Heiner Rindermann PhD, is Professor of Educational and Developmental Psychology at the Technical University of Chemnitz (Germany). He is psychologist (PhD University of Heidelberg). His work deals with education and ability development, intelligence and student achievement, economy and politics, evolution and culture, and their interplay at the level of individuals and societies. His recent major contribution is Cognitive capitalism: Human capital and the wellbeing of nations published in 2018 by Cambridge University Press.
Grégoire Canlorbe: An early contribution on your part in establishing the connection between cognitive ability and human development (in the broadest sense) was to show how the spread of AIDS among ethnicities of different continents is greater as the cognitive ability is lower. Could you remind us of your analysis?
Heiner Rindermann: In two publications from 2007 and 2009 with my German colleagues Georg W. Oesterdiekhoff, a sociologist, and Gerhard Meisenberg, a biologist, I showed that education (as a proxy for intelligence and knowledge) and cognitive ability (comprising intelligence and knowledge) reduce the impact of the HIV spread.[i] If wealth and modernity are added in analyses at the level of nations – comparing different countries – the effects of wealth and modernity even turned positive, increasing HIV rates! Disproving the usual theory, that AIDS is a disease of the poor, the data robustly showed that AIDS is a disease of the low intelligent. But why? Isn’t this result biased or mad?
In closer consideration not at all: Studies from other authors on AIDS or on diabetes at the level of individuals also show that income and even education are not crucial for health. The crucial factor is intelligence. Again: Why? Here the Piagetian approach can help us as used by Georg W. Oesterdiekhoff and cognitive hermeneutics of everyday life as I tried to explain in my Cognitive capitalism book: People at lower levels of cognitive development and intelligence, especially if living in a social environment with a similar low level, tend to think and act irrationally, e.g. they believe in magic and behave in ineffective or even self-damaging ways. I.e., AIDS is not seen as being caused by HIV transmitted by unprotected sex but being caused by God, magical powers or sorcery and consequently can be cured by magical treatment, e.g. by having sex with a virgin. And these aren’t excuses for sexual abuse or own failings but people really believe this.
For instance, a quote from a study by African researchers in Mali underscores this: “Accidents are never attributed to faults or incompetence of the people in charge or machine failure, they are always orchestrated by certain superstitious powers.”[ii] Such a mindset will not lead to more cautiousness or better maintenance reducing accidents.
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This interview will be published in the December 2018 issue of Man and the Economy journal, founded by Nobel Prize winning economist Ronald Coase.
Deepak Lal is the James S. Coleman Professor Emeritus of International Development Studies at the University of California at Los Angeles, professor emeritus of political economy at University College London, and a senior fellow at the Cato Institute. He was a member of the Indian Foreign Service (1963-66) and has served as a consultant to the Indian Planning Commission, the World Bank, the Organization for Economic Cooperation and Development, various UN agencies, South Korea, and Sri Lanka. From 1984 to 1987 he was research administrator at the World Bank.
Lal is the author of a number of books, including The Poverty of Development Economics; The Hindu Equilibrium; Against Dirigisme; The Political Economy of Poverty, Equity and Growth; Unintended Consequences: The Impact of Factor Endowments, Culture, and Politics on Long-Run Economic Performance; and Reviving the Invisible Hand: The Case for Classical Liberalism in the 21st Century.
Grégoire Canlorbe: From Gandhi’s point of view, in substance, Varanashram (caste system) is inherent in human nature and it was solely given a scientific expression through Hinduism. Similarly, can one contend that utility maximization and rational calculus are innate human traits that capitalism turned into a science?
Deepak Lal: As I have shown in The Hindu Equilibrium, the caste system, far from being timeless and “inherent in human nature,” most likely arose as the Aryan response to the problem of securing a stable labor supply for the relatively labor-intensive agriculture they came to practice in the Indo-Gangetic plan. Given the ecological circumstances of this large plain (once the primeval forests had been cleared during the Aryan advance), and the primitive forms of transport then available, a major constraint on achieving a political solution for the provision of a stable labor supply, was the endemic political instability among the numerous feuding monarchies.
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This interview was initially published in French in Agefi Magazine’s April 2016 issue.
George Gilder is a venture capitalist and Senior Fellow at the Discovery Institute and American Principles Project, Editor-in-Chief of the Gilder Technology Forum (from Forbes).
Grégoire Canlorbe: It is not uncommon to hear that the global weakness of the contemporary USA lies in the worsening of income inequalities. The best predictor of social and economic class is nowadays the social and economic class of parents. People like the Rockefellers or the family of Mitt Romney are born into the 1% and pass that position along to their children. In other words, the USA have a plutocracy, like it or not; and that plutocracy should at least pay a higher tax rate and a higher death tax—a higher tax for passing along its wealth to its kids. America works best when it can open the path for dirt-poor kids with drive and intelligence to rise—as Abraham Lincoln rose from the poverty and mud of his father’s farm in Illinois.
What is your opinion on this popular view?
George Gilder: The popular view is nonsense. Inequality is irrelevant. Under free markets, capital flows not to those who most quickly spend it but to those who can best expand it. It goes to suppliers rather than demanders. What matters is mobility and creativity. Forbes magazine shows ever more rapid arrivals and departures from their lists of rich people. However, the “hypertrophy of finance” in the world economy that I describe in The Scandal of Money is fostering more inequality based not on merit but on government privileges.
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