Worldly Philosophers Club

The Worldly Philosophers, Vol.1, Number 4	April 29, 2007
THE Worldly Philosophers Club For Individualists Who Seek Worldly Wisdom

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ARISTOTLE, THE GOLDEN MEAN, AND THE GOOD LIFE
By Mark Skousen

     In this issue…..
       -- Aristotle, the most practical of philosophers,
          reveals the secrets of the “good life”
       -- His most famous pupil conquers the known world
       -- How to apply the Doctrine of the Golden Mean
       -- A modern-day Aristotle to appear at worldly
          philosophers conference in July.

“Virtue for the prudent man lies in moderation between excess and deficiency.”
-- Aristotle, The Nicomachean Ethics

Greetings, worldly philosophers,

So far the response to my new e-letter has been most rewarding. Over 1500 subscribers have signed up. Jon Golding, a wise friend who lives in the Caribbean, wrote, “I really LOVE this new e-letter! Great style, class and content. A treat for discerning readers.”

If any of you would like to comment on any of my e-letters, write me at editor@worldlyphilosophers.com.

For the next two weeks, financial advisor Alex Green and I are leading a group of investors on a “Grand Tour” of Europe that will take us to France, Italy and Sicily. Our first stop is at the Chateau d’Ermenonville, where I will give a lecture on “Aristotle, the Golden Mean, and the Good Life.”

Aristotle, the great Greek philosopher, lived 2,400 years ago. What can he teach us today? He was, above all, a practical advisor to business and political leaders in ancient Athens. His most famous student was Alexander the Great, who conquered the known world and tried to imbue himself with the principles of the “good life” taught by his mentor.

Above all, Aristotle preaches the virtue of balance between earning, learning, playing, loving and serving. Through a proper balance between excess and deficiency, the ultimate goal in life -- personal happiness -- can be reached.

In Aristotle’s mind, for every virtue there are two vices. He uses the example of courage. He asks,

What is the opposite of courage?

You might say, “cowardice,” and you would be right. But Aristotle suggests that there are two vices: cowardice and recklessness. He writes, “The mean as concerns fear and confidence is courage: those that exceed in fearlessness are foolhardy, while those who exceed in fear are cowardly.”

Aristotle uses other examples of deficiency, excess and moderation.

Deficiency (vice)	Balance (virtue)	Excess (vice)
coward	courage	reckless
small-minded	high minded	vanity
timid	gentle	wrathful
tedious	witty	buffon-like
ascetic	temperate	profligate

He concludes, “And so we may say generally that a master in any art avoids what is too much and what is too little, and seeks for the mean and chooses it—not the absolute but the relative mean.”

Aristotle, the Financial Advisor

In personal finance, Aristotle teaches us to be neither misers (defective) nor spendthrifts (excessive), but liberal (the mean). “In the matter of giving and earning money,” advises the Greek philosopher, “the mean is liberality, excess and deficiency are prodigality and miserliness. But both vices exceed and fall short in giving and earning in contrary ways: the prodigal exceeds in spending, but falls short in earning; the miser exceeds in earning, but falls short in spending. . . .”

In the investment world, the most successful investors are those who prudently measure the risk and reward of an investment, avoiding risk-free investments (which offer little or no reward) as well as reckless speculations. Greedy investors almost always end up losing their shirt. (Go back to last week’s e-letter and see how many of Bernard Baruch’s 10 Rules of Investing fit into Aristotle’s doctrine of the golden mean).

Charles Lindbergh once said, “I don’t believe in taking foolish chances, but nothing can be accomplished without taking any chance at all.” Lindbergh knew the significance of the Golden Mean.

Wise old Solomon in the Bible warns, “Be neither rich nor poor”--both can be a burden. Aristotle teaches us that poverty leaves the good life unfulfilled. But extreme wealth can be a burden also. The rich can be “overcharged” and “choked with cares and riches and pleasures of this life,” as Jesus warned. Aristotle concludes that personal happiness and the “highest excellence” are achieved through moderate living.

A Modern-Day Aristotle

James O’Toole, a professor of management at USC and a director at the Aspen Institute, has written an entire book on this subject entitled Creating the Good Life: Applying Aristotle's Wisdom to Find Meaning and Happiness (Rodale, 2005). He shows how people of all income levels can achieve a good life based on awareness and values rather than riches and fame.

I’m happy to announce that James O’Toole is going to be speaking at FreedomFest, our annual gathering of worldly philosophers, July 5-7, in Las Vegas. He will speak on “Creating the Good Life,” as well as participate with John Mackey, CEO of Whole Foods Market, on a panel about “The Social Responsibility of Business.” I hope you will join me in hearing this modern-day Aristotle, as well as 77 other speakers.

For the list of speakers, topics, and events, go to www.freedomfest.com. To register, call Tami Holland at 1-866-266-5101.

Good living, AEIOU,

Marcus Aurelius