The transformation of uncertainty into risk and then into certainty occurs in the process of activity—that is learning and imitation, trial and error. During socio-cultural evolution, a “double adaptation” occurs: men adapt to the environment by changing meanings, and meanings adapt to the environment by changing men. The quality of this mutual adaptation is determined by the effectiveness of feedback. People learn when they receive rapid and frequent feedback on their actions—be it making things, keeping promises, or discovering new laws of nature. Learning occurs through the repetition of events and actions, the formation of stable meanings—norms or routines. The efficiency of adaptation depends on the norms that regulate the activities of the culture-society, that is, on the socio-cultural order:

“Adaptive efficiency, on the other hand, is concerned with the kinds of rules that shape the way an economy evolves through time. It is also concerned with the willingness of a society to acquire knowledge and learning, to induce innovation, to undertake risk and creative activity of all sorts, as well as to resolve problems and bottlenecks of the society through time. We are far from knowing all the aspects of what makes for adaptive efficiency, but clearly the overall institutional structure plays the key role in the degree that the society and the economy will encourage the trials, experiments, and innovations that we can characterize as adaptively efficient” (North 1990, pp. 80-1).

Culture and meanings emerged as a means of overcoming the uncertainty of the natural environment, the mutual inadaptation of habitat and protohumans. As an adaptation process, cultural evolution reduced natural uncertainty, leading to the emergence of an agrarian culture-society with its traditional order, possession and political ownership. However, the same cultural evolution has led to an increase in the uncertainty of the domus, the culture itself. The more complex the culture, the more variable it is. The more information, the higher the uncertainty: the random grows faster than the probable:

“On the other hand, a string is random if there is no short way to describe it. Of course, you can always describe a binary string just by listing it: the program that says “Print s, then halt.” That program has about the same length as s itself. Therefore, s is random if there is no shorter way than that to describe it. K(s), in other words, is about equal to the length of s: K(s) ? L(s). This definition of randomness has nothing to do with probability. Indeed, Kolmogorov believed that the idea of information was more fundamental than the idea of probability” (Schumacher 2015, pp. 231-2).

By multiplying meanings, culture-society raises randomness and uncertainty. The increasing complexity of human activities is a race against uncertainty. By complicating their activities, humans eliminate the uncertainty that prevents them from satisfying their needs, but in doing so they create even greater uncertainty. To eliminate this new uncertainty, they must complicate their activities even more. This phenomenon is called the “Red Queen’s Race”:

“This concept, that all progress is relative, has come to be known in biology by the name of the Red Queen, after a chess piece that Alice meets in Through the Looking-Glass, who perpetually runs without getting very far because the landscape moves with her. It is an increasingly influential idea in evolutionary theory. The faster you run, the more the world moves with you and the less you make progress” (Ridley 2003, p. 18).

The race against uncertainty meant that traditional culture-society gradually reached the technological, organizational and psychological limits of simple self-reproduction. When it went beyond these limits, it either collapsed, disintegrated and lost complexity (which often happened) or had to change its foundations.

Herbert Simon once pointed out that theorists of human behavior tend to go to extremes in their interpretations of rationality: economists tend to exaggerate the capabilities of the human mind, and psychologists, sociologists and anthropologists tend to downplay them, emphasizing the role of motivations, emotions and culture (cf. Simon 1957, pp. 1-2):

“Traditional economic theory postulates an ‘economic man,’ who, in the course of being ‘economic’ is also ‘rational.’ This man is assumed to have knowledge of the relevant aspects of his environment which, if not absolutely complete, is at least impressively clear and voluminous. He is assumed also to have a well-organized and stable system of preferences, and a skill in computation that enables him to calculate, for the alternative courses of action that are available to him, which of these will permit him to reach the highest attainable point on his preference scale” (Simon 1957, p. 241).

An example of extreme rationalism is the theory of Graham Snooks. Snooks believes that the basis of economic development is not to be found on the side of “supply” or culture, but exclusively on the side of “demand” or the subject. He argues against basing economic theory on the concept of “evolution” that the new institutionalists borrow from biology, noting that “economists seek assistance from other deductive disciplines rather than from history” (Snooks 1997, p. 5). Instead, according to Snooks, economic theory should be based on the concept of “dynamic strategy”: