Asking Questions About Cultural Anthropology: A Concise Introduction Chapter 7: Economics (UCSB ANTH 2 2018/2019 Winter)

value

relative worth of an object or service

economic anthropology

the subdiscipline concerned with how people make, share, and buy things and services.

economic systems

structured patterns and services through which people exchange goods and services

four theoretical approaches to economies and how they create value

1. neoclassical economies
2. substantivism
3. marxism
4. cultural economics

what is neoclassical economics?

studies how people make decisions to allocate resources like time, labor, and money in order to maximize their personal satisfaction

what is the economy as defined by neoclassical economics?

the economy is a division of labor and the exchange of goods and services in a market

how does neoclassical economics work?

workers cooperate in the division of labor to produce goods. the market brings together buyers and sellers to exchange those goods

how is value created in neoclassical economics?

value and wealth are created by competition between buyers and sellers

division of labor

the cooperative organization of work into specialized tasks and roles

example of division of labor (Adam Smith and sewing pins example)

process of making a sewing pin into distinct actions performed by different specialized laborers produced exponential growth in the number of pins that could be made in a day

why division of labor is relevant (Adam Smith and sewing pins example)

before division of labor, value of pin lay in amount of labor it took to make one since it took a lot of time and effort. after introduction of division of labor, value of pin was established by its exchange in a market.

exchange

the transfer of objects and services between social actors

market

a social institution in which people come together to exchange goods and services

what is substantivism, aka substantive economics?

studies the daily transactions people actually engage in to get what they need or desire, the "substance" of the economy

why are daily transactions relevant?

the daily transactions of and individual are shaped by non-market social institutions, such as the state, religious beliefs, and kinship relations. therefore the value of goods in an economic system is culturally relative.

what is the economy as defined by substantivism?

the economy is the substance of the actual transactions people engage in to get what they need and want

how is value created in a substantivism economy?

value is relative, created by particular cultures and social institutions

how does a substantivism economy work?

economic processes are embedded in and shaped by non-market social institutions , such as the state, religious beliefs, and kinship relations

what is Marxism?

Marxism are the political and economic theories associated with German political economist Karl Marx. focuses on the power inequality created by the private ownership of the means of production and division of labor.

why is there an inequality of power? (widget factory example)

workers create greater value than they receive for their labor creating surplus value. for example, workers in a widget factory might make $35 of widgets in a hour from $5 worth of material and get paid $10 a hour. the $20 surplus value goes to enriching the owner of the factory and Marxists argue that that surplus value creates a power inequality between the workers and owners.

what is the economy as defined by Marxism?

capitalism, a type of economic system, is a system in which private ownership of the means of production and a division of labor produce wealth for a few, and inequality for the masses.

how an economy work as defined by Marxism?

people participate in capitalism by selling their labor. that labor is appropriated by those holding the means of production.

how is value created in an economy as defined by Marxism?

labor (especially the exploitation of others' labor) is a major source of value

surplus value

the difference between what people produce and what they need to survive

means of production

the tools, factories, land, and investment capital used to produce

what is cultural economics?

the idea that symbols and morals help shape a community's economy

why are symbols and morals relevant?

a close relationship exists between the words value (desirability) and values (moral norms) which are both symbolic expressions. this implies that moral norms, symbols, and economic activity influence each other.

what is the economy as defined by cultural economics?

the economy is a category of culture , not a special arena governed by universal economic rationality

how does the economy work as defined by cultural economics?

economic acts are guided by local beliefs and cultural models, which are closely tied to a community's values

how is value created in a economy as defined by cultural economics?

value is created by symbolic associations people make between an activity, good, or service and a community's moral norms

money

object or substance that serves as a payment for a good or service

commodity money

has value independent of its use as money (gold)

fiat money

created and guaranteed by a government, such as U.S. paper dollars

general purpose money

money that is used to buy almost anything
ex. dollar bills

limited purpose money

objects that can be exchanged only for certain things
ex. cattle and bride price can only be bought with brass rods in the Tiv people of Nigeria

spheres of exchange

bounded orders of value in which certain goods can be exchanged only for others

transactional orders

realms of transactions a community uses, each with its own set of symbolic meanings and moral assumptions

reciprocity

the give and take that builds and confirms relationships

gift exchange

central defining feature of many societies' economies

Malinowski and the Kula

the islanders of the Trobriand Islands had an exchange system called the Kula, where high-ranking men gave ornamental shell armbands and necklaces to lifelong exchange partners on other islands. the valuables had no real function or value but the value came when they were give away.

delayed reciprocity

a form of reciprocity that features a long lag time between giving and receiving gifts

Marcel Mauss' three dimensions of gift exchange

1. the obligation to give: establishes the giver as generous and worthy of respect
2. the obligation to receive: shows respect to the giver
3. the obligation to return the gift in appropriate ways: demonstrates honor

Marshall Sahlins' three types of reciprocity

1. generalized reciprocity
2. balanced reciprocity
3. negative reciprocity

generalized reciprocity

giving something without the expectation of return, at least not in the near future. it is uninhibited and generous giving, such as that which takes place between parents and children, married couples, or close-knit kin groups.

balanced reciprocity

when a person gives something, expecting the receiver to return an equivalent gift or favor at some point in the future

negative reciprocity

the attempt to haggle one's way into a favorable personal outcome. exists between the most distant relations, such as between strangers or adversaries.

commodities

mass-produced and impersonal goods with no meaning or history apart from themselves

consumption

the act of using and assigning meaning to a good, service, or relationship

appropriation

a process of taking possession of the object and making it one's own

consumers

people who rely on goods and services not of their own making