Friday, 18 May 2012

Money, Markets and Value


Michael Sandel has recently published a book entitled ‘What Money Can’t Buy’ that has had some extracts printed in various newspapers and which was reviewed by Rowan Williams in ‘Prospect’ magazine.

The thoughts that seem to lie behind the book (having read the review and an extract) are critical of the monetising of much of life and it being treated as subject to market principles.  This was in my mind when I wrote my post on 9 May on Austerity or Growth and the anxiety I had that the power of the markets is beginning to govern people’s lives.  We can’t buck the market, as was famously said, but there is a balance to be found between economic reality and the importance of non-economic factors.  There are also dangers if we go too far down the road of allowing ourselves to be dominated by market imperatives.

This reminded me of a part of a chapter I wrote some time back for a book entitled ‘Entering the New Theological Space’ that was trying to tease out some of the issues of consumerism, where everything has a price, and some of the consequences of that as compared with previous times when we defined ourselves by the jobs we did or what we produced:

If consuming drives our living then the price of whatever we consume begins to drive our perceptions. Bosshart[1], the Director of the Swiss retail think tank GDI, says that today we compare everything with everything else, for economy and society are moving towards real time with the spread and power of IT. We are able to compare in an instant the price of many articles for sale so that price becomes the controlling factor and something which suppliers must control in order to operate profitably and survive. The corollary of this is that all fixed values become fluid values. The ultimate parameter for evaluations, for ratings, for appreciation, for categorization, but also for motivation, is money, or in a real-time world, price. In many sectors fixed prices are on the way out – it is expected that a discount can be negotiated and this is taken further particularly in the travel sector in hotels, airlines and so on with yield management and dynamic pricing, where the price varies in real time according to the demand. (I recently travelled on Eurostar and during the afternoon that I was researching times and prices on line the cost of the fares changed as other people were booking tickets). This, of course cuts two ways: the consumer can search for the best price, but the goal for the supplier is to encourage customers to consume more, to make it more difficult to swap to other suppliers and to reduce comparability of prices.  As there are fewer fixed prices (even supermarkets juggle prices of essentials to stay ahead of competitors) we lose sight of the relationship between the cost of producing products and their selling price. Thus, Bosshart contends, ‘individualization’, ‘flexibilization’, and ‘economization’ have permeated our consciousness and each of the three reinforces the other two. 

Individualization, he says means that there are no wishes that cannot be expressed legitimately and satisfied in the form of a product or service. Taken to its extreme he suggests that hyper-individualization can lead to what he calls ‘hyper-democracy’ which means that there is no value that does not have a legitimate claim to political realization and in the process distorting the agendas of parliaments and executives. If there are no limits to individualization then flexibilization means that the volatility of values becomes unlimited and pragmatism takes over. ‘No one wants a return to the old ideologies’ he says. ‘But we have lost the ability to think deeply about ideas or the direction we want to take.’[2]  This leads to economization where it is difficult to determine what anything is worth but prices remain the most important parameter and anchor. To advance the argument in each of these categories he assumes each is taken to the ‘hyper’ level but even if the argument is not taken that far, the implications can still be seen in the direction of our society.

This whole argument is quite complex and multilayered. Not everyone has bought the consumerist way of life, and some will actively resist it. Those who remember determining their purpose in life through their work may particularly resist, but the direction of travel seems to be clear and the forces that shape and drive that travel are very powerful, if difficult to define exactly.

What is clear though is that it will be no more fixed that any previous outlook on life may have been, however, significant it may have seemed at the time. Vanstone in his analysis of the Western world’s need for people to be productive and the sense of importance that went with it commented: ‘…the public attitudes to the present have their roots in the quite recent past… our tendency to identify the unique dignity of man with his manifold capacity to work and achieve has much to do with the need of an expanding capitalist system for a multitude of human producers.’[3]  None the less he identifies in the Protestant work ethic something that was implicit in the religious inheritance of medieval Europe which reaches into the deep and fundamental deposit of Christian doctrine which was the inheritance of the Middle Ages. Writing in the early 1980s, he sees the change from people being needed as producers to consumers but still feels that the ethical principles implanted in an earlier age will still persist as the presuppositions of a new phase.  Whether we would now think that to be the case and if not what ethical or philosophical principles might underlie consumerism merits continued examination.

The inclination to now find value in the act of consuming rather than in work does not mean that work is of no value, particularly if we do not ‘make’ anything physical. Many people still get satisfaction and derive interest from their work even if in a sense they are making ‘virtual’ products.  There is satisfaction in problem solving and providing a service even if it may be done through IT instead of with the tools of old. And many service jobs involve face to face contact with other people, which can be difficult if the ‘customer’ is not happy but equally can give considerable satisfaction if someone has been helped or sold a worthwhile service or product.    

Our view on all of this may be related to our age, though not just chronological age but through other influences that affect our outlook. This is brought out in a recent study ‘Making Sense of Generation Y: The world view of 15-25-year-olds’,[4] which shows that this age group has a world-view that finds this world and all of life meaningful as it is. However, we are not all quite the same, and it quotes the American pastoral theologian Tex Sample, who says:

Our senses, our feelings, our bodies, and our ways of engaging life are culturally and historically structured.  We do not have some singular human nature that is the same in all time and all places, but rather we are in great part made up of the practices, the relations, the form of life and the times of which we are a part.  I really am ‘wired differently’ from my children and my grandchildren.  What speaks to me does not speak to them.[5]

It goes on to comment that: ‘Sample is not denying that all human beings are made in the image of God and thus have a common core, which unites them as human. He is pointing out the power of culture to shape how we live in the world.’[6]

     



[1] David Bosshart, Cheap? The Real Cost of Living in a Low Price, Low Wage World (London, 2007), p.165    
[2] Bosshart, Cheap? The Real Cost of Living in a Low Price, Low Wage World, p. 172 
[3] W H Vanstone, The Stature of Waiting (London, 2004)
[4] Graham Cray, Sylvia Collins-Mayo, Bob Mayo and Sara Savage, Making Sense of Generation Y, (London, 2006)
[5] Cray, Collins-Mayo, Mayo and Savage, Making Sense of Generation Y, p.141  
[6] Cray, Collins-Mayo, Mayo and Savage, Making Sense of Generation Y, p.141  

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