stable environment cannot avoid change. Unlike the laws of physics, which are free of inconsistencies, every man-made order is packed with internal contradictions. Cultures are constantly trying to reconcile these contradictions, and this process fuels change.

The first millennium BC witnessed the appearance of three potentially universal orders, whose devotees could for the first time imagine the entire world and the entire human race as a single unit governed by a single set of laws. Everyone was ‘us’, at least potentially. There was no longer ’them’. The first universal order to appear was economic: the monetary order. The second universal order was political: the imperial order. The third universal order was religious: the order of universal religions such as Buddhism, Christianity and Islam.

Merchants, conquerors and prophets were the first people who managed to transcend the binary evolutionary division, ‘us vs them’, and to foresee the potential unity of humankind. For the merchants, the entire world was a single market and all humans were potential customers. They tried to establish an economic order that would to all, everywhere. For the conquerors, the entire world was a single empire and all humans were potential subjects, and for the prophets, the entire world held a single truth and all humans were potential believers. They too tried to establish an order that would be applicable for everyone everywhere. During the last three millennia, people made more and more ambitious attempts to realise that global vision.

The Scent of Money

Money was created many times in many places. Its development required no technological breakthroughs – it was a purely mental revolution. It involved the creation of a new inter-subjective reality that exists solely in people’s shared imagination. Money is not coins and banknotes. Money is anything that people are willing to use in order to represent systematically the value of other things for the purpose of exchanging goods and services. Money enables people to compare quickly and easily the value of different commodities (such as apples, shoes and divorces), to easily exchange one thing for another, and to store wealth conveniently. There have been many types of money. The most familiar is the coin, which is a standardised piece of imprinted metal. Yet money existed long before the invention of coinage, and cultures have prospered using other things as currency, such as shells, cattle, skins, salt, grains, beads, cloth and promissory notes.

Money is a system of mutual trust, and not just any system of mutual trust: money is the most universal and most efficient system of mutual trust ever devised. What created this trust was a very complex and long-term network of political, social and economic relations. Why do I believe in the cowry shell or gold coin or dollar bill? Because my neighbours believe in them. And my neighbours believe in them because I believe in them. And we all believe in them because our king believes in them and demands them in taxes, and because our priest believes in them and demands them in tithes. Take a dollar bill and look at it carefully. You will see that it is simply a colourful piece of paper with the signature of the US secretary of the treasury on one side, and the slogan ‘In God we trust’ on the other. We accept the dollar in payment, because we trust in God and the US secretary of the treasury. The crucial role of trust explains why our financial systems are so tightly bound up with our political, social and ideological systems, why financial crises are often triggered by political developments, and why the stock market can rise or fall depending on the way traders feel on a particular morning. Initially, when the first versions of money were created, people didn’t have this sort of trust, so it was necessary to define as ‘money’ things that had real intrinsic value.

Money is based on two universal principles:

  1. Universal convertibility: with money as an alchemist, you can turn land into loyalty, justice into health, and violence into knowledge.
  2. Universal trust: with money as a go-between, any two people can cooperate on any project.

These principles have enabled millions of strangers to cooperate effectively in trade and industry. But these seemingly benign principles have a dark side. When everything is convertible, and when trust depends on anonymous coins and cowry shells, it corrodes local traditions, intimate relations and human values, replacing them with the cold laws of supply and demand.

Human communities and families have always been based on belief in ‘priceless’ things, such as honour, loyalty, morality and love. These things lie outside the domain of the market, and they shouldn’t be bought or sold for money. Even if the market offers a good price, certain things just aren’t done. Parents mustn’t sell their children into slavery; a devout Christian must not commit a mortal sin; a loyal knight must never betray his lord; and ancestral tribal lands should never be sold to foreigners. Money has always tried to break through these barriers, like water seeping through cracks in a dam.

Money has an even darker side. For although money builds universal trust between strangers, this trust is invested not in humans, communities or sacred values, but in money itself and in the impersonal systems that back it. We do not trust the stranger, or the next-door neighbour – we trust the coin they hold. If they run out of coins, we run out of trust. As money brings down the dams of community, religion and state, the world is in danger of becoming one big and rather heartless marketplace. Hence the economic history of humankind is a delicate dance. People rely on money to facilitate cooperation with strangers, but they’re afraid it will corrupt human values and intimate relations. With one hand people willingly destroy the communal dams that held at bay the movement of money and commerce for so long. Yet with the other hand they build new dams to protect society, religion and the environment from enslavement to market forces.

What Is an Empire?

An empire is a political order with two important characteristics. First, to qualify for that designation you have to rule over a significant number of distinct peoples, each possessing a different cultural identity and a separate territory. How many peoples exactly? Two or three is not sufficient. Twenty or thirty is plenty. The imperial threshold passes somewhere in between.

Second, empires are characterised by flexible borders and a potentially unlimited appetite. They can swallow and digest more and more nations and territories without altering their basic structure or identity. The British state of today has fairly clear borders that cannot be exceeded without altering the fundamental structure and identity of the state. A century ago almost any place on earth could have become part of the British Empire.

Cultural diversity and territorial flexibility give empires not only their unique character, but also their central role in history. It’s thanks to these two characteristics that empires have managed to unite diverse ethnic groups and ecological zones under a single political umbrella, thereby fusing together larger and larger segments of the human species and of planet Earth.

It should be stressed that an empire is defined solely by its cultural diversity and flexible borders, rather than by its origins, its form of government, its territorial extent, or the size of its population. An empire need not emerge from military conquest. Nor must an empire be ruled by an autocratic emperor. Size, too, does not really matter. Empires can be puny. Empires were one of the main reasons for the drastic reduction in human diversity. The imperial steamroller gradually obliterated the unique characteristics of numerous peoples, forging out of them new and much larger groups.

The Law of Religion

Today religion is often considered a source of discrimination, disagreement and disunion. Yet, in fact, religion has been the third great unifier of humankind, alongside money and empires. Since all social orders and hierarchies are imagined, they are all fragile, and the larger the society, the more fragile it is. The crucial historical role of religion has been to give superhuman legitimacy to these fragile structures. Religions assert that our laws are not the result of human caprice, but are ordained by an absolute and supreme authority. This helps place at least some fundamental laws beyond challenge, thereby ensuring social stability. Religion can thus be defined as a system of human norms and values that is founded on a belief in a superhuman order. This involves two distinct criteria:

  1. Religions hold that there is a superhuman order, which is not the product of human whims or agreements. Professional football is not a religion, because despite its many laws, rites and often bizarre rituals, everyone knows that human beings invented football themselves, and FIFA may at any moment enlarge the size of the goal or cancel the offside rule.
  2. Based on this superhuman order, religion establishes norms and values that it considers binding. Many Westerners today believe in ghosts, fairies and reincarnation, but these beliefs are not a source of moral and behavioural standards. As such, they do not constitute a religion.

Despite their ability to legitimise widespread social and political orders, not all religions have actuated this potential. In order to unite under its aegis a large expanse of territory inhabited by disparate groups of human beings, a religion must possess two further qualities. First, it must espouse a universal superhuman order that is true always and everywhere. Second, it must insist on spreading this belief to everyone. In other words, it must be universal and missionary.

The best-known religions of history, such as Islam and Buddhism, are universal and missionary. Consequently, people tend to believe that all religions are like them. In fact, the majority of ancient religions were local and exclusive. Their followers believed in local deities and spirits, and had no interest in converting the entire human race. As far as we know, universal and missionary religions began to appear only in the first millennium BC. Their emergence was one of the most important revolutions in history, and made a vital contribution to the unification of humankind, much like the emergence of universal empires and universal money.

The Discovery of Ignorance

Humans have sought to understand the universe at least since the Cognitive Revolution. Our ancestors put a great deal of time and effort into trying to discover the rules that govern the natural world. But modern science differs from all previous traditions of knowledge in three critical ways:

  1. The willingness to admit ignorance. Modern science is based on the Latin injunction ignoramus – ‘we do not know’. It assumes that we don’t know everything. Even more critically, it accepts that the things that we think we know could be proven wrong as we gain more knowledge. No concept, idea or theory is sacred and beyond challenge.
  2. The centrality of observation and mathematics. Having admitted ignorance, modern science aims to obtain new knowledge. It does so by gathering observations and then using mathematical tools to connect these observations into comprehensive theories.
  3. The acquisition of new powers. Modern science is not content with creating theories. It uses these theories in order to acquire new powers, and in particular to develop new technologies.

The Scientific Revolution has not been a revolution of knowledge. It has been above all a revolution of ignorance. The great discovery that launched the Scientific Revolution was the discovery that humans do not know the answers to their most important questions.

The Marriage of Science and Empire

Scientists have provided the imperial project with practical knowledge, ideological justification and technological gadgets. Without this contribution it is highly questionable whether Europeans could have conquered the world. The conquerors returned the favour by providing scientists with information and protection, supporting all kinds of strange and fascinating projects and spreading the scientific way of thinking to the far corners of the earth. Without imperial support, it is doubtful whether modern science would have progressed very far. There are very few scientific disciplines that did not begin their lives as servants to imperial growth and that do not owe a large proportion of their discoveries, collections, buildings and scholarships to the generous help of army officers, navy captains and imperial governors.

This is obviously not the whole story. Science was supported by other institutions, not just by empires. And the European empires rose and flourished thanks also to factors other than science. Behind the meteoric rise of both science and empire lurks one particularly important force: capitalism. Were it not for businessmen seeking to make money, Columbus would not have reached America, James Cook would not have reached Australia, and Neil Armstrong would never have taken that small step on the surface of the moon.

The Capitalist Creed

Over the last 500 years the idea of progress convinced people to put more and more trust in the future. This trust created credit; credit bought real economic growth; and growth strengthened the trust in the future and opened the way for even more credit. It didn’t happen overnight – the economy behaved more like a roller coaster than a balloon. But over the long run, with the bumps evened out, the general direction was unmistakable. Today, there is so much credit in the world that governments, business corporations and private individuals easily obtain large, long-term and low-interest loans that far exceed current income.

The belief in the growing global pie eventually turned revolutionary. In 1776 the Scottish economist Adam Smith published The Wealth of Nations, probably the most important economics manifesto of all time. In the eight chapter of its first volume, Smith made the following novel argument: when a landlord, a weaver or a shoemaker has greater profits than he needs to maintain his own family, he uses the surplus to employ more assistants, in order to further increase his profits. The more profits he has, the more assistants he can employ. It follows that an increase in the profits of private entrepreneurs is the basis for the increase in collective wealth and prosperity.

This may not strike you as very original, because we all live in a capitalist world that takes Smith’s argument for granted. We hear variations on this theme every day in the news. Yet Smith’s claim that the selfish human urge to increase private profits is the basis for collective wealth is one of the most revolutionary ideas in human history – revolutionary not just from an economic perspective, but even more so from a moral and political perspective. What Smith says is, in fact, that greed is good, and that by becoming richer I benefit everybody, not just myself. Egoism is altruism.

Smith taught people to think about the economy as a ‘win-win situation’, in which my profits are also your profits. Not only can we both enjoy a bigger slice of pie at the same time, but the increase in your slice depends upon the increase in my slice. If I am poor, you too will be poor since I cannot buy your products or services. If I am rich, you too will be enriched since you can now sell me something. Smith denied the traditional contradiction between wealth and morality, and threw open the gates of heaven for the rich. Being rich meant being moral. In Smith’s story, people become rich not by despoiling their neighbours, but by increasing the overall size of the pie. And when the pie grows, everyone benefits. The rich are accordingly the most useful and benevolent people in society, because they turn the wheels of growth for everyone’s advantage.

All this depends, however, on the rich using their profits to open new factories and hire new employees, rather than wasting them on non-productive activities. A crucial part of the modern capitalist economy was the emergence of a new ethic, according to which profits ought to be reinvested in production. This brings about more profits, which are again reinvested in production, which brings more profits, et cetera ad infinitum. Investments can be made in many ways: enlarging the factory, conducting scientific research, developing new products. Yet all these investments must somehow increase production and translate into larger profits. In the new capitalist creed, the first and most sacred commandment is: ‘The profits of production must be reinvested in increasing production.’ Capitalism distinguishes ‘capital’ from mere ‘wealth’. Capital consists of money, goods and resources that are invested in production. Wealth, on the other hand, is buried in the ground or wasted on unproductive activities.

The Cult of the Free Market

Capital and politics influence each other to such an extent that their relations are hotly debated by economists, politicians and the general public alike. Ardent capitalists tend to argue that capital should be free to influence politics, but politics should not be allowed to influence capital. They argue that when governments interfere in the markets, political interests cause them to make unwise investments that result in slower growth. For example, a government may impose heavy taxation on industrialists and use the money to give lavish unemployment benefits, which are popular with voters. In the view of many business people, it would be far better if the government left the money with them. They would use it, they claim, to open new factories and hire the unemployed.

In this view, the wisest economic policy is to keep politics out of the economy, reduce taxation and government regulation to a minimum, and allow market forces free rein to take their course. Private investors, unencumbered by political considerations, will invest their money where they can get the most profit, so the way to ensure the most economic growth – which will benefit everyone, industrialists and workers – is for the government to do as little as possible .This free-market doctrine is today the most common and influential variant of the capitalist creed. The most enthusiastic advocates of the free market criticise military adventures abroad with as much zeal as welfare programmes at home. They offer governments the same advice that Zen masters offer initiates: just do nothing.

But in its extreme form, belief in the free market is as naive as belief in Santa Claus. There simply is no such thing as a market free of all political bias. The most important economic resource is trust in the future, and this resource is constantly threatened by thieves and charlatans. Markets by themselves offer no protection against fraud, theft and violence. It is the job of political system to ensure trust by legislating sanctions against cheats and to establish and support police forces, courts and jails which will enforce the law. When kings fail to do their jobs and regulate the markets properly, it leads to loss of trust, dwindling credit and economic depression. That was the lesson taught by the Mississippi Bubble of 1719, and anyone who forgot it was reminded by the US housing bubble of 2007, and the ensuing credit crunch and recession.

The Industrial Revolution

The Industrial Revolution brought about dozens of major upheavals in human society. Adapting to industrial time is just one of them. Other notable examples include urbanisation, the disappearance of the peasantry, the rise of the industrial proletariat, the empowerment of the common person, democratisation, youth culture and the disintegration of patriarchy.

Yet all of these upheavals are dwarfed by the most momentous social revolution that ever befell humankind: the collapse of the family and the local community and their replacement by the state and the market. As best as we can tell, from the earliest times, more than a million years ago, humans lived in small, intimate communities, most of whose members were kin. The Cognitive Revolution and the Agricultural Revolution did not change that. They glued together families and communities to create tribes, circuits, kingdoms and empires, but families and communities remained the basic building blocks of all human societies. The Industrial Revolution, on the other hand, managed within little more than two centuries to break these building blocks into atom. Most of the traditional functions of families and communities were handed over to states and markets.

Imagined Communities

Like the nuclear family, the community could not completely disappear from our world without any emotional replacement. Markets and states today provide most of the material needs once provided by communities, but they must also supply tribal bonds. Markets and states do so by fostering ‘imagined communities’ that contain millions of strangers, and which are tailored to national and commercial needs. An imagined community is a community of people who don’t really know each other, but imagine that they do. Such communities are not a novel invention. Kingdoms, empires and churches functioned for millennia as imagined communities. Yet throughout history, such imagined communities played second fiddle to intimate communities of several dozen people who knew each other well. The intimate communities fulfilled the emotional needs of their members and were essential for everyone’s survival and welfare. In the last two centuries, the intimate communities have withered, leaving imagined communities to fill in the emotional vacuum.

The two most important examples for the rise of such imagined communities are the nation and the consumer tribe. The nation is the imagined community of the state. The consumer tribe is the imagined community of the market. Both are imagined communities because it is impossible for all customers in a market or for all members of a nation really to know one another the way villagers knew one another in the past.

Consumerism and nationalism work extra hours to make us imagine that millions of strangers belong to the same community as ourselves, that we all have a common past, common interests and a common future. This isn’t a lie. It’s imagination. Like money, limited liability companies and human rights, nations and consumer tribes are inter-subjective realities. They exist only in our collective imagination, yet their power is immense.

And They Lived Happily Ever After

According to Buddhism, the root of suffering is neither the feeling of pain nor of sadness nor even of meaninglessness. Rather, the real root of suffering is this never-ending and pointless pursuit of ephemeral feelings, which causes us to be in a constant state of tension, restlessness and dissatisfaction. Due to this pursuit, the mind is never satisfied. Even when experiencing pleasure, it is not content, because it fears this feelings might soon disappear, and craves that this feeling should stay and intensify.

People are liberated from suffering not when they experience this or that fleeting pleasure, but rather when they understand the impermanent nature of all their feelings, and stop craving them. This is the aim of Buddhist meditation practices. In meditation, you are supposed to closely observe your mind and body, witness the ceaseless arising and passing of all your feelings, and raise how pointless it is to pursue them. When the pursuit stops, the ind becomes very relaxed, clear and satisfied. All kinds of feelings go on arising and passing – joy, anger, boredom, lust – but once you stop craving particular feelings, you can just accept them for what they are. You live in the present moment instead of fantasising about what might have been.

This idea is so alien to modern liberal culture that when Western New Age movements encountered Buddhist insights, they translated them into liberal terms, thereby turning the on their head. New Age cults frequently argue: ‘Happiness does not depend on external conditions. It depends only on what we feel inside. People should stop pursuing external achievements such as wealth and status, and connect instead with their inner feelings.’ Or more succinctly, ‘Happiness begins within.’ This is exactly what biologists argue, but more or less the opposite of what Buddha said. Buddha agreed with modern biology and New Age movements that happiness is independent of external conditions. Yet his more important and far more profound insight was that true happiness is also independent of our inner feelings. Indeed, the more significance we give our feelings, the more we crave them, and the more we suffer. Buddha’s recommendation was to stop not only the pursuit of external achievements, but also the pursuit of inner feelings.

To sum up, subjective well-being questionnaires identify our wellbeing with our subjective feelings, and identify the pursuit of happiness with the pursuit of particular emotional states. In contrast, for many traditional philosophies and religions, such as Buddhism, the key to happiness is to know the truth about yourself – to understand who, or what, you really are. Most people wrongly identify themselves with their feelings, thoughts, likes and dislikes. When they feel anger, they think ‘I am angry. This is my anger.’ They consequently spend they life avoiding some kinds of feelings and pursuing others. They never realise that they are not their feelings, and that the relentless pursuit of particular feelings just traps them in misery.

If this is so, then our entire understanding of the history of happiness might be misguided. Maybe it isn’t so important whether people’s expectations are fulfilled and whether they enjoy pleasant feelings. The main question is whether people know the truth about themselves. What evidence do we have that people today understand this truth any better than ancient foragers or medieval peasants? Scholars began to study the history of happiness only a few years ago, and we are still formulating initial hypotheses and searching for appropriate research methods. It’s much too early to adopt rigid conclusions and end a debate that’s hardly yet begun. What is important is to get to know as many different approaches as possible and to ask the right questions.