Money, Gift, and Society in the Age of Transition
Gift economy, zero-interest or negative-interest currencies, embracing materialism, the sacredness of money, restoration of the commons, …
These are just some of radical ideas Eisenstein raises in this book. Depending on where the reader stands in their economic world-view, they might sound exciting to inciting, making an otherwise dry subject matter a captivating page-turner. But Sacred Economics is so much more than an interesting take on economics. It offers a new perspective of the past, real solutions for the challenges of the present, and feasible alternatives to shape a future to the benefit of us all, including our ecosystem.
Some things many of us are aware of
Not wanting to preach to the choir, Eisenstein points out various flaws in our current system that result in many of the problems we're facing today. These include material aspects, such as the limited access to funds and thus commodities, as well as psychological ones, such as the perceived scarcity or the need to hoard. In very simple terms, for most goods and services we need to pay money. Traditionally, the only money available is issued by central banks, and covers a debt, which has to be paid with interest. In the end more money has to be paid back than the sum of all the money issued. This results in three possibilities. One of them is defaulting on a loan, which comes with the typical consequences of poverty, slavery, dependence, and becoming ineligible for future loans. To avoid this, one can either do whatever it takes to out-compete others, only to keep playing musical chairs, or turn to exploiting (alongside your clients, employees, business partners, etc.) the last of the “commons” for the last remaining free resources. It is not surprising that under these conditions growth for growth's sake in a finite system is taken to the maximum, with the devastating results we're all familiar with.
Materialism Should Honor the Material
One of the many horrible consequences of our current economic system is obsolescence. Whether the psychological pressure to replace well functioning items with more recent ones, or simply manufacturing things that are made not to last, our culture has embraced the waste of resources as one of its basic cornerstones. This is where Eisenstein refers to materialism as a misunderstood concept. While many people lament the attachment to material goods, he points out that we are not attached enough. We don't respect the material enough, don't hold it sacred, and are therefor so ready to waste it. If we were truly materialistic, we would make things to last, repair as much as possible, upcycle before recycle, and in the end turn all of its parts into something useful. (This touches on my previous book review Cradle to Cradle.) But once again, our culture is a product of our economic world-view.
Since Steemit (and more importantly Steem and other cryptocurrencies) is actually providing an alternative to fiat money, most of us Steemians are no strangers to the problems created by centralized, debt-based financial systems. So instead, let me go back to the idea of the commons. When I saw Eisenstein mention this, I immediately thought of William Forster Lloyd's essay The Tragedy of the Commons, where he illustrates how unregulated grazing destroys the common pastures, as each user is trying to gain maximum individual benefit, at the expense of others. While common pastures have become rare (to non existent), the same tendency has been successfully applied to other areas, such as the world's oceans, or socially to such areas as baby-sitting. What used to be part of a gift economy not long ago has become gradually commoditized. It is still mostly practiced informally, though as with everything else, it won't be long until laws and regulation make this field another victim of insurance companies and tax collectors.
So what? Are you suggesting to work for free?
That's exactly what Eisenstein is suggesting! Not because it's such a radically new concept, but because gift and sharing had been the basis of economics for nearly all of its existence. This idea is probably the most radical one, as it stands in stark contradiction to what we've commonly been taught about the origin of money. How does the old story go?
A fisherman wants to trade a fish for a knife, but the knife maker doesn't want the fish. So the fisherman trades the fish for a bag of salt from a third guy, and now he can negotiate with the knife maker about a fair price.
According to Eisenstein this is all baloney, and reading his explanation I have to agree, it's a typical case of not seeing the obvious until someone points it out. If I was a knife maker in a community where a fisherman needed a knife, I would just make him a knife. For free! Even if he didn't have a fish to offer in return, and even if I didn't eat fish at all. Why not? I know where he lives, after all, and so does he about me. If I need anything that he (or anyone) can provide, I can be pretty sure I would get it for free too, for the same reason. We live together, know each other, and help out when in need. It's just natural. Payback will come, one way or the other. No need to keep track of it. Even if I gave “too much” in relation to what I got, I'd still know I'm taking care of those around me. And they would know it too, and treat me accordingly.
The only exception I see to this sharing economy, is when a stranger visits from far away, who is going to leave soon, and not likely to ever return. Sure, in this case bartering is of essence, which in turn is most likely to benefit all parties, as travelers are likely to carry goods that are in short supply or simply non-existent in that place. What it also teaches us, is how important inter-personal relationships are for a gift economy.
Okay, so how can we go back to this neolithic idyll?
One important part of this seemingly utopian world, is that nobody has a deadly debt hanging over their heads, forcing them to act against all rational judgment and exploit those around him (humans and other beings). This frees us up to really take care of ourselves, each other, and the world sustaining us. We are less likely to exploit the commons to their collapse, where they continue being exploited as fenced-in private properties. Instead, we would figure out how to sustain them to become richer, more diverse ecosystems, where more species can coexist, and ultimately benefit us humans as well.
Sacred Economics offers several ways we can make a change for something positive, from strengthening local economies, implementing zero or negative interest currencies that would shift their use from hoarding to spending, and reclaiming the commons to creating a decentralized P2P economy (as he calls is).
My personal example in this has been with the Alternative Market of Tlalpan, most excitingly regarding my zero-cost mead production. How is that possible? I receive the honey for my mead in exchange for half the mead I make. In monetary terms that means that I don't have to pay my friend the 500 pesos she'd normally charge for her three liters of honey. In return, she doesn't have to pay the 1200 pesos for the 7.5 liters of mead she gets from me. In the end each of us ends up with about eight bottles of mead we can sell or drink, as we like. Sure, this may just be a small drop in the bucket compared to the world economy, but it's an essential step in experiencing community, establishing trust, and working for the common good... just as we should be, according to common sense.
If you're interested in Sacred Economics, you can download it for free from Eisenstein's website. He practices what he preaches.
Join LBRY To Get Your Own Copies!
If you are interested in reading these books, you can find them on my sustainability channel at LBRY. If you are interested in joining LBRY, please follow my invite. You may also be interested in my other book reviews in my Bibliophilia series:
My 12 Most Recommendable Permaculture Readings
Another 12 Permaculture Books - Specialized Readings
Riane Eisler – The Chalice and the Blade
William McDonough and Michael Braungart - Cradle to Cradle
Charles Eisenstein - Sacred Economics
Ken Kesey - One Flew Over the Cuckoo's Nest
Charles C. Mann - 1491
Tom Wolfe - From Bauhaus to Our House
Ideas and Concepts of Daniel Quinn
B. Traven - The Death Ship and The Cotton Pickers
Books by Wladimir Kaminer
Remembering the Good Doctor Gonzo - Hunter S. Thompson
Tom Wolfe - The Electric Kool-Aid Acid Test
Robert A. Wilson Expanding His Readers' Minds
Gary Jennings' Head-dive into Mexican History
I'm an avid reader and this sounds real good. I have been reading more and more non-fiction lately- ever since the election last year.
Great books out there about the economy, politics and alternative everything!
will have to look this one up at the library- thnx!
Thanks, I'm happy you liked it. And yes, please do. I love to read too, but there are only a few books would gladly recommend to EVERYONE. This is one of them. But you know, you don't need to look for it at the library. Eisenstein gives it away for free, just as he's urging us to do the same. Here is the link to get the .pdf: http://sacred-economics.com/wp-content/uploads/2012/01/sacred-economics-book-text.pdf
I hear music
Oh, they are still just tuning their instruments. Wait till the symphony starts!
Excellent review. These ideas will resonate in the years to come and provide alternative ideas and a complementary voice if there is a global economic downturn.
Wealth is being, currency is attention, material is its derivative, the economy is an exchange of all of these things and joy is aligning with the universal dance of exchange.
Wise words, @contemplate. They suit your name and avatar pic. :-)
Thanks for this bro! You know I'm not mother tongue and I just loved the simplicity of the phrases you put up and how you get to the point. I'm a believer, even only intuitively, in gift economies, but still miss the 'literature' on the topic so I really appreciate it, you finally convinced me to take this book out of my 'to read list' and give it a nice read sooner than later
Nice! I appreciate your comment. You know, I'm no mother tongue either (though English is one of my better languages), but even for native speakers, I can't stand long winded explanations and complexity just for complexity's sake. To me it sounds pretentious and I lose interest. Which is also why I love Eisenstein's book. Easy to read, easy to follow, unlike most works on economics.
Wow I've been wanting to read this book too! It's free on his website?! Didn't even know. Thanks for the review!
I waited for this book my entire life. or at least by his doctrine.
Thanks for the review!