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The Consequences of Variable Intelligence – Book Review

Posted: February 12, 2021 at 12:29 pm

The Consequences of Variable Intelligence - Book Review

The Consequences of Variable Intelligence By: Tatu Vanhanen

University of Helsinki, Finland

[The following article originally appeared in Mankind Quarterly, Volume XXXV, Number 4, Summer, 1995.]

BOOK REVIEW ARTICLE

Human Intelligence and National Power:
A Political Essay in Sociobiology
Seymour W. Itzkoff
New York: Peter Lang Publishing, 1991.

The Road to Equality: Evolution and Social Reality
Seymour W. Itzkoff
Westport, Connecticut: Praeger, 1992.

The Decline of Intelligence in America:
A Strategy for National Renewal
Seymour W. Itzkoff
Westport, Connecticut: Praeger, 1994.

Seymour W. Itzkoff argues in his three books published in 1991-94 that there are significant hereditary intellectual differences between individuals and groups and that as a consequence of this variation there are very large differences in educability, social status, and economic achievements of individuals and groups. According to him, intelligence is part of each individual's inheritance, as much as one's height and personality. Therefore,

"the issue of intellectual variability in humans and the consequent variability in average intelligence between groups of individuals, and their ethnic, racial, religious, and national identities, is the Copernican problem of our time" (1991, 10).

He challenges the egalitarian dream of socialists, sociologists, and liberal egalitarians, according to which intelligence is uniformly distributed in all populations and all humans were equal to any social and intellectual task if only they were not held down. Itzkoff points out and enumerates great failures of social policies based on these unrealistic views of human nature. The theme is the same in all three books, but he discusses it from different perspectives.

In Human Intelligence and National Power. A Political Essay in Sociobiology (1991), he focuses on the evolution of human intelligence and the emergence of intellectually different human groups, as well as on various consequences of the variability of human intelligence, including the European florescence, the failure of communism, the rise of Japan's power, the decline of the United Sates, and the Third World debacle. He emphasizes the significance of intellectual homogeneity in ethnically homogeneous nation-states and examines the ways to raise the level of general intelligence "g".

In The Road to Equality: Evolution and Social Reality (1992), Itzkoff focuses on the failure of Marxists and liberal egalitarians to create an egalitarian and classless society and argues that their basic assumptions of human nature were wrong. They failed to recognize that human beings are endowed with differing quantities and qualities of intelligence and that the same concerns ethnic groups. From this perspective, he examines the hallucinations and misfortunes of our evil century, the methods to achieve classlessness and to end oppression and degradation, the ethic of intervention, the democratic quest, essential feminism, the mysterious ethnicity, and the significance of the wealthy. His message is that America's social dilemmas are in part due to hereditary intellectual differences between individuals and groups.

In the latest book, The Decline of Intelligence in America: A Strategy for National Renewal (1994), Itzkoff analyses the problems and social pathologies of America and claims that they are related to the decline of general intelligence. His central idea is that new generations are coming from the lower end of the intellectual, and thus the social, scale. As a consequence, a population of permanently poor Third World Americans is emerging. In the second part of the book, he recommends policies intended to turn the trend. The solution proposed in this book is simple: the government should stimulate the finest to form families of the traditional sort in which children are conceived, born, raised, and educated to the highest levels for which they are capable, and the helpless should be encouraged and guided not to have children that they cannot rear and educate to functional cultural levels.

The problems analyzed in Itzkoff's books are extremely important. He has had courage to take up issues that have not been discussed because it has not been politically correct to assume that there might be intellectually different human groups and that social inequalities might in part be due to variable intelligence in humans. It has been difficult even for evolutionary biologists to accept the idea that humans vary in general intelligence (see, for example, Gould 1981; Lewontin 1982). Even more difficult it has been to accept the claim that there are hereditary intellectual differences between ethnic groups (see Vine 1994). I try in this essay to tell about Professor Itzkoff's central ideas, arguments, evidence, examples, and renewal proposals and to evaluate the practical significance of his theoretical insights and reform proposals.

The Evolutionary Roots of Intellectual Differences

Let us start from his central idea concerning hereditary differences between individuals and groups. How to explain the origin of assumed group differences?

He traces the origin of intellectual variability of human groups to the geographical dispersion of early humans and to the variation in their environmental circumstances. According to him, Homo erectus originated in Africa, but it possibly split into modern geographical races of man already one or 1,5 million years ago when some groups emigrated from Africa to the other Old World continents.

At this stage of human evolution, from about 1,5 to 0.5 million years ago, various groups of humans, whether races or ethnic groups, seem to have had similar levels of intelligence. There were not many differences in tools used by them. However, after 500,000 B.P., a revolution begins to occur in the North, in Europe and western Asia among Caucasoids during the Pleistocene Ice Ages. Intelligence helped the survival of people in harsh and variable environmental conditions. High intelligence was useful. The average brain size and intelligence increased in Caucasoid populations through natural selection. He says that

"in the challenging environment of the north, a big brain had extraordinary selective value. These humans could think deeply and analytically" ( 1992, 37).

Finally, about 35,000 B.P., Cro-Magnon appeared in Europe. His assumption is that Homo sapiens sapiens evolved in Europe as a consequence of adaptation to harsh and variable environmental conditions:

"the northern quadrant of humanity subject to the flow and ebb of the glaciers inhabited a far more challenging and dangerous environment than those living in the tropical south" (1991, 194).

There was not similar pressure for intellectual evolution among the human populations living in "millions-of-years-old tropical garden of Eden." Consequently, northern populations achieved a higher level of general intelligence than tropical populations.

Itzkoff assumes that the ability of large-skulled, adaptively able northern sub-species of Homo to handle this ferocious Ice-age environment and even prosper probably forced them to migrate for more space. Over the period of 150,000 years, they moved east and south and spread their genes. He further assumes that

"modern blacks originated in Western Africa after 10,000 B.P. as a result of mixtures between indigenous proto-Negroids and Pygmies, and incoming Caucasoids" (1991, 40).

[As a consequence,]

"Negroid and Caucasoid races have biologically more in common with each other than they do with any of the other races" (1991, 42).

The original Mongoloid descendants of Homo erectus pekinensis along the Yellow R
iver Valley also absorbed a steady stream of Caucasoid wanderers across the Siberian and Kazakhistan plains. The same concerns the Koreans and Japanese,

"who speak a Uralic/Altaic language related to the hybrid Siberian steppe peoples and thence to the Estonians and Finns" (1991, 42).

[In this way the Cro-Magnon people wandered from their unknown Eurasian homeland to the other parts of the world]

"hybridizing with the existing transitional erectine-sapiens humans all over the world."

[The New Guinea, Australian and Tasmanian Australid populations are possible exceptions (1991, 18, 39). Today's]

"racial divisions are the remnant memories of ancient human separations that go back several million years"
( 1992, 7).

This is a very interesting assumption on the origin of intellectual differences between human populations and of geographical races. It differs radically from interpretations, according to which the evolution of modern people took place in Africa.

C. B. Stringer, for example, claims that

"all living people are closely related and share a recent common ancestor who probably lived in Africa. From that African ancestral group, all the living peoples of the world originated. "

He continues that the ancestors of Europeans , Asians and the populations of the American and Australian continents probably share common ancestors within the past 60,000 years. This idea does not presuppose any significant intellectual differences between human populations. In fact, Stringer emphasizes their similarity:

"What is certain is that the early modern peoples of each part of the world were all similar in basic anatomy and behavior, but regional differences in physique and culture rapidly developed subsequently" (Stringer 1992, 249. See also Howells 1992; Ritter 1981, 98-101).

Stephen Jay Gould, similarly, assumes that Homo sapiens

"is tens of thousands, or at most a few hundred thousand, years old, and all modern human races probably split from a common ancestral stock only tens of thousands of years ago" (Gould 1981, 323).

Itzkoff's assumption differs from the "Out of Africa" hypothesis in two important points: (1) he claims that human populations have racially differed from each other one or 1.5 million years, although there have been new mixtures later on, and (2) he provides a plausible explanation for the origin of intellectual differences between human populations. The alternate hypothesis would be unable to provide any explanation for intellectual differences between the northern and tropical populations. The crucial question is whether such differences really exist.

General Intelligence "g"

Itzkoff's claims that individuals vary in intelligence and that such variation is principally due to hereditary factors. What kind of evidence does he provide to support this claim?

He refers to intelligence tests (I.Q.) that have been carried out in various countries since the beginning of this century. They indicate consistently that humans vary in intelligence. A heated debate has continued on the question whether such variation is more due to hereditary or environmental factors and whether there is any "general intelligence" that could be measured (see Gould 1981; Lewontin 1982; Itzkoff 1987).

Itzkoff refers to evidence of the existence of general intelligence "g" and of its hereditarian character. According to him, 50-80 percent of general intelligence seems to be due to hereditarian factors. Innumerable studies of monozygotic and dizygotic twins have provided evidence on the hereditary nature of intelligence. For example, he says,

"identical twins reared apart in differing life circumstances are much more similar intellectually than fraternal twins reared under the same roof" (Itzkoff 1987, 142; cf. 1991, 27).

[ Worldwide studies of sibling adaptation, he continues,]

"regardless of the race or ethnicity involved, reveal that a sociologically uplifting environment has no long-term impact either on the personality or the intellectual profile that the children bring with them from their biological heritage" (1992, 88).

The results of these studies also imply that the genetic variation in intelligence depends on a relatively small number of genes because the possible variability between even closely related individuals seems to be enormous (see 1992, 31-32; 1994, 101). Itzkoff comes to the conclusion that it

"should be clear to all but the most ideologically and theologically devout environmentalists that human achievement and personality have a dominating biological and thus hereditary component" (1992, 31).

I think that it would be difficult to disprove his argument that human intelligence varies and that hereditary component is dominating in this variation. If we accept the argument on the hereditary intellectual differences between individuals, it becomes difficult to deny the possibility that there might be hereditary intellectual differences between ethnic groups, too.

This is a much more inflammatory proposition than the claim of individual intellectual differences. Everybody has probably made observations of great individual differences in intelligence, but it is more difficult to make observations of the average intelligence of ethnic or racial groups. Therefore, it has been easy to deny the existence of such differences and to argue that there cannot be any significant differences in the average intelligence of ethnic or racial groups. And if all human races separated from a common ancestral stock in Africa only some tens of thousand years ago, it would be difficult to find any plausible explanation for the emergence of such differences. However, Itzkoff has a plausible explanation for the origin of intellectual differences between human groups, as mentioned above, and he provides data that indicate the existence of such differences among contemporary ethnic groups His evidence is based on the consistency of the results of intelligence tests (I.Q.) carried out in many countries.

According to the results of intelligence tests given in his books, the average I.Q. for American whites is 100, for African-Americans 82-85, for Hispanics somewhere in between, and for native Americans in the low to mid-90s, whereas it is 103-107 for Japanese and probably more than 100 for Han Chinese, too. Itzkoff stresses that they are ethnic groups that differ from each other in intelligence, not racial groups, but, on the other hand, he emphasizes the difference between northern and tropical populations. In general

"the northern peoples of the world, the residue of the original Caucasoids and Mongoloids have more on average brain power" (1992, 50).

This is probably the most controversial part of his argumentation, but because his conclusions and policy recommendations are based on it, those who disagree with him should try to show that he is wrong. It is not enough to say that it is not politically correct to make such propositions. In open society, people should be prepared to discuss and examine also the ideas that contradict their own convictions and belief systems.

Itzkoff provides additional support for his thesis from empirical data on educational and economic achievements of different ethnic and national groups. According to him, it was natural that the technological civilization emerged in the North, in the area of Caucasoid Eurasians. The present great economic inequalities between the north and the south are related to intellectual differences. Therefore, it has been difficult to equalize economic conditions between the industrially developed north and the Third World countries. It has succeeded only in the parts of the world where national ethnic groups have been intellectually approximately equal with Caucasoids. This concerns particularly northern Mongoloids, Japanese, Koreans and Han Chinese.

On the other hand, development aid from the north has not been enough to generate and maintain technological de
velopment in Africa. Itzkoff finds further evidence for his thesis from the fact that all immigrant groups have not succeeded equally in America. According to his data, more intelligent ethnic groups have succeeded much better than less intelligent groups.

Social Consequences

We come to the social consequences of variable intelligence. They are enormous. For example, Itzkoff refers to many types of social facts and problems connected with variable intelligence in humans. He argues that social inequalities are persistent because humans vary in intelligence. He accuses the ideology of egalitarianism for the genocides and holocausts of this century. Communists killed tens of millions of people of higher intelligence to further equality. The failure of communism was caused, according to his interpretation, by their erroneous assumption that intelligence is distributed homogeneously among individuals. They believed that the masses could easily be educated to fill the vacuum created by the destruction of the bourgeoisie establishment.

It was not so. Marxists had forgotten Marx's refutation of those sections of the Gotha Program (German socialist parties) that asserted the absolute uniformity of human abilities. Marx himself believed in the existence of intellectual differences in human beings.

Itzkoff further argues that Japan's economic success story has been powered by the high intelligence of the ethnically homogeneous Japanese people. Because of universally high intelligence of its ethnically homogeneous population, the Japanese state does not need to subsidize any permanently "catch-up" portions of the nation, and because there is a rich supply of talent ready to step in, the salaries of executives remain relatively low. In Japan, the average chief executive earns about eight times the average of his workers; in the United States the average chief executive earns about 160 times the worker average (1992, 152).

Itzkoff presents an extremely inflammatory and important explanation for the failure of modernization in most parts of the Third World. According to his assumption, it is due to clear differences in average intelligence between the northern and southern populations. Northeast Asia, including mainland China, Taiwan, Hong Kong, Singapore, and South Korea, are rapidly rising from war and political chaos because of the high intelligence of their populations, whereas in Africa, Central and South America, and many parts of southern Asia, the pace of modernization has been at best slack. Many hundreds of billions of dollars in loans have simply gone down the drain in corruption and incompetence. The reason for the Third World debacle is in the fact that the level of intelligence is lower in the tropical south. He supports this assumption by the experiences gathered from minority populations of the tropical south living in the north. Some members of such minorities thrive and prosper, but the majority falls into despair.

On the other hand,

"ethnic Han Chinese living in either Indonesia, Malaysia, or the Philippines achieve at levels parallel to their Chinese compatriots in the U.S. or Hong Kong, despite extensive negative discrimination." And Japanese, Germans, and Italians born in Brazil achieve as their confreres do in their respective homelands (1991, 195).

The Decline of the United States

The major problem examined by Itzkoff concerns the decline of the United States and its causes. He complains of the lack of open discussion and warns that never

"in history has a society that has blocked the open search for truth survived to prosper. "

[ In America, the intellectual leadership of the great public media institutions and the universities has effectively handcuffed the elected political representatives and prevented them from considering solutions:]

"The taboo word is, of course, race. Because so much of our internal tragedy does involve the minorities of color, the stereotyped excuse is that discussions about biological intelligence and the variable behavior that it elicits will militate against the interests of these minorities."

[He does not accept this argumentation, and he tries to show that it is in the interest of all Americans to think deeply ]

"about this reality of variable human intelligence and whether there might be a connection between this issue and the fact that our national profile is sinking so rapidly" ( 1994, 6).

What does he mean by "decline of the United States?" Itzkoff claims that this decline

"can be confirmed by any of the criteria that historians have ever used to measure the state and condition of a nation and its people" (1994, 3).

The indicators of decline used by Itzkoff include the rise of criminality in American cities, the status change from a great creditor nation to the world's largest debtor nation, the enormous loss of high-wage jobs, the fact that some 50-80 percent of the workforce is not able to work and produce at an internationally competitive level, the decline in educational standards and achievements of the public schools as indicated by the quarter-century decline of SAT (the Scholastic Aptitude Test) scores, social disintegration, and the expanding poverty populations at the bottom of society. It seems to me that he has presented enough empirical evidence on the decline of the United States compared to Japan or to some European nations.

Itzkoff explains the economic and educational sinking of the United States by the decline of the average intelligence. The welfare policies encouraged the poorest, least capable sectors of the population, from all the races and ethnic groups to have children. However, he does not provide much statistical evidence for his claim that poor sections of the population have produced relatively more children than more wealthy and educated ones. It is not self-evident that this claim should be true.

According to sociobiological theories, wealthy and dominant sections of the population are expected to have been reproductively more successful than poor ones, at least until modern times (see Betzig 1986; Rogers 1990, Roskaft et al. 1992). Therefore, I would like to see more statistical evidence. One example, to which he refers, concerns the blacks. The proportion of black citizens in the U.S. grew from 9.8 percent in 1940 to 12 percent in the mid-1980s.

Itzkoff sharply criticizes the welfare-policies that have produced a new human zoo. He says:

"Like animals whom we now have trained to reproduce in captivity, there is a new and growing class of Homo sapiens living within the ostensibly modern societies."

[He assumes that even Marx would look at this new and classically unrecognized situation with horrified wonder:]

"What he would see would be the public welfare hospitals where they are born, the flocks of social workers who minister to their dole, the Head Start teachers, then the special education and remedial classes in the state schools, the drug clinics, probation officers, public health nurses, the police and the jails, the crime-ridden public housing projects, the food-stamps, the underground subways, bus terminals, and railway stations and the spaces over the heating vents on the public streets that serve as sleeping places, the municipal hospital emergency rooms, and then the AIDS wards and hallways where they die" (1992, 90-91).

On the other hand, the invention of "the pill" and feminist ideas decreased the birth rate among educated and more intelligent sectors of the population. Liberal equalitarians told the people that it was not important who had the babies. The children could easily be educated to high levels of social productivity, they preached. To the educated classes,

"both men and women, they urged liberation, careerism, and material consumption, heaven forbid conceiving, bearing, and raising large families" (1992, 91).

[As a consequence,]

"the United States mean I.Q. has dropped about five points over th
e last several generations, the result of this differential birth rate" ( 1991, 163-187).

Briefly stated, Itzkoff argues that the poor and intellectually lower sections of the population have been reproductively much more successful than the wealthy and more intelligent sections of the population and that it has caused the fall of national intelligence. He estimates that already by 1994, roughly half of the American population can be seen to be sinking below international levels of intellectual and educational achievement needed to maintain competitive production. And he asks, what is "to become of these individuals, and then of the formerly wealthy nation that encouraged their coming into being?" (1994, 107). He assumes that they will be pushed deeper and deeper into the culture of poverty. What to do?

Remedies Proposed

Professor Itzkoff argues that because social pathologies and other problems of the United States have been aggravated by the decline of general intelligence of its population, the best remedy would be to increase the level of general intelligence. He stresses that it is not a purely racial or ethnic issue because those at the bottom of the intellectual pyramid come from all groups, white, African-American, Latino, and others. It is clear, however, on the basis of his books that the problem focuses on African-Americans and other ethnic groups originated from the south.

The remedy proposed by Itzkoff is simple: the most intelligent and educated men and women should bear and raise many more children than those from the bottom of the economic and educational social class structure. Besides, the traditional nuclear heterosexual family should be saved. He accuses liberal egalitarians for hating monogamy and the nuclear family:

"They fear and despise men as heads of household, and thus with a woman actively raising her brood of children in the home, the kids not out in day care or with illegal aliens acting as 'foster' parents. The idea that males and females differ in any important bio-cultural manner, physical or intellectual, is anathema to their unisex ideology, and their despising of historical male and female values."

[ As a consequence of liberal policies, Itzkoff continues, we]

"have lost the children of almost two generations of our educated and liberated women. It has had almost the same effect as if it had been genocide" (1994, 126, 133).

According to his interpretation, it will depend on the policies of the government whether the reproduction trends change to the proposed direction or not. The government should pass

" social policy legislation aimed at creating inducements, as well as legal protections, that will lead to the wealthy and successful having more than their share of children and the poor limiting their procreative activity in the interest of their own individual social and economic aspirations" (1992, 160).

The prescription is clear, but it seems to me that he does not yet have any clear idea what such "social policy legislation" should include and how the government could carry out such policies. However, he makes some proposals.

  • First, people should be reeducated.
  • Second, job priorities should be given to married men with families.
  • Third, all births should require the identification of the father.
  • Fourth, men and women at the top of social scale without children should be punished through the tax system.

The government should try

"to establish a long-term social policy that will `encourage' the birth of 50 percent more children from the upper half of the social and income brackets than from the lower."

[It is not clear how it could be done, although he says that we]

"must persuade the potentially parasitic classes at the top and at the bottom of society to act appropriately. The wealthy educated will have to validate their socially acquired assets by bearing their own offspring or adopting needy children. Those at the bottom should be humanely persuaded, with generous gifts if deemed appropriate but for one generation only to refrain from conceiving and having children" (1994, 192-195).

Itzkoff makes several other interesting reform proposals. I refer to only two of them. He would like to decrease the relative number of African-Americans because their average level of general intelligence "g" is low. The discouragement of illegitimate births would serve this purpose.

On the other hand, he suggests that the "talented tenth" of the African-Americans should produce many more children than the less intelligent majority. In this way it would be possible to raise the general intelligence of the African-American minority.

Besides, the United States should change its immigration policies radically. No more illegal immigration, he says, and

"those who are here in violation of our laws, along with the children that have been born here in the interim," must return to their homelands (1994, 161).

Only talented people, irrespective of their race, should be allowed to immigrate to the country.

Itzkoff is deeply worried about the declining intelligence in America because he would like to retain his country among the first class nations in the competitive world of the twenty-first century, which is not possible without a highly intelligent population. America's crisis is a natality crisis, he says, but the leadership of the United States is indifferent to this issue. It does not care who is having the children.

Discussion

I agree with Professor Itzkoff in most points of his analysis. Evidently humans vary in intelligence, and this variation is principally due to hereditary factors. He has convinced me that ethnic groups may also vary in general intelligence "g". I agree with him that social consequences of intellectual variability are enormous and that they can be seen in all areas of human life. The origin of social inequalities is in the fact that humans are not similar in their intelligence and other capabilities. It is also quite probable that a significant part of the persistent poverty in the Third World is related to intellectual differences between ethnic groups. He is probably right in his central assumption that the level of general intelligence would increase if the upper half of social and income brackets could produce 50 percent more children than the lower half. The problem is how to get people to follow his advice.

According to the sociobiological inclusive fitness hypothesis, all organisms are programmed to further their own reproductive interests and not to concern themselves about others (see, for example Dawkins 1976; Alexander 1980). Therefore, I assume that it would be extremely difficult or impossible to persuade the members of any minority ethnic group to sacrifice their own reproductive interests for the assumed higher interests of the nation.

It might be possible to achieve some results by economic and other inducements, but it is quite possible that coercion and even force would be needed to achieve substantial results. Itzkoff has not proposed or discussed the use of coercion, although he proposes that the births should be reduced at the bottom of the social and economic scale and that all births should require the identification of the father. Is this a case in which the government might use coercion and even force to carry out its family policy?

If the father cannot be identified and made responsible for the child, the state might require the prevention of the birth by compulsory abortion. However, if coercion and force become necessary to prevent the births of unwanted children, we have to ask whether the aims are worthwhile enough to justify such policies. Is the maintenance of intelligence so important that it justifies the use of coercion and force against women who break the legal rules of reproduction? I do not know, and Itzkoff has not discussed this problem. It should be discussed because
I do not believe that his radical reproductive reforms could be carried out without coercion.

It is true that African-Americans are at the bottom of the social and economic scale, but I would like to point out that they have not been losers in the Darwinian struggle for existence. In fact, according to the data given by Itzkoff, they have been even more successful than the whites because their relative number has increased in the United States since the 1940s. It means that in some way they have become better adapted to their social environment than the white majority. Despite their poverty, they have borne and raised children more than their share, whereas many wealthy and educated and probably also highly intelligent whites feel themselves so poor and insecure that they cannot afford to have children.

We should remember that in the Darwinian struggle for existence reproduction is the only criterion of success, not wealth, education, or intelligence. By this criterion the American blacks have been more successful than the whites.

Itzkoff has brought into discussion the issue of variable intelligence in humans and indicated through extensive evidence and examples its crucial importance in national and international politics. I think that it is time for us to take biological factors seriously and examine their relevance from various perspectives.

As Itzkoff says, the scientific evidence for the biological roots of our social behavior continues to accumulate (1994, 5). It is becoming clear that environmental egalitarians were wrong in their traditional assumption that human behavior and social structures are principally, if not completely, shaped by our environment. Human nature matters probably more than we can imagine. Itzkoff has focused on one very important aspect of human nature, to hereditary intellectual differences between individuals and groups, and he has disclosed its social and political relevance in superb manner.

References

  • Alexander, Richard D, 1980 Darwinism and Human Affairs. London: Pitman Publishing.
  • Betzig, L. L. 1986 Despotism and Differential Reproduction: A Darwinian View of History. New York: AIdine.
  • Dawkins, Richard 1979 The Selfish Gene. London: Granada Publishing.
  • Gould, Stephen Jay 1981 The Mismeasure of Man. Harmondsworth, Middlesex; Penguin Books.
  • Howells, W. W. 1992 "The dispersion of modern humans," in Steve Jones, Robert Martin and David Pilbeam (eds.), The Cambridge Encyclopedia of Human Evolution. pps. 389-401. Cambridge: Cambridge University Press.
  • Itzkoff, Seymour W. 1987 Why Humans Vary in Intelligence. Ashfield, Massachusetts: Paideia Publishers.
  • Lewontin, Richard 1982 Human Diversity. New York: Scientific American Books.
  • Ritter, Horst 1981 Humangenetik: Grundlagen - Erkenntnisse - Entwicklungen. Breisgau: Herder Freiburg.
  • Rogers, Alan R. 1990 "Evolutionary Economics of Human Reproduction," Ethology and Sociobiology Vol. 11 , No. 6.
  • Roskaft,Eivin, Annelise Wara, and Auslaug Viken 1992 "Reproductive Success in Relation to Resource-Access and Parental Age in a Small Norwegian Farming Parish During the Period 1700-1900, " Ethology and Sociobiology Vol. 13, Numbers 5/6.
  • Stringer, C. B. 1992 "Evolution of early humans," in Steve Jones et al. (eds), The Cambridge Encyclopedia of Human Evolution. ss. 241-251. Cambridge: Cambridge University Press.
  • Vine, Ian 1994 "The Political Abuse of Sociobiology - A Test Case" (a book review of Itzkoff's "Human Intelligence and National Power: A Political Essay in Sociobiology"), ESS Newsletter No. 33, January 1994, 13-31

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The Consequences of Variable Intelligence – Book Review

Raymond B. Cattell and The Fourth Inquisition

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Raymond B. Cattell and The Fourth Inquisition

Raymond B. Cattell and The Fourth Inquisition

By Glayde Whitney
Florida State University

This paper originally appeared in The Mankind Quarterly , vol. 38, #1 & 2, Fall/Winter 1997, p.99-124.

Raymond B. Cattell was selected to receive the Gold Medal Award for Life Achievement from the American Psychological Foundation. The award ceremony was canceled at the last minute when threats were made to disrupt the Chicago convention of the APA amid charges that Cattell's work was racist. It took only two political activists to derail the APF. This event is analyzed as an instance of Inquisitional attack on rational thought and inquiry, in the context of modern liberalism with radical egalitarianism.

The events of August 1997 will assure that the already eminent scientist Raymond B. Cattell will be remembered in history as elevated to the pantheon occupied by such as Roger Bacon, William of Occam, and Galileo Galilei. The infamous events of August and the players will be summarized below, but first a context needs to be established in order to make any sense of the scurrilous attack and the craven response of the American Psychological Association (APA).

Approaches to Knowledge

The Harvard biologist, historian and philosopher of science Ernst Mayr (1982) has suggested that as human populations evolve from savagery to civilization their approach to knowledge takes one or another of two paths.

One approach leads to modern science, the other to authoritative dogma. The direction toward science, traceable back to the philosophies of ancient Greece, is unique to Western civilization. The much more common direction toward authoritative dogmas is illustrated by the revealed religions that sprang from the Middle East.

The direction toward science traces to the first recorded Western philosopher, Thales of Miletus (c.636-c.546 BC). Thales maintained that to gain knowledge and understanding one should start with naturalistic observation, that is, descriptions of events as they exist in the real world. We should then seek natural explanations for natural phenomena. Gods, supernatural beings, and forces or events that were outside the system should not be invoked as explanations for events within the system. A third major position was that it is acceptable, even encouraged, to question existing explanations, to use criticism in order to improve knowledge and theories. These three principles that trace to the beginnings of recorded Western thought capture the essence of modern science; naturalistic observation, natural explanation, and criticism as a beneficial tool to advancing knowledge.

Alas, from Thales' time through today his approach has, on a worldwide basis, been a minority position under constant attack. The road to dogma starts with assertions of knowledge based in authority. Often from a great man or leader come statements, frequently but not always based in revelation. The religious and political aspects of dogmatic systems often become commingled. The revelations leading to dogmas often claim supernatural inspiration, but this is not necessarily the case. Christian theology, Marxian sociology, and Freudian psychoanalytic theory equally well illustrate dogmatic belief systems. The systems with their statements to account for reality become codified into a set of rigid beliefs. Not only is criticism and questioning not encouraged, it is condemned. The less than complete supporter, the doubter, is shunned, outcast, outlawed, a heretic, criminal and evil sinner. Followers will believe on the basis of acceptance of authority ("on faith") and will not deviate from the established dogmas that tend to become ever more rigid. Encounters with the partially understood real world, in all its foibles, always lead to discrepancy between dogma and natural observation of real phenomena.

It is considered necessary to preserve the authoritarian dogma and the power of the authorities in the face of conflicting truths. The Path of Righteousness knows what is good for man and society. Dissenters, free thinkers, or those with new knowledge are viewed as a threat to all that is Good. Sanctions, laws, censorship, need to be imposed and enforced. This is the realm of Inquisitions. In the history of Western civilization there have been four main identifiable inquisitions. It is the fourth that we suffer today.

Inquisitions

First Inquisition. The first major inquisition was established in 1233 AD to suppress heresy. The groundwork leading up to the need for this inquisition extends back to the origins of the Christian religion in the west. The few centuries around the time of the fall of the Roman Empire were turbulent. The Roman Emperor Constantine I had his famous vision (312 AD) which led to his establishment of Christianity as the official religion of the Empire. Shortly thereafter the Empire fell; various invading Germanic tribes repeatedly sacked Rome. In the turmoil many of the writings of the ancients, Greek and Roman, were temporarily "lost" to Western civilization. Aristotle, Galen, Thales, were reintroduced only centuries later.

St. Augustine (354 - 430 AD) early systematized Christian doctrine in his monumental On the Trinity. He argued against paganism in The City of God, and provided what has been called a "classic of Christian mysticism" in his autobiographical Confessions. Augustine came to be recognized as the father of theology and over the centuries of the dark ages his approach became official dogma.

The essence of Augustinian dogma is that truth must be accepted on faith. And truth resides in the revealed word of God as represented in the Bible and interpreted by the leaders of the Church. With the "rediscovery" of the learned writings of the Ancients, often acquired from Islam and translated from Arabic back into Latin, problems arose. Here was knowledge, and approaches to knowledge such as Aristotelian deductive logic, not envisioned in the existing dogma. The age of the scholastics was upon the world as scholars tried to incorporate the new knowledge.

Robert Grosseteste (1175 - 1253), Franciscan and first chancellor of Oxford University, studied Aristotle and attempted to integrate the Greek knowledge with Christian dogma. He suggested that there were actually two routes to knowledge, observation with deductive reasoning was one route, while authority (revelation from the written word as interpreted by dogma) was another. In the direction of science, Grosseteste formulated his famous Principle of Falsification: when faced with an apparent conflict between observation and dogma, go with the observation. Experience can falsify the pronouncements of authority.

This won't do at all, hence the Papal Inquisition of 1233. Times were dicey for the scholastics. William of Occam (c.1285 - 1349) escaped capture when he fled. In the same year (1264) was published Roger Bacon's De Computo Naturali and Thomas Acquinas' Summa Contra Gentiles. For his troubles Bacon (c. 1214 - 1294) was imprisoned - 15 years - for heresy. Among the charged crimes was "suggesting novelties". Although it was touch-and-go for Acquinas (1225 -1274), he was eventually sainted and his solutions (Summa Theologica) became the new dogma. As had Grosseteste, Acquinas tried to integrate Greek natural philosophy, essentially Aristotle, with Christian dogma. In God's perfect wisdom these two approaches to knowledge will always ultimately agree. However, in our fallibility there will on occasion appear to be a conflict between rational observation (science) and the revealed word (religion). When in doubt, go with revelation. The subsequent hardening of the new theology into dogma set the stage for the third inquisition.

Second Inquisition. The second of the major inquisitions was established in 1478 as the Spanish Inquisition. This one was primarily the result of conflicts between competing segments of society. The Spanish monarchy established the inquisition to enforce laws of conversion and to catch false converts. Over the preceding centuries members of the Jewish community had steadily amassed increasing proportions of wealth and power. They, along with Muslims, had been forced to either convert or leave the country. When it was suspected that many of the conversos were secretly retaining their Jewish values and culture, the inquisition was established to root them out. A consideration of this second recognized inquisition would lead too far astray for the present essay. MacDonald (1994) provides an in-depth consideration of the Spanish Inquisition from the point of view of the social sciences.

Third Inquisition. The third of the main inquisitions was established in 1542 to suppress heresy. As with the first inquisition, a basic problem was that the established authorities would not integrate new knowledge that was discovered after the establishment of their dogmas. Instead the new knowledge was treated as a central threat to all that was good in society. Suppression and censorship was the answer.

The synthesis of Greek wisdom and Christian theology that was rigidified as dogma after the work of St. Thomas Acquinas included the flat earth with man as the center of the universe. Clearly the Copernican heliocentric theory of the solar system could not be tolerated. Although widely discussed, Copernicus' theory was published only in 1543 when the author was on his deathbed, and then presented only as a speculative thought exercise. It was in 1591 that Giordano Bruno (1548 - 1600) was arrested for a variety of thought crimes, including that he believed the Copernican "theory" to be true.

Andrew White poignantly wrote:

But the new truth could not be concealed; it could neither be laughed down nor frowned down. Many minds had received it, but within the hearing of the papacy only one tongue appears to have dared to utter it clearly. This new warrior was that strange mortal, Giordano Bruno. He was hunted from land to land, until at last he turned on his pursuers with fearful invectives. For this he was entrapped at Venice, imprisoned during six years in the dungeons of the Inquisition at Rome, then burned alive, and his ashes scattered to the winds. Still, the truth lived on. (p.125)

It has been pointed out that in the latter decades of the 20th century the fourth inquisition no longer burns its victims, although it has arranged the firing of rather many.

The story of Galileo Galilei (1564 - 1642) is well known to all. Only a decade after the burning of Bruno, Galileo built a telescope. By 1610 he was proclaiming on the basis of new evidence the truth of the Copernican Theory. In essence, "come look through the telescope and see for yourself the evidence for the theory". Arrested by the Inquisition in 1616, he was released only to be re-arrested in 1633. Held under house arrest, the old man was forced under threat of torture to recant.

For the physical sciences the inquisitional suppression and censorship was coming to an end. Indeed, Isaac Newton (1642 - 1727), born in the year of Galileo's death, lived to be knighted and upon death was buried in Westminster Abbey, two of the highest honors from his Church and Country.

Lagging the physical sciences by a few centuries, the psychological and social sciences are still suffering attempts at suppression and censorship, which characterize the inquisitional approach.

Fourth Inquisition. The fourth inquisition was established in the mid-twentieth century to suppress heresy. As with the first and third inquisitions, a main problem has been that the ideologues did not integrate new knowledge with their already established objectives and dogmas. Instead they viewed new discoveries as a direct threat to all that was good and important in society. As with the earlier inquisitions, the fourth attempts to suppress and censor new knowledge that is perceived to be threatening to old dogmas.

Somewhere between Thomas Jefferson and William Jefferson Clinton an influential segment of the intelligentsia lurched far to the ideological and political left. Thomas Jefferson certainly did not confuse rule of law ("all men are created equal") and hereditary reality. In a letter to John Adams, Jefferson wrote,

I agree with you that there is a natural aristocracy among men. The grounds of this are virtue and talents .... For experience proves, that the moral and physical qualities of man, whether good or evil, are transmissible in a certain degree from father to son." (Jefferson, 1813).

In the face of what experience proves, and in open antagonism to much of twentieth century science, a powerful strain of modern liberalism worships radical egalitarianism. Modern liberalism is attempting to enforce Lysenkoism throughout Western civilization. The travesty that is Lysenkoism ruined the science and economy of the Soviet Union. It is well known as an example of the folly of attempting to repeal truth in the service of ideology (Berg, 1988; Medvedev, 1971; Soyfer, 1994). What is less often acknowledged is that the spirit of Lysenkoism is alive and well in the form of modern liberalism's enforcement of radical egalitarianism.

There and here the guiding theory is identical; it is socialist utopia based on egalitarianism, with what the behavioral scientists call environmental determinism. In 1948 Stalin actually outlawed genetics as being a western bourgeois construction that was incompatible with the truths of Marxist-Leninism. Like outlawing the heliocentric nature of the solar system. Hillary doesn't have quite that political clout, yet.

The theory that Stalin and Hillary share is that all those newborns, wheat plants for Uncle Joe, human babies for Mother Hillary, have identical potentials for growth and development. If some individuals don't do as well as others, it is because of their early experience. This is obviously true - everyone knows that fertilizer is important for wheat plants, and everyone knows that early nutrition and stimulation is important for humans. This is so obviously true that anyone who questions its application to the problems at hand is an idiot, an enemy of the state, and a mean-spirited hate monger. There the eminent scientist who objected, the geneticist Nikolai Vavilov, died of disease and starvation in Gulag. Here eminent scientists that voice objections are subjected to vitriolic ad hominem attacks [And the end of whatever federal research support they may have had].

In addition to individual differences there are those vexatious group differences. There winter wheat and spring wheat did not produce equal crop outcomes. Here it is altogether too obvious that various ethnic/racial groups do not produce equal educational, criminal, or job performance outcomes. Although no one was actually sure of all of the reasons for the differential outcomes, if you did not acquiesce to the environmentalist socialist egalitarian explanation, you were evil, a maverick beyond the pale, beyond the bounds of acceptable discourse. There a hated Morganist-Mendelist, here a contemptuous racist. (Whitney, 1997).

Exactly where and how modern liberalism escaped the bounds of reality is a topic of widespread discussion. The seeds of radical egalitarianism may be contained in the basics of Christianity, with its teaching that all men are equal in the eyes of God (Bork, 1996; Pearson, 1996). Certainly the nineteenth century New England, largely Unitarian, social reformers were influenced not only by their religion, but also by the contemporaneous revolutionaries in Europe.

A major lurch to the left occurred with the bloody French revolution's slogan of "liberty, equality, fraternity". Then there was the 1847 publication of the Communist Manifesto, followed by the 1848 wave of riots and revolutio
ns throughout Europe. The 1867 first volume of Das Kapital was dedicated to Darwin for the notions of evolutionary materialism and progress in the world. However, it is essentially non-biological and like the rest of Marx's writing contains no appreciation of evolutionary biology.

In areas pretending to science, as late as 1934 Franz Boas was maintaining that the basis of all serious study was the work of Theodor Waitz. Waitz's major work of 1858 was the pre-Darwinian On the Unity of the Human Species and the Natural Condition of Man. This thread was not originally anti-Darwinian; rather it was a-Darwinian or non-Darwinian, an approach to the study of man rooted in biblical creationism with a monogenesist emphasis (Mayr, 1982; Degler, 1991).

Many writers agree that a major wrenching leftward happened with the protest decade of the 1960s. In his autobiographical Radical Son, David Horowitz (1997) describes how a group of ideologically committed red-diaper babies, with support and encouragement of the underground Communist Party, engineered much of the radicalism of the 1960s. In Destructive Generation Collier and Horowitz (1995) explain that "the utopianism of the Left is a secular religion. However sordid Leftist practice may be, defending Leftist ideals is, for the true believer, tantamount to defending the ideals of humanity itself. To protect the faith is the highest calling of the radical creed. The more the evidence weighs against the belief, the more noble the act of believing becomes" (p. 246).

There is a "readiness to reshape reality to make the world correspond to an idea" (p. 37). There is a "willingness to tinker with the facts to serve a greater truth" (p.37). And so it has obviously been since the 1960s. Over recent decades, as the scientific data accumulate the stridency of the Left intensifies. Driven by ideology and not constrained by the truth, as all else fails they engage in misrepresentation and character assassination.

Raymond B. Cattell described some aspects of the workings of this inquisition which has been snarling at his heels for many decades. In A New Morality from Science: Beyondism, Cattell (1972) wrote:

The danger is not only that politicians and private institutions with axes to grind will find tame or corruptible social scientists to support their positions. The greater danger which recent experiences both here and abroad, e.g., Lysenkoism in Russia, have revealed is that partisans primarily political in interest and intention either accidentally or deliberately infiltrate the ranks of science. In the case of the Lysenko episode, and comparable events in Nazi Germany, the disturbing realization to scientists was that the exile or death of those ejected from their academic positions followed what seemed initially to be severe technical criticism by fellow scientists, but was actually politically staged." (p. 38).

Robert Bork has commented on a recent high-profile example of "what seemed initially to be severe technical criticism by fellow scientists" (Cattell, 1972, p.38). Bork (1996) pointed out that:

For egalitarians there is always lurking the nightmare that there may be genetic differences between ethnic groups that result in different average levels of performance in different activities. Only that fear can explain the explosive rage with which some commentators received The Bell Curve by the late Richard Herrnstein and Charles Murray, which, as a small part of a much larger thesis concluded that there are heritable differences in cognitive ability among the races. Some comments expressed respectful and thoughtful disagreement, some asked for careful reexamination of the data and arguments, but some did little more than shout "Nazi". Herrnstein and Murray are not racists but serious scholars. They may be right or they may not, but the episode indicates the degree to which the ideology of egalitarianism censors expression and thought in sensitive areas. (pp. 267-268).

Many contemporary events amply illustrate the truly inquisitional nature of modern liberalism in the defense of radical egalitarianism. The titles of some papers written by targets of the inquisition are informative, such as "Egalitarian fiction and collective fraud" (Gottfredson, 1994) and "Ideology and censorship in behavior genetics" (Whitney, 1995). While under criminal investigation instigated because of his research, Rushton (1994) wrote "The equalitarian dogma revisited".

It is Christopher Brand, lately of Edinburgh University, UK, who in 1997 suffered the high penalty of being fired for challenging the egalitarian fiction. Having been on the psychology department faculty for over twenty years, in 1996 Brand authored a book entitled The g Factor. Published in the UK by John Wiley & Sons, one of the largest of the international scholarly houses, the company's promotional literature contained the statement:

The nature and measurement of intelligence is a political hot potato. But Brand in this extremely readable, wide-ranging and up-to-date book is not afraid to slaughter the shibboleths of modern `educationalists'. This short book provides a great deal for thought and debate.

Brand's book enjoyed brisk sales in the UK for about 6 weeks, and was scheduled for release in the US, when it was suddenly "depublished", actually withdrawn from circulation, seemingly at the command of Wiley's New York executive headquarters. Wiley told the media that the book "makes assertions that we find repellent". Branded a "racist", Christopher Brand was in due course suspended from teaching and administrative duties at Edinburgh University. A "Special Tribunal" was convened, following which Mr. Brand was sacked. At the time of this writing, and in accord with the procedures of classical Lysenkoism, the proceedings of the Special Tribunal remain secret.

The present fourth inquisition is directly analogous with the preceding first and third inquisitions. The agenda and objectives of liberalism were established first before, and then with complete disregard for, Darwin's (1859) On the Origin of Species by Means of Natural Selection, or the Preservation of Favoured Races in the Struggle for Life. The dogmatic position of modern liberalism with radical egalitarianism was established in a philosophical and political context. The positions were hardened into dogma with no regard for the discoveries of the explorations of the 19th century. Additionally, the genetics and behavior genetics that routinely attacked with religious fervor by the radical egalitarians twentieth century science, not nineteenth century political theology. Marx was writing in the 1840s and 1860s, while Mendel's epoch-setting experiments and theory were not widely appreciated until after 1900.

Unfortunately the radical egalitarianism characteristic of modern liberalism became formalized as a quasi-theological dogma just before the discovery of much new knowledge. Just as the first inquisition arose because the existing dogma did not encompass knowledge of Aristotle, and the third inquisition functioned because the dogma was inconsistent with the discoveries of Copernicus and Galileo, so the current fourth inquisition exists in large part because its dogma is inconsistent with the discoveries of Darwin, Galton, and Mendel.

One must never underestimate what Richard John Neuhaus called "the profound bigotry and anti-intellectualism and intoler- ance and illiberality of liberalism." (Bork, 1996, p. 336).

The Events of August 1997

The highest honor bestowed by the American Psychological Association (APA) is the Gold Medal Award for Life Achievement in Psychological Science. As the APA prepared for its 105th annual convention to be held in August, the house organ American Psychologist (1997) for August announced the winner of the Gold Medal.

The American Psychological Foundation (APF) Gold Medal Awards recognize distinguished and enduring records of accomplishment in 4 areas of psychology. The 1997 recipient of the Gold Medal Award for Li
fe Achievement in Psychological Science is Raymond B. Cattell.

Joseph D. Matarazzo, President of the APF, will present the Gold Medal Award for Life Achievement in Psychological Science at the 105th Annual Convention of the American Psychological Association on August 16, 1997, at 5:00 p.m. in Ballroom III of the Sheraton Chicago Hotel and Towers in Chicago. (p. 797).

The 92-year-old Cattell, with a traveling companion to assist him, traveled from his retirement home in Hawaii to be at the meeting in Chicago to receive this special honor, a gold medal award for a lifetime of work. But Joseph D. Matarazzo did not present the Gold Medal on August 16. Instead:

On Aug. 13, the foundation decided to postpone the presentation of the award to Raymond B. Cattell, in the week preceeding the opening of the APA's 1997 Annual Convention, concerns that Cattell's writings were racist and advocated the separation of the races were voiced to the association. (http://www.apa.org/monitor/sep97/award.html).

Since its founding in 1892, the American Psychological Association (APA) has only once changed the statement of objectives contained in its bylaws. In 1892 the one objective was "to advance psychology as a science." From 1945 there have been three: "The object of the APA shall be to advance psychology as a science, as a profession, and as a means of promoting human welfare". From 1945, political concerns, left wing, became a more prominent, and contentious, part of the APA. In the files of the historian of the Psychonomic Society are letters from prominent psychologists of the time: "All manner of interests, mostly non-scientific, sprang up"; the APA proliferated into a "chaotic monster" that "fails to discriminate between science and charlatanry". It engaged in much political lobbying for mostly liberal causes. In protest, breakaway scientists formed the Psychonomic Society in 1959. Many members of the APA drifted away over the years, often in protest of the politicization of the Association. Finally a major schism occurred. In 1987/88 psychologists who wished to separate from the increasingly professional and political APA formed the American Psychological Society. Perhaps it should not be a surprise that the remnant APA was such an easy mark for the Inquisition in 1997.

The New York Times for August 15 reported an interview with Rhea Farberman, director of communications for the association:

Ms. Farberman said a committee had voted to give Cattell the award "before it knew of the information that has since come to light," adding "This new information has raised a lot of concerns, and we want to be thorough in making a judgment." (Hilts, 1997).

This excuse of new information "coming to light" is preposterous. Cattell has never been retiring about his interpretations of data and theory. Frankly outspoken throughout his long career, his views have been widely known for decades among the scientific community. Ms. Farberman appears to be impugning the competence of the leading psychologists that had in full knowledge chosen Cattell for their most prestigious award. It was not even for "new information" that Cattell is on the hit list of the Inquisition; that information has been public knowledge for years.

Poor Ms. Farberman, and the APF, should have realized that with the (as yet) uncensored Internet it is becoming almost impossible to hide the most embarrassing details of organizational snafus. From winnowing great masses of Internet traffic (and admittedly some of it second-hand or further removed, and impossible to cite confidential sources) it seems that it was not new information but failure of courage that tripped up the APF. Apparently the original and lengthly letter of nomination spelled out both Cattell's scientific strengths and specifically flagged those of his views that are deemed controversial. A committee of some six well-informed past-presidents chose Cattell as deserving the Gold Medal with full knowledge of his works. Then after the award was publicly announced, a well- experienced Inquisitor, Barry Mehler (not himself a psychologist), is reputed to have threatened to disrupt the convention if the award were given to Cattell. Shades of a `60s convention in Chicago! Against much advice, and with at least one eminent psychologist threatening to resign if he did so, Matarazzo decided to cancel the ceremony and further investigate the award.

The official citation that accompanied the Gold Medal Award is as follows:

In a remarkable 70-year career, Raymond B. Cattell has made prodigious, landmark contributions to psychology, including factor analytic mapping of the domains of personality, motivation, and abilities; exploration of three different medias of assessment; separation of fluid and crystallized intelligence; and numerous methodological innovations. Thus, Cattell became recognized in numerous substantive areas, providing a model of the complete psychologist in an age of specialization. It may be said that Cattell stands without peer in his creation of a unified theory of individual differences integrating intellectual, temperamental, and dynamic domains of personality in the context of environmental and hereditary influences. (Amer. Psychol, 1997, 797).

The fact is that it was Cattell's massive contribution to science that led to the APF decision to select him for this prestigious award, but the decision to withhold it was made on purely political grounds, i.e. that he "advocated the separation of the races." It is that substantive and theoretical domain specified in the last two words of his citation, "hereditary influences", that long ago flagged Cattell as a target of the Inquisition. In craven response to the attack on Cattell, the APA announced that the American Psychological Foundation would now appoint a special Blue Ribbon Panel, to consist of both psychologists and non-psychologists, to review the award.

The Accusers

Only two accusers have been publicly mentioned as attacking the award of the Gold Medal to Cattell. Apparently it doesn't take much to derail an organization as sensitive to the Inquisitional furies as is the APA. Neither were psychologists. The heavyweight was Abraham Foxman, identified in the New York Times as "the national director of the Anti-Defamation League of B'nai B'rith," who has "written to the association protesting the award, saying it would give the group's `seal of approval to a man who has, whatever his other achievements, exhibited a lifelong commitment to racial supremacy theories.'" (Hilts, 1997).

Although it was probably the criticism of the influential ADL organization that caused the APA to hold up the award at the last moment, the initiative would seem to have come from the lesser accuser, one Barry Mehler, an associate professor of humanities at Ferris State University in Big Rapids, Michigan. Mehler has incorporated something that he calls "The Institute for the Study of Academic Racism (ISAR)".

On the Internet Mehler has provided quotes of himself: "`ISAR created this story and it's far from over,' Mehler said. `It is gratifying to see my Institute attain this level of credibility in so short a time. I will be monitoring the investigation of the blue-ribbon committee.' ... Mehler ... has made national headlines with his recent criticism of the American Psychological Foundation's (APF) choice of psychologist Raymond B. Cattell for a lifetime achievement award .... Mehler's protest has stirred up national publicity in the New York Times, The Chronicle of Higher Education, Reuters, and the Associated Press. Mehler has been interviewed by radio giant WBAI in New York and has received numerous inquiries into the Cattell issue". Mehler has also posted a sample of his writing, a paper entitled "In Genes We Trust: When Science Bows to Racism". Mehler reports that the paper was a cover feature in the magazine Reform Judaism for Winter 1994, and was revised and republished in four further outlets, 1, The Public Eye, 2, RaceFile, 3, Networking: A Publication of
the Fight the Right Network, and 4, B'nai B'rith Messenger.

The paper is replete with passages such as: "With its legacy of Dr. Josef Mengele's twin experiments at Auschwitz and Dr. Burt's bogus science, twin studies fell into disfavor". Adjectives scattered throughout include "racist", "Hitler's race ideology", "Nazi produced", "Fascist ideologist", "notoriously anti-Semitic", "fraudulent", and it concludes, "we must beware of scientists who wish to play God".

Such loose use of similies is reprehensible. Mehler is seemingly confusing anti-liberalism with anti-Semitism. Anti-liberalism apparently is often confused with anti-Semitism. To illustrate, in the newsletter Details for July 1997, published by The Jewish Policy Center, Rabbi Daniel Lapin wrote:

I would like to argue that the root cause of both anti-Semitism and intermarriage in America today is the same, namely, the Jewish community's disproportionate liberalism .... The vast majority of Americans care deeply about the value of family and religion. They recognize that these institutions have been the pillars of moral society for millennia. They realize that liberalism, which devalues these institutions, is largely responsible for the fact that life in America has become more squalid, more expensive, and more dangerous over the past 30 years .... Though virtually all Americans are too decent to let this blossom into full-fledged anti-Semitism, there is always that threat." (pp. 1-2).

Mehler has been guilty of this confusion for a long time. In the book Race, Intelligence and Bias in Academe (Pearson, 1997), author Roger Pearson provides a chapter entitled "Activist Lysenkoism: The Case of Barry Mehler". In this he points out that decades ago Mehler was a student in a "Program for Training in Research on Institutional Racism" that was headed by Jerry Hirsch, and that Hirsch had long ago attacked Cattell. For example, he quotes Hirsch as saying "`my University of Illinois squandered a career-long research professorship on [Cattell]." Likening Cattell to the "disgraced Vice President Spiro Agnew," Hirsch railed against Cattell's "Hitler-like recommendations on the need for eugenic foresight" (p. 259).

Pearson continues:

Today Hirsch is retired, and we hear less from him. But his torch is being carried by someone who appears to be even more of a zealot. That someone is his erstwhile student, Barry Mehler. Let us look at this disciple of Jerry Hirsch, an excellent example of a political activist operating from the security of the academic world. Mehler has published little or no non-political material: he appears to specialize in politicized diatribes, filled with inaccuracies, for fringe publications on the Far Left, and glories in participating in non-academic TV shows such as Geraldo. His published works have targeted respected scholars with impressive research credentials who reject the aberrant theory that all individuals and peoples are equal (i.e., identical) in their inherited potential abilities. Moreover, copies of these error-filled and scandalous attacks on such scholars have often been mailed to journalists in anonymous envelopes. Recipients have ranged from well-known figures such as Jack Anderson, the syndicated columnist, to editors of student journals and to journalists working for local newspapers in towns where the scholars Mehler lambasts work and reside. (pp. 259-260).

Several qualities consistently characterize Mehler's attacks on the scholars he selects for `exposure.' He seldom attempts to present scientific evidence to contradict the findings of their research. Clearly, since they are writing within the limits of their own or related disciplines, and he has no demonstrated or academically recognized competence in these areas, he cannot do this. Instead he falls back on ad hominem attacks, labeling some of America's and Britain's finest scientists `racists,' `nazis' and `fascists.' Those whom he has attacked include a long list of distinguished scholars, such as: John Baker (Oxford), Thomas Bouchard (Minnesota), Sir Cyril Burt (London), Raymond Cattell (Illinois and Hawaii), C. D. Darlington (Oxford), Hans Eysenck (London), Linda Gottfredson (Deleware), James Gregor (UC Berkeley), Richard Herrnstein (Harvard), Arthur Jensen (UC Berkeley), Travis Osborne (Georgia), J. Philippe Rushton (Western Ontario), Nancy Segal (Minnesota), William Shockley (Stanford), Audrey Shuey (Randolph Macon Woman's College), Ernest Van den Haag (CUNY), and Daniel Vining (Pennsylvania). (p. 262).

The Charges

The charges lodged against Cattell have been described at some length. There is absolutely no need here to go into any detail with regard to any of Cattell's many technical scientific achievements. This is because, true to the form described above by Pearson, the scientific accomplishments of the great man do not figure in the charges leveled against him. The charges fall into three categories: [A] heresy; [B] blasphemy; and [C] cavorting with devils. In taking the charges up one-at-a-time, I hope to show that after cutting through the invective, and discarding the gratuitous ad hominems, there are indeed large kernels of truth embedded in each of them. As with most victims of Inquisitions, the target is largely guilty as charged.

[A] Heresy. The charge is made that Cattell has been, since the 1930s, an advocate of eugenics. Indeed beyond that, Cattell followed Galton's lead in suggesting that the science of eugenics could form the basis for a new approach to religion. Cattell proposed an ethical system founded in science, to be called "Beyondism". Mehler tells us:

Cattell first outlined his `evolutionary ethic' based on natural selection in Psychology and Social Progress (1933), and that "Cattell's first monograph on the topic was, A New Morality from Science: Beyondism (Cattell, 1972), followed by Beyondism: Religion from Science" (Cattell, 1987).

The invective is contemptible. Mehler tells us that "`Beyondism' is a neo-fascist contrivance. Cattell promulgates ideas that he formulated within a demimonde of radical eugenicists and neo-fascists ... it is striking for its extremism, racism, and virulent bias". Of course the underlying heresy here, a belief in the well-established truth of genetic influence on individual differences, is totally at odds with the radical egalitarianism that is the Inquisition's most sacred dogma. Only with genetic causes would most of the practices advocated as eugenics be effective. People who have studied the life and works of Sir Francis Galton know that his original "eugenics" has since divided into two parts. One part, the basic science, has developed into what is today known as genetics and human genetics. The second part, the application of hereditary knowledge for the good of man and society, has developed into the largely voluntary genetic counseling of today (Whitney, 1990). Even Cattell is quoted as saying that his ideas have evolved and he is today an advocate of voluntary eugenics.

Contrary to Mehler's attempts to invoke wrath at the alleged anti-Semitism inherent in research into heredity, he should recognise, as so many Jewish scientists do, that the Jewish community has benefited from hereditarian research and eugenical practices at least as much as any other population. The case of population screening for carriers of Tay Sachs disease, followed by amniocentesis for heterozygous couples and voluntary abortion of affected fetuses, has been hailed as a great "life-giving". Parents can now choose to have a healthy baby instead of suffering through the agonizing death of a Tay Sachs affected child. For many years screening for Tay Sachs was limited to members of the Ashkenazim because they are the only population group with a relatively high frequency of the gene for Tay Sachs disease (Kaback, 1977). This is applied genetics eugenics in action. So too is the recently announced screening for the first identified gene that is causally linked to colorectal cancer. The screening is to be limited to Ashkenazim, the only group yet
found to harbor the gene (Hopkins, 1997a, 1997b; Laken, et. al., 1997). Again, eugenics in action. It is hard to understand how such hereditarian research and application eugenics is in any way "anti-Semitic", as Mehler has claimed.

Other sources list many advocates in making the point that back into the 1930s and before, many social progressives of both the right and the left were enthusiastic eugenicists (Pearson, 1996). One only has to think of H. G. Wells, J. B. S. Haldane, Sidney and Beatrice Webb, and Herman J. Muller. It has also been emphasized elsewhere that the painting of eugenics with the tar brush of a slippery slope to Nazism is post-war propaganda that is largely devoid of substance (Whitney, 1996). The very recent "exposés" in the newspapers of governmental sponsored eugenic programs in various social democratic countries even into the 1970s (e.g. Canada, Sweden, Finland, Denmark, Switzerland) serves to underscore the lack of relationship.

The charge published in The New York Times that Cattell is "a man who has, whatever his other achievements, exhibited a lifelong commitment to racial supremacy theories" (Hilts, 1997) needs translation out of political invectese. Yes, it is true that as an outstanding scientist with many other achievements, Cattell has exhibited a lifelong commitment to attempting to understand the causes of both individual and group differences. Cattell is guilty of being a scientist with an interest in the causes of individual differences. As such he has followed the empirical data wherever it may have lead. As just one example of suspected environmental effects, cognitive scientists have in recent decades been very interested in the so-called Flynn effect. The finding that in industrialized societies there seems to be taking place a substantial and prolonged increase in the level of intellectual functioning (Flynn, 1987). This is a phenomenon that Cattell empirically found and reported decades ago (Cattell, 1951).

Cattell is only guilty of advocating a version of secular humanism incorporating aspects of morality and ethics that would be informed by knowledge from modern science. He named it "Beyondism".

[B] Blasphemy. Mehler plays the Hitler card in order to underscore Cattell's reprehensibleness:

Hitler actually shared many values of the average American. He aimed at full employment, family values, and raising the standard of living, and countless other things, including the Volkswagen, which he designed himself for the average family. (The Beyondist, 1994, p. 2).

This is simply an attempt to smear Cattell by making him out to be a fan. Mehler is essentially quoting out of context. He omits the next and concluding sentence of Cattell's passage, which was:

The man turned out evil in his militarism and his treatment of the Jews and dissident Catholics, but that does not justify, to a rational person, calling all his attitudes mistaken.

If we were to respond flippantly to Mehler's nonsense, we could point out that according to customer information at the Volkswagen Company (phone 1-800-822-8987), through March of 1996, 21,276,932 persons have voted with their purchase in agreement with Cattell that in the Volkswagen Hitler did a good thing. But on a much more serious note, here it is only Mehler that is guilty of blaspheme. Mehler in effect trivializes the Holocaust by his loose and inappropriate invocation of Hitler.

[C] Cavorting with Devils. Mehler freely engages in guilt-by- association. Quite a few, mostly obscure or effectively marginalized, persons are named.

Wilmot Robertson seems to be the worst of the lot. Mehler says "To my knowledge, Cattell is the only major academic willing to be forthright about his association with Robertson." We are informed that Wilmot Robertson has written a few books, including one entitled The Dispossessed Majority, and that he publishes a "neo-fascist magazine" that is targeted toward an educated audience that is named Instauration. But that may be as it may be. Cattell is certainly not responsible for anything Robertson may write or publish. Neither is any interest he may or may not have in reading Robertson's publications a justifiable reason for denying him a well-earned award for his contributions to science. The recent behavior of the APA seems to indicate that science is still subject to politics under the current rule of the Fourth Inquisition.

Mehler even attacks Cattell's association with The Mankind Quarterly, protesting that: "Cattell has published numerous times in Pearson's Mankind Quarterly and Pearson has published a number of Cattell's monographs." Cattell has served on the editorial board of The Mankind Quarterly for many years. Although that journal does not always bend to comply with the dogma of modern politicized liberalism, there is nothing even remotely anti-Semitic about its contents. Mehler may understandably resent Pearson's exposé of his own writings (see Pearson, 1991). but Cattell's willingness to lend his name to the advisory board of The Mankind Quarterly in no way impugns Cattell's own status as a scholar, reflecting only to the credit of The Mankind Quarterly.

Another View

An eminent student of the human condition, the recently deceased Hans J. Eysenck, once addressed the very issues that now face the Blue Ribbon Panel convened by the APF to look into Cattell's Gold Medal:

This, then, is the "trahison des clercs" of which I make complaint: that both students and their elders and betters have begun to play a child's game of goodies and baddies, in which a man's work is judged, not in terms of its scientific content, or on any rational, empirical basis, but in terms of whether it agrees with the critic's preconceptions. And my suggestion for the future is that which Sir Francis Bacon gave centuries ago in The Advancement of Learning:

"To have the true testimonies of learning to be better heard, without the interruption of tacit objection, I think good to deliver it from the discredits and disgraces it hath received, all from ignorance; but ignorance severally disguised; appearing sometimes in the zeal and jealousy of devines; sometimes in the severity and arrogance of politiques; and sometimes in the errors and imperfections of learned men themselves ..."

However that may be, there are of course difficult ethical and moral problems and dilemmas involved in the discussion, and the exhortations of militant Leftists should not preclude serious discussion of these problems. Note first of all a `Resolution in Scientific Freedom,' signed by 50 eminent scientists, among them: Francis H.C. Crick, Nobel Prize-winner, Cambridge University; Jacques Monod, Nobel Prize-winner, College de France; Arthur R. Jensen, University of California; Richard Herrnstein, Harvard University; C.D. Darlington, Oxford University; and John C. Kendrew, Nobel Prize-winner, Cambridge University. The Resolution reads as follows:

The history of civilization shows many periods when scientific research or teaching was censured, punished, or suppressed for non-scientific reasons, usually for seeming to contradict some religious or political belief. Well-known scientist victims include: Galileo in orthodox Italy; Darwin, in Victorian England; Einstein, in Hitler's Germany; and Mendelian biologists, in Stalin's Russia.

Today, a similar suppression, censure, punishment, and defamation are being applied against scientists who emphasize the role of heredity in human behavior. Published positions are often misquoted and misrepresented; emotional appeals replace scientific reasoning; arguments are directed against the man rather than against the evidence (e.g. a scientist is called `fascist', and his arguments are ignored).

A large number of attacks come from non-scientists, or even anti-scientists, among the political militants on campus. Other attackers include academics committed to environmentalism in their explanation of almost all human differences. And a large number of scientist
s, who have studied the evidence and are persuaded of the great role played by heredity in human behavior, are silent, neither expressing their beliefs clearly in public, nor rallying strongly to the defence of their more outspoken colleagues.

The results are seen in the present academy; it is virtually heresy to express a hereditarian view, or to recommend further study of the biological bases of behavior. A kind of orthodox environmentalism dominates the liberal academy, and strongly inhibits teachers, researchers, and scholars from turning to biological explanations or efforts. Now, therefore, we the undersigned scientists from a variety of fields, declare the following beliefs and principles:

(1) We have investigated much evidence concerning the possible role of inheritance in human abilities and behaviors, and "we believe such hereditary influences" are very strong.

(2) We wish strongly to encourage research into the biological and hereditary bases of behavior, as a major complement to the environmental efforts at explanation.

(3) We strongly defend the right, and emphasize the scholarly duty, of the teacher to discuss hereditary influences on behavior, in appropriate settings and with responsible scholarship.

(4) We deplore the evasion of hereditary reasoning in current textbooks, and the failure to give responsible weight to heredity in disciplines such as sociology, social psychology, social anthropology, educational psychology, psychological measurement, and many others.

(5) We call upon liberal academics - upon faculty senates, upon professional and learned societies, upon the American Association of University Professors, upon the American Civil Liberties Union, upon the University Centres for Rational Alternatives, upon presidents and boards of trustees, upon departments of science, and upon the editors of scholarly journals - to insist upon the openness of social science to the well-grounded claims of the bio-behavioral reasoning, and to protect vigilantly any qualified faculty members who responsibly teach, research, or publish concerning such reasoning.

We so urge because as scientists we believe that human problems may best be remedied by increased human knowledge, and that such increases in knowledge lead much more probably to the enhancement of human happiness, than to the opposite.

I was asked by the British Association for the Advancement of Science to contribute an article on the ethics of science and the duties of scientists, with special reference to these events. What I wrote then I still believe to be right, and consequently the body of the text of my contribution is reprinted here in full. This is what I said:

It used to be taken for granted that it was not only ethically `right' for scientists to make public their discoveries; it was regarded as their `duty' to do so. Secrecy, the withholding of information, and the refusal to communicate knowledge were rightly regarded as cardinal sins against the scientific ethos.

This is true no more. In recent years it has been argued, more and more vociferously, that scientists should have regard for the social consequences of their discoveries, and of their pronouncements; if these consequences are undesirable, the research in the area involved should be terminated, and results already achieved should not be publicized.

The area which has seen most of this kind of argumentation is of course that concerned with the inheritance of intelligence, and with racial differences in ability; many even of those who acknowledge that Jensen's arguments are scientifically correct have argued that he was wrong (and that Herrnstein and I were wrong) in actually publishing the conclusions to which all the experimental work was leading. Stressing the possible hereditary nature of the IQ deficit of American blacks, as compared with American whites, might have serious consequences in jeopardizing the integration between the races so earnestly desired by both sides to the argument; carrying out further research might offend liberal opinion, and lead to further dispute, strife, and even bloodshed.

What good could come of work along these lines, it was frequently argued; the results would be of purely academic interest as both sides were agreed that there was much overlap in ability between the two races, so that each individual would still have to be judged in terms of his particular pattern of abilities, rather than as a member of a particular race. Better let sleeping dogs lie and studiously turn a blind eye to such facts and theories as might impinge on the general belief in universal egalitarianism, and threaten its very foundations.

"I believe that there are powerful arguments against this modern belief in the opportunistic silencing of inconvenient theories, and the refusal to support research which might unearth equally inconvenient facts, all in the supposed interests of society. The first argument by itself, I would suggest, is quite conclusive; it is based on the impossibility of forecasting the social consequences (or even the scientific consequences) of one's findings and theories. It is impossible to read the history of science without becoming aware of the fact that even the greatest scientists were incapable of looking ahead even a few years and predicting the consequences of their actions." (Eysenck, 1997, pp 45-48).

Guilty as Charged

With regard to Giordano Bruno, "His reward indeed came even for his faulty utterances when, toward the end of the nineteenth century, thoughtful men from all parts of the world united in erecting his statue on the spot where he had been burned by the Roman Inquisition nearly three hundred years before." (White, 1896/1965, p.80).

We can only hope that the Blue Ribbon Panel of the APF can render its verdict with regard to Raymond B. Cattell in a more timely fashion.

References

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Raymond B. Cattell and The Fourth Inquisition

The Case for Eugenics in a Nutshell – Future Generations

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The Case for Eugenics in a Nutshell - Future Generations

The Case for Eugenics in a Nutshell by Marian Van Court

This article appeared in the Winter 2004 issue of The Occidental Quarterly

[English - pdf] | [Swedish - pdf] | [Dutch - pdf] | [Romanian - pdf]

The eleventh edition of The Encyclopedia Britannica defines eugenics as "the organic betterment of the race through wise application of the laws of heredity." Most people draw a blank when they hear the word, or it conjures up images of swastikas and jack-booted Nazis. But eugenics has had a long history, extending back to ancient Rome and beyond.

Eugenics is concerned with the current direction of human evolution. Thousands of articles have been published in scholarly journals, tons of dirt have been sifted through with tiny brushes in search for skulls, vast amounts of grant money awarded to researchers, and many entire careers spent trying to discover how we evolved larger brains and greater intelligence up to the point of Homo sapiens, and this is a fascinating and worthwhile endeavor. But what is urgent, what is arguably the most important question facing our species, is where human beings are evolving right now. Are we evolving in a favorable direction, or an unfavorable one?

It's true that natural selection has virtually ceased to operate in many parts of the world today, but evolution continues because human reproduction is far from random. Just as history marches on indefinitely into the future, both in war and in peace, so, too, does evolution. Reproductive patterns of each generation shape the innate character of successive generations, whether for better, or for worse.

Most of us want to give our children as much as our parents gave us, preferably more. We want them to have the best possible education, and every advantage we can afford. We also hope to leave them a better world than the one we were born into. However, the most important legacy we can bequeath to our children is their own biological integrity: good health, high intelligence, and noble character. These traits go a long ways towards insuring their personal happiness and well-being. Taken collectively, these traits constitute the ability of a population to maintain and advance civilization - the most precious of human gifts - for without civilization, chaos reigns, "might makes right," and suffering abounds.

The focus of this paper will be on intelligence. Here's the argument, in a nutshell:

1. Human intelligence is largely hereditary.

2. Civilization depends totally upon innate intelligence. Without innate intelligence, civilization would never have been created. When intelligence declines, so does civilization.

3. The higher the level of civilization, the better off the population. Civilization is not an either-or proposition. Rather, it's a matter of degree, and each degree, up or down, affects the well-being of every citizen.

4. At the present time, we are evolving to become less intelligent with each new generation. Why is this happening? Simple: the least-intelligent people are having the most children.

5. Unless we halt or reverse this trend, our civilization will invariably decline. Any decline in civilization produces a commensurate increase in the collective "misery quotient."

Logic and scientific evidence stand behind each statement listed above.

1. Human intelligence is largely hereditary.

Scientists have found that identical twins separated at birth and raised apart are almost identical in IQ, despite the fact that they had totally different environments. Remarkably, twins reared apart are as similar as identical twins reared together by the time they're adults. They also resemble one another strikingly in their mannerisms, the way they laugh, their likes and dislikes, phobias, temperament, sexual preference, educational achievement, income, conscientiousness, musical ability, sense of humor, whether they're criminals or law-abiding, and pretty much everything else that's ever been tested, even traits as peculiar as which vegetables they refuse to eat (Bouchard, 1993). The extent of their similarity amazes even the researchers and the twins themselves.

The primacy of genes is likewise demonstrated by adoption studies. Adopted children's IQs resemble those of their biological parents far more closely than they resemble those of their adoptive parents, who essentially provided them with their environments from the time of birth onwards. When adopted children are grown, there's no virtually resemblance between their IQs and those of their adoptive parents (Loehlin, Willerman, and Horn, 1987).

The dominant role of heredity in determining IQ is not a theory, it's an established fact, the consensus of hundreds of studies conducted in different times and places by many different researchers. But the public is largely unaware of this fact because the liberal media have told them repeatedly that most experts in IQ testing believe IQ is largely environmental. In reality, the majority of researchers in the field of intelligence testing believes heredity is the more important factor (Snyderman and Rothman, 1988).

2. Civilization depends totally upon innate intelligence.

This assertion is pretty much self-evident. Lions, wild dogs, bees, ants, chimpanzees, and many other animals live in social groups. They may cooperate in various ways, yet they have nothing that could be called civilization. Why not? Because they're not nearly smart enough!

Obviously, if civilization depended entirely upon exposure to an "enriched" environment, we'd all still be skulking about in caves. If human beings first existed in primitive conditions, and the environment counted for everything and genetics nothing (as some assert), how could any progress ever have occurred? It's obvious there's an inborn streak of genius that drives the creation of technology and civilization.

One way to look at the relationship between intelligence and civilization is to investigate ancient civilizations, studying why they rose, and why they fell. But a far more straightforward approach would be to simply look around us, and to survey the various countries of the world. Today, in 2004, there are countless gradations of civilization all over the globe. Japan has an average IQ of 104, compared to the U.S. average of 100. Japan is an economic powerhouse, despite being a tiny country with virtually no resources. It's also a peaceful and predictable place in which to live. In Tokyo, a bag of money left on a park bench may sit there for a while until someone eventually turns it in to the authorities.

Japan has a higher average IQ than America, Mexico has a lower one, and the black African nations have the lowest. The very same hierarchy of nations replicates itself in America, both in IQ scores and in socioeconomic status (SES). For example, Americans of Japanese ancestry score higher on IQ tests, and are more successful, than average Americans. Blacks in America score lowest and are least successful. The fact that people of Japanese ancestry - both in Japan and in the U.S. - score above average neatly disposes of the common objection that IQ tests are "culturally biased" in favor of Caucasians.

Interestingly, SES among individuals within one family is influenced by innate intelligence. One U.S. study found that in families with 2 or more brothers, boys with higher IQs than their fathers tended to move up on the socioeconomic-economic ladder when they became adults, whereas those with lower IQs tended to move down (Jencks, 1982). Brothers have almost identical environments - same parents, same house, same food, same schools, same neighborhood. Why do they often differ? Bec
ause they get different rolls of their parents' genetic dice. Siblings share their environment almost entirely, but on average, they share only 50% of their genes. Some will share more, some less. [Sperm and eggs are made with half the genes of each parent, so that when they unite, the fertilized egg will have the full complement of genes. But one child won't get the same identical half from his father, and the same identical half from his mother, that his sibling got.] Is it any wonder brothers and sisters often grow up to be quite different? The fact that the smarter ones move up, and the duller ones down, proves that SES is significantly influenced by innate intelligence.

3. The higher the level of civilization, the better off the population.

To say, "The higher the level of civilization, the better off the population" is axiomatic, much like saying, "It's better to be healthy than to have a disease." It's plain for everyone to see that people who live in countries with a high level of civilization have more of everything which is universally considered good, and less of everything which is universally considered bad. For example, they have more money, more fun, better food, nicer clothes, bigger and better houses, better educations, longer lives, less pain and disease, less uncertainty in their lives, less crime, better medical and dental care, more personal power, more happiness and fulfillment, less anguish and despair.

Question: "Why do large numbers of people from countries with low levels of civilization risk their lives every year to get to countries with high levels of civilization, while the reverse never occurs?"
Answer: "They risk their lives because they think life is much better there, and they're right." If this were not the case, why would such one-way migration occur?

Economic prosperity makes up a large part of this picture. In IQ and the Wealth of Nations, Lynn and Vanhanen (2002) gathered data from 185 countries and found that the average IQ of a nation correlates .7 with its per capita Gross Domestic Product (GDP), and that IQ is the single most important factor in the wealth of a nation. (Free market economy and presence of natural resources were second and third, respectively.)

4. At the present time, we are evolving to become less intelligent with each new generation.

For hundreds of years, until the early1800s in England and America, there was natural fertility, i.e., no efforts to limit the number of births. Married couples tended to have many children, but not everyone could marry. Men who didn't earn enough to support a family remained single and childless, and the net result was a small positive relationship between fertility and intelligence. Then several books on contraception were published which naturally affected those who could read disproportionately. Condoms and diaphragms became available, and the birth rate of the middle and upper classes declined. By the middle of the century it had become apparent that educated people were having fewer children than the uneducated.

This caused considerable alarm, and a number of studies were undertaken both in England and America in the early decades of the 20th century. Schoolchildren's IQs were found to correlate negatively with their number of siblings, which seemed to confirm fears of dysgenic fertility, but this conclusion was questioned because there was no way to know the IQs of the childless. Later, some U.S. studies of adult IQ and number of offspring reported negative correlations, but other similar studies found no correlation. However, the samples used in all these studies were not representative of the U.S. population as a whole - they were restricted either in terms of race, birth cohort, or geographical area. So by mid-to-late 20th century, there was still no definitive answer to the question of dysgenic fertility. Then in 1984, Frank Bean and I had the good fortune to discover an excellent data set, the General Social Survey (GSS), to test the hypothesis. It included a short vocabulary test devised by Thorndike to provide a rough grading of mental ability which was ideal for our study. The GSS had interviewed a large, representative sample of the U.S. population whose reproductive years fell between 1912 and 1982, yielding data which provided the unique opportunity of an overview of the relationship between fertility and IQ for most of the 20th century. In all 15 of the 5-year cohorts, correlations between test scores and number of offspring were negative, and 12 of 15 were statistically significant (Van Court and Bean, 1985).

Recently, Richard Lynn and I did a follow-up study which included new data collected in the 1990s by the GSS, and we got very similar results. We calculated that .9 IQ points were being lost per generation (Lynn and Van Court, 2003). To find out how much has been lost during the 20th century, we can simply multiply .9 x 4 generations = 3.6 IQ points. There are no precise data for the latter part of the 19th century, but there's every indication that the period of 1875-1900 was seriously dysgenic. So as a rough (but conservative) estimate of the total 125-year loss, we can multiply .9 x 5 generations = 4.4 IQ points lost from 1875 to the present. A loss of this magnitude would approximately halve those with IQs over 130, and double those with IQs below 70.

In Dysgenics: Genetic Deterioration in Modern Populations, Richard Lynn (1996) found that dysgenic fertility is the rule rather than the exception around the world. There haven't been as many studies done in Europe, but it appears to be about on a par with the U.S. in terms of the severity of the dysgenic trend. The only place dysgenic fertility is not found is sub-Saharan Africa where birth control is not used.

As the reader may have begun to suspect, the main reason for dysgenic fertility is that intelligent women use birth control more successfully than unintelligent women do. This seems to be the case regardless of which method is used. Women of high, average, and low-IQ all want, on average, the same number of children, but low-IQ women have far more accidental pregnancies, and thus more children. If all women had the exact number of children they desired, there would be virtually no dysgenic fertility (Van Court, 1984). A second factor is that very intelligent and successful women (doctors, lawyers, professors, engineers, and women working at high levels in business) often end up having far fewer children than they would like to have. A recent study found that 33% of high-achieving women are childless by age 40, and only 14% of this group are childless by choice (Hewlett, 2002).

5. Unless we halt or reverse this trend, our civilization will invariably decline.

This conclusion follows logically from premises 1 - 4.

The concept of civilization is abstract, but here's one easy way to conceptualize what, precisely, it means when "civilization declines": North Americans, Europeans, and Japanese can simply imagine living their entire lives in Mexico. Mexicans can imagine living their entire lives in Africa. That's what a decline in civilization means, and few would attempt to argue that it's a good thing.

In The Bell Curve, Herrnstein and Murray (1994) reported that all social problems were exacerbated when they moved the average IQ down statistically in their sample by just 3 points, from 100 to 97. The number of women chronically dependent on welfare increased by almost 15%, illegitimacy increased by 8%, men who were incarcerated increased by 13%, and number of permanent high school dropouts increased by 15%. With an actual 3-point drop, these percentages would represent the unhappy lives of millions of real people, plus a major tax burden for millions more. There's also the top end of the IQ distribution to consider - all the scientists, statesmen, entrepreneurs, inventors and free-lance geniuses who were never born, and whose positive contributions were never made.

Egalitarianism: Politically Correct, Scientifically Wrong

Clea
rly, dysgenic fertility is an enormous threat to the human species. So why is absolutely nothing being done about it? In a word, egalitarianism. Egalitarianism is simply the belief that all people are born equal in intelligence, character, talents, and every other way, except for trivial differences in hair color, eye color, and so on. If everyone is born exactly equal, what difference would dysgenic fertility make?

Egalitarianism is the ideology the Western world has embraced since the end of World War II. Immediately the question arises, "If we're all born equal on everything, how did we end up so different?" Differences are said to be caused by various environmental factors, and any kind of social problem or pathology is said to be the result of "cultural deprivation," "traumatic experiences," "sub-standard housing," or that ubiquitous arch-villain, "society."

Egalitarianism is so fundamentally implausible that it's hard to believe that millions of people actually believe it. Anyone who has had more than one child understands that they have different personalities from the day they're born. Yet a recent poll found that fewer than 1 in 5 Americans believes genes play a major role in human behavior. Most people thought drug addiction, mental illness, and homosexuality were influenced by heredity to a small degree, but about 40% thought genes play no role whatsoever (U.S. News and World Report, April 21, 1997, p. 72-80).

There's not one shred of scientific evidence to support egalitarianism, and there's a mountain of evidence that disproves it, but that doesn't deter egalitarians in the media and academia, who give the pretense of scientific legitimacy by pointing to studies that report associations between one social pathology and another. For example: "Children who grow up in poor neighborhoods tend to become criminals." On this basis, efforts are made to build nicer housing projects and spruce up the slums, with (big surprise) no impact on crime. It's obvious to any casual observer that correlations exist between poor environments and pathologies of various sorts. But correlation does not prove causation! Roosters crow at sunrise. Does this mean roosters cause the sun to rise? If poverty actually causes crime, shouldn't the crime rate have increased astronomically during The Great Depression? Well, it didn't.

Programs designed to solve social problems based on egalitarian propaganda-disguised-as-science are universally ballyhooed at the beginning. Despite high hopes, lofty rhetoric, and truly enormous expenditures, demonstrable benefits have been tiny, transient, artifactual, or non-existent. Aid to Families With Dependent Children (AFDC), the main welfare program in the U.S., was intended to eliminate poverty and ameliorate the host of social problems associated with it. A major study of its effects reported that it has actually made the problems it was intended to solve worse, while costing taxpayers billions (Murray, 1986). Head Start was begun in order to raise the IQs of disadvantaged ghetto children by providing them with an "enriched" early environment, yet there have been no lasting IQ gains. Somehow its original purpose has been forgotten, it's lauded as a great "success," and it grows ever larger and more expensive.

"Superstition Ain't the Way"

We often feel a smug, self-satisfied superiority when we read about follies of the past, such as the Salem witch trials, the Inquisition, bizarre medical practices, such as letting blood or applying leeches to cure disease. Old films of man's early attempts at flight are guaranteed to get a laugh. But how do we know that we ourselves are not, at this very moment, in the grips of one staggeringly-stupid delusion which will make us look like fools to people in the future? How embarrassing! It wouldn't be far-fetched to say egalitarianism is the most prevalent "superstition" of the 20th and 21st centuries - probably of all times - given that it is a belief about causality which millions of people accept, for which there is no scientific evidence, which science has, in fact, disproved. Does egalitarianism qualify as superstition? Webster's Ninth Collegiate Dictionary defines superstition as:

a belief or practice resulting from ignorance, fear of the unknown, trust in magic or chance, or a false conception of causation . . . a notion maintained despite evidence to the contrary

A popular song by Stevie Wonder entitled "Superstition" contains lyrics that go like this: "When you believe in things that you don't understand, then you suffer. Superstition ain't the way!" This sums up our situation quite nicely. The Western world has accepted uncritically a huge amount of misinformation about human nature, and as a result of our "mega- superstition," we're causing ourselves, and all our descendants, "mega-suffering." We squander vast amounts of time, effort, and money on misguided programs when all the while our innate intelligence, the very foundation for our civilization and well-being, is silently and steadily slipping away.

Three Factors

Why is the Western world in the grips of such a vast illusion? For thousands of years everyone took it for granted that some people are born smarter than others simply because it's so obviously true. Even in the early decades of the 20th century, egalitarianism would have been laughed at, and eugenics was widely accepted by prominent people whose views spanned the entire political spectrum. To list just a few proponents: George Bernard Shaw, Charles Darwin, Margaret Sanger, H.G. Wells, Francis Galton (who coined the term "eugenics"), Theodore Roosevelt, Oliver Wendell Holmes, Alexander Graham Bell, Charles Lindbergh, and Winston Churchill. Julian Huxley described eugenics as "of all outlets for altruism, that which is most comprehensive and of longest range." Yet today, eugenics is considered the ultimate form of cruelty! Why ideas go in and out of fashion is something I don't fully understand. However, below are 3 factors which probably enter into this particular about-face in public opinion:

(1) After World War II, the salient beliefs of the vanquished countries were universally rejected. Hitler strongly advocated eugenics, though not in the same way eugenicists do today. (Hitler opposed IQ tests on the grounds that they were "Jewish.") Genetics, behavior, and race came to be regarded as unsavory topics. The eugenics movement originated in Britain and the United States, and 27 other countries besides Germany enacted eugenics legislation during the same period and neither genocide nor anything else dreadful happened in those countries, so no remotely reasonable case can be made that eugenics causes genocide. The Communists took the opposite view - that the environment is all-important and genetics counts for nothing - yet they murdered far more people than the Nazis. Nevertheless, no matter how unfair, eugenics has become stigmatized because it's associated in the minds of many with Hitler.

(2) Public opinion in the Western world is largely shaped by journalists (who, it should be pointed out, bear much of the blame for promoting this unfair association with Hitler). Countless studies have found that journalists tend to be far more liberal politically than the general population. Among university students, business and hard-science majors tend to be the most conservative politically, and literature and journalism students the most liberal, suggesting a self-selection among students who enter the field of journalism. In other words, people who are attracted to journalism, for whatever reason, tend to be liberal by temperament. Along with the liberal journalists, Marxist academics with admittedly political agendas have contributed quite substantially to promoting egalitarian propaganda.

Snyderman and Rothman (1988) compared what was reported about IQ - on TV, in newspapers, and in magazines - to what scientists doing research on IQ actually said about it. They found that the media consistently gave extremely biased accounts, suggesting that IQ didn't re
ally measure anything important, that it was "culturally biased," and that most experts on IQ agreed with such assertions, when, in fact, most experts disagreed with these assertions.

On the issue of race, the media have failed utterly in their responsibility to report scientific findings to the public. Actually, it's far worse than "failing in their responsibility to report the facts," because that would imply that they were a bit lackadaisical, or that they just didn't do all they should have done. In reality, the media have blatantly lied to the public, and this has been going on for decades. To some, "blatantly lied" may sound like inflammatory rhetoric, but I would respond by saying that there is proof of their deception, and I would ask "What kind of flagrant dishonesty are we reserving the term 'blatantly lied to' that's so much worse than this?" One would be hard-pressed to think of anything more egregious. Snyderman and Rothman (1988) found that the majority of scientists who do research on IQ believes part of the black-white difference in IQ is genetic. By analyzing hundreds of media reports, they also found that the media overwhelmingly portray this view as one held only by a few screwballs.

This massive disinformation campaign about IQ, genetics, and race has been waged by liberal journalists and Marxist academics against the Western world since the 1950s. Like an octopus with far-reaching tentacles, it's wrecked havoc in a multitude of ways, not the least of which is that it's made it impossible even to have a serious public debate about eugenics, an obvious prerequisite to implementing a eugenics program. Such wholesale dishonesty might be expected under a Communist regime, but for this to take place in democratic societies cries out for an explanation.

(3) To fully understand why egalitarianism reigns supreme and eugenics has been made into a taboo subject, this topic must be viewed as part of the larger Zeitgeist which also includes obeisance to "diversity" and "multiculturalism," reverse discrimination, attacks on Christianity, support for ruinous immigration policies, promotion of promiscuity and homosexuality, advocacy of miscegenation, and moral relativism, much of which can be subsumed under the rubric of Political Correctness. Did this pervasive belief-system just "happen," like the weather, or did people make it happen? If the latter, who, and why?

When a serious crime is committed, the first question a detective is likely to ask concerns motive, i.e., "Who benefits?" Likewise, one might reasonably ask, "Who benefits from this dishonest and destructive Zeitgeist?" It's an extraordinarily interesting and important topic, but unfortunately, unraveling this issue any further is beyond the scope of this paper. Instead I will refer the reader to Kevin MacDonald's brilliant book, The Culture of Critique (1998), the source for answers about the Zeitgeist and the hidden agenda behind it. MacDonald makes a shocking case, but one which is well-documented and compelling.

Conclusion

The results of one large, highly-respected study of mental retardation illustrate the potential power-for-good of eugenics. Two percent of the sample were retarded, and they produced 36% of the next generation of retardates (Reed and Reed, 1965). Clearly, if that 2% had not had children, mental retardation would have been reduced by 36% in one generation in that group. With only slight modification, these figures can be applied to the general population. If the retarded were given sufficient cash or other incentives to adopt permanent birth control, mental retardation could be cut by approximately 1/3 in just one generation. This is only one among many possible eugenic measures, but this step alone would significantly alleviate all social problems, prevent a good deal of child abuse and neglect (the retarded make very poor parents), provide a big boost to the economy, and cause the "misery quotient" to plummet.

Egalitarians take a circuitous route to solving social problems - they keep trying to change people by altering their environments. Despite witnessing their abysmal string of failures, our natural desire to alleviate suffering and improve the world persists. This desire finds new hope in eugenics based on science, not propaganda and wishful thinking. Eugenics takes the direct route. It holds the unique potential of actually creating a better world, of making profound, concrete, lasting improvements in "the human condition" by improving human beings themselves.

I would like to thank Chris Brand for his helpful comments on the manuscript.

REFERENCES

Bouchard, Thomas, (1993), Twins as a Tool of Behavioral Genetics. New York: J. Wiley
Brand, Christopher (1996) The 'g' Factor, New York: Wiley & Sons

Flynn, J.R., (1984) The mean IQ of Americans: Massive gains 1932 to 1978, Psychological Bulletin, 95, 29-51

Hewlett, Sylvia Ann, Creating a Life: Professional Women and the Quest for Children, New York: Talk Miramax Books, 2002, p. 86-87

Jencks, Christopher (1972), Inequality, New York: Basic Books Inc.

Herrnstein, Richard, and Murray, Charles, (1994) The Bell Curve, p. 368, New York: New York Free Press

Loehlin, J., Willerman, L., Horn, J. (1990) Heredity, environment, and personality change: evidence from the Texas Adoption Project, Journal of Personality 58:1, p.221-246

Lynn, Richard (1996), Dysgenics: Genetic Deterioration in Modern Populations, Westport, Conn.: Praeger

Lynn, Richard (2001), Eugenics: A Reassessment, Westport, CT: Praeger

Lynn, Richard, and Van Court, Marian (2003) New evidence of dysgenic fertility for intelligence in the United States, Intelligence 32:2, March, p.193-201, http://www.eugenics.net

Lynn, Richard and Vanhanen, Tatu (2002), IQ and the Wealth of Nations, Westport, Conn: Praeger

MacDonald, Kevin (1998), The Culture of Critique, Westport CT: Praeger

Murray, Charles (1984), Losing Ground: American Social Policy, 1950-1980, New York: Basic Books

Reed, E.W., and Reed, S.C., (1965) Mental Retardation: A Family Study, Philadelphia: W. B. Saunders, p. 78

Rushton, J.P., (1999), "Secular gains in IQ not related to the g factor and inbreeding depression unlike Black-White differences: A reply to Flynn," Personality and Individual Differences, 26, p.381-389

Snyderman, Mark, and Rothman, Stanley (1988) The IQ Controversy, the Media, and Public Policy, New Brunswick: Transaction Books

Van Court, Marian (1983 ) Unwanted births and dysgenic reproduction in the United States, The Eugenics Bulletin, Spring, 1983, http://www.eugenics.net

Van Court, Marian and Bean, Frank (1985), Intelligence and Fertility in the United States: 1912 to 1982, Intelligence 9, p.23-32, http://www.eugenics.net

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Finding Your Soul Mate with the Utmost Efficiency – Future Generations

Posted: at 12:29 pm

Finding Your Soul Mate with the Utmost Efficiency - Future Generations

Finding Your Soul Mate
with the Utmost Efficiency by Marian Van Court
This article appeared in Counter-Currents Publishing

One useful thing to come out of social psychology is the discovery that spouses who are very similar get along much better, and are far less likely to divorce, and it’s fairly easy to measure these traits (like introversion-extroversion) and make predictions.

When I first learned about this research around 1970, I envisioned starting something remarkably similar to eHarmony. But I was still an undergraduate, and computers were just being invented, so it was a bit premature. It seemed to me that it would be much better for the whole world if couples were happy and didn’t get divorced, and it was exciting to think that science could really make this happen.

Today, more than half the marriages in America end in divorce, and of those who remain married, about half are unhappy. So that gives us over 75% bad outcomes.

Neil Clark Warren founded and now runs eHarmony, and he is both a theologian and a clinical psychologist. He’s the kindly, white-haired man in the TV commercials. Dr. Warren has determined that most marriages that fail are actually doomed from the outset because the couple is incompatible.

n his book, Falling in Love for All the Right Reasons, Warren tells the story of eHarmony, and the 29 dimensions of compatibility. He counseled couples for several decades, and performed “autopsies” on marriages that failed, and that’s how he became involved in this endeavor. As far as chemistry goes, he believes it’s either there, or it isn’t, and he has no idea why, but that it’s necessary in a marriage.

He says it’s fashionable nowadays to emphasize “friendship first,” and that’s good, but he believes if a man and a woman are good friends and are very compatible, and they have a strong physical attraction, that’s great, but if there’s no attraction, they should stay friends and absolutely not get married.

It was interesting to learn that if couples are strongly attracted to one another but are not fundamentally compatible, very often they will ignore red flags and rationalize their partner’s bad behavior because a great sex life clouds their judgment.

Warren also seems to think a good deal of who we are is genetic, especially IQ, and that ideally, partners shouldn’t be more than 10 points apart. Now they’ve started making homosexual matches, too, with the same purpose of finding enduring love.

Most people sign up for 6 months or 1 year. It begins with a long list of questions which takes over an hour to complete, and this is no doubt off-putting to many people, but remember that prospective mates will answer those questions, too, and the answers are what determines compatibility, so this is important. Each person is actively involved in the process from beginning to end.

It’s a good idea to be as flexible as possible about things that don’t matter – for example, where the person lives – because anybody can take a flight to anywhere, and most long distance phone calls are free, as is Skype. I’ve never actually done eHarmony myself. (I’m very old and not personally interested in finding a mate.) But hypothetically, as a woman, I would include the entire English-speaking world if possible, and I would definitely not rule out bald guys, short guys, or even “below average in looks” guys, because intelligence and character are crucial, and they are in short supply, as well as warmth and kindness, and sensible political beliefs.

To belabor the point, if you are flexible about all the things that don’t matter, you create a larger pool of potential mates, so this increases your chances of finding someone with the qualities that do matter. There’s no guarantee with eHarmony, but it’s definitely worth a try for at least 6 months, especially in light of the alternatives. The “old fashioned” method is only somewhat better than a crap shoot. Say you meet someone attractive who has similar interests, you fall in love, get married, have 3 kids, and then finally one day, after years of turmoil and conflict, you finally reach the conclusion that it’s just hopeless. Kind of a kick in the stomach.

If you’re in it for the long haul, it might be wise to step back and look at your situation objectively, in a state of total calmness. Sometimes when people are trying to solve a problem, especially one that’s sensitive, personal or embarrassing, they think that somehow this particular problem is “different.” A sense of fatalism sets in, they feel stuck, unable to take any action at all.

But that’s wrong! Applying creative intelligence, imagination, hard work, trial-and-error, patience, persistence, soliciting expert advice, taking reasonable risks – all these apply to finding a mate, just like they do to any other problem. Granted that it seems strange to employ science for this purpose – and it is strange! But so what? What matters is results.

According to eHarmony’s website, altogether they’ve had 600,000 marriages, with an average of 542 new marriages each day. Almost 5% of all new marriages in America today are the result of eHarmony.

People may object, “But what about chemistry?” eHarmony doesn’t attempt to figure out who is physically attracted to whom. That part’s up to the individual. When you find potential mates (who are similar to you and meet your preferences), most likely at least one of them will attract you, and be attracted to you, but if not, the situation requires a bit of patience. After all,10,000 new people sign up each day.

There’s always been a severe woman-shortage for men who hold radical conservative beliefs, because women on average, tend to be more liberal. But this could be a way to find a wife who is at least in the same ballpark politically.

People looking for a mate today are lucky that eHarmony exists. It’s not magic, it’s just a tool – a very useful tool – that substantially increases the probability of success. And if you succeed, the lifetime pay-off is huge. I believe that Warren and eHarmony have made a unique and valuable contribution by applying science to match-making.

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‘Demand to surge’: Expert’s $70,000 Bitcoin prediction – Yahoo Finance Australia

Posted: at 5:53 am

GlobeNewswire

Global Passenger Hoist Market, By Type (Below 2 Ton, 2-3 Ton, Above 3 Ton), By Application (Commercial, Residential & Industrial (Cement Plants, Refineries, Steel Plants, Mines, Power Plants)), By Region, Competition, Forecast & Opportunities, 2015-2025New York, Feb. 12, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Passenger Hoist Market, By Type, By Application, By Region, Competition, Forecast & Opportunities, 2015-2025" - https://www.reportlinker.com/p06024100/?utm_source=GNW Global passenger hoist market was valued USD 807.67 Million in 2019 and is expected to grow at a rate of over 4% during the forecast period, 2020-2025. Growth in global passenger hoist market can be attributed to increasing industrialization on the global scale in developing economies and surge in new plans and projects for the construction of various structures in both developing and developed economies. Moreover, future expansions and proposed industrial plants, and upcoming projects for the construction of skyscrapers are promoting the adoption of passenger hoists, globally. Global passenger hoist market can be segmented based on type, application, and region.In terms of type the market can bifurcate into below 2 ton, 2-3 ton, and above 3 ton. Below 2 Ton dominated the market, accounting for 60.76% share in 2019. Below 2 Ton passenger hoists segment accounts for highest share of the market owing to its high efficiency in comparison to others. In terms of application, the market can be segmented into commercial, industrial and residential. Commercial segment dominated the overall market with a share of around 78% in 2019. Also, this segment is predicted to lead the market in the forecast period owing to increasing urbanization, developing construction industry, and industrialization. Asia-Pacific is at the forefront of the global passenger hoist market and is expected to continue its dominance during the forecast period due to the numerous construction projects in APAC countries along with government initiatives to upgrade their infrastructure.Countries such as India, China, Japan and Singapore are leading the Asia-Pacific market with rising commercial infrastructural activities, growing construction of skyscrapers, upcoming proposed industrial plants and increasing governmental funding for public infrastructure. APAC is also expected to witness highest growth in the global passenger hoist market in the forecast period due to the presence of major market players in the region and significant investment by leading industry players considering potential growth opportunities in the region. Zoomlion, GJJ, Alimak, XL Industries, Hongda Construction, Xuzhou Construction Machinery Group, Fangyuan, SYS, Guangxi Construction, Sichuan Construction, GEDA, Jaypee, STROS, Zhejiang Construction Machinery Group, and BetaMax, are among the leading players operating in Global passenger hoist market. Companies operating in the market are using organic strategies such as product and technological advancement through addition of new features, mergers and collaborations to boost their share. Years considered for this report: Historical Years: 2015-2018 Base Year: 2019 Estimated Year: 2020 Forecast Period: 2021-2025 Objective of the Study: To analyze and estimate the market size of global passenger hoist market. To classify and forecast global passenger hoist market based on type, application, company and regional distribution. To identify drivers and challenges for global passenger hoist market. To examine competitive developments such as expansions, new product launches, mergers & acquisitions, etc., in global passenger hoist market. To identify and analyze the profile of leading players operating in global passenger hoist market. To identify key sustainable strategies adopted by market players in global passenger hoist market. To analyze and forecast Global Passenger Hoist Market, both top down and bottom up approaches have been used.Multiple employees from several companies have been interviewed through telephonic conversations to extract and verify the information. A brief study of the major players operating in construction sector was conducted, which included the analysis of information such as detailed estimated investments in upcoming years in construction sector, upcoming projects for the construction of skyscrapers, government funding for proposed industrial plants and various reforms & initiatives for the development of commercial infrastructure, high-rise apartments and Multi Storey buildings. Moreover, detailed and in-depth scrutiny of information was done to understand each policy or external or internal factor which could increase or decrease the demand for passenger hoist, globally. Various secondary sources such as company websites, Annual Reports, White Papers, Investor Presentation, News Articles, Associations, were also studied by the analyst. Key Target Audience: Companies operating in Global Passenger Hoist Market Passenger Hoist Components, raw materials and equipment suppliers Major end users Associations, organizations, forums and alliances related to construction industry Government bodies such as regulating authorities and policy makers Market research and consulting firms The study is essential in delivering useful information to industry stakeholders such as companies operating in passenger hoist market, component and raw material suppliers and end users. The report also provides useful insights about which market segments should be targeted over the coming years in order to strategize investments and capitalize on growth opportunities. Report Scope: In this report, Global Passenger Hoist Market has been segmented into the following categories in addition to the industry trends which have also been detailed below: Market, By Type: o Below 2 Ton o 2-3 Ton o Above 3 Ton Market, By Application: o Commercial o Industrial - Cement Plants - Refineries - Steel Plants - Mines - Power Plants o Residential Market, By Region: o North America - United States - Canada - Mexico o Europe - Germany - Russia - United Kingdom - France - Spain o Asia-Pacific - China - Japan - India - South Korea - Australia o Middle East & Africa - South Africa - Saudi Arabia - UAE - Egypt o South America - Brazil - Argentina - Colombia Competitive Landscape : Company Profiles: Detailed analysis of the major companies present in Global Passenger Hoist Market. Voice of Customer: Price, Brand, Availability, Customer Satisfaction level, and After Sales Service are the major factors affecting decision related to passenger hoist market for various users, globally. Available Customizations: With the given market data, we offers customizations according to a companys specific needs. The following customization options are available for the report: Detailed analysis and profiling of additional market players (up to five).Read the full report: https://www.reportlinker.com/p06024100/?utm_source=GNWAbout ReportlinkerReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.__________________________ CONTACT: Clare: clare@reportlinker.com US: (339)-368-6001 Intl: +1 339-368-6001

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'Demand to surge': Expert's $70,000 Bitcoin prediction - Yahoo Finance Australia

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Uber wont buy bitcoin with its cash but would consider accepting it as payment, CEO says – CNBC

Posted: at 5:53 am

Uber CEO Dara Khosrowshahi told CNBC on Thursday the company discussed but "quickly dismissed" the idea of buying bitcoin with corporate cash like Telsa.

However, Khosrowshahi said Uber would consider accepting cryptocurrencies as payment.

The comments came days after Tesla announced that it bought $1.5 billion worth of bitcoin with some cash on its balance sheet and plans to begin accepting the digital coin as payment for its products. Tesla's moves caught Wall Street's attention, and some wondered whether the electric vehicle maker's decision would be a tipping point for further crypto adoption.

In an interview on "Squawk Box," Khosrowshahi was asked whether Uber had considered similar actions. "It's a conversation that's happened that has been quickly dismissed," he said. "We're going to keep our cash safe. We're not in the speculation business," he added. "The upside in our company is in the business that we've built, not the investments that we invest in."

As of Dec. 31, Uber reported it had $5.65 billion in cash and cash equivalents, along with $1.18 billion in short-term investments.

Khosrowshahi, who took over as Uber's chief executive in 2017, left open the possibility that the ride-hailing and food-delivery provider would accept cryptocurrencies as payment.

"Just like we accept all kinds of local currency, we are going to look at cryptocurrency and/or bitcoin in terms of currency to transact," he said. "That's good for business. That's good for our riders and our eaters. That we'll certainly look at and if there's a benefit there, if there's a need there, we'll do it. We're just not going to do it as part of a promotion."

On Wednesday, Mastercard announced intentions to open up its network to some cryptocurrencies, a move the credit card giant said will allow consumers and merchants "to transact in an entirely new form of payment." Mastercard had already let customers do some transactions with cryptocurrencies, but they took place outside the company's formal network.

The latest financial firm to put its weight behind crypto is BNY Mellon, which said Thursday it's launching a digital assets division later this year. Shares of the oldest bank in America rose Thursday.

Proponents of companies buying bitcoin for their corporate cash argue that despite its day-to-day volatility, the digital coin has appreciated in value over the long term and will continue to do so. For that reason, supporters such as MicroStrategy CEO Michael Saylor feels it's a more productive investment than keeping hordes of cash on the balance sheet.

Some skeptics worry about the volatility risks of bitcoin, which has enjoyed a massive run in recent months to trade above $48,000 per coin at all-time highs Thursday morning. A year ago, bitcoin traded below $11,000. While bitcoin has seen increased institutional adoption lately, some still believe there's still too much uncertainty about its future.

Like Uber, PepsiCo CFO Hugh Johnston told CNBC on Thursday that the beverage giant has "had the conversation" about buying bitcoin with its cash. "The conclusion we came to pretty quickly was bitcoin is too speculative for the way we manage our cash portfolio," Johnston said earlier on "Squawk Box," shortly after the company reported better-than expected earnings and revenue. PepsiCoreported a fourth-quarter profit of $1.47 per share on revenue of $22.46 billion. Shares dropped Thursday.

As for Uber, its shares were flat Thursday following the company's mixedfourth-quarter earnings results. The stock advanced 6% during Wednesday's session heading into the report. Uber said it lost 54 cents per share in the the fourth quarter, slightly narrower than analyst expectations for a 56 cent loss. Revenue of $3.17 billion was below the $3.58 billion Wall Street had been looking for. The company's overall loss for the quarter was $968 million, an improvement from the $1.1 billion loss in the same period last year.

Uber's two largest businesses offerings ride hailing and food delivery have seen different fates during the coronavirus pandemic. The ride-hailing segment has suffered as people stayed home and traveled less. Conversely, Uber Eats has seen its usage soar as people ordered delivery instead of dining at restaurants.

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Uber wont buy bitcoin with its cash but would consider accepting it as payment, CEO says - CNBC

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Beyond Bitcoin: The wild world of altcoin cryptocurrency trading – CNET

Posted: at 5:53 am

It was a Saturday morning and Adam was feeling bold.

He'd made thousands of dollars on a single trade the night before, and was feeling lucky. But Adam wasn't trading on the NASDAQ, pumping GameStop stocks or investing in a startup. He was about to sink $2,500 into a cryptocurrency called DeTrade.

It seemed safe. Adam had investigated the coin's development team on LinkedIn, and watched a video of its CEO laying out a roadmap for the coin's future. A newswire piece published on Yahoo touted DeTrade's technology as advanced enough to disrupt cryptocurrency.

Bitcoin is very much back in the zeitgeist. On Monday it reached an all-time-high of over $47,000 thanks to a $1.5 billion investment from Tesla, quadripling its value from this day last year. But while for many people Bitcoin is synonymous with cryptocurrency, it's not what crypto traders like Adam are interested in. Beneath Bitcoin and Ethereum, the second-best-known currency, is a strange underworld of different cryptocurrencies.

Called altcoins or, sometimes, "shitcoins," these are essentially penny-stock cryptocurrencies. And they're crazy. Bitcoin tripled its value recently, but many altcoins explode 30, 40 or 50 times over within days. Arguably the most famous is Dogecoin, which recently shot up thanks to a potent combination of Reddit and Elon Musk, but there are thousands of altcoins, forming an Indiana Jones-esque Cave of Crypto Wonders. The spoils can be life-changing, but there are traps around each corner. Fortunes can be made and lost in seconds. Cons and fraudsters are everywhere, with traders vulnerable to scams at each step of the process.

Case in point: Adam's foray into DeTrade. The touted technology behind it wasn't real. Nothing about the project was. DeTrade, for all intents and purposes, didn't exist. The LinkedIn profiles were fake, and the video of its CEO was a deepfake created with AI. It was a scam. Those behind it, operating in the unregulated world of crypto, vanished. Adam lost his $2,500, but he got off easy. In total, those behind the scam took in around $2 million.

Just a regular day playing with altcoins, says Adam.

Adam got into cryptocurrency in September. When we spoke, it felt like he'd crammed years of trading into two months. He put in $4,000 and lost it in days. Then he turned $3,000 into $90,000. After withdrawing a third of that and then losing just over another third, he now had around $20,000 in crypto.

Adam had seen some tempestuous trading in recent weeks. One person managed to flip $2,000 into over $40,000 on two different occasions, but lost it all to scams both times. Another put $150 in a coin and doubled his money in 15 minutes. Decent result, but his $150 would've turned into $28,000 if he'd waited only one more day.

But despite the community's enthusiasm, there's a small problem. Right now cryptocurrencies don't really do anything.

Bitcoin nearly tripled in price, from $15,000 to over $40,000, in two months. If you invested $1,000 in early November, you could have taken out $2,600 in early February.

Investing in a stock means ascertaining its value -- based on factors like competition, risks and, above all, profit generation -- and then putting money into ones that are undervalued. If other investors follow you, the stock rises, giving you an opportunity to take profit.

Speculation is naturally part of this: The Dot-com Bubble was all about pouring money into "pre-profit" companies in the hopes they'd make money someday. Cryptocurrency, however, takes speculation into the stratosphere. For the most part, cryptocurrency is pure speculation. People are investing in technology that produces nothing, and has no practical application. As I write this, a coin called Meme is selling for $517. That's a little over four times the price of an Apple share. Doge, a coin marketed after the internet slang for "dog,"doubled in value earlier this month after a pornstar tweeted about it. After the price settled, it then rocketed once more when Reddit wanted to make it the GameStop of cryptocurrency.

This disconnect between price and purpose has made many experts understandably skeptical.

David Gerard is one such skeptic. He became interested in Bitcoin in 2013, when it first hit $1,000, and has since written two books on cryptocurrency. His most recent focuses on Libra, Facebook's ill-fated attempt at digital currency.

"The driving force of Bitcoin and cryptocurrency is nothing to do with technology," he told me during a Skype call. "It's all about the chance that people might get rich for free. All of this is about the psychology of get-rich-quick schemes."

In his years working as an IT systems administrator, Gerard's job has been to examine new technology and discern what's useful and what's not. Cryptocurrency, he told me, is not.

"Bitcoin burns a whole country's worth of electricity for the most inefficient payment network in human history," he said.

After launching at around $8 in August, the obscure Meme coin briefly reached a valuation of over $1,750 in September. If, with fantastic luck, you invested $1,000 at $8 and sold at $1,750, you'd be up $217,000. This is the allure of "shitcoins."

That's no exaggeration. Cryptocurrencies are mined using powerful computers, and many enterprising types put together farms of computers used solely for the purpose of mining Bitcoin. As a result, Bitcoin is responsible for more energy consumption than Switzerland.

Gerard says the only thing you can do with Bitcoin is buy it and sell it. He's even harsher on altcoins.

"They're absolutely useless objects. Even by the standards of Bitcoin, altcoins are useless," he said.

This is precisely what makes them so fascinating. Seemingly, all they can do is get internet punters to bet on their success. But this enables average people to become rich. That Meme coin I mentioned before? It was listed at $2.72 and a month later hit an all-time-high price of over $2,000.

Imagine becoming a millionaire from a joke internet coin.

Crypto Spider has made millions with altcoins. Crypto Spider isn't his real name. Like most people in the cryptocurrency community, he goes by a pseudonym.

He's gained renown in some Telegram groups over the past few months thanks to a "2K to 1M" challenge, where he endeavored to see how quickly, and with how few trades, he could turn the first number into the second. In cryptocurrency, you can follow someone's portfolio if you have their wallet number, so the community was able to watch this challenge play out in real time.

Within two months, that $2,000 had grown to over $2 million. Much of that money was made off one trade: He chucked $50,000 into a project which, in the space of around a week, magnified 35 times in value, netting him $1.75 million. After passing $2 million, he cashed out.

"You won't ever see that type of explosive growth if you don't trade in altcoins," he told me, though he also said "95% of these coins are going to be nonexistent in the future."

Like Adam, Crypto Spider has no background in finance or trading. He lists college courses in game theory, basic algorithmics and some economics as useful to his crypto exploits -- but in essence he's a self-taught amateur. He declined to tell me his specific age, only that he was "20ish" when he first got into cryptocurrency in 2017.

He admits he was attracted by the "pretty numbers," by seeing coins magnify in value 30, 40 and 50 times within a short period. He was enthusiastic enough to start a university club around cryptocurrencies, and how they'd be used in the future.

Crypto Spider says cryptocurrency will play a "major part in the future of finance," and speaks with the passion of a believer. He breathlessly transitions from how cryptocurrency is a part of the internet's evolution to the possible use cases of blockchain, the technology behind Bitcoin, in the next 10 years. But despite his enthusiasm, I couldn't help but notice how chunks of what he said echoed Gerard.

Cryptocurrencies are mined using powerful computers. More emissions are produced by global Bitcoin miners than by the entire country of Switzerland.

For one thing, he looks back at all the projects he was excited about in 2017 and realizes most were almost entirely vaporware, technology that's advertised but never delivered.

Gerard calls the cryptocurrency community a pool of scammers. Spider notes that people often invest in altcoins they know don't have a function, because there's enough hype around the project to make money. "It's a bubble," he said, "we're literally swapping money from each other. I somehow was able to game all the other people."

Spider says his performance is 60% luck. He first approached cryptocurrnecy trading with the mentality of, "I'm young, I'm dumb, I can lose all my money and it'll be OK."

Again, it reminded me of something Gerard said: "If you're rich enough that your money is your own problem, fine. If you know zero is a number your investment could go to, fine."

"But a lot of people are being ripped off, and that's really bad."

People really are getting ripped off. Difficult to regulate and subsisting largely on hype, cryptocurrencies are particularly prone to scams.

Take OneCoin, a company that, through a presale for a cryptocurrency that didn't exist, stole $4 billion from people around the world before its founder disappeared. Then there's BitConnect, a coin that reached a $2.6 billion valuation by promising a 1% return on investment every day. It was eventually designated a Ponzi scheme by various authorities around the globe, causing it to lose 96% of its value before getting shut down months later.

Those are two of the biggest instances of crypto-fraud. But millions of dollars are scammed from cryptocurrency markets every day in less dramatic ways. Coins are suddenly discontinued, with owners taking all the money with them in what the community calls "rug pulls." Some have investment contracts, ignored like terms-of-service agreements, that prohibit you from taking your money out of a project. Other times, entire cryptocurrency exchanges -- which sell coins like a stock exchange sells stocks -- vanish.

"I think I've been scammed over 100 times," Crypto Spider said, adding that he lost $250,000 through fraud in December. "Who knows who creates these projects. A lot of people are taking on pseudonyms, because they're almost all money grabs."

But the deepfake used to scam $2 million adds a new vector. Coming into wider use in recent years, deepfakes are mostly used for pornographic purposes, but as the DeTrade scam shows, deepfakes can also be used in financial scams.

OneCoin founder Ruja Ignatova at an event for the "revolutionary" cryptocurrency. Ignatova disappeared around the time OneCoin was discovered to be a fraud: The cryptocurrency the company sold didn't actually exist. It's reported to have scammed over $4 billion from people around the world. Ignatova has yet to be found.

Gerard says he's never seen a deepfake used as part of a scam before. Crypto Spider says he's seen it just once.

"We didn't have that problem in 2017, where people would use deepfakes and rug pull like this," he said. "The internet is evolving, but the scammers are also evolving."

Deepfake technology "is being democratized, and that may not be a good thing," said Julie Inman-Grant. Now commissioner of the Australian government's eSafety Commission, Inman-Grant formerly led public policy teams at Microsoft, Adobe and Twitter.

"This kind of takes the art out of social engineering," she explained, referring to the techniques usually used by scammers to get you to click a fraudulent link or hand over credit card details. "If they're delivering a video of someone you respect and you really have no way of telling by the naked eye or ear if it's fake or not, the potential for misuse could be devastating."

Ironically, it's blockchain, the behind-the-scenes technology, that could be the solution to the burgeoning deepfake problem. In cryptocurrency, the blockchain is an unalterable ledger that tracks every transaction. Once it's on the ledger, it can't be altered. That same technology can be used to track anything -- like the creation and distribution of a video, from studio to iPhone screen. There are already startups working toward this, like Truepic.

When I asked about blockchain's ability to neutralize deepfakes, Inman-Grant wasn't entirely optimistic.

"It's definitely an arms race, but it's not an arms race we're winning right now."

When Bitcoin hit $40,000 in December, before its Tesla-induced all-time-high, it was confirmation to enthusiasts that cryptocurrency is the future. For skeptics, a higher peak just means a more precipitous fall.

"I think they'll become increasingly regulated and less and less interesting," Gerard said of cryptocurrency. That means less of the "pretty numbers" Crypto Spider was attracted to, but hopefully fewer scams.

For Adam, DeTrade actually had a happy ending. One aggrieved victim of the scam analyzed the metadata of the deepfake, which he used to track down the perpetrators. After some naming and shaming across Telegram, the money was returned.

That unexpected $2,500 return was a big deal, equivalent to a few weeks pay. Good timing too: By the time Adam got it, a bad trade saw his crypto portfolio diminish from $10,000 to $2,000.

Just another day trading altcoins, Adam told me.

Correction, 1:30 p.m. PT:Removed incorrect statement that Netflix had yet to turn a profit.

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Long-awaited bitcoin ETF could finally get approved this year, market analyst says – CNBC

Posted: at 5:53 am

Another year, another filing.

A bitcoin-based exchange-traded fund could see the light of day in 2021 after a changing of the guard at the Securities and Exchange Commission and some promising developments in the corporate arena, Jeff Kilburg, founder and CEO of KKM Financial and a partner at Valkyrie, told CNBC on Monday.

At least 10 firms have filed and failed to gain approval for the long-awaited product, with the SEC frequently citing security concerns and the market's immaturity as reasons for its denials.

"It's a similar approach to the way I strategically asked my wife to marry me. Around the 15th or 20th time I asked, she finally said yes," Kilburg told CNBC's "ETF Edge."

With bitcoin soaring to record highs on newfound interest from Tesla and other major companies and the CME Group launching ethereum futures this week, the cryptocurrency space is getting the validation the SEC needs to see, Kilburg said.

"I think this is all coming together here in 2021," he said, calling the CME's move a "huge win" for the bitcoin ETF's chances. Valkyrie, where Kilburg is a partner, filed for its own version of the product in late January.

"If they can offer a solution via an ETF, regulate it and it can trade more accurately to the actual spot price of bitcoin, that's the win-win solution for all active and passive investors, even the 'hodlers,'" Kilburg said.

That solution could be close as ever with Gary Gensler, former head of the Commodity Futures Trading Commission, being tapped to lead the SEC and the cryptocurrency market gaining legitimacy, ETF Trends' Dave Nadig said in the same "ETF Edge" interview.

"I'm maybe not quite as Pollyanna about it. I think maybe we're still looking at '22. But I do think it's inevitable, and I think we're starting to make that progress towards a sort of fully liquid, fully exchange-traded crypto vehicle of some sort, whether it shows up in a traditional ETF or not," Nadig said.

Nadig, ETF Trends' chief investment officer and director of research, cited the success of over-the-counter stocks backed by large amounts of bitcoin such as the Bitwise 10 Crypto Index Fund and Grayscale Bitcoin Trust.

"I think that that is really going to force the SEC's hand," he said. "When we have companies like Tesla making bitcoin a major balance-sheet asset and we have companies for whom that is their whole balance-sheet asset trading on the pink sheets, I think it's going to get hard for them to say no for very much longer."

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Bitcoin outlook: the long term picture looks very sound – Yahoo Finance

Posted: at 5:53 am

Yahoo Finances Brian Sozzi, Julie Hyman, and Myles Udland break down todays market action and outlook with Julian Emanuel, BTIG Managing Director & Chief Equity Derivatives Strategist.

MYLES UDLAND: Let's talk a bit more about everything that's going on in the markets right now. Let's bring in Julian Emanuel. He's the managing director and the head of equity and derivatives strategy over at BTIG. Julian, it's great to speak with you. I'd love to just start the conversation. We were chatting very briefly before we came on the air about the meme stocks, the YOLO trades, everything happening in the market. How are you thinking about these dynamics which are so unique and have come into the market seemingly overnight?

JULIAN EMANUEL: Well, it actually hasn't come in overnight, Myles. If you look back-- in fact, this was an appearance that we made at the end of 2019 on Yahoo Finance where I had a conversation with Charles Schwab himself in the green room, and we were basically talking about-- they had announced a week earlier-- the start of zero fee online trading, and that conversation just galvanized our thought process to the fact that this bull market, which is essentially been going on since 2009, was one that the public has never really been enthusiastic about.

All of a sudden, you have zero fee online trading. The public begins to get interested in stocks in January and February of 2020. We all know what happened after that. But incredibly enough, the public came back stronger than ever in the summer of 2020. And in an environment where there's the kind of liquidity that there is, when people ostensibly have more time on their hands, and the interest in asset diversification and investing in a world where yields aren't very attractive, just something that has continued to proliferate.

And from our point of view, when you look at the evolution of bull markets, the fact that we're in a much more speculative stage right now, I wouldn't yet call it any sort of mania. Could we get there? We could. But the fact is that the public has taken a lot of knocks in terms, especially new investors, and has come back stronger each time, and we're seeing it again this week in the cannabis space. It's really a testament to the resilience and the stick-to-itiveness of this new generation of investor.

Story continues

JULIE HYMAN: I well remember your Charles Schwab encounter, you talking about it, and how excited you were about that, Julian. So I'm glad that you got some sort of actionable insight out of that as well besides just being psyched to meet him. Julian, you know, there seems to be this sort of attitude on the part of most people we talk to that these retail investors are going to get burned, that all of this is going to end badly, but what you're talking about, this sort of stick-to-itiveness and people still coming into these trades suggests maybe it won't end that way? I mean, is there an alternative ending to all of this?

JULIAN EMANUEL: Over the long term, it is likely to be a very significant net positive because, again, this generation of new investors has been under-invested as a percentage of assets. That's a research that's very well known. In the medium term, there's no question about the fact that we are setting up for the potential for this kind of extreme speculation to become more intense, such as what we saw in 1999 and 2000.

And, obviously, that ended badly for several years, but then we think about it and the NASDAQ-100 topped at 4,800 in March of 2000, and here we are 13,014, 14,000. And so, really, what it does is likely going to be at some point a learning experience with regard to the idea of short term trading, but a more retainable experience on the benefits of long term investing.

BRIAN SOZZI: Julian, look, just given the flow that we've seen into equities that have pushed the Dow to record highs here, comparing that, let's compare that to Bitcoin. Just given how everybody is now invested in the market, would you make the case that Bitcoin is under-invested in? And then, by extension, is it undervalued even though we've seen prices really go through the roof the past month?

JULIAN EMANUEL: Well, look, Bitcoin and blockchain itself, and obviously all the other cryptocurrencies, are in what we would call the price discovery phase. It is essentially a new technology, a new way of looking at the world. And from our point of view, again, we think about it in terms of it's a 70 volatility asset, very, very volatile.

When we launched coverage of cryptocurrencies in late November, Bitcoin was at 18,000. We had a $50,000 year end 2021 price target. People thought we were quite aggressive. The same people are now telling us that we're probably not aggressive enough with this price target.

So the truth lies somewhere in the middle in all likelihood, but when you think about all the incremental buyers coming in, the interest that's building, and, on the other hand, the likelihood that the government is going to begin to look at cryptocurrency more carefully from a regulatory aspect, the long term picture looks very, very sound, and we do think that it is a secular bull market, but there are always pullbacks in secular bull markets.

BRIAN SOZZI: Julian, what's your current price target on Bitcoin? Are you looking to raise it?

JULIAN EMANUEL: We think at the moment, frankly, when you think about the news of the incremental very large buyer that we saw at the beginning of the week, that that type of news was something that the market probably was aware of when the chatter started on social media a month or a month and a half ago.

And so from my point of view, again, similar to what we felt in January when Bitcoin first traded over 40,000, we think the market has come a very long way very quickly. So we're going to watch. We think, actually, it's one of these times where a bit of sideways activity is likely to be healthy in preparation for another leg higher.

JULIE HYMAN: And Julian, you can't say it for compliance reasons, but I can. You're talking about Tesla, of course, when you're talking about that big buyer. In addition to looking at all of these assets on the face of it. You're a derivatives guy, too. So you look at the options market. We have seen also it hasn't just been action and straight up equities.

We have seen a lot of action through options at this time. Does that limit retail investors' downside? And how then does this big surge in options activity, how does that play out through the market?

JULIAN EMANUEL: So it actually does limit retail investors' downside because if you buy a put or you buy a call, it is by definition limited risk, theoretically unlimited reward. But what it does potentially do is, because of that profile, encourage the average investor, certainly if they've had a degree of success, which many of them had the last several months, to trade more than they might otherwise normally.

So the structure itself limits potential losses, but because of all the trading activity-- and the call volumes have been absolutely breathtaking. There's no other way of thinking about it, and option prices themselves, particularly on a lot of these meme stocks, have become very expensive because the volatility started moving. So you really have to think about it in a more balanced perspective.

What we would say is, as an investor just pick your spots carefully, understand what you're doing, and hopefully think about the risk reward aspect of it, and let the market work for you, and know that you have limited risk to the downside in those kinds of structures.

MYLES UDLAND: You know, Julian, before we let you go, is this the most interesting market that you've seen in your career? Because I'm just thinking about the arc of this conversation. I mean, this is, like, this is fascinating stuff that we're discussing here that's very different than what the textbook kind of suggests financial markets are like.

JULIAN EMANUEL: So I've been doing this quite a while. I was a proprietary trader in 1999 and 2000. And, frankly, I thought that I had seen it all at that point, but there's no question about the fact that the last year and in particular the last three or four months have been absolutely fascinating, and the benefits of living in the same house with a 23-year-old and a 20-year-old who are actively engaged in social media and investing themselves have been incalculable in my ability to understand it.

MYLES UDLAND: There you go. That is some good old-fashioned sector level channel checking going on there in the Emanuel household. All right. Julian Emanuel, always great to get your thoughts, chief equity and derivatives strategist over at BTIG. I know we'll talk soon.

JULIAN EMANUEL: Thank you.

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Fintech giant Adyen says it has no interest in bitcoin as a payment method and clients aren’t asking for it – CNBC

Posted: at 5:53 am

The Adyen logo displayed on a smartphone.

Rafael Henrique | SOPA Images | LightRocket via Getty Images

LONDON Adyen, the European fintech giant processing payments for the likes of Facebook, Netflix and Uber, isn't convinced bitcoin can be used as a mainstream form of payment.

Pieter van der Does, the firm's CEO and co-founder, told CNBC that volatility in bitcoin and other cryptocurrencies makes them less attractive for making transactions. He added his firm has no interest in adding crypto as a payment method.

"Bitcoin is more of an investment asset than a payment method," Van der Does said in an interview Wednesday.

"We are interested in payment methods which are being used," he added. "I am wondering if the huge movement in the value of bitcoin is helping it as a payment method."

Tesla announced earlier this week that it had made a $1.5 billion investment in bitcoin, a move that led to speculation as to whether more firms would follow suit. Elon Musk's electric car company said in a filing Monday that it would also start accepting payments in bitcoin in exchange for its products.

Meanwhile, Mastercard said Wednesday that it plans to offer support for some cryptocurrencies on its network this year.

Asked whether Adyen could do the same, Van der Does said his firm's merchants aren't requesting that it adds crypto payment functionality to its platform.

"It might not actually be helping cryptocurrencies if they are more like investment assets than a currency," he said."That makes it less interesting for a merchant to have potential (as a means of payment), you need a stable currency."

Adyen did once let its clients accept bitcoin as a payment option but no longer supports the cryptocurrency.

Cryptocurrencies have been known to be wildly volatile for as long as they've been around. Bitcoin alone has gone through various boom and bust cycles, the most recent of which was a run toward $20,000 in 2017 before a collapse of more than 80% in value the following year.

Bitcoin has made a strong comeback lately, though, soaring past $40,000 to hit record highs on news of Tesla's use of corporate cash to buy bitcoin.

Proponents of bitcoin say it's benefited from an increase in institutional investment. Larger investors are looking to diversify their portfolios and view the digital coin as a potential store of value akin to gold, according to the bulls. Skeptics, meanwhile, fear that bitcoin may be one of the biggest market bubbles in history.

Nonetheless, bitcoin has yet to prove itself as a mainstream form of payment. The bitcoin network has a scalability problem, meaning its transaction processing capacity is much more limited than that of a major network like Visa. There are efforts to to ramp up the use of bitcoin in payments, though.

PayPal is hoping to allow its vast network of merchants to accept bitcoin and other cryptocurrencies as a means of payment, while projects like the so-called Lightning Network aim to speed up bitcoin transaction times.

Founded in 2006, Adyen's platform lets merchants accept online and point-of-sale payments. The Dutch company debuted on the Amsterdam stock exchange in 2018 and has seen its share price more than double since February last year thanks to a boost to e-commerce volumes during the coronavirus pandemic. Adyen competes with the likes of U.S. firm Stripe and British start-up Checkout.com.

Adyen's shares hit a record high Wednesday after the firm posted annual profits that beat expectations. The firm said its business had proven "resilient" in the latter half of 2020 and saw strong gains in its North American operations.

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