The Concept of Honesty

Originally, in the 1500s and 1600s, the term "honest" was associated with the aristocracy, as noted by McCloskey. However, over the following centuries, the emergence of the bourgeois class altered societal values and, consequently, the language itself. Honesty transitioned to signify truthfulness and dependability, becoming a virtue for the common man to aspire to.

Dr. McCloskey expands on this idea in the current chapter, demonstrating that this linguistic shift is not limited to English; it can also be observed in other languages as nations embraced the rise of the bourgeoisie. She posits that this transformation becomes evident in countries when they begin to appreciate trade-tested improvements.

The Evolution of 'Eerlijk'

The initial portion of this chapter revisits earlier discussions but applies them to different languages, so I’ll refrain from overwhelming you with examples. Notably, McCloskey illustrates that the redefinition of "honest" from a term of nobility to one of common virtue occurred simultaneously in several non-English Germanic languages (p. 247).

In Dutch, "eer" and in German, "ehre" still carry meanings of nobility and high status. However, the addition of suffixes like ‘-lijk’ in Dutch and ‘-lich’ in German gave rise to "eerlijk" and "ehrlich," terms that now simply denote honesty—echoing the modern English emphasis on truthfulness essential for a merchant society (p. 248).

Why Focus on Language?

McCloskey argues that the Great Enrichment of the last few centuries is not merely a result of improved capital utilization, as suggested by the term capitalism. Instead, it reflects a cultural shift that honors the dignity of the common individual, empowering them to pursue trade-tested improvements that lead to remarkable wealth growth.

Critiques of Language as Evidence

Despite facing criticism for using language as a lens for historical evidence, McCloskey highlights that every era contains both praise and criticism of bourgeois values. The crucial questions revolve around the balance of praise versus blame in significant or revealing documents, whether this balance shifts over time, and if such changes are relevant to societal improvement (p. 253).

While the approach may seem unconventional for an economist, McCloskey's analysis is insightful. She asserts that during periods lacking trade-tested advancements, society did not require a term to define "good" market conduct. However, as the merchant class flourished and attitudes toward profit became more favorable, a term like "honest" became essential for the common man to aspire to.

A Contemporary Example from India

McCloskey references India's transition post-independence from Britain, illustrating a shift in cultural attitudes towards commerce. Initially, the nation modeled its economy after the Soviet Union, eschewing bourgeois values, which led to stagnation in the 1970s and 1980s. However, the market reforms of 1991, following the USSR's collapse, reflect a significant cultural shift.

Mahatma Gandhi's disdain for profit-driven activities and Nehru's negative connotation of the term profit (p. 254) contrasted sharply with the evolving narrative in Bollywood. Research by Nimish Adhia shows a transformation in cinematic heroes from bureaucrats to entrepreneurs between the 1950s and 1980s, paralleling the rise in positive depictions of trade-tested improvements in the 'Times of India' (p. 254).

The 1991 economic reforms, which liberalized the economy and propelled growth from 1% to 7%, underscore how a shift in societal attitudes enabled the acceptance of trade-tested betterment (p. 254).