THE FIFTH BASIC LAW (5) - by Carlo M. Cipolla

" Instead of considering the welfare of the individual let us consider the welfare of the society, regarded in this context as the algebraic sum of the individual conditions. A full understanding of the Fifth Basic Law is essential to the analysis. It may be parenthetically added here that of the Five Basic Laws, the Fifth is certainly the best known and its corollary is quoted very frequently. The Fifth Basic Law states that:

A stupid person is the most dangerous type of person.

The corollary of the Law is that:

A stupid person is more dangerous than a bandit.

The result of the action of a perfect bandit (the person who falls on line OM of figure 2) is purely and simply a transfer of wealth and/or welfare. After the action of a perfect bandit, the bandit has a plus on his account which plus is exactly equivalent to the minus he has caused to another person. The society as a whole is neither better nor worse off. If all members of a society were perfect bandits the society would remain stagnant but there would be no major disaster. The whole business would amount to massive transfers of wealth and welfare in favour of those who would take action. If all members of the
society would take action in regular turns, not only the society as a whole but also individuals would find themselves in a perfectly steady state of no change.

When stupid people are at work, the story is totally different. Stupid people cause losses to other people with no counterpart of gains on their own account. Thus the society as whole is impoverished. The system of accounting which finds expression in the basic graphs shows that while all actions of individuals falling to the right of the line POM (see fig. 3) add to the welfare of a society; although in different degrees, the actions of all individuals falling to the left of the same line POM cause a deterioration.

In other words the helpless with overtones of intelligence (area H1), the bandits with overtones of intelligence (area B1) and above all the intelligent (area I) all contribute, though in different degrees, to accrue to the welfare of a society. On the other hand the bandits with overtones of stupidity (area B2) and the helpless with overtones of stupidity (area H1) manage to add losses to those caused by stupid people thus enhancing the nefarious destructive power of the latter group.

All this suggests some reflection on the performance of societies. According to the Second Basic Law, the fraction of stupid people is a constant å which is not affected by time, space, race, class or any other socio- cultural or historical variable. It would be a profound mistake to believe the number of stupid people in a declining society is greater than in a developing society. Both such societies are plagued by the same percentage of stupid people. The difference between the two societies is that in the society which performs poorly:

a) the stupid members of the society are allowed by the other members to become more active and take more actions; b) there is a change in the composition of the non-stupid section with a relative decline of populations of areas I, H1 and B1 and a proportionate increase of populations H2 and B2.

This theoretical presumption is abundantly confirmed by an exhaustive analysis of historical cases. In fact the historical analysis allows us to reformulate the theoretical conclusions in a more factual way and with more realistic detail.

Whether one considers classical, or medieval, or modern or contemporary times one is impressed by the fact that any country moving uphill has its unavoidable å fraction of stupid people. However the country moving uphill also has an unusually high fraction of intelligent people who manage to keep the å fraction at bay and at the same time produce enough gains for themselves and the other members of the community to make progress a certainty.

In a country which is moving downhill, the fraction of stupid people is still equal to å; however in the remaining population one notices among those in power an alarming proliferation of the bandits with overtones of stupidity (sub-area B1 of quadrant B in figure 3) and among those not in power an equally alarming growth in the number of helpless individuals (area H in basic graph, fig.1). Such change in the composition of the non-stupid population inevitably strengthens the destructive power of the å fraction and makes decline a certainty. And the country goes to Hell."

The end.

Carlo Maria Cipolla (August 15, 1922 – September 5, 2000): was an Italian economic historian. In his study of economic history, he showed a keen interest in the causes that prompted specific economic and social situations during history, instead of focusing on facts and figures. He was noted as well for his work on overpopulation and his essays on human stupidity. Cipolla obtained his first teaching post in economic history in Catania at the age of 27. This was to be the first stop in a long academic career in Italy (Venice, Turin, Pavia, Pisa and Fiesole) and abroad. In 1953 Cipolla left for the United States as a Fulbright fellow and in 1957 became a visiting professor at the University of California, Berkeley. Two years later he obtained a full professorship. Cipolla was welcomed as a member of many prestigious academies and in 1995 received the Balzan prize.