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ReWriting the Human Story: How Our Story Determines Our Future
another thought experiment by Nikola Danaylov
Chapter 10: The Capitalism Story
…by directing that trade in such a fashion as its produce could also be of the best worth, he intends solely his personal acquire, and he’s on this, as in lots of different circumstances, led by an invisible hand to advertise an finish which was no a part of his intention. Neither is it at all times the more severe for the society that it was no a part of it. By pursuing his personal curiosity he ceaselessly promotes that of the society extra effectually than when he actually intends to put it on the market. Adam Smith
The human thoughts (mine too) loves narratives. Tales. Tales are phantasm. They’re so highly effective they invite delusion. Stewart Model
The tales of science, know-how, and progress are virtually inseparable from the story of capitalism. And Capitalism is just a comparatively trendy story instructed by nice storytellers – be it Adam Smith or Milton Friedman. So, if cash is the preferred story, then capitalism is probably going the 2nd hottest one. And if we’re to seize its story in a single phrase it’s progress. However the important thing level is that capitalism requires progress to not ship progress however to outlive. So, if we halt progress capitalism gained’t simply halt – it can collapse. Due to this fact progress is the purpose and progress is, at finest, a byproduct.
There are lots of explanation why capitalism requires progress to outlive – competitors, demographics, unemployment, inequality, credit score, mass manufacturing, vitality consumption, and so on. Essentially, nevertheless, capitalists go into enterprise to make a revenue. Which means that if somebody invests 100 {dollars} of capital they anticipate to obtain again greater than 100. And they’re blissful to repeat this course of over and over for so long as they’ll. Therefore we name it capitalism – a self-sustaining system the place capital provides delivery to increasingly capital. However in case you begin with 100 and find yourself with greater than 100 now we have progress as a result of it measures the variations between your beginning capital and what you find yourself with. That progress – or surplus, is the return on capital funding. If there isn’t a return on funding there isn’t a incentive to take a position. So funding ends and the system collapses.
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It was Protagoras who first claimed that “man is the measure of all issues”. Capitalism changed this inherent anthropocentrism with the free market so we are able to say that the free market is posthuman within the sense it doesn’t favor or put humanity within the heart of its worth system. Thus the free market grew to become the measure of all issues – be it materials objects comparable to agricultural items, client merchandise, the animals, the water we drink and the air we breathe, or immaterial ones – comparable to political, non secular, and different concepts or companies. Since our price system displays and is derived from our story and on condition that capitalism is our financial story, it’s no shock that progress has turn out to be the best ethical worth within the realm:
you need democracy – make sure that there may be financial progress; need political freedom – don’t choke off progress; extra alternatives for girls and minorities – it comes with progress; extra high-paid jobs – give attention to progress; much less air pollution – don’t impede progress. That’s why Invoice Clinton exclaimed: “It’s the financial system, silly.”
Briefly, in capitalism, unending progress is probably the most basic requirement. All the things else – be it political, social, authorized, or moral, is predicated on it and is subsequently secondary. So, it’s no shock that when the story of Local weather Change clashes with that of progress, progress at all times wins. As a result of the system is primed to self-sustain to not change or problem itself. Moreover, trendy economics tells us that every one merchandise have a given worth in addition to various substitutes. And local weather change, the surroundings, the animals, bushes, rivers and lakes, even human beings have now turn out to be mere merchandise inside our world capitalist system. All within the identify of progress, measured and valued inside the story of the free market.
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Capitalism is a fancy story that offers delivery to many different, smaller tales comparable to: the story of cash, provide and demand, the “Invisible Hand”, “the Free Market”, “survival of the fittest”, “the lone entrepreneur hero”, “the parable of the self-made millionaire”, “the advantage of selfishness”, “egoism is altruism”, “the shopper is at all times proper”, “a rising tide lifts all boats” and so forth. These, in flip, have their very own by-products comparable to short-term pondering, materialism, alienation, individualism, egoism, consumerism, deliberate obsolescence, environmental destruction, pricing every thing however valuing nothing, and so forth. Consequently, our relationship with life has stopped being mystical and by no means bought to be scientific – it’s financial. With one invisible hand – we save, and with the opposite – we destroy, all in response to the “legal guidelines” of provide and demand, and the “advantage” of selfishness.
Epictetus and the Buddha each famous that occasions haven’t any goal worth. And if we glance carefully we ought to notice that materials issues don’t have one both. No matter whether or not we’re contemplating occasions or materials issues their worth is subjective for it’s derived by and created in story – the story we connect to them. The truth is we dream of proudly owning and are prepared to pay due to and for the story, not a lot the product. The proof is plentiful however maybe finest exemplified by the Important Objects Venture.
In 2006 journalist Rob Walker purchased 200 thrift gadgets for a median worth of $1.25. These objects had been all second-hand, they weren’t particular or distinctive in any method, and had completely no intrinsic worth of their very own. Their unremarkable record included issues like a plastic banana, a plastic motel room key, a small plastic bust of a horse head, and so forth. Then Rob requested 200 authors to put in writing a narrative about every of the gadgets. Lastly, Walker auctioned the gadgets on eBay and obtained a complete of $8,000 with a median “worth” improve of 6,300% per merchandise. [For example, the plastic horse head he bought for 99 cents was sold for $62.95 after a story was written for it.] Due to this fact it isn’t the product itself the place worth originates however the story connected to it. Change the story of a ineffective product and you alter its worth thereby making it beneficial.
To conclude, capitalism is a narrative. A narrative that is determined by progress and assigns a financial worth to every thing on the earth. A narrative that’s reductionist in nature. Identical to science lowered our universe to the bodily world – i.e. physics. Equally, capitalism reduces our universe to its market or financial worth – i.e. cash. It tells how a lot one thing is price as derived from the tales we inform. So it’s story – before everything, that makes the distinction for creating worth, beginning with the preliminary Angel funding pitch all the best way to the ultimate product and why we purchase it. That’s the reason Seth Godin claims that “Uber and Google achieved what they achieved as a result of they had been triumphs of storytelling, not as a result of they had been triumphs of know-how. And so did Fb.”
It is for that reason that Rolf Jensen additionally notes:
The very best-paid particular person within the first half of this century would be the storyteller. All professionals, together with advertisers, lecturers, entrepreneurs, politicians, athletes and spiritual leaders, might be valued for his or her means to create tales that can captivate their audiences.