Francis Wheen is a journalist and author of several books, including a highly acclaimed biography of Karl Marx. His collected journalism, Hoo-Hahs and Passing Frenzies, won the George Orwell prize in 2003.Francis Wheen's new book, How Mumbo-Jumbo Conquered the World: A Short History of Modern Delusions, is published by Fourth Estate.
1. "God is on our side"
George W Bush thinks so, as do Tony Blair and Osama bin Laden and an alarmingly high percentage of other important figures in today's world. After September 11 2001 Blair claimed that religion was the solution not the problem, since "Jews, Muslims and Christians are all children of Abraham" - unaware that the example of Abraham was also cited by Mohammed Atta, hijacker of the one of the planes that shattered the New York skyline. RH Tawney wrote in Religion and the Rise of Capitalism that "modern social theory, like modern political theory, developed only when society was given a naturalistic instead of a religious explanation". In which case modern social and political theory would now seem to be dead.
2. The market is rational
Financial sophisticates in the 21st century smile at the madness of the South Sea Bubble or the absurdity of the Dutch tulip craze. Yet only a few years ago they scrambled and jostled to buy shares in dotcom companies which had no earnings at all nor any prospect of ever turning a profit. To justify this apparent insanity, they maintained that such a revolutionary business as the internet required a new business model in which balance sheets were irrelevant. In short, they thought they had repealed the laws of financial gravity - until they came crashing down to earth.
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