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'''Associative Economics''' is a term used variously by different people around the world. For some of these the work of Austrian [[philosopher]] and social thinker [[Rudolf_Steiner|Rudolf Steiner]]<ref name=WE>Steiner, Rudolf [http://www.economics.goetheanum.org/954.html ''Economics - The World As One Economy''] </ref> is a key reference. Steiner gave a course of lectures in 1922 in which he set out his view that with the advent of [[global economy]], the science of economics would need to take a further step, which included an elaboration of the economic process, a more precise monetary analysis, and a clearer understanding of how, through the division of labour, the associative basis of economic life becomes apparent. ''Associative Economics'' emphasizes the development of conscious coordination of producers, distributors, and consumers. It understands the global economy as a single, closed domain, through which human beings meet one anothers needs.
'''Associative Economics''' is a term used variously by different people around the world. For some of these the work of Austrian [[philosopher]] and social thinker [[Rudolf_Steiner|Rudolf Steiner]]<ref name=WE>Steiner, Rudolf [http://www.economics.goetheanum.org/954.html ''Economics - The World As One Economy''] </ref> is a key reference. Steiner gave a course of lectures in 1922 in which he set out his view that with the advent of [[global economy]], the science of economics would need to take a further step, which included an elaboration of the economic process, a more precise monetary analysis, and a clearer understanding of how, through the division of labour, the associative basis of economic life becomes apparent. ''Associative Economics'' emphasizes the development of conscious coordination of producers, distributors, and consumers. It understands the global economy as a single, closed domain, through which human beings meet one another's needs.


The idea of associative economics is interpreted by some people with reference to [[community supported agriculture]], [[ethical banking]], [[social finance]], [[Community_land_trust|community land trusts]], and [[local currencies]].<ref>Lamb, Gary. ''Associative Economics: spiritual activity for the common good'' (Ghent, NY: AWSNA. 2010) 20, 145</ref>
The idea of associative economics is also interpreted by some people with reference to [[community supported agriculture]], [[ethical banking]], [[social finance]], [[Community_land_trust|community land trusts]], and [[local currencies]].<ref>Lamb, Gary. ''Associative Economics: spiritual activity for the common good'' (Ghent, NY: AWSNA. 2010) 20, 145</ref>


===Local and Global in a Threefold World===
===Local and Global===
Associative economics recognizes that trade needs to continue at national and international levels, but encourages a heightened activity at the local level (appreciating the central role of the individual entrepreneur and the inherent regulatory effect of face-to-face transactions between producers and consumers, or, at the very least, shorter supply chains). At the same time, it sees that the economic organism has truly become global - has moved beyond national boundaries - and therefore, that an overly-active involvement by national politicians can be harmful. While social and environmental regulations are certainly needed, the economy is best ''managed'' by those who are involved in its activity - by associations made up of all stakeholders (for this reason, it has also been described as an "Altruistic Stakeholder-Managed Economy").<ref>Karp, Robert. ''Toward an Associative Economy in the Sustainable Food and Farming Movement'' (New Spirit Ventures. 2007)</ref>
Associative economics recognizes the central role of the individual entrepreneur and the inherent regulatory effect of face-to-face transactions between producers and consumers. At the same time, it sees that the economic organism has truly become global - has moved beyond national boundaries - and therefore, when it is seen from a national perspective this is only partial and potentially harmful. Within the context of a legislative framework, the economy is best ''managed'' by those who are responsible for activities working in association with one another rather than 'unto themselves'. It has also been described as an "Altruistic Stakeholder-Managed Economy").<ref>Karp, Robert. ''Toward an Associative Economy in the Sustainable Food and Farming Movement'' (New Spirit Ventures. 2007)</ref>
This picture of an autonomously managed economy belongs to Steiner's overall conception of the threefold nature of social life.


===The Threefold Nature of Social Life===
This picture of an increasingly autonomous and self-regulating economy coincides with Steiner's overall conception of a threefold society. Advocates of what is often referred to as the "threefold social organism" or "[[social threefolding]]," promote the autonomy (the separation and conscious interaction) of the three realms of social life: [[economy]], [[polity]], and [[culture]]. They see in the cry of the [[French Revolution]] - "[[Liberté, Égalité, Fraternité]]" - three fundamental ideals of the modern human being that can only find their rightful (and compatible) place in these three spheres.<ref>Steiner, Rudolf. ''Towards Social Renewal'' (Great Barrington: SteinerBooks. 1999)</ref> Freedom and self-determination in the cultural realm - to believe, express, and develop as one sees fit; fraternity (brotherhood/sisterhood) in the economic realm - where, through shared work and division of labor, individuals come together to meet the needs of the whole; and equality in the political realm - where all citizens can come together to agree on their needs, decide what is equally right for all. This can include both laws that safeguard citizens as well "benefits" such as education, healthcare, [[basic income]], etc.
Advocates of what is often referred to as the "threefold social organism" or "[[social threefolding]]," promote the autonomy (the separation and conscious interaction) of the three realms of social life: [[economy]], [[rights]], and [[culture]]. They see in the cry of the [[French Revolution]] - "[[Liberté, Égalité, Fraternité]]" - three fundamental ideals of the modern human being that can only find their rightful (and compatible) place in these three spheres.<ref>Steiner, Rudolf. ''Towards Social Renewal'' (Great Barrington: SteinerBooks. 1999)</ref> Freedom and self-determination in the cultural realm - to believe, express, and develop as one sees fit; fraternity (brotherhood/sisterhood) in the economic realm - where, through shared work and division of labor, individuals come together to meet the needs of the whole; and equality in the rights realm - where all citizens can come together to make agreements, decide what is equally right for all.


=== Land, Labor, and Capital===
=== Land, Labor, and Capital===
What might be viewed as a dangerous proposition, the deregulation of business, is counterbalanced through its cooperation with equally strong consumer associations. Besides this though, many things which today are considered commodities within the "free-market" framework are to be removed from that category, namely: [[Land_(economics)|land]], [[Labour_(economics)|labor]], and [[Capital_(economics)|capital]]. These so-called "factors of production" are actually matters of right which simply border the economic realm on all sides. Land is part of the [[commons]]. It is our common heritage, a resource that belongs to all (including future generations) which needs to be stewarded by those most capable to meet current needs (in this, Steiner corroborates many notable thinkers including [[Chief Seattle]]<ref>Chief Seattle [http://www.context.org/ICLIB/IC03/Seattle.htm Letter to President Pierce], 1855</ref> and [[Thomas Jefferson]]).<ref>Jefferson, Thomas [http://www.let.rug.nl/usa/P/tj3/writings/brf/jefl81.htm "The Earth Belongs to the Living"] - a letter to James Madison, Paris, 9/6/1789</ref> Steiner views labor as a form of "wagery," a descendant of serfdom and slavery (where once we sold our whole body, now we sell our time), as well as an economic untruth, an impossibility which we allow to persist:
Many things which today are considered commodities within the "free-market" framework are to be removed from that category, namely: [[Land_(economics)|land]], [[Labour_(economics)|labor]], and [[Capital_(economics)|capital]]. These so-called "factors of production" are actually matters of right which simply border the economic realm on all sides. Land is part of the [[commons]]. It is our common heritage, a resource that belongs to all (including future generations) which needs to be stewarded by those most capable to meet current needs (in this, Steiner corroborates many notable thinkers including [[Chief Seattle]]<ref>Chief Seattle [http://www.context.org/ICLIB/IC03/Seattle.htm Letter to President Pierce], 1855</ref> and [[Thomas Jefferson]]).<ref>Jefferson, Thomas [http://www.let.rug.nl/usa/P/tj3/writings/brf/jefl81.htm "The Earth Belongs to the Living"] - a letter to James Madison, Paris, 9/6/1789</ref> Steiner views labor as a form of "wagery," a descendant of serfdom and slavery (where once we sold our whole body, now we sell our time), as well as an economic untruth, an impossibility which we allow to persist:


:''"They actually speak as though a kind of sale and purchase took place between the wage-earner who sells his Labour and the man who buys it from him. But this sale and purchase is fictitious. It does not in reality take place... In reality... it is ''values'' which are exchanged. The worker produces something directly; he delivers a product, and it is this product which the enterpriser [Unternehmer] really buys from him. In actual fact, down to the last farthing, the enterpriser pays for the products which the workers deliver to him. It is time we began to see these things in their right light."''<ref name=WE/>
:''"They actually speak as though a kind of sale and purchase took place between the wage-earner who sells his Labour and the man who buys it from him. But this sale and purchase is fictitious. It does not in reality take place... In reality... it is ''values'' which are exchanged. The worker produces something directly; he delivers a product, and it is this product which the enterpriser [Unternehmer] really buys from him. In actual fact, down to the last farthing, the enterpriser pays for the products which the workers deliver to him. It is time we began to see these things in their right light."''<ref name=WE/>

Revision as of 10:50, 16 March 2011

Associative Economics is a term used variously by different people around the world. For some of these the work of Austrian philosopher and social thinker Rudolf Steiner[1] is a key reference. Steiner gave a course of lectures in 1922 in which he set out his view that with the advent of global economy, the science of economics would need to take a further step, which included an elaboration of the economic process, a more precise monetary analysis, and a clearer understanding of how, through the division of labour, the associative basis of economic life becomes apparent. Associative Economics emphasizes the development of conscious coordination of producers, distributors, and consumers. It understands the global economy as a single, closed domain, through which human beings meet one another's needs.

The idea of associative economics is also interpreted by some people with reference to community supported agriculture, ethical banking, social finance, community land trusts, and local currencies.[2]

Local and Global

Associative economics recognizes the central role of the individual entrepreneur and the inherent regulatory effect of face-to-face transactions between producers and consumers. At the same time, it sees that the economic organism has truly become global - has moved beyond national boundaries - and therefore, when it is seen from a national perspective this is only partial and potentially harmful. Within the context of a legislative framework, the economy is best managed by those who are responsible for activities working in association with one another rather than 'unto themselves'. It has also been described as an "Altruistic Stakeholder-Managed Economy").[3] This picture of an autonomously managed economy belongs to Steiner's overall conception of the threefold nature of social life.

The Threefold Nature of Social Life

Advocates of what is often referred to as the "threefold social organism" or "social threefolding," promote the autonomy (the separation and conscious interaction) of the three realms of social life: economy, rights, and culture. They see in the cry of the French Revolution - "Liberté, Égalité, Fraternité" - three fundamental ideals of the modern human being that can only find their rightful (and compatible) place in these three spheres.[4] Freedom and self-determination in the cultural realm - to believe, express, and develop as one sees fit; fraternity (brotherhood/sisterhood) in the economic realm - where, through shared work and division of labor, individuals come together to meet the needs of the whole; and equality in the rights realm - where all citizens can come together to make agreements, decide what is equally right for all.

Land, Labor, and Capital

Many things which today are considered commodities within the "free-market" framework are to be removed from that category, namely: land, labor, and capital. These so-called "factors of production" are actually matters of right which simply border the economic realm on all sides. Land is part of the commons. It is our common heritage, a resource that belongs to all (including future generations) which needs to be stewarded by those most capable to meet current needs (in this, Steiner corroborates many notable thinkers including Chief Seattle[5] and Thomas Jefferson).[6] Steiner views labor as a form of "wagery," a descendant of serfdom and slavery (where once we sold our whole body, now we sell our time), as well as an economic untruth, an impossibility which we allow to persist:

"They actually speak as though a kind of sale and purchase took place between the wage-earner who sells his Labour and the man who buys it from him. But this sale and purchase is fictitious. It does not in reality take place... In reality... it is values which are exchanged. The worker produces something directly; he delivers a product, and it is this product which the enterpriser [Unternehmer] really buys from him. In actual fact, down to the last farthing, the enterpriser pays for the products which the workers deliver to him. It is time we began to see these things in their right light."[1]

Lastly, capital is the added value built up through the application of intelligence to labor. It is the human spirit manifest in the economic process. Often taking the form of money, it further frees and empowers the entrepreneur to apply their intelligence. The artist and "social threefolder" Joseph Beuys famously stated this truth as "Art=Capital" (Kunst=Kapital), or alternatively, for his art piece in the 'Luna Luna' art fair in 1987, "Money is not CAPITAL at all. CAPACITY is CAPITAL."[7] Capital is therefore also a product of our common heritage (this time cultural), and derives especially from our access to education.

In an Associative Economy, therefore, land, labor, and capital would be treated as rights phenomena to be held in trust on behalf of the community and consequently managed by those with both the desire and capacity.

Overall, there are no examples of large-scale communities or societies which apply all of the above principles; instead we see them taken up piece-meal and in smaller initiatives. One of the most significant, and successful, economic endeavors that one could see as aligned with associative principles is the Mondragon Corporation in Spain (employing over 85,000 people in over 250 different worker-owned companies which work cooperatively together). Smaller communities inspired by Steiner's economic and social ideas include the Camphill Villages (over 100 on 5 continents) and the SEKEM Initiative near Cairo, Egypt.

Notes

  1. ^ a b Steiner, Rudolf Economics - The World As One Economy
  2. ^ Lamb, Gary. Associative Economics: spiritual activity for the common good (Ghent, NY: AWSNA. 2010) 20, 145
  3. ^ Karp, Robert. Toward an Associative Economy in the Sustainable Food and Farming Movement (New Spirit Ventures. 2007)
  4. ^ Steiner, Rudolf. Towards Social Renewal (Great Barrington: SteinerBooks. 1999)
  5. ^ Chief Seattle Letter to President Pierce, 1855
  6. ^ Jefferson, Thomas "The Earth Belongs to the Living" - a letter to James Madison, Paris, 9/6/1789
  7. ^ Beuys, Joseph. What is Money? (Forest Row, England; Clearview. 2010) 26

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Journals and Articles


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