Ok, not exactly. But sort of. :-)
The problem I want to discuss here is actually quite complex; ancient; and widely misunderstood. Which means what follows below may seem rambling, and irrelevant from time to time. Hang in there- it all comes together eventually.
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There was a really good discussion about the "informal economy" over on Sharon's. Some of it got sidetracked into a little discussion on feminism, and some into problems with nomenclature. I got well tangled up in both of those, and even stirred the pot a bit. So here we are, with a little expansion and pot stirring on my own recognizance.
Sharon's post title was "Reinventing the informal economy", and has loads of thoughts that are well worth pondering. There's little she says there that I would quibble with. Part of the subsequent discussion though got off into definitions and names- and there I have something to add, I think.
Names are important. Really really important. We've all seen what a total disaster "Global Warming" and "Swine Flu" have been. They allow endless attacks and diversions from the parties whose interests are threatened - or excursions into nonsense. The people responsible for those names are, ultimately responsible for a great many human deaths. Sorry- but that's true. People are dying right now (300,000/year, according to one estimate) - because obstruction was facilitated by the bad name. And farmers, and all middlemen, have lost millions because of the idiot repetition of "swine flu" for a human disease.
Could it have been done better? Of course. "Climate Change" is much less open to attack; and "New Flu" would serve headlines perfectly. The Climate Change alternative has been around since the outset- but it was too late, the "journalists" (ha) had already fixated on Global Warming! which sounds sexier. And the CDC tried to implement "Novel influenza A (H1N1)", but again, too late, and in this case that was an idiot alternative, doomed to failure as any marketing wonk could have told them (that, I'll guarantee, is a name chosen by a committee of scientists- with no public relations personnel present.)
Names are important. In the present case, I started off by gratuitously mentioning in the discussion at Sharon's that I'm launching a movement (YOU are invited!) to eradicate the word "consumer". It reduces, actually, to "Hi! I'm an alimentary tract! Holes at both ends! Eat and sh*t, that's my life! And I love it!"
It's a pretty stunning insult, but one we've just accepted without evaluation or protest. At this point, though, I'll be damned if anyone will call me a consumer. Call me "citizen", if necessary to point out my most basic role in the community.
Where does the word come from? From the fantasy world of "economics", which everyone should understand by now is a world of wish fulfilment, rationalization, dream, and nightmare; with no actual basis in any reality. Except we have somehow allowed these self deluded charlatans to become "professors", and establish "departments" in universities. So way back there, they started talking about "producers" and "consumers". And we just accepted it- they must know, right? They're professors!
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Which is where "the problem is: men" comes in.
What follows is my own analysis, built up over years of pondering history, human behavior, and anthropology. I think it has a lot to recommend it; though inevitably, some will not like it.
Can we agree that much of the history of Christianity has strayed quite far from anything the founder(s) of the religion intended?
The evidence, I think, is pretty good that original Christian communities were quite egalitarian- and women were included on an equal- power- basis. But that changed.
The most common situation among primal peoples (that word choice, vs "primitive" was explained to me by my friend Jack Gladstone; Blackfeet troubadour and storyteller, and double philosophy and anthropology major...) is that men and women have nearly equal power in the community- but- men's power, and women's power are different, based on different "magic".
I think that in primal situations, equal power of men and women is the situation that will most often win out, in competitions between cultures. Generally- equal partners will compete harder, and contribute more, than any arrangement where one sex is subjugated.
But in settled "civilized" circumstances- other factors may come into play which make that aspect of the culture less compelling. With the rise of the cities- women started to be subjugated more and more- and military power rose in importance.
The trend is older than Christianity; but most visible there, I think. Judaism also shifted in antiquity from a matriarchal system to patriarchal (thank you, oh lord, that you did not make me a woman...! feel free to correct me, Sharon!). And Islam also; while women still have great power in the household; they are allowed no role in larger community concerns. And yes, I'm talking just about Western cultures here- because that's the one most of the readers here live in.
As Christianity moved into the Middle Ages, women's power was stripped from them by the Church- and "women's magic" became a matter of warfare- "wise women"- witches - were systematically eradicated, in very ugly fashion.
About the same time, two new endeavors arose- "universities"- and "history". These arenas, I contend, were launched entirely as men's enterprises- no women allowed. And they dealt solely with men's "magic"; or power, concerns. "History", for most of its course, has been just a list of men's power achievements; wars and governments. "Universities" became machines to train men for power- and to develop new paths to power; that is why kings built and funded them.
Medicine; typically a women's magic in the West, was stolen by men, and installed in the universities. "Doctor", in fact, is not a term originally applied to physicians; but to professors. When barbers sought higher credibility, they stole the term for the respect it conveyed. The theft has been so complete and successful that PhD's now can be heard apologizing that they aren't a "real" doctor, but only a PhD; not even knowing the history of the term themselves.
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What does this have to do with the "informal economy" question?
When "economics" was launched, universities were still entirely men's enterprises- and it was so unquestioned as to be unnoticed (by men...)
Consequently; when men first started to think about analyzing how resources move in a culture, and what is important, and what is not- they thought, of course, entirely in terms of men's concerns.
Of course their own parts were the most important- and the bits that had to do with what are traditionally women's enterprises were - not important.
Hence- they named the monetary economy "formal"; and the household economy- "informal" - which means, in case you can't tell- unimportant; negligible; not worth thinking about. And for lack of any alternative analysis- we still call it so today.
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Back to anthropology for a moment.
I am one of those who always looks to the primal peoples; the hunter-gatherers; for clues to our present behavior. Homo lived as hunter-gatherers for the great majority of our existence; all species of Homo lived that way- until sapiens. That would mean some 2 million years as hunter-gatherers, and perhaps 15,000 as pastoralists and agriculturalists; even less time as city dwellers. Our genes are full of adaptations for the hunter-gatherer life.
While huge variations in cultural specifics exist among hunter gatherers, there are a few things that stand as reliable generalities.
Men hunt- women gather.
Women bear children. Men don't.
Women run the household, tend the fire- anchored by small children.
Women contribute most of the calories, in small game, vegetables, fruits, nuts, grains.
Men contribute most of the protein, much of the fat, in huge chunks when a kill is made.
Men contribute protection for the family- to the point of cheerfully dying when necessary - to protect - the household.
Now think about that. The household- is worth dying for.
Most of this is generated by the fact that men are never pregnant, nor nursing- thus much more capable of unencumbered hunts or fights. The division quickly becomes a positive-feedback loop, and turns into sexual selection yielding males that are a good deal larger than females, with thicker skins and bigger muscles.
There is one other thing men contribute, but it's less well known outside the inner circles of anthropology; so, another little diversion here.
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Men, it turns out, are often jealous of women's power. Women alone create life- and what a huge power that is.
My Anthro 101 prof gleefully told us of a tribe in Africa; where the jealousy was so strong that the men made up a power of their own, to be able to compete better with the women.
When the men reach puberty; part of the coming of age ceremony included inserting a wooden plug in the anus. And the initiate never poops again, in his entire life. Cool, huh! Huge magic!
And it is, of course, a huge lie; you can't not poop. The reality is; the boys learn to go out in the bushes and do it secretly, and they pretend they don't. The women- of course - know all about this. But they pity the men, so they don't publicly expose the lie. They do laugh about it in the Women's House, though. A lot. And many of the men, while they of course know it's all a lie; do believe that they actually have the women fooled. Self-serving delusion- a phenomenon currently on display on Wall Street.
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Partly as a result of this ancient inferiority complex, and partly as a matter of biology, the other thing men contribute to their household is- status.
It's been demonstrated in many different species, from domestic chickens on up to humans, that high-status individuals have stronger offspring, and the status passes to them.
For humans, men have for millennia spent great amounts of energy to acquire status. In my own mind, I reduce that goal to - "ostrich feathers". The more ostrich feathers you have; the higher your status- the more successful your offspring.
Ostrich feathers today can easily be read as "money", and "power". Among other things, of course. A Nobel Prize is a really big feather. Etc. Women of course seek status too, and nowadays can seek it in what used to be men's arenas; but I think women have status mechanisms that are solely their own, as well. Female status has also been shown by research to contribute to offspring success.
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Back to formal/informal economy. What I hope to have shown by the long discourse above is that this terminology was set up by men- for men's purposes- and to increase the number of ostrich feathers available to men in this arena. The terminology has no other reason for existing- and is not the result of dispassionate investigations into reality.
Over on Sharon's original post, two respondents had excellent suggestions for alternative names; MJ suggested "essential economy", and Leslie suggested "natural". Both of those are true, and correct. However, from my long training in marketing- I can foresee difficulties down the line for both. Briefly- "essential" suggests too strongly (intended or not) that other aspects of the economy are not- and will make enemies. "Natural" - sounds too "green" (intended or not); and you'll lose a good deal of audience there. Let me repeat- they're both absolutely accurate.
Finally!!! My suggestion:
The "informal" economy IS; and should be renamed: "the Primary Economy".
Primary does not necessarily imply more significance- just that it was first. Which is totally undeniable, I think. I also think it unavoidably sounds important; unlike "informal".
That would make the "formal economy" the "Secondary Economy". Built upon the first.
Another brief aside- what is the purpose of the Secondary Economy? Why do people leave the home, to go to work outside? Manifestly- to bring resources back to the household- and put them into the Primary Economy. It would not be unreasonable to suggest that the entire Secondary Economy was created specifically to serve the Primary Economy. I think the nomenclature is appropriate; could be acceptable to many, and far better designates the relationships.
As a humorous addition- the Wall Street wonks refer to the Secondary Economy as "the real economy." You know, the one where people make stuff, and do things. As opposed to what they do on Wall Street, the "financial sector of the economy".
I will propose, in facetious/serious tones, that the "financial sector" of the economy be renamed the "Sandbox Economy". They just push piles of stuff around, from one place to another. Make nothing; do nothing, achieve nothing of tangible value. And squabble. Over ostrich feathers.
One other point in favor of Primary Economy. As many of you already know- the words "economy", "economics", and "ecology" all stem from the same Greek root: oikos.
Which means "home"; or "household"; or "family". I maintain- the household economy, and all its "informal" connections; is the Primary Economy. And should be so designated.
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If you like this suggestion- please do start to use the terms, and refer people to this post for an explanation of why. It might go viral, who knows- and it would only be a matter of justice. At this point, as you can probably tell, I find the term "informal" to be actively offensive. And outrageously misleading.