The Ideal World of Robert Shiller

Ashley Lo
Robert Shiller’s point that we must increase ethical education in finance, as Bridget brought up in her
presentation, is really simple yet, in my observation, often overlooked. Even here at Notre Dame, where
roughly around 28% of students are in Mendoza, no one seems to be bothered by the fact that none of our
general university requirements-- which span from four semesters of theology and philosophy to history, math
and even Moreau-- touches on business. The university prides itself on its prestigious business school and yes,
it is a huge factor in many students’ decision to come here. Yet, it seems to me that the reality that one must be
pre-approved to be in Mendoza and the fact that people from other colleges cannot take any class in it (in my
understanding) seem contrary to Shiller’s notion of finance made simple and accessible for the public. I look
forward to the day when students no longer find business elusive-- bureaucratically or intellectually.

On a completely different note, I also found Shiller’s chapter on philanthropy illuminating-- on the realities
charity and and on his pessimistic view of human nature. Although I wasn’t surprised to read Shiller’s
comment that people give gifts for “immediate social prestige” and only if they feel “a national sense of
community,” (197) this chapter reminded me of a huge discussion we had in philosophy class, where we
basically argued and concluded that no decision is ever selfless. Even when we try to give, help or save others,
we do so because it makes us feel good. In this sense, the evasion of guilt is the ultimate argument that
everything we do is selfish. This is a pretty pessimistic take on humanity, which, to be honest, I think Shiller
might agree with.
One difficulty with philanthropy that I personally identified from my own experience is that we tend to think
charity is for the rich. Not only is there a misconception that only the very wealthy can be of help, no one also
likes to be identified as being rich, which has such a bad connotation nowadays. I hope both of these
misunderstandings can be corrected in times to come.

I was at times troubled by Shiller’s formulated pragmatic approach; as if by locating a specific problem (which
is often rooted in psychology), he then is able to take the blame off finance. While reading FInance and the
Good Society, I had the impression of flipping through a cookbook with different recipes--colored by the right
ingredients and steps that seem to promise perfectly tasty dishes. The only problem is that, things that look so
easy on paper don’t necessarily translate into reality.

Comments

  1. jdoutFebruary 15, 2018 at 5:01 AM

    A powerful and provocative commentary. There are many reasons why ECON is called "the dismal science" and the fundamental pessimism (or "pragmatism") about humankind--our weakness, frailty, and limitations--is one reason why it is so grim. It seems sad that students are more drawn to ECON and business, than they are to other fields, because that seems to reflect a pessimism and striving ambition for material wealth, instead of more transcendental values.
    Books such as Shiller's do not help clarify things when they either blame "essential" characteristics of humankind (drawn from misanthropy [Hobbes, Hume], ethology, biology and nihilism), or when they avoid addressing the political establishment. ECON is political, as anyone who keeps up with the news should know. Many of those regulations mentioned in Shiller's book have been destroyed or de-funded since the Trump regime took power.

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