Hi Keith,
 
I just consulted my dictionary to see what it says about "status".  It says two things that seem to fit what we are talking about.  One is position or rank [of a person] in the eyes of others.  The second is the position or rank [of a person] in a hierarchy of prestige.  I would agree that the first definition is universal.  Among hunters and gatherers, the most effective hunters or gatherers are recognized and emulated by others.  Among agricultural people, good farmers are given similar recognition.  No hierarchy is required.  Good is good, and that's about it.
 
The second definition requires a hierarchy and a ranking system.  Whether they have done something well or not, some people are placed on prestigious pedestals while others march around them.  Perhaps there is a universal tendency toward such behaviour once a society reaches a certain level of complexity, but there may be an almost equal tendency to do away with rankings and hierarchies of the pedestal kind.  The discussion about Hobbes seems relevant here.  People merge their interests into societies of their own free will because it is rational to do so.  They appoint or elect people to govern because that is necessary if society is to function.  Yet the people that are appointed or elected have no special rights under the law and can be removed if need be.  Some people may still want to put them on pedestals, but that is not the intent of the society as a whole.
 
In any event, complexity seems to be the important thing.  The people I dealt with in northern Canada followed the first definition, and did not have rankings and hierarchies until we imposed them by making them follow our system of governance.  What we did was complicate their lives and their societies to the point that rankings and hierarchies became a necessity.  Once they were in place, status in the sense of pedestals gradually crept in.

On the matter of a basic income, I don’t think a government could proceed without giving a lot of thought to why it was doing it. Would it be a mechanism to facilitate adjustment to economic change, or would it be a universal anti-poverty measure? It would also have to take a thorough look at the costs and benefits. On the cost side, a basic income would put an additional strain on government finances and might require a more progressive tax system or some reallocation of existing expenditures. The benefits could include matters such as a healthier population, kids who are more able to cope with school, and probably a significant reduction of the social costs associated with crime and the need to incarcerate people. There would be problems, a major one being that the financial costs would be perceived as being immediate while the benefits would only accrue in the longer run. Equity would be another problem - how to design a system that is basically fair to both those who pay and those who receive payments. And we all know people cheat, so a policing system would have to be devised.

Personally, I think a basic income program is feasible in a rich country and may even be possible to initiate by reallocating existing expenditures. In Canada we already have a variety of programs, such as employment insurance, the Canada Pension Plan, the Child Tax Benefit, and various Provincial welfare/workfare programs, that might be rolled into a basic income. If the object were the facilitation of adjustment to economic change rather than universal anti-poverty, a system of premiums scaled to salary might be utilized. It would take a lot of work and planning, but I believe it could be done.

Ed

----- Original Message -----
Sent: Friday, December 05, 2003 4:09 PM
Subject: Re: Slightly extended (was Re: [Futurework] David Ricardo, Cavema n Trade vs. Modern Trade

Ed,

At 14:31 05/12/2003 -0500, you wrote:
Keith:
A BI sounds wonderful but it is a theoretical solution that runs absolutely counter to human nature. Human society is about relative status. Not only human society, but primate society. And not only primate society but any social mammalian society. We really need to understand this first before we can suggest quite new social structures that will satisfy our basic instincts -- and, if possible, basic incomes also. But not before then. Extending welfarism beyond what we have now in most developed countries, desirable though it might sound (and I don't object to it on moral grounds), is already running itself into the ground.

Keith, sorry, but you say the damndest things with utter certainty!  Human society is about all kinds of things, depending very much on what people want it to be and agree that it should be.  Status may be very important in American and European society, but I've dealt with small societies in northern Canada in which a person's importance depended on what he or she could do for the community.  There were no contests around who could do the most for the community and therefore had the most status.

You are misinterpreting me. I didn't say there always had to be contests! You've just admitted above that some people have "importance". If that's not status I don't know what is.
 
Native land claims negotiators were guys who had a better command of English than most others in the community.  But it wasn't a status thing.  It was because they had a better chance of understanding what the whiteman was saying with his forked tongue.  Regrettably, once a land claim had been negotiated, those societies became stratified because people had to fill jobs at various levels and different rates of pay.  That's when status began to move in and longstanding egalitarian principles began to come apart.

Notions of fairness are as deeply in our genes as notions of status. (Perhaps not quite as deeply but certainly deeply enough to be very obvious and useful.)
 
I mentioned the cooperative movement in an earlier posting.  In that movement, people cooperated because it was in the interests of their communities and themselves to do so.  There were no contest around who was the best cooperator.

Of course, people cooperate. It's one of the chief characteristics of man. Have I ever written anywhere that they don't?

There are many historic examples of people who gave away everything to deliberately unstatisfy themselves, people like Francis of Assisi and Peter Waldo in the 12th and 13th Centuries, who gave away everything, but for spiritual reasons, not because they were in any kind of race to the bottom.

I don't want to discuss exceptional examples (sometimes of very idiosyncratic motives).  Economics is about ordinary people.

So give us a break and allow us our complexity of motives.

The ordinary person also has complexity of motvies and I have never written otherwise.

And besides, I feel that a Basic Income is entirely feasible economically and would probably pay off.

Well, you may do so if you wish. I have have read very few economists who believe this. I have certainly not read any economists who can show how it can be achieved in a practical way without a revolt from the middle class.

  Any money received by the poor would likely be spent immediately, and not be put into long term investments.  It's a question of political will.  As long as we have neo-con governments, it's far less likely to happen than Bush's tax breaks for the rich.

Ed

I imagine that the closest any country has come to a Basic Income has been the Soviet Union. Even the poorest could live very cheaply indeed with very low expenditures on food, transport and houswing. Even the poorest in Stalinist times had savings (but nothing to spend them on). But the system collapsed nevertheless because there were no goods available -- except status goods for the nomenclatura (the chocolatura is what they called them when in shopping mode, I believe).

Keith

----- Original Message -----
From: Keith Hudson
To: [EMAIL PROTECTED]
Cc: [EMAIL PROTECTED]
Sent: Friday, December 05, 2003 1:35 AM
Subject: RE: Slightly extended (was Re: [Futurework] David Ricardo, Cavema n Trade vs. Modern Trade
Arthur,
At 16:16 04/12/2003 -0500, you wrote:
As my colleague who was born in India says, the first picture of a Canadian child dying with a distended belly will be the spark that ignites governments to end this current (farcical) set of activities.
 
There will be no starvation in Canada.  There will be panhandlers on street corners and panhandlers using the food banks.  Dignity is lost all around: Those who receive and those who give (although they feel mighty righteous at the moment.)
 
We can end poverty.  There can be a basic income.  Somehow there is little incentive to change.
Unfortunately (or not), a Basic Income would be impossible. All over the western world, taking all the developed countries into account (that is, they are all welfare states now to a greater or lesser degree), we have already reached the limits of taxation. No government could ever be elected on this basis. And no government could stand for a single day if it proceeded to bring it about. Not only is there "little incentive", there would be the most almighty outburst of anger -- not from the rich only, but the midcdle-class (who do most of the sophisticated work that keeps the flimsy thing we call civilisation together) and the de-skilled, badly-educated working class who, in the last few decades, have only just started to receive an income that satisfies them (while they're in work). (Even so, this has declined in real terms in the last 20 years in the most developed country -- America.)
Indeed, with the declining birth rate in developed countries, and the ageing population, we are already proceeding towards a sort of BI and, as my piece + articles of yesterday ("The poverty of nation-states") clearly shows, nation-states cannot afford it -- not for more than a decade or so longer, anyway, before total collapse ensues (unless the most amazing reforms are made very soon).
A BI sounds wonderful but it is a theoretical solution that runs absolutely counter to human nature. Human society is about relative status. Not only human society, but primate society. And not only primate society but any social mammalian society. We really need to understand this first before we can suggest quite new social structures that will satisfy our basic instincts -- and, if possible, basic incomes also. But not before then. Extending welfarism beyond what we have now in most developed countries, desirable though it might sound (and I don't object to it on moral grounds), is already running itself into the ground.

Keith

We live in a democracy.  As Amartya Sen said, there is no history of starvation in democracies.
 
As I said in my earlier posting, the current system may be remarkably stable.
 
arthur
-----Original Message-----
From: Ed Weick [mailto:[EMAIL PROTECTED]]
Sent: Thursday, December 04, 2003 1:12 PM
To: Cordell, Arthur: ECOM; [EMAIL PROTECTED]; [EMAIL PROTECTED]
Subject: Re: Slightly extended (was Re: [Futurework] David Ricardo, Caveman Trade vs. Modern Trade

So what if all the righteous middle class people stopped sending their unused canned goods to the food banks?  Well the hungry people might just vote in a government that promises radical change.   Right now everyone wins: political parties promise change and don't; middle class feels good about sending food to the food bank; working poor can supplement their foodstock by heading to the food bank.  The system may be quite stable.  Maybe there really is no wish to change.
 
arthur

 
I'm on the Board of a downtown foodbank and have spent a little time there.  The people who came to pick up food fell into several groups.  There were older men, fifty plus, who had migrated to Ottawa because there was nothing for them in the valley communities.  Their education and skills were limited, so there was nothing in Ottawa either.  There were young mothers, some with children, who gave you every impression that they didn't want to be there; they hurried in and they hurried out.  There were a number of cocky young people, some perhaps students, some living at the "Y", who acted as though they were indulging the foodbank with their presence.  None of these people acted as though they wanted to change the system.  All they wanted was the food - except for the older guys who also seemed to want to hang around and talk a little.

 
There's an aura of powerlessness about it.  The churches that operate the foodbank know that if they didn't do it, nobody would.  So they keep doing it and their members keep bringing the cans of tuna and the packages of pasta.  The churches might want to take an advocacy position, but that might infringe on their charitable status.  The politicians get themselves elected and their promises become mere promises, not commitments.  Most of the people who use the foodbank hate doing it, but they need to eat.  Watching it without having to depend on it, I wish it would all go away.  But it won't.  It's what the world is like and how it will stay.  Perhaps Canadians, as people who live in the developed world, should feel fortunate that they can afford foodbanks.  Ever so many parts of the world can't, and people starve.

 
Ed
-----Original Message-----
From: Ed Weick [mailto:[EMAIL PROTECTED]]
Sent: Thursday, December 4, 2003 9:08 AM
To: Thomas Lunde; [EMAIL PROTECTED]
Subject: Re: Slightly extended (was Re: [Futurework] David Ricardo, Caveman Trade vs. Modern Trade

Thomas, very good posting.  Ontario has just raised the minimum wage from peanuts to peanuts.  Many of the poor are working full time and even double time, but are still unable to meet the rent or buy enough food, let alone get their kids the kinds of in toys ("status goods") that are going around.  They can try eating freedom and justice, but they don't taste very good when you can't make ends meet.
 
Ed
----- Original Message -----
From: Thomas Lunde
To: [EMAIL PROTECTED]
Sent: Thursday, December 04, 2003 3:36 AM
Subject: Re: Slightly extended (was Re: [Futurework] David Ricardo, Caveman Trade vs. Modern Trade
 
They don't need money, Thomas. They need justice and the freedom to enjoy it.
 
Harry
 
Thomas:
In a way, you are right.  Being poor and working with the poor as customers and neighbours let's me see the many ways the poor are lacking justice.  A recent article in the paper made the outstanding statement that 37% of workers in Canada are not covered by the Labour Code and laws.  When wages for the poor are kept artificially low, then the only way to compensate to maintain a survival standard is to work more.  Of course, there are about 4 to 5% who are mentally incapable, or physically disabled or in the case of single mothers, family challenged.  However, the work more solution has only produced the working poor, who still have to use food banks and subsidized housing, if thet can get it.  Not only that, as you suggest, they do not even have the freedom to enjoy what little they have.  I would agree, that justice and freedom would go a long way to compensating for money - or as you might suggest, make the earning and spending of money a by product of an effective system of justice and the freedom and thereby create a surplus to enjoy.
Respectfully,
Thomas Lunde

Keith Hudson, Bath, England, <www.evolutionary-economics.org>

Keith Hudson, Bath, England, <www.evolutionary-economics.org>

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