Thanksgiving and the economics of sharing
Dan here…this piece is originally published at Oxford University Press by Angry Bear Edward Lambert.
by Edward Lambert
Thanksgiving and the economics of sharing
For this American, my favorite holiday has always been Thanksgiving. Why? I have an image in my mind of Native Americans and colonists meeting and sharing food together; they share knowledge and stories. In the midst of their concerns about each other, they found respect for each other. Their spirit of sharing is a great inspiration.
As an economist in this upside-down world of people stressing over their future and present, I find answers in that image of Thanksgiving. People eventually survive by sharing with each other as a community. The poor are fed. The sick are cared for. The struggling are helped, and communal ties are strengthened.
There is a term in economics, social capital. This term refers to the cultural interactions within a society forming cohesion, coordination, and cooperation that allow an economy to function better. An economy relies on people from diverse backgrounds talking, sharing concerns, negotiating, making plans, and working toward common goals. The social quality of their communication determines the true strength and potential of their economy.
When the Native Americans and the colonists met and shared, I see social capital being built. The society became stronger. People would be better able to have their needs met. There would be less conflict and more enjoyment of work. The societuy would be able to grow in potential.
The focus of my research as an economist is in the area of labor share, which is the percentage of the income from production that is shared with labor. I research how changes in labor share affect such things as potential production, employment, productivity, investment, and even monetary policy from a central bank.
In almost all advanced countries, even in China where labor share was already low, labor share has fallen in an exorbitant way since the turn of the century. What has been the effect of labor receiving less share of a national income? Potential output has fallen. Unemployment will be higher than before. Productivity growth will stall much quicker, or even fall as in the United Kingdom. Nominal interest rates from central banks will be stuck near 0%.
The fall in labor share represents a problem in the social capital of advanced countries. Labor is being excluded from economic development. Their concerns are not being heard, while corporate profits extend to new records. Labor’s wages are expected to fall in order for companies to be more competitive globally.
Stop. Take a moment of silence.
Acknowledge the growing problem of inequality, and return now to celebrate this holiday of Thanksgiving. Within this day exists the answers to our economic concerns. As societies, we only need to share more. And in sharing, we show our respect for the value of people within society.
A man can’t get rich if he takes proper care of his family.
The Navajo, or Diné, have a saying: “A man can’t get rich if he takes proper care of his family.” The wisdom embodied in this saying is immense. The wisdom not only assures the strength of each member of the community by building social capital, but it assures a stronger economy.
Now we need to answer the question: Who is family?
Here comes the true meaning of Thanksgiving: We are all family. The poor, the rich, the uneducated, the educated, the powerful, and the powerless, as well as those of different races and cultures. Families, friends, and strangers are invited into our homes to celebrate Thanksgiving. The abundance is shared and ties of respect are celebrated.
The extent to which a society can see everyone within the society as family determines the potential of their economy and eventually the quality of life. So Thanksgiving is a moment to celebrate how different people can embrace each other in a spirit of sharing. In that sharing, a broader vision of family is cultivated. In that vision, sick economies can be healed.
Plymouth Plantation Governor Bradford faced scarcity during the first few communal years, tweaked the community such that it became more individualistic to generate the abundance to share.
“All this while no supply was heard of, neither knew they when they might expect any. So they began to think how they might raise as much corn as they could, and obtain a better crop than they had done, that they might not still thus languish in misery. At length, after much debate of things, the Governor (with the advice of the chiefest amongst them) gave way that they should set corn every man for his own particular, and in that regard trust to themselves; in all other thing to go on in the general way as before. And so assigned to every family a parcel of land, according to the proportion of their number, for that end, only for present use (but made no division for inheritance) and ranged all boys and youth under some family. This had very good success, for it made all hands very industrious, so as much more corn was planted than otherwise would have been by any means the Governor or any other could use, and saved him a great deal of trouble, and gave far better content. The women now went willingly into the field, and took their little ones with them to set corn; which before would allege weakness and inability; whom to have compelled would have been thought great tyranny and oppression.
The experience that was had in this common course and condition, tried sundry years and that amongst godly and sober men, may well evince the vanity of that conceit of Plato’s and other ancients applauded by some of later times; and that the taking away of property and bringing in community into a commonwealth would make them happy and flourishing; as if they were wiser than God. For this community (so far as it was) was found to breed much confusion and discontent and retard much employment that would have been to their benefit and comfort. For the young men, that were most able and fit for labor and service, did repine that they should spend their time and strength to work for other men’s wives and children without any recompense. The strong, or man of parts, had no more in division of victuals and clothes than he that was weak and not able to do a quarter the other could; this was thought injustice. The aged and graver men to be ranked and equalized in labors and victuals, clothes etc., with the meaner and younger sort, thought it some indignity and disrespect unto them. And for men’s wives to be commanded to do service for other men, as dressing their meat, washing their clothes, etc., they deemed it a kind of slavery, neither could many husbands well brook it. Upon the point all being to have alike, and all to do alike, they thought themselves in the like condition, and one as good as another; and so, if it did not cut off those relations that God hath set amongst men, yet it did at least much diminish and take off the mutual respects that should be preserved amongst them. And would have been worse if they had been men of another condition. Let none object this is men’s corruption, and nothing to the course itself. I answer, seeing all men have this corruption in them, God in His wisdom saw another course fitter for them. ”
http://www.fordham.edu/halsall/mod/1650bradford.asp#Private%20and%20communal%20farming
(or p. 134 of the original: http://books.google.com/books?id=tYecOAN1cwwC&printsec=frontcover&dq=History+of+Plymouth+Plantation&ei=7lAMS6fcJ4m2NcXtsXM#v=snippet&q=boats&f=false)
Then too for the Puritans and all the colonists, most of whom were religious, there was the example of communal living in the Acts of the Apostles in the New Testament.
None of this worked out very well for the Native Americans.