The motion of gifts

While referencing something in David Boyle’s The Little Money Book (my current read), I came across another Lewis Hyde essay, this time entitled “Some Food We Could Not Eat” included in Money and Faith, edited by Michael Schutt.

This essay is also an adaptation of the first chapter of Hyde’s The Gift; I have quoted just a small piece of the wonder of the full essay, that I encourage to read in its entirety. For example, the sentence “When property is hoarded, thieves and beggars begin to be born to rich men’s wives.” is not included below:

When the Puritans first landed in Massachusetts, they discovered a thing so curious about the Indians’ feelings for property that they felt called upon to give it a name. In 1764, when Thomas Hutchinson wrote his history of the colony, the term was already an old saying: “An Indian gift,” he told his readers, “is a proverbial expression signifying a present for which an equivalent return is expected.” We still use this, of course, and in an even broader sense, calling that friend an Indian giver who is so uncivilized as to ask us to return a gift he has given.

Imagine a scene. An Englishman comes into an Indian lodge, and his hosts, wishing to make their guest feel welcome, ask him to share a pipe of tobacco. Carved from a soft red stone, the pipe itself is a peace offering that has traditionally circulated among the local tribes, staying in each lodge for a time but always given away again sooner or later. And so the Indians, as is only polite among their people, give the pipe to their guest when he leaves. The Englishman is tickled pink. What a nice thing to send back to the British Museum! He takes it home and sets it on the mantelpiece. A time passes and the leaders of a neighboring tribe come to visit the colonist’s home. To his surprise he finds his guests have some expectation in regard to his pipe, and his translator finally explains to him that if he wishes to show his goodwill he should offer them a smoke and give them the pipe. In consternation the Englishman invents a phrase to describe these people with such a limited sense of private property. The opposite of “Indian giver” would be some  thing like “white man keeper” (or maybe “capitalist”), that is, a person whose instinct is to remove property from circulation, to put it in a warehouse or museum (or, more to the point for capitalism, to lay it aside to be used for production).

The Indian giver (or the original one, at any rate) understood a cardinal property of the gift: whatever we have been given is supposed to be given away again, not kept. Or, if it is kept, something of similar value should move on in its stead, the way a billiard ball may stop when it sends another scurrying across the felt, its momentum transferred. You may keep your Christmas present, but it ceases to be a gift in the true sense unless you have given something else away. As it is passed along, the gift may be given back to the original donor, but this is not essential. In fact, it is better if the gift is not returned but is given instead to some new, third party. The only essential is this: the gift must always move. There are other forms of property that stand still, that mark a boundary or resist momentum, but the gift keeps going.

Tribal peoples usually distinguish between gifts and capital. Commonly they have a law that repeats the sensibility implicit in the idea of an Indian gift. “One man’s gift,” they say, “must not be another man’s capital.” Wendy James, a British social anthropogist, tells us that among the Uduk in northeast Africa, “any wealth transferred from one subclan to another, whether animals, grain or money, is in given away again, not kept. the nature of a gift, and should be consumed, and not invested for growth. If such transferred wealth is added to the subclan’s capital [cattle in this case] and kept for growth and investment, the subclan is regarded as being in an immoral relation of debt to the donors of the original gift.” If a pair of goats received as a gift from another subclan is kept to breed or to buy cattle, “there will be general complaint that the so-and-so’s are getting rich at someone else’s expense, behaving immorally by hoarding and investing gifts, and therefore being in a state of severe debt. It will be expected that they will soon suffer storm damage….”

The goats in this example move from one clan to another just as the stone pipemoved from person to person in my imaginary scene. And what happens then? If the object is a gift, it keeps moving, which in this case means that the man who received the goats throws a big party and everyone gets fed. The goats needn’t be given back, but they surely can’t be set aside to produce milk or more goats. And a new note has been added: the feeling that if a gift is not treated as such, if one form of property is convened into another, something horrible will happen. In folk tales the person who tries to hold on to a gift usually dies; in this anecdote the risk is “storm damage.” (What happens in fact to most tribal groups is worse than storm damage. Where someone manages to commercialize a tribe’s gift relationships the social fabric of the group is invariably destroyed.)

…Many of the most famous of the gift systems we know about center on food and treat durable goods as if they were food. The potlatch of the American Indians along the North Pacific coast was originally a “big feed.” At its simplest a potlatch was a feast lasting several days given by a member of a tribe who wanted his rank in the group to be publicly recognized. Marcel Mauss translates the verb “potlatch” as “to nourish” or “to consume.” Used as a noun, a “potlatch” is a “feeder” or “place to be satiated.” Potlatches included durable goods, but the point of the festival was to have these perish as if they were food. Houses were burned; ceremonial objects were broken and thrown into the sea. One of the potlatch tribes, the Haida, called their feasting “killing wealth.”

To say that the gift is used up, consumed and eaten sometimes means that it is truly destroyed as in these last examples, but more simply and accurately it means that the gift perishes for the person who gives it away. In gift exchange the transaction itself consumes the object. Now, it is true that something often comes back when a gift is given, but if this were made an explicit condition of the exchange, it wouldn’t be a gift….This, then, is how I use “consume” to speak of a gift—a gift is consumed when it moves from one hand to another with no assurance of anything in return. There is little difference, therefore, between its consumption and its movement. A market exchange has an equilibrium or stasis: you pay to balance the scale. But when you give a gift there is momentum, and the weight shifts from body to body.

I must add one more word on what it is to consume, because the Western industrial world is famous for its “consumer goods” and they are not at all what I mean. Again, the difference is in the form of the exchange, a thing we can feel most concretely in the form of the goods themselves. I remember the time I went to my first rare book fair and saw how the first editions of Thoreau and Whitman and Crane had been carefully packaged in heat-shrunk plastic with the price tags on the inside. Somehow the simple addition of airtight plastic bags had transformed the books from vehicles of liveliness into commodities, like bread made with chemicals to keep it from perishing. In commodity exchange it’s as if the buyer and the seller were both in plastic bags; there’s none of the contact of a gift exchange. There is neither motion nor emotion because the whole point is to keep the balance, to make sure the exchange itself doesn’t consume anything or involve one person with another. Consumer goods are consumed by their owners, not by their exchange.

The desire to consume is a kind of lust. We long to have the world flow through us like air or food. We are thirsty and hungry for something that can only be carried inside bodies. But consumer goods merely bait this lust, they do not satisfy it. The consumer of commodities is invited to a meal without passion, a consumption that leads to neither satiation nor fire. He is a stranger seduced into feeding on the drippings of someone else’s capital without benefit of its inner nourishment, and he is hungry at the end of the meal, depressed and weary as we all feel when lust has dragged us from the house and led us to nothing.


Good advice to live by

Douglas Rushkoff wraps up Life, Inc. with the clearest conception of “act local, think global” I’ve read (and usually seems to be misinterpreted).

Instead of fighting corporations with corporations of our own [like nonprofits--Ben], or working through corporations to reduce their negative impact on society, we’re better off reinventing ourselves as humans. We live on a terrain and in a dimension they can pollute but to which they will never belong. By working on this human-scaled landscape instead, we can create changes in our own lives and communities that stand a chance, in aggregate, of trickling up and changing how the big world operates as well.

We can’t look for those kinds of changes overnight. The grand expectations we have for ourselves and our achievements are really just the false promises of consumerism, brand culture and the politics of revolutionary change. This is the ideological heritage of the Renaissance, and what brought us into the cycle of utopian hopes and alienated cynicism we’re churning through today.

We’d each like to launch a national movement, create the website that teaches the world how to build community from the bottom up, develop the curriculum that saves public schools, or devise the clever anti-marketing media campaign that breaks the spell of advertising once and for all. But these ego trips are the artifacts of the strident individualism we were taught to embrace. The temptation to save the whole world—and get the credit—comes at the expense of steps we might better take to make our immediate world a more fruitful, engaging, sustainable, and satisfying place. A successful movement depends on getting attention from media and institutions that are dead set against recognizing our ability to create value ourselves, and for its own sake. The minute they find out what we’re up to, it’s their job to dash our hopes and return our attention to the false idols they’re selling us.


From Self-Actualization to Neo-Liberalism

I am continuing to enjoy Douglas Rushkoff’s Life, Inc. Adding to my enjoyment is its parallelism with Fred Turner’s From Counterculture to Cyberculture from which I have quoted before.

By the 1960s, the German philosopher Herbert Marcuse had revived much of the spirit of [Wilhelm] Reich—this time for an audience already dissatisfied with the spiritual vacuum offered by consumerism. He was the most vocal member of the Frankfurt School, and spoke frequrently at student and antiwar protests. Marcuse blamed the Freudians—as well as the government and corporate authorities who used their stultifying techniques—for creating a world in which people were reduced to expresssing their feelings and identities through mass-produced objects. He said the individual had been turned into a “one-dimensional man”—conformist and repressed.

Marcuse became a hero to the real counterculture movement, and his words inspired the Weathermen, Vietnam War protests and the Black Panthers. They saw consumerism as more than a way for corporations to make money; it was also a way to keep the masses docile while the government pursued an illegal war in Southeast Asia. So breaking free of consumption-defined self was a prerequisite to becoming a conscious protester. As Linda Evans of the Weathermen explained, “We want to live a life that isn’t based on materialistic  values, and yet the whole system of government and the economy is based on proit, on personal greed, and selfishness.” But as Stew Albert, a cofounder of the anti-Vietnam movement the Yippies, contended, the police state began in an individual person’s mind. People who sought to be engaged in political activism needed first to make themselves new and better people.

The counterculture and its psychologics again revised the spirit of Wilhem Reich in the hopes of freeing people from the control of their own minds. To this end, in 1962 the Esalen Institute was founded on 127 acres of California coastline. The Institute hosted a wide range of workshops and lectures in an atmosphere of massage, hot tubs and high quality sex and drugs, all in the name of freeing people from repression. The Human Potential Movement—Renaissance individualistic humanism updated for the twentieth century—began in an explosion of new therapies.

….

Like Dorothy embarking down the yellow-brick road to self-fulfillment, thousands flocked to the hot tubs of Esalen to find themselves and self-actualize [as promulgated by Abraham Maslow as the top of his Hierarachy of Needs]. Instead of annihilating the illusion of a self, as Buddha suggested, the self-centered spirituality of Eslaen led to a celebration of self as the source of all experience. Change the way you see the world, and the world changes. Kind of. Instead of fueling people to do something about the world, as the Weathermen and Yippies had hoped, spirituality became a way of changing one’s own perspectives, one’s own experiences and one’s own self. By pushing through to the other side of personal liberation, the descendants of Reich once again found self-adjustment the surest path to happiness. Anna Freud would have been proud. You are the problem, after all.

A dozen pages later, the book picks back up at the pivotal 1960s and, just as Turner does so excellently, connects it towards the spread of free-market economic liberalism that both the Left and Right embraced.

The young technocrats at Rand believed that John Nash’s equations presented a way to organize a society of self-interested individuals that promoted their personal freedom. By the 1960s, they had the backing of a counterculture equally obsessed with the personal needs of individuals and the corrupting influence of all institutions—even family. The Scottish psychologist R.D. Laing used game theory to model human interactions, and concluded that kindness and love were merely the tools through which people manipulated one another to get their selfish needs fulfilled. Mental illness was just a label created by the repressive state. So-called crazy people were really evidence of some greater societal problem—a “cry for help” against oppressive institutions. In fact, like the family, the state was just a means of social control that violated the most primal and fundamental urge of human beings to pursue their individual interests. Through Lain, the darkest aspects of game theory were extended to the culture at large and popularized as social truisms: your parents don’t really love you and the man is after your money. What look like social relationships are really just “the games people play.”

Hippies tool these assessments to the streets, but most of them were too distracted by self-actualization  for the movement to maintain any cohesion. Within a decade, the counterculture’s war against institutional control would become the rallying cry of the Right. The brilliance of Reagonomics was to marry the antiauthoritarian urge of what had once been the counterculture with the antigovernment bias of free-market conservatives. In Reagan’s persona as well as his politics, the independent, shoot-from-the-hip individualism of the Marlboro man became compatible—even synergistic—with the economics and culture of self-interest. No-blink brinksmanship with the “evil” Soviet empire, the dismantling of domestic government institutions, the decertification of labor unions, and the promotion of unfettered corporate capitalism all came out of the same combination of Rand Corporation game theory and the 1960s antipsychiatry movement. Regulations designed to protect the environment, worker safety, and consumer rights were summarily decried as unnecessary government meddling in the marketplace. As if channeling Friedrich Hayek by way of R.D. Laing, Reagan shrank the social-welfare system by closing the public-psychiatric-hospital system.

Make no mistake about it: by the late Clinton-Blair year, both the Right and the mainstream Left had accepted the basic premise adopted from systems theory that the economy was a natural system whose stability depended on the government’s getting out of the way and allowing self-interested people to work toward a dynamic equilibrium. Gone were the “compassion” and “love” that Mario Cuomo had demanded of government back in his rousing “Tale of Two Cities” speech at the 1984 Democratic convention. In their place were small government and personal accountability. The last heroes of the political age, Reagan and Thatcher were long gone. In their place, the only rebels capable of dismantling the social-welfare hierarchy were the super-CEOs: Jack Welch, Richard Branson, and Ken Lay, as well as the new breed of free-market theorists advising them.

Thanks to the combined emergence of a computer culture capable of recognizing the power of emergent systems and a rising class of dot-com workers profiting off what appeared to them to be the exploitation of a free-market technology, libertarianism was in ascendance. In reality, the phenomena we were all celebrating in the mid-1990s had little to do with the free market; the Internet had been paid for by the government, and dynamical systems theory was much more applicable to the weather and plankton populations than it was to economics. But as profits and stock indexes rose, the stars themselves seemed to be aligning, and systems theory was a good a way as any of justifying the same options packages that young programmers would have been embarrassed by just a few years before, when they were antiestablishment hackers.

Ironically, while the intelligentsia were using social evolution to confirm laissez fair capitalism to one another, the politicians promoting these policies to the masses were making the same sale through creationism. Right-wing conservatives turned to fundamentalist Christians to promote the free-market ethos, in return promising lip service to hot-button Christian issues such as abortion and gay marriage. It was now the godless Soviets who sought to thwart the maker’s plan to bestow the universal rights of happiness and property on mankind. America’s founders, on the other hand, had been divinely inspired to create a nation in God’s service, through which people could pursue their individual salvation and savings.

The same right wing think tanks writing white papers justifying game-theory economics through bottom-up social Darwinism were simultaneously advising conservatives on how to leverage Christian fundamentalists in support of the resultant ideals. What both PR efforts had in common were two falsely reasoned premises: that human beings are private, self-interested actors behaving in ways that consistently promote personal wealth, and that the laissez-faire free market is a natural and self-sustaining system through which scarce resources can be equitably distributed.


Business rhetoric

“They aren’t charities. They have shareholders to report to,” he [Robert Hammer, an industry consultant] said, referring to banks and credit card companies. “Whatever is left in the model to work from, they will start to maneuver.”

This wonderful rhetoric is in regards to beginning to charge annual fees and remove grace periods from people who regularly pay off their credit cards (from the NY Times). In other words, consistent revenue from transaction fees is not the near-term windfall quick-buck, pump and dump shareholders demand. (Yeah, my rhetoric is rusty.)

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How to create cross-sector nonprofit value

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I really like this post from Entry Level Living about the need for nonprofits and for-profits to collaborate in these dicy economic times. She lays out some good examples of collaboration and ties it into a compelling sandwich. But it also begins with a an false cliche (nonprofits war with the for-profits) and doesn’t actually get beyond the the assumption that collaboration is an intrinsic good. The interesting and unanswered piece (for anyone who isn’t a millennial, like the Allison of Entry Level Living and I) is: why the hooey should we care about collaboration?

The answer: you shouldn’t. You should care about creating value, collaboration is just a means to getting there (and not the only one, at that). Entry Level Living lays out some fine examples that do create value, but doesn’t provide a strict method for thinking about value-creation.

So let’s talk about value:

Nonprofits tend to talk more about values—our mission, our vision, our culture of caring—than the value (no ’s’) we create. Most of the value we do talk about is tied up into our values. The value theory of nonprofits mostly has to do with creating moral goods: things someone is morally obligated to strive for (education, self-reliance, non-violence, positive familial and community relations, etc.). In nonprofit parlance that is called Social Value.

We tend not to talk about the Economic Value we have: our brand and name-recognition; our well-developed skills or expertise; and our general social authority and legitimacy (a fancy way of saying people trust us)… to name a few.

While Social Value is good (duh!), it has no meaning in cross-sector collaboration: it’s just not the business of business. Economic Value is meaningful for cross-sector collaboration, and that’s where nonprofits should be spending their time. If you’ve ever heard someone say “Monetize your Core Competencies“, they’re talking about your Economic Value, not your Social one.

So now that you know about value, how do you create it in cross-sector collaboration? To begin with, we’re going to toss the word collobaration and replace it with a broader and more neutral term: negotiation. While collaboration may be a strategy within negotiation, negotiation encompasses the entire scope of communication that you may be engaged in.

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Cross-sector negotiation means thinking of creative ways to combine your nonprofit’s Economic Value with a for-profit’s Economic Value in such a way that you create more value than existed in the first place.. In negotiation theory, this is called “joint value”. In more metaphorical terms, you’ve just enlarged the pie.

For example, if you’ve ever had a corporate volunteer day, you’ve done exactly this: you combined your social authority and legitimacy as do gooders with a for-profit’s staff-as-volunteers. The for-profit received CSR (Corporate Social Responsibility) PR and personal development (the warm fuzzies) for staff; you received cheap labor; and both of you did it for less than the cost of an alternative plan (advertising campaign and professional staff development for them; part-time paid labor for you).

Nonprofits and for-profits aren’t at war; they are just similar looking games with somewhat different rules. The secret to winning is to look for cross-over skills, strategies and players. Evaluating the economic value of your nonprofit is a good place to start.


A millenial idea

A New York Times article on paying kids based on their standardized test scores:

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…a seventh-grade English class was asked one morning if there were too many standardized tests. Every hand in the room shot up to answer with a defiant yes. But at the same time, the students all agreed that receiving money for doing well on a test was a good idea, saying it made school more exciting, and made doing well more socially acceptable.

Sounds an awful lot like the standard beef with millenials: entitlement and “everyone gets a trophy”. Of course, 7th graders are too young to be millenials, so maybe millenials are already in school administrative positions. The eldest (born 1981) would be 27.


Capitalism and Morality (Thai Beer and Monks)

Investors aiming to buy stock in Thai Beverages Pcl may have to settle for a bottle of its Chang beer after billionaire owner Charoen Sirivadhanabhakdi’s plan to sell shares was blocked for a third time amid protests led by orange- robed Buddhist monks.

The monks and other protesters argued a share sale by the company, maker of more than half Thailand’s beer as well as Mekhong whiskey, would promote alcoholism in a country where more than 90 percent of the 65 million people are Buddhist.

I find myself mentioning this story a lot; primary because the monks have a very strong conception of capitalism and where it morally breaks down: if you let this company go public, it will be their legal imperative to increase their value, which will be done by promoting the consumption of their product, which is alcohol.

And then, the (former) PM’s view:

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As the alcohol industry is the cause of many damages to society, as shown by those statistics, it lacks the qualifications to raise funds and list in the stock exchange. Even if, from an economic point of view, it is the source of tax collected from the sale of beer, it’s not worth all the losses it creates.


King Corn

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I saw the movie King Corn last night at Harvard. It was ok. The best part I thought was when they interviewed Earl Butz, a Secretary of Agriculture in the 1970s that instigated a major food production policy shift.

Earl said that his change in policy led to a decrease in the amount of money people spent on food (from ~40% to 15-20%) which led to the economic prosperity of today. (eg more disposable income, more consumption, expanded economy).

Clever. Though after reading his wikipedia entry, apparently he wasn’t so clever in other respects. Definitely didn’t mention that in the movie.


Consumption and deregulation

Deregulation in the utilities industry results in higher costs whenever those costs are not expected to greatly affect consumption (also in the oil industry), contrary to the consequentialist arguments of deregulation proponents. The same thing is happening in the communications sector.

From a BoingBoing comment on a broadband penetration related post. I have no clue if that’s a standard economic opinion.

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