Understanding Economic Morality: Social Systems and Human Interaction

Forms of Economic Morality in Society

This treatise explores three distinct forms of economic morality inherent in every society. These are:

• Communism
• Exchange
• Hierarchy

It's crucial to understand that these are not political regimes; rather, they are fundamental principles that coexist and combine within any given society.

The Principle of Communism in Society

It is vital not to confuse this concept of communism with the political ideology associated with the USSR; these are distinct terms. The economic morality of communism, as discussed here, defines any human relationship operating under the principles of "each according to his possibilities; each according to his needs."

This principle forms the very basis of human sociability, making society possible. We all engage in this form of communism for significant portions of our lives, though no one does so constantly. Whenever two people interact, we can often observe elements of this economic morality.

For instance, if a plumber is fixing a broken pipe and asks his partner, "Give me the key," the partner won't typically ask, "And what do I get in return?" This is because the plumber assumes the partner doesn't expect anything in return, a common dynamic in many everyday interactions.

However, there are exceptions, such as the Nuer people, who reportedly gave an anthropologist incorrect directions when asked for a specific location. A compelling positive example comes from Native American cultures: upon returning from fishing, hunting, or trading, they would often host a banquet for the entire tribe, demonstrating remarkable hospitality and communal sharing.

Understanding Economic Exchange

This form of economic morality, often referred to as exchange, is fundamentally based on the principle of equivalence. It is a reciprocal, round-trip process where both parties give as much as they receive. Exchange inherently presupposes that participants are formally equal, engaging in an "equal to equal" relationship.

We can differentiate two primary forms of exchange:

• Barter or Commercial Exchange
• Gifts (though not detailed further in this text)

Barter and Commercial Transactions

The main characteristic of barter or commercial exchange is its impersonal nature. Ideally, the identity of the seller or buyer should be irrelevant, as the focus is solely on comparing the value of the objects or services being exchanged. However, in practice, a minimum level of trust is almost always necessary for such transactions to occur smoothly.

This type of exchange can involve either money (an object exchanged for currency) or direct barter (an object exchanged for another object). In commercial transactions, one party often attempts to gain a greater benefit or profit from the exchange than the other. A common illustration is negotiating at a fair: the vendor aims to sell at the highest possible price, while the buyer seeks the lowest. This dynamic necessitates negotiation, ultimately leading to either a point of equilibrium or one party conceding, allowing the other to secure a greater advantage.