Throughout this blog, I cite research to support the recommendations I make for defining your own personal Gyroscope. Some of this material is from contemporary sources. Yet, for many of the over-arching concepts and themes, I draw from the ancient world.
When financial services professionals first enter treatment, we start with a review of some key themes, including virtue, character, greed, obsession, and other classically based time-proven behavioral standards.
For these exploratory exercises, we start from the beginning with the ancient philosophers, beginning with Aristotle.
Aristotle (384-322 B.C.), student of Plato, counsel for Alexander the Great, preeminent thinker, is notable for his advanced prescient theories on the elements and influences of a market economy, conceived more than 2,500 years ago, yet are still relevant today. In his Topics,[1] Aristotle provides his philosophical analysis of human ends and means, theorizing that means, or instruments, of production are valuable because their end products are useful to people.
The more useful, or desirable, goods are the higher the value of the means of production.
Money represents all other commodities for Aristotle. Money is not necessarily wealth, because if one only had money they would starve.
Instead, the value of money is as a medium of exchange.
One can store wealth with money. Aristotle contended that the components of wealth were coined money, property, livestock, implements, and slaves.
For Aristotle, though, the individual human action of using wealth is what constitutes the economic dimension.
The purpose of economic action is to use things that are necessary for life (survival) and for the Good Life (flourishing).
Extrapolation of Aristotle’s teachings are nothing new for modern economists, though it is questionable how many FPs actually incorporate these ideas into their own ideology.
Aristotle provides unique perspectives for financial professionals who trade money and equities day in and day out. Awareness of Aristotelian theory can only enhance the understanding of their mission. Putting money into perspective in one’s life can only strengthen and expand the FP’s capacities and in turn his mission.