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Hello All,<br>
<br>
One way to distill this critique further would be to suggest that
conventional exchange systems (i.e. money) are measured in
one-dimension (quantity) whereas value is a multi-dimensional concept.<br>
<br>
At Access Space we work with (at least) three value dimensions:
Exchange Value (which maps onto money value) Symbolic Value (how cool
it is, or what it means in symbolic terms) and Utility Value (how
useful it is). (Arguably, we also work with a fourth value metric:
Time).<br>
<br>
One value dimension can sometimes be traded for another, but not always
at a constant rate. In some cases value exchange between systems is
impossible.<br>
<br>
You can see examples of business models which exploit these other value
dimensions. For example, Harley Davidson produce and sell aftershave to
exchange some of their symbolic value (Harleys are cool!) for Exchange
Value. However, if they over exploit the exchange, they'll cease to be
cool, because people will realise that they're an aftershave
manufacturer, with a bike-orientated publicity strategy - which isn't
cool at all.<br>
<br>
In our media lab we exploit discontinuities between value systems - we
recycle computers for use in the lab and the community. Three or four
year old computers are not cool - they're in a trough of low value.
Inefficient software gives the false impression that they have low
utility value. Users are generally insufficiently skilled to optimise
their functions, so they appear to have low utility value.<br>
<br>
We refurbish the computers, optimising their utility value, and rebrand
them as "green" and "anti-corporate" technology, which increases
symbolic value in niche markets. (Although notice that "mainstream"
symbolic and exchange value is still very low, as greenness is eclipsed
by a marketing push to misinform users about utility value).<br>
<br>
We also re-value participants themselves. Unemployed people may have
low exchange capacity (i.e. no money) and low symbolic value (it ain't
cool to be kicking your heels). But thye have high utility value - they
have available time which can be exchanged for skill-acquisition and
creative activity.<br>
<br>
Notice the way that throughout history people who are disempowered by
mainstream valuation systems have used the creative, symbolic value
axis as a route to increased valuation. (Born in the ghetto? Got no
cash, no useful skills? Maybe - but the way he walks has style!) Notice
also how value along many axes is a slippery concept - keep something
unfashionable long enough and it regains value (e.g. old computers lose
utility but gain retro-chic).<br>
<br>
Sometimes exchange rates across value axes are proportional, but in
other cases they may be unrelated, or even inversely proportional.<br>
<br>
As small elites becomes increasingly (and unjustifiably) super rich,
they cannot help but become less free (lowered utility value) and less
cool (lower symbolic value). If their symbolic value bottoms out,
revolution happens and people end up hanging from lamp posts. (c.f. The
Arab World, 2011.)<br>
<br>
Let's hope that re-understanding of valuation occurs before
negative-sum unpleasantness.<br>
<br>
Best Regards,<br>
<br>
James<br>
=====<br>
<br>
On 20/05/11 10:43, Jack Marxer wrote:
<blockquote
cite="mid:BANLkTimd8bp0QDqvZ-G3tuApg0jgF=_1HQ@mail.gmail.com"
type="cite">I think this is a very concise and valuable criticism of
money as we know it.<br>
<br>
Jack<br>
<br>
<div class="gmail_quote">On Fri, May 20, 2011 at 8:06 AM, Karl
Robillard <span dir="ltr"><<a moz-do-not-send="true"
href="mailto:krobillard@san.rr.com">krobillard@san.rr.com</a>></span>
wrote:<br>
<blockquote class="gmail_quote"
style="border-left: 1px solid rgb(204, 204, 204); margin: 0pt 0pt 0pt 0.8ex; padding-left: 1ex;">I
don't see how the alternative currency experiments like Bitcoin do
anything<br>
to help us move to a more egalitarian, steady-state economy.<br>
<br>
An economist will tell you that "price is information", but I'm not
sure how<br>
they justify that. An ounce of crack, a few hours of music lessons, a
lawn<br>
mower, or a couple hours of labor might all be $100. None of these can<br>
remotely be considered the same, but yet the dollar value is identical.
Any<br>
mechanism which equates these is an absurd abstraction which eliminates
a<br>
great deal of useful information. This dearth of relational data is a<br>
fundamental feature of money which turns the economy into a valuation
game.<br>
Over time, the wealth gap between those who game the system well and
those<br>
that don't becomes so great that a jubilee or a revolution is needed.<br>
<br>
I see open source production and modern information technology as
powerful<br>
tools which allow us to more fully value things. They are important
because<br>
they help make money (just a primitive form of information technology,
IMO)<br>
obsolete. I just don't understand why people want to continue to treat
the<br>
economy as a game.<br>
<br>
<br>
-Karl<br>
<br>
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<br>
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<pre class="moz-signature" cols="72">--
James Wallbank
CEO, Access Space Network Ltd.
Access Space, Unit 1, AVEC Building, 3-7 Sidney St, Sheffield S1 4RG
Access Space is UK Registered Charity: #1103837
Tel: +44 (0)114 2495522
Fax: +44 (0)114 2495533
Web: <a class="moz-txt-link-freetext" href="http://access-space.org">http://access-space.org</a>
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