Saturday, June 6, 2015

Andorian sketch of commerce and inequality

We will begin with a brief examination of what physically occurs when a financial transaction takes place.  We will suppose this exchange occurs at a hardware store, before the widespread use of credit and debit cards.  The customer takes a ball of string from the shelf, carries it over to the cashier, who we will assume is also the owner of the store, and hands over $3.40 so he can take ownership of the string.  The "and" and "or" are operative on a number of levels.  Without dissecting each movement in painstaking detail, we can say that the "or" is being actualized when the dollar bills and coins are separated from the purchaser, and the "and" is working in tandem with the "or" when the seller takes possession of them.  Similarly, the "or" and "and" are working in tandem when the seller relinquishes possession of the string, and the purchaser assumes ownership of it.   The employment relationship is a similar set of and/or transactions.  The purchaser or employer takes temporary possession of the seller (employee) or that part of the seller that has a service to offer and relinquishes funds in return.

Commerce in general is a web of such or/and transactions. Overall, although it generates some degree of conflict, it brings people together and forces them to engage, however superficially.  In its own limited way, it decreases isolation, resulting in a more cohesive society.  Seller and buyer become acquainted, maybe even friends,  Thus, I would argue that the "and" and "or" work in tandem to increase the cohesiveness of society and strengthen the "and".

We can also see the destructive effect that extreme inequality can have upon this cohesiveness, this web or fabric that holds us together.   For when wealth is concentrated in the hands of a few, there are fewer transactions.  There will be dramatically fewer strands holding this web together.  It is possible that some of these strands, those spun by the few in whose hands wealth is concentrated, may seem powerful, but there is a great deal of space between these strands.  Fewer flies, or less nourishment can be absorbed from the surrounding environment.  The connections that can be built by those who are indigent are weaker.  The web can withstand fewer shocks.  Social unrest bubbles on the surface and financial calamity is a heartbeat away.

 It goes without saying that societies with a large middle class and less concentrated wealth are both more cohesive and more resilient. More can participate in the financial transactions that strengthen social bonds. The web is thick, more like a fabric.  More can take their friends out to dinner. More can develop relations with the business owner, restauranteur or real estate broker.  Since more money is spent (as it is well established that the very rich are more likely to save), more nourishment is imbibed from the environment that surrounds us.  Since wealth is distributed throughout, when financial calamity is experienced by a few, it is less likely to bring down society with it.     

In sum, society is healthiest when the and/or is functioning vigorously, when the and/or is diversified, and when the cohesion (and) that it thus creates is sufficient to withstand any conflict that inevitably when financial transactions do not proceed in accordance with expectations.   

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