economic essays with some blanks quastions ( REVIEW _ MIDTERM)

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Institutional Economic Theory

Economics 451

University of Missouri-Kansas City

Ceremonial

Instrumental/ technological

Institutions

Tools & Skills

Instrumental Logic/Behavior

Ceremonial Logic/ Behavior

Culture

Myth, Legend, Tradition

The Veblenian Dichotomy

Generalizations Regarding Ceremonial Behavior

Although there is enormous diversity of ceremonial patterns of different

societies in different parts of the world, and also great differences in

ceremonial patterns of the same society over time, as, e.g., the

differences between ancient and modern Italian society, nevertheless, it

is possible to identify some major features of ceremonies.

1. Power, authority, class inequality, rank, status, superior/ subordinate

are based on the ceremonial aspect and purport to rest on differences in

competence and hence are quasi-technological; Veblen described this as

"ceremonial adequacy."

2.  Norms justify and sanctify the above. Some are deemed of major importance to the

welfare of society - a prosperity code - and observance of these is binding on all

members. The norms determine friends/enemies, right/wrong, good/evil, and such.

They also purport to rest on tested, quasi-technological, standards.

3. Preliterate societies had legends, mythical stories to authenticate the above. These

tend to evolve into ideologies/theologies under the supervision of professional or

semi-professional functionaries, e.g., religious theologies; secular ideologies, as,

doctrines of capitalism and fascism.

4.  The inequalities and authority defined by ceremonies are usually supported by the socialization process. Every society possesses a set of social traditions, beliefs,

and habits that are deemed necessary, revered, and faithfully taught to each

oncoming generation. "Norms" are standards for such judgments as right and

wrong, truth and falsehood, beautiful, ugly. The norms and mores teach belief in the

correctness of the inequalities of authority. When nations began to adopt public

education systems, they were rapidly turned into instruments for teaching patriotic

allegiance to the state, the prevailing economic institutions and, in countries that

support religious schools, religious organizations.

5.  Legitimacy is conferred by ritual and ceremony.

6.  Emotional conditioning paves the way to emotional arousal when appropriate

symbols are invoked. Emotional confirmation tends to reinforce ideological

commitment.

7.  The method of knowing, or arriving at the validity of ceremonial values: tradition, authority, self-evident truths, faith.

8.  Ceremonies are past-binding and involve combined continuities and dis-

continuities with antecedent ceremonies

9.  The ceremonies form a network of means of which they support and reinforce

each other. Family indoctrination teaches respect and reverence for church and

nation, and church and state support family.

One of the most powerful reasons ceremonies are past-binding

and resistant to change is that the entire population has been taught to

believe in the truthfulness and worthiness of it’s ceremonies. It is seen as a

prosperity code whereby society prospers if it holds fast to the traditional

way of life, calamity and decline befall the society that departs from tradition.

In addition, vested interests have a supreme incentive to perpetuate

arrangements of which they are the chief beneficiaries. They usually exercise

a major influence over communication systems, including educational ones.

Our medieval ancestors found no intellectual difficulty in holding to the conviction

that a minority of people - monarchs, nobles, and clergy - should control the

majority in all of the affairs of life. It was "obvious" to them that some kinds

of people should dominate others.

Beginning in the 18th century, intellectual inquiry questioned traditional

authority as it had never been questioned before, and this questioning has

continued more or less actively ever since. But the process has not ushered in

an egalitarian society by any means, and has not, by some standards, ushered

in a really functional political democracy. Notwithstanding our tradition of

questioning authority, there is practically universal acceptance of the belief that

it is "obvious" that those who possess money should dominate the economy.

10. Although ceremonies tend to resist change, they do change. Most change (major)

is due to the fact that technological innovations change the environment over

time to such a great extent that the traditional ceremonies ceases to function

effectively. To cite two revolutionary times: the technological revolution that

ushered in domestic plants and animals brought with it such extensive changes

in the environment, that most ceremonies underwent major changes, although in

some cases they were modifications of antecedent ceremonies. The technology

that ushered in the industrial society also changed the environment so greatly

that traditional ceremonies became dysfunctional by way of conflicting with the

requirements of industrial activity, and were modified significantly although,

again, the new ceremonies were modifications of antecedent ceremonies  

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11. The ways of knowing in the ceremonial realm are different from the

ways of knowing in the realm of science and technology. The surest

path to truth, according to medieval European thought, was by faith in

the authority of the holy book, and by revelation, divine inspiration.

Confidence in tradition as a path to truth seemed confirmed by the

fact that tradition had been a sure and reliable guide to humans from

time immemorial; its longevity was evidence of its truth. In every

stable society some ideas are so widely accepted without question

that they are seen as self-evident truths, truths that could be accepted

a priori as the foundation upon which to build systems of thought.

These would be concepts, held to be beyond challenge because they

are held by faith, rest on authority (divine or otherwise), and achieve

the status of self-evident. They are also seen as absolute, final,

eternal, truths.

12. Ceremonies are especially resistant to change when there is a

populous society with long-standing and entrenched traditions. There are

situations, however, in which ceremonies are comparatively weak or fragile

and, where they offer comparatively little resistance to change. A frontier is

a place where ceremonies are likely to be weak, more permissive, and offer

less resistance to change. All populations, as in some of the Pacific Islands,

often see their ceremonies shattered when outsiders with more formidable

technology impose control. The question of whether ceremonies may make

a positive contribution to change, facilitate change, is controversial and will

not be considered here.

13. Ceremonies are not simply non-technological, they are pseudo-

technological, in the sense that they purport to be functional. They

purport to 'make-possible' some essential activities and outcomes upon

which the well-being of the society depends. Thus, the semi-divine

pharaohs subsequently provide abundant crops: correct religious

observances are followed by planting, cultivating and harvesting and

abundant crops. The fact that desired consequences follow correct

religious practices are seen as proof of the efficacy of the ceremonial

practices and hence the correctness of valuing these ceremonies.

14. Since every set of ceremonies provides for or defines inequalities, ranks,

statuses, it is quite understandable that those who are better off in the

social hierarchy should seek to perpetuate it for themselves and their

children. Those in the middle and upper social/economic classes in our

society teach their children the importance of acquiring knowledge and

skills that will enable them to enjoy the same benefits. They are strong

advocates of the prevailing system of authority and preach its merits and

belong to interest groups that promote the system.

15. The norms and mores are not commands in the sense that statutes and laws

coming from legislatures and judicial bodies are. They exercise the influence

they do because they are part of a cultural stream going far back into the

history of a society; they have tradition on their side, and they seem to

people to be part of immemorial belief. They owe their strength to the fact

that they have become a deeply entrenched feature of social life and

organization, and that is one reason why they are so tenacious, so enduring,

and so difficult to change. Some of our norms and mores have their roots in

antiquity as the predominance in our society of the Judeo-Christian

tradition, our system of private property, our intense competitiveness, and

our belief in the use of military methods to resolve conflicts. Modern

"political" democracy is quite young, seen in terms of the history of

civilizations, yet soon after the American revolution and subsequent

adoption of a Constitution, legend-building began.

16. All ceremonies are in practice different mixtures or combinations of traits. We

may say that this activity is predominantly ceremonial, and that predominantly

technological, but we are unable, in view of present knowledge, to assign a

verifiable quantitative score to them.

17. Some ceremonies are more functional, permissive, or less dysfunctional than

others. Thus, large numbers of children were once seen as functional both

from the point of view of individual families and society. Now, while having

many children may be seen as functional from the point of view of the family,

they are coming to be seen as dysfunctional from the point of view of society.

Poverty has been growing in some parts of the world in the 20th & 21st

centuries, as in most of Africa, and in parts of Asia. Population is growing in

that part of the world faster than economic growth, and poverty become more

widespread. Furthermore, population imposes great strain on the

environment, especially where the environment is fragile.

Technology

1. Technology is a learned aspect of human behavior. It forms correlated

patterns based upon and deriving from a functional process. This functional

process is an instrumental or tool-using process. This means that the

technological aspect of behavior comes from tool-using activities. But technology

is not merely tools. A common mistake is to think of technology as tools,

machines and the like. But technology is not external to man -- it is internal, a

part of human behavior. It is not like a coat that can be put on or taken off

depending on the temperature. No single person and no society has ever existed

that was devoid of this aspect or type of behavior.

2.  Technology is part of the network of social and personal relationships and it permeates all relationships. Tool existence implies the skills necessary for tool

using. A fundamental principle of Institutional economics is that tools and skills

are inseparable. The technological process is cumulative and progressive. It is a

process of tool and skill accumulation through elaboration and combination of

existing tools. All inventions are combinations of previous inventions or

combinations of previously existing tools. Literally thousands of previously

existing inventions make up even the simplest tools in our economy.

3. This is because inventions or tools include processes or ways of making things as well as things themselves. The modern use of carpentry tools involves

the arts of steel making and fabricating, wood shaping, and these in turn involve

the knowledge included in chemistry, physics, biology and more. The point is

that tool using is complex and interrelated activity. And, these activities and

processes grow and accumulate by combination. The more tools and inventions

and skills there are, the greater the number of combinations are possible and the

faster is the accumulation process. Even if a tool is broken, it can be replaced in

much less time than it took to create it in the first place for the simple reason that

all the knowledge and skill necessary to make it exists. It is a simple job of

recreation.

4. Consider how long it took man to make the first hammer out of stone and

wood, and how long it took to make the first steel headed hammers. Now we

manufacture hammers at the rate of millions per year. If a hammer is broken it

is a "simple and quick" matter to replace it. But not too many years ago a

broken hammer meant long delays in production for the unfortunate

workman whose hammer got broken. Why is this? What has changed? Have

people become naturally or inherently better at making hammers? Are babies

now born knowing how to make hammers? Obviously not.

5. Like all tool using and making activities hammer production is learned and each new generation is born into an already existing stream of

activities, knowledge and skills. One reason that technology is thought

of as tools is that tools and tool-usings are "part" of this way of

behaving. However, "tools" is a broad category. Tools includes both the

physical and mental devices, both concrete and abstract. Tools include

hammers, nails, screwdrivers, the multiplication tables, music scores,

computers, pencils, language, calendars, stirrups, economic theories,

books, names, logical systems, and microscopes. The entire heritage of

activities which stems from doing and thinking. Tool-using is a

physically productive and creative process that underlies all the

achievements of mankind. Even the most ceremonial activities include

tool usage. As obtrusive as technology is most of us take the

technological landscape for granted.

6. Inventions or tools include processes or ways of making things as well as things themselves. The modern use of carpentry tools involves the arts of steel

making and fabricating, wood shaping, and these in turn involve the knowledge

included in chemistry, physics, biology and more. The point is that tool using is

complex and interrelated activity. And, these activities and processes grow and

accumulate by combination. The more tools and inventions and skills there are,

the greater the number of combinations are possible and the faster is the

accumulation process. Even if a tool is broken, it can be replaced in much less

time than it took to create it in the first place for the simple reason that all the

knowledge and skill necessary to make it exists. It is a simple job of recreation.

Consider how long it took man to make the first hammer out of stone and

wood, and how long it took to make the first steel headed hammers. Now we

manufacture hammers at the rate of millions per year. If a hammer is broken it

is a "simple and quick" matter to replace it. But not too many years ago a

broken hammer meant long delays in production for the unfortunate

workman whose hammer got broken. Why is this? What has changed? Have

people become naturally or inherently better at making hammers? Are babies

now born knowing how to make hammers? Obviously not.

7. “Tools" is a broad category. It includes both the physical and mental

devices, both concrete and abstract. Tools include hammers, nails,

screwdrivers, the multiplication tables, music scores, computers,

pencils, language, calendars, stirrups, economic theories, books,

names, logical systems, and microscopes: The entire heritage of

activities which stems from doing and thinking.

8. V. Gordon Childe, in Man Makes Himself, has pointed out that when early

humans observed the consequences of certain patterns of action,

compared them with other patterns of action, and concluded that this

was better than that in a contextual situation they were engaging in

sciencing, in truth-making, no matter how tentative or halting the

process. It was by such processes that the funds of tool-skills

developed over time

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9.  Tool-using is a physically productive and creative process that underlies all the achievements of mankind.

Even the most ceremonial activities include tool usage.

10.  As obtrusive as technology is most of us take the

technological landscape for granted.

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11. Inventions are combinations of previous inventions or combinations of

previously existing tools. Literally thousands of previously existing

inventions make up even the simplest tools in our economy.

12. The technological process is cumulative and progressive. It is a process

of tool and skill accumulation through elaboration, combination and

transmission of existing tools. Tool using and making activities are

learned and each new generation is born into an already existing stream

of activities, knowledge and skills. .  

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13.  The method of knowing, or arriving at the validity of instrumental behavior and institutional value, is pragmatic: experimental and “scientific.

14.  The path to truth in the realm of technology is probably as old as the

ceremonial path to truth, but took the form of discoveries and inventions,

accidental or otherwise, of a tool-making-using character. This process has

developed in modern times to the point that it is extraordinarily effective, and

loosely called the scientific method. Contrary to ceremonial truth, it does not

rely on authority, tradition and faith; rather, it employs ideas and statements

that are capable of testing and verification or falsification