Good relationships and good economics

 

Economics is the most fundamental of social sciences because it is about relationships. The study of economics should be about the ways in which we can organize the exchange of goods and services. As this involves interacting with others it is largely about how we deal with family, friends and neighbors. The study of economics should include economic history, the economies of previous civilizations and economic anthropology. It also means we should be trying to organize an economy based on good relationships.

As exchange involves dealing with other people in a variety of different ways from theft to giving, economics involves the study of how we deal with each other.

A fundamental of relationships is that for a relationship to be satisfactory there must be a more or less equal two-way exchange. Sadly our current economy is based mostly on exploitation. The culture of a lot of businesses, especially large ones, is to make as much profit as possible, even if it means taking advantage of customers.

The challenge is to organize our economy so that our economic relationships qualify as being good – equal exchanges. This writer suggests two sources of inspiration; the bushmen of the Kalahari desert in Africa and the perfect completion model of economics.

lion-577104_1920There is archeological evidence that the bushmen have sustained a stable society for up to 200,000 years. Survival has been without wars and exploitation. This is an incredible accomplishment. We owe it to ourselves to examine their society to see what we can copy. Genius is 90 per cent plagiarism.

These hunters and gathers have been well-studied. My reference is Affluence without Abundance: The disappearing world of the bushmen by James Suzman published by Bloomsbury in 2017.

The Bushmen were hunters and gathers living from hand to mouth and relocating frequently. As they had to carry everything when they moved they developed a mindset that had little need or use for material things other than a few basics. Their knowledge of their environment was such that they always had sufficient food available with a minimum of “work”. They worked for survival rather than to satisfy their own or other people’s ambition.

As they always had adequate food, surpluses and savings were not part of their lives or their thinking. This was important as surpluses and saving must be controlled and this can lead to unequal relationships and exploitation.

Leadership was very low-key and social control was mostly verbal via teasing and ridicule. As they lived in small groups the size of which changed with the seasons it was easy to get away from social conflicts. (This is a major problem for Canadian native people many of whom live on reserves and cannot easily relocate.)

This blogger does not want to adopt a total hunting and gathering lifestyle especially as the size of the world’s population makes it difficult if not impossible. However I believe these people have a lot to teach us about relationships and economics and values. It could be we are the ones who are uncivilized.

We often lie to ourselves and the greatest lies are about economics. The greatest lie is that our economy is based on capitalism and markets. This is a falsehood to cover the fact our economy is based upon legislation that restricts competition. So long as we believe the lies we can continue to promote an economy that is unequal and exploitive.

I believe if we really want an economy which encourages good relationships we should use the perfect competition model as a guideline. All legislation which restricts competition should be repealed. This includes patent and copyright legislation and licensing. Subsides should be given to consumers rather than producers in the form of a guaranteed income scheme. Businesses would be mostly small-scale; so small that participants would be unable to control prices with spending and purchasing decisions. These changes would do away with huge profits and most high incomes. Economic growth would not be needed as people would not have to have jobs to survive. These changes would also cause a lot of screaming from the people who benefit from competition.

Another good feature would be better relationships as people would be able to interact without trying to exploit each other.

One of the differences between hunting and gathering societies and the “civilizations” which have dominated history is who makes decisions. When people are working for survival rather than to satisfy ambitions they make their own decisions. When they are working for ambition decisions are made be the owner of the ambition.

Force is one of the ways people get others to work for them. Other ways are psychological – the work ethic, marketing techniques, limiting free speech, limiting voting rights, making people feel guilty and using logical fallacies to influence thinking. The last two have been and are being used to great effect by feminists. My experience of this world and my observations of this world tell me feminism is mostly BS and a control issue. Feminists want to control men and their thinking. They do a lot to discourage good relationships.

A lot of us have been so indoctrinated with the “capitalist” way of thinking we do not realize the extent to which we are being exploited. Some studies of people on their death beds have found that the greatest regrets are for placing profits above relationships.

Most of us have been raised in a culture which places material things above all else. This blogger believes we should learn from the bushmen to adapt to a non-growth economy and focus on good relationships. The perfect competition model of economics provides some good guidelines as to how to get there.

 

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Let’s put some ‘civil’ in civilization

Over the past few weeks I have been reading some anthropology about hunters and gathers and have decided these so-called primitives are really the most civilized Peoples of all times.  I absolutely do not want for myself or anyone else to go to that life style but I do think we should evaluate their cultures for ideas we could adopt.  We need to put the civil in civilization.

In this post I propose to look at some of the things that make our society uncivilized and contrast these with what we know about hunters and gathers. A lot what makes us uncivilized are sources of in justice –  overpopulation, forcing people to do things according to the values and morals of others and exploitation of people and resources.  Generally these injustices are not a part of the lifestyle of hunters and gatherers.

59889This guy used to think that violence was a natural part of human nature and we  just have to live with it.  After reading about hunters and gatherers I am not so sure.  These people are generally known for being peaceful and non-violent.  One group, when threatened by some war-like neighbors just disappeared into the forest.
It would be interesting if an anthropologist would do a detailed study of this aspect of their lives.

Hunters and gathers must be expert psychologists as they have to teach their young to kill animals while remaining non violent in their human relationships.  There often appears to be a spiritual aspect to their hunting.  Apparently a lot of social control is with verbal tactics such as teasing or ridicule.

In contrast most civilized countries maintain standing armies, sometimes used for social control of populations and in some places it is acceptable for agents of the state to execute innocent people who happen to be in their way. Some people claim the right to force others to live by their values and morals and are often very successful at getting state support in the form of legislation.  Our civilizations are also very tolerant of psychological violence. In spite of all the feminist propaganda we hear, women are very skilled at this type of violence.  Violence is so pervasive in our societies that very few people get through their lives without experiencing some of it.

History tells us that so far all civilizations have failed although many people believe our own will last forever.  As so many civilizations have failed this is a major issue.  One theory is that previous civilizations have failed because they have depleted their topsoil.  If this is true we need to proceed with caution as a lot of our food supply is dependent upon adding chemicals to the soil.  We need to put a lot of effort into studying agriculture.  It is too important to leave to people who make their living from it.

This blogger believes the major threat to our way of life is that we have used up most of the easily accessible energy and mineral resources on the earths crust.  Yes, there are lots of resources left but cost of extracting them is such they are mostly useless unless we have some major technology breakthroughs.
In  contrast there is archeological evidence that the bushmen of the Kalahari desert have maintained their civilization for up to 200,000 years.  They did this by living hand to mouth, seldom  having more than a day or two of food on hand and not over exploiting resources.

A significant feature of hunting and gathering is that most decision-making is by individuals.  Leadership is low-key and individuals can easily move from one small group to another. The bushmen’s  time came to an end when their territory was taken over by farmers and herders with the help of modern technology such as boreholes to provide reliable water supplies.

It is not clear if there was a natural transition from hunting and gathering or if farming and herding developed independently.    What is significant is that the latter made for different social dynamics in that some people could make decisions that affected others.  As these other types of food provision involved food storage they also led to residence mostly in one location, more and more complex tools and a more material lifestyle.  This was probably the start of the decline into our uncivilized history.

Probably the most important of all freedoms is the right to make decisions according to our own values and morals. In our society this is a complex issue with many limits.
The first limitation, shared by hunters and gatherers, is the need to provide ourselves with food and shelter. We must spend some time on this although most hunters and gatherers devote far less time to this than we do. Anthropologists have found that a lot of them devote only 15 to 20 hours a week to this basic activity. The rest of the time they spend socializing, performing rituals, doing crafts or sleeping and being lazy.

The rest of the limits on freedom to make decisions follow from our economic organization often with religious sanctions. Modern technology and the use of oil in agriculture probably means we only need to work two or three hours a week but the work ethic requires us to work 40 to 60 hours a week. If one does not do this much work one is a deadbeat on not doing ones share. This is great for those people who want others to support their empires but not so great for the environment and the resource base and our right to decide for ourselves what we want to do.

Possession of money gives us freedom to make decisions but the way in which it is created is a limitation. Most of the money used in our exchange of goods and services is created when banks make loans in what is known as fractional reserve banking. This is a complex but easy to understand process that is fully explained in many places on the FunnyMoneyArtPowell-finalinternet including this weblog and the e-book by this writer, Funny Money: Adapting to a Down Economy. As money is created by bankers they determine who gets it and what projects are undertaken. Creating money with an income scheme and national exchange trading scheme as proposed in my book would mean a major transfer of decision-making power to individuals.

Another limit on our ability to make independent decisions is the extensive use of marketing techniques by major corporations. I have often thought the best psychological insights come from marketing people and they do not hesitate to use their knowledge to influence how people think and what they do. Sadly, we have got to the point where a lot of people consider exploitive marketing to be normal, legitimate and even desirable. Some major Canadian companies have recently made the news because of the pressures put on their sales people, like to sell expensive internet or phone services to people who will never use them.

It is amazing how easily so many people get hooked into agendas set by others. It is easy to avoid being influenced by the marketers; just avoid television and social media. It is also easy for me to say that as I left home before my parents bought a television.
Not only are hunters and gatherers known for their peacefulness, they are also known for their equality. If people are not trying to aquire lots of material things, then economic equality becomes natural.

In our own culture we are aware of increasing inequality as more people suffer from the falling economy but we do not know how to change things. I believe everyone should have the opportunity to have the same standard of living as everyone else. It is painful to see people homeless and having to rely on food banks.

This writer believes inequality could be corrected with an income scheme and a true market economy. One of the features of a market economy is that competition wipes out the profits that allow some people to become rich.

The books I have read say little about sexuality but it appears most hunters and gathers are casual and accepting. Nor do they appear to have the sexual problems which plague so many people in our societies. It could be that we have something to learn from them about sex .

The key to what we call civilization is the agricultural surplus which is the food production in excess of what the producer needs for his own survival. Generally hunters and gathers do not have an agricultural surplus because once they have enough food for a day or two they stop working knowing that more is easily available when they need it.

The agricultural surplus is a two-sided coin. It releases people from food production to do other things some of which are positive and some of which are destructive. It can be the start of the decline onto the slippery slope into uncivilized behaviors,
The agricultural surplus presents a people with two questions; what to do with it and who makes the decision. These questions open up opportunities for people whose personality is to tell others what to do. This writer believes each of us should have to right to decide how his/her share of the surplus should be used.

Some economists like to tell students consumers control the economy in their spending decisions. This is correct so long as we make the right decisions. Many people want to go off the grid and live the simple life in the bush but that is not easy to do. The people who create the money want the rest of us to work at their projects rather than our own.

We have good material standards of living because our economy has been labor intensive and the demand for bodies has allowed us to extract from the elite a nice portion of the agricultural surplus. As technology increases and robots do more and more of the labor we are losing our bargaining power. The rich get richer and more people become poor. Frightening and uncivilized.

There is a slight ray of hope in our two or multi party electoral system. Some politicians are realizing tha to get votes they have to allow voters some share of the agricultural surplus.

There are lots of anecdotal evidence that our economy is on a down trend. Lots of people are suffering and lots more are likely to suffer. There are many unknowns in the future and most of them are frightening. Our goal should be to minimize the suffering and maximize the enjoyment of living.

We are unlikely to ever get consensus on how to deal with this situation as many people have a strong vested interest in the status quo. However, if we do not try, there will be no progress.

I once heard an engineer say, “If it is working, it is not complex enough.” I was not impressed with his engineering and I do not want to apply his principle to economics. Let us keep it simple. The challenge is to get the best out of technology without the technologists telling us how we should live to meet their goals.

This post has focused on some of the negative features of our civilization. I want to continue to enjoy the positive things, like being able to write this weblog, but I also want to correct some of the injustices and uncivilized behaviours. Genius is 90 per cent plagiarism and we should look for good ideas wherever we can find them.
The hunting and gathering lifestyle appears to be a lot simpler than what we have and it also appears to be a lot more civilized. Let’s put the civil back in civilization.

Note: Once upon a time this blogger took a course in Economic Anthropology and since then I have frequently read books on anthropology and especially economic anthropology. Prior to writing this post I read the following books:

Affluence without Abundance: The disappearing world of the bushmen, By James Suzman, 2017.

Hunters and Gathers: History, Evolution and Social Change, Edited by Tim Ingold, David Riches and James Woodburn, 1988.
Politics and history in band societies, Edited byEleanor Leacock and Richard Lee, 1982

Promoting economic growth

This post is in reaction to two articles in this week’s Economist..

The first article shows how the insurance industry is using digitization to sell more insurance to those who need it the least.  The second article talks about digitization as a factor of economic growth.

Perhaps the real issue for the second article is how digitization can be used so the marketing people can con us into working our butts of so we can purchase more goods and service we don’t really need for the sake of economic growth.

What we really need is some way of evaluating things such as music, arts, crafts, exercise and meditation so they can be included in gross national product.  They could then  become the growth industries of the future.

 

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