economic systems

 


Definition: A system in which goods and services are PRODUCED, DISTRIBUTED and EXCHANGED



  • All economic activity has CULTURAL MEANING, and economic processes can not be understood without considering culture.
How does Culture set the RULES and determine the MEANINGS and VALUES assigned to objects and actions?
  • sentimental value
  • religious/ritual value
  • asthetic value (art)
  • Desirability
    • fad/fashion/vogue
    • exclusivity
    • sameness
    • political correctness
    • fame
    • antiquity/novelty
PRODUCTION:
How does culture assign rules and meanings to production?
  • CONTROL OF RESOURCES
    • Patterns of labor
      • sexual division of labor
        • flexibility versus rigid segregation
        • dual systems
      • caste (varna)
      • age
        • commencement of work
        • special stages of work
        • retirement
  • SPECIALIZATION
    • Generalized: everyone performs the same tasks (exception= age & sex)
      • h/g
      • horticultural societies (small, plant based)
  • Part-time specialization
    • pastoral
    • large horticultural
  • Full-time specialization
    • agriculture (agrarian & industrial)
  • Cooperation
    • HOUSEHOLD: basic economic unit & social unit
    • usually the base of cooperative work
    • vary in composition and function with kinship patterns
  • CONTROL OF LAND
    • How will land resources be allocated?
      • H/G: no real ownership. Cultural group has a "range" in which they can carry out subsistence and economic activities. Based o0n needs and physical landmarks
      • Non-Industrial: Kinship determines ownership and control of land resources
        • lineage
        • clan 
  • Feudal: Chief/Noblility own land and peasants/lineal members use it for production.
  • Industrial: Private ownership of land
  • TECHNOLOGY: 
    • Relates to the subsistence strategy
      • h/g: few tools and disposable. No ownership
      • Horticultural/Pastoral: few tools owned by kin group
        • axe, net, digging stick, containers, etc.
        • share or lend these tools on demand
  •  agricultural: large tool kit either product of industrial revolution or not
    • privately owned
    • conditions for lending (rental)
all cultures have rules and regulations for the manufacturing, use and ownership of technology for the means of production and products of production.

EXCHANGE & DISTRIBUTION:(3 kinds)
  • RECIPROCITY: The exchange of goods and services of equal value between parties
    • Generalized: neither the exact value or the time in which the transaction must be completed are specified
      • practiced within household or amongst kin
      • gift giving
      • social IOU
    • Balanced: Not part of a long term process. The value and time for completion of the transaction are stated.
  •  Negative: Participants try to get the better of the exchange
    • barter
    • steal
    • "silent trade"
  • REDISTRIBUTION: Occurs where governments are centralized enough to control surplus. (larger horticultural and agricultural societies) Need:
  • WHY COLLECT AND REDISTRIBUTE
    • ethos of egalitarianism will want to spread wealth
    • passify/control the masses
    • create common infrastructure
    • fund governments 
    • "leveling mechanisms"
      • found in societies with an egalitarian ethic
        • h/g
        • simple horticulture
        • industrial agriculture
        • examples:
          • Mayan Cargo system
          • graduated income tax
          • tithing/charity
          • Potlatch (Northwest coast chiefdoms)-see film in next blog post
    • "conspicuous consumption" (Veblen): the display of wealth for social prestige
      • usually in industrial societies
        • cars, furs, jewelry, designer brands, trophy bride, mansion, etc
  • potlatch (weddings, bar mitzvahs, etc)
  • MARKET EXCHANGE: the buying and selling of goods and services 
    • with prices set by the forces of SUPPLY AND DEMAND, 
    • using ABSTRACT CURRENCY  
    • in a CENTRAL MARKETPLACE
      • can be real or virtual
      • traditional marketplace in nonindustrial societies is locus of much social and economic activity (socializing, gossip, news exchanged)
  • Found in STATE level societies
CONSUMPTION
culturally defined rules for what is "consumed" in all cultures
  • kosher
  • pets are not food
  • environmental exploitation
  • OPT 

All economic activity has SOCIAL MEANING:
  • kula ring (Trobriand Islands)
  • compandrazgo (Latin America) 
  • Mayan cargo system
  • potlatch
  • giving to charity

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