Consumption and Exchange.ppt

8/10/2019 Consumption and Exchange.ppt

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Consumption and Exchange

By:

Andrew John B. Fernandez


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Areas in Economic Anthropology

Modes of Consumption

The predominant patterns with a

culture of using up goods and services.

The dominant pattern of using things

up or spending resources to satisfy

demand, correspond generally with themodes or production continuum.


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Modes of Exchange

The predominant patterns within a

culture of transferring goods, services,

and other items between and among

people and groups.


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Cultural anthropologist are interested in all

economic systems, not just market economies,but also to include noncash forms of income

or expenditure.

In nonmarket economies, instead of spendingcash, people spend time, labor, or trade

goods in order to provide for their needs.

People in non-monetized context spendtime or labor, not cash.


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The Difference between Process of

Consumption and Exchange

NonMarket Systems Market Systems

Many consumption needs are satisfied

without any exchange or only to a limiteddegree.

Most consumption items are not self-

produced and must be purchased.

Few good are obtained through exchange Most or all the goods are obtained

through exchange

Money plays a less important role, and

time, labor, and goods are prominentexchange items.

Money is a key item of exchange


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Modes of Consumption

What is Consumption?

Consumption has two senses:

1. It is persons intake in terms of eating orother ways of using things;

2. It is a persons output in terms of spending

or using resources. It includes consumptionof eating habits and household budgeting

practices.


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Two Contrasting Modes of

Consumption

Minimalism

A mode of consumption that emphasizessimplicity and is characterized by few and finite

(limited) consumer demands and an adequate andsustainable means to achieve them.

Consumerism

Peoples demands are many and infinite, and the

means of satisfying them are therefore insufficientand become depleted in the effort to meetdemands.


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Contrasting Modes of ConsumptionFORAGING HORTICULTURE PASTORALISM AGRICULTURE INDUSTRIALISM

(CAPITALISM)

Modes of

Consumption

Minimalism

Finite Needs

At the opposite ends of the

continuum, two contrasting

modes of consumption exist,

defined in terms of the

relationship between demand

(what people want) and supply

(the resources available to

satisfy demand).

The social organization ofconsumption also change as

one moves across the

continuum.

in between these two

extremes are blended patterns,

with a decreasing trend toward

minimalism and an increasing

trend toward consumerism as

one moves from left to right.

Changes in the mode of

production influence the

transformation in

consumption.

Consumerism

Infinite needs

Social

Organization

of

Consumption

Equality / Sharing

Personalized products

are consumed

ClassBased

Inequality

Depersonalized

products are consume

Primary

BudgetaryFund

Basic needs Rent/taxes, luxuries

Mode of

Exchange

Balanced Exchange Market exchange

Social

Organization

of Exchange

Small groups, face to

face

Anonymous market

transactions

Primary

Category of

Exchange

The gift The sale


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Consumption Funds

Consumption Fund is a category of a persons

or household budget used to provide for their

demands.

The amount of the budget will vary according

to the mode of production and the amount of

surplus goods available in the society.


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In a minimalist foragers budget:

Basic Needs Fund = the largest share ofexpenditures goes into the, which includes food,

beverages, shelter, fuel, clothing, and the tools

needed to obtain these items.

The Recurrent Costs Fund, which supports repair

and maintenance of tools and baskets, weapons,

and shelter.

Entertainment Fund, the personal leisure, Ceremonial Fund, for public events beyond the

immediate group such as potlach.


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Budget in Consumerist Cultures

The budge size is larger.

They work longer hours and spend more time and

labor.

They have cash budgets that may be substantial,

depending on class position.

Tax Fund

Entertainment fund.


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Consumption Inequalities

Theory of Entitlements

which are socially defined rights to life-sustaining

resources.

The concept of entitlements helps us understand

how social inequality works and can change.

Some kinds of entitlements are more secure and

more lucrative than others, and thus they providemore secure and luxurious levels of consumption.


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Two types of Entitlement

Direct Entitlement

The most secure form of entitlement

Indirect Entitlement Ways of gaining subsistence that depend on

exchanging something in order to obtainconsumer needs.

Entail dependency on other people on otherpeople and institutions and are thus riskier basesof support than direct entitlements


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Three Levels of Entitlement

The Global Level

The National Level

The Household Level


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Consumption Microcultures

Class

Differences are defined in terms of levels of

income and wealth, are reflected in class-specific

consumption patterns.

The upper class people spend more on

consumption than the poor. The poor, however,

spend higher percentage of their total income on

consumption, especially on basic needs such as

food, clothing, and shelter.


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Gender

Consumption patterns are often gender-marked.Specific food may be thought to be male or

female foods.

Race/Ethnicity

Explicit racial inequalities in consumption.

Age


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Age

Age categories often have characteristicsconsumption patterns that are culturally shaped.

In many cultures the every old fall into a category

with declining entitlements and declining quality

of consumption.

Aging affects everyone, regardless of class level,

but wealth can protect the elderly from certain

kinds of marginalization and deprivation.


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What is Exchanged?

Exchange is the transfer of something that

may be material or non material between at

least two persons, groups, or institutions.

Items exchanged may be purely utilitarian or

they may carry meanings and have a history,

or social life, of their own.

In the industrialized society, money is a key

item of exchange.


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In all economic systems, individuals and

groups exchange goods and services withothers, so exchange is a cultural universal.

Non monetary exchange exists incontemporary industrial societies.

Ex: hosting dinner parties, exchanging gifts, or

sharing cheese curls.


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Material Goods

Food is one of the most common exchange good

in everyday life and on ritual occasions. Functional theorists would view this system of

exchange as contributing to social cohesion.

Symbolic Goods

Intangible valuables such as myths and rituals aresometimes exchanged in ways similar to material

goods. A sense of linked community and mutual

responsibility thereby develops.


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Labor People contribute labor to other people on a

regular basis or on an irregular basis.

Labor-sharing groups are part of what has been

called moral economy because no one keeps

formal records on how much any family puts in or

takes out.


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Money

The term money refers to things that can beexchanged for many different kind of items.

Beside being a medium of exchange, money can

be a standard of value and a store of value or

wealth. It can be found in such diverse forms as shells,

salt, cattle, furs, cocoa beans, and iron hoes.


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Two Kinds of Money

Limited Purpose Money

Items that can be exchanged for only a few otheritems.

Multi Purpose Money

A modern money or a medium of exchange thatcan be used for all goods and services available.

Modern money is distinguished by its portability,divisibility, uniformity, and recognizability.


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All kinds of money are symbolicthey have

meaning to the user, and they are associated withthe users identity and sense of self.

People

Throughout history, some people have been able

to gain control of other people and treat them as

objects of exchange, as systems of

institutionalized slavery and in underground,criminal activities.


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Mode of Exchange

Balanced Exchange

Unbalanced Exchange


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Balanced Exchange

A system of transfer in which the goal is either

immediate or eventual balance in value.

Contains two subcategories based on the socialrelationship based on the social relationship of the

two parties involved in the exchange and the degree

to which a return is expected.


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Generalized Reciprocity

A transaction that involves the least conscious

sense of interest in material gain or thought ofwhat might be received in return.

The predominant form of exchange betweenpeople who know each other well and trust each

other.


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The Pure Gift

Something is given with no expectation or thought

of a return.

An extreme form of generalized reciprocity.


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Expected reciprocity

The exchange of approximately equally valuedgoods or services, usually between people of

roughly equal status.

The exchange may occur simultaneously from

both parties, or an agreement or understanding

may exist that stipulates the time period within

which the exchange will be completed.

If the other party fails to complete the exchange,the relationship will break down.


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Redistribution

a form or exchange that involves one personcollecting goods or money from many members of

a group.

Redistribution involves some centricity. It

contains the possibility of institutionalized

inequality because what is returned may not

always equal what was contributed by eachindividual.


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Market Exchange

The buying and selling of commodities undercompetitive conditions in which the forces of

supply and demand determine value.

People involved many not be social equals, and

their exchange is not likely to generate social

bonding.


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Periodic Market

a site for market transactions that is notpermanently set up but occurs regularly, emergedwith the development of agriculture and urbansettlements.

More than just a place for buying and selling, it isalso a place of social activity.

Permanent Market

Situated in fixed locations have long served the

everyday needs of villages and neighborhoods. Have long provided for the everyday needs of local

people.


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Other Forms of Unbalanced Exchange

Gambling

Theft

Exploitation


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Theories of Exchange

Reasons on people participate in patterned

process of exchange:

1. a functional view that sees exchange as

creating social and economic safety nets for

people,

2. a critical theory that points to how patterns

of exchange create and sustain social

inequality.

Documents

Consumption and Exchange.ppt