Juan Urrutía – P2P Foundation https://blog.p2pfoundation.net Researching, documenting and promoting peer to peer practices Thu, 13 Oct 2016 19:00:37 +0000 en-US hourly 1 https://wordpress.org/?v=5.5.15 62076519 Keynes, “the Good Life” and abundance https://blog.p2pfoundation.net/keynes-the-good-life-and-abundance/2016/10/15 https://blog.p2pfoundation.net/keynes-the-good-life-and-abundance/2016/10/15#respond Sat, 15 Oct 2016 10:00:00 +0000 https://blog.p2pfoundation.net/?p=60744 A translation of Juan Urrutía’s notes for his keynote at Somero 2016 Juan Urrutía: Good morning to everyone, and welcome to this poor mountainside in beautiful Madrid [province]. I am sorry I wasn’t able to arrive yesterday and even more sorry I won’t be able to stay and sleep here tonight. I’m sorry because “conversation” has taken... Continue reading

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A translation of Juan Urrutía’s notes for his keynote at Somero 2016

Juan Urrutía: Good morning to everyone, and welcome to this poor mountainside in beautiful Madrid [province]. I am sorry I wasn’t able to arrive yesterday and even more sorry I won’t be able to stay and sleep here tonight. I’m sorry because “conversation” has taken on a special meaning for Las Indias, since it is both a fundamental instrument in search of Communitarianism (the Communard Manifesto largely serves this “conversation”) and a component element of the “good life.”

And, obviously, I thank the Indianos, who I feel part of, for the invitation to open the conversation of Somero 2016, where the Indianos have come together to think about this moment the world is living through, to listen to themselves and each other about how enough can be produced to create Abundance, lead to a “Good Life,” and collaborate to sustain a “Good Society.” This change between the approach to Somero 2015 and Somero 2016 is a good starting point for my talk. From ideas to revolutionize the world, we move to discuss a new world that… has not arrived yet.

Introduction

7-apertura-somero-2016Let me announce from the beginning that I may not be able to rise to the occasion of this new stage, because I don’t think that any idea emerges from my words that need introduction to a community in the clear and obvious Direct Economy (making beer for example). At best, there will be words related to teaching and learning, and to knowledge and wisdom, that try to clarify these distinctions, suggesting that perhaps two paths can be opened, i) the one that goes from teaching to learning, and ii) from knowledge to wisdom.

In any case, I’m going to try to stick to the title suggested by Las Indias, “Keynes, the Good Life, and Abundance,” and accepted by me with pleasure, and which provides three crucial conditions, since I will have to talk about three things that have been “put upon” me:

  1. Politics, trying to identify the kind of social and power relationships in which The Good Life arises, or can arise.
  2. Economy, freely explaining the future of the economic system which, if we do it well, could lead us to abundance.
  3. Keynes, someone I hold to be exemplary, as a macroeconomist and public servant in various positions—university, finance, etc. And he was a practitioner of a good life in Bloomsbury.

Politics: for a petty-bourgeois liberalism

What I’m going to to tell you under this rubric was written 25 years ago and reproduced in June of 2014. In any case, I will follow a summary that David and Natalia worked on in their day.

Fifteen years ago, I tried react against the revolutionary American neo-conservativism during the mandate of Bush, Jr., that justified the beginning of the Iraq war. To do so, I had to declare myself anti-revolutionary and petty bourgeois, a gesture that I was enthusiastic about, since neo-conservativism was “the revolution” of the moment (we remember the Azores). The bourgeoisie was identified with the unity of Big Businesses, Finance, and State, gelled by news media subjected to the power of these three institutions. I will now review the characteristics of this “counter-revolution” that proposed to face the “neoconservative revolution”:

  1. The primacy of freedom
    1. The need for individual ethics (individual responsibility)
    2. Truth before happiness (not all means are legitimate)
    3. Rebellion and experimentation (as we’ll see in Keynes)
    4. Diversity (demanded by individual freedom and the corresponding responsibility)
    5. Freedom before utility (which demands private property)
    6. The universalization of human rights, or if you prefer, “generalization,” since universalization is a issue debated among the Indianos.
  2. The primacy of individualism, which, although it may seem contradictory, puts identity ahead of individualism (we will see later that this community identity in competition maintains diversity)
  3. The primacy of spontaneous order
    1. Participatory “project-ism” (which would allow interventionism to Keynes or Stiglitz)
    2. Small, strong State (of all the forms of power, confederation is my favorite)
    3. A “functionariate” of the elite (Keynes is an example)

I have always thought that all these characteristics were to be found in Keynes.

Economy: Abundance

Once I declared that I belonged to the petty bourgeoisie (at least as a professor), it then fell to me try to convince people that, a) the best economic form is the market, b) as long as this market does not create rents, and c) it creates abundance. Once this task is fulfilled, I will be able to move on to discuss what The Good Life consists of.

Identarian community

We can only describe here in outline form how communities are formed through an evolutionary game consisting of forming pairs randomly and constantly making them play a game such that a network is formed, a process in which social habits or memes appear until a balance is arrived at in the evolutionary game, called the Evolutionary Stable Strategy, or the “mutant-proof balance,” since no one is interested in going outside the guidelines of conduct in the balance.

Fraternity and possibility of abundance

In the balance of the evolutionary game, fraternity happens, a term that includes friendship and the pleasure of being together. This fraternity has two crucial characteristics, which are mutual trust and the credibility of commitments. If the network we’re in is really distributed, we come upon the possibility of abundance because a) transaction costs decrease through mutual trust, b) the network effect, or Matthew Effect, happens, according to which, “to him who has, more will be given,” due precisely to the fact that joining a very dense network decreases costs and c) economies of scope appear, according to which, more is earned by expanding the range of products manufactured by a company than by increasing the production of a single product. At the limit, we find the balance of perfect competition in a digital world, like today’s world taken to its limit.

Problems

Before reaching the limit, however, not everything is rosy.

  1. Revolution is dependent on the threshold of rebellion of the epistemic condition (or, who knows, common knowledge at its limit) and the density of the network. Example: in conservative communities, revolution is easier the less dense the network is, as in England.
  2. The Communal. This a good that is non-rival in consumption but suffers from exhaustability. The market treats these semi-public goods and existing solutions as bad, unless they are perfect and local. As the increase in digital goods increases the volume of these goods, the kingdom of abundance is not so easy to reach, generally, and meanwhile, bad solutions are created, such as a) laws on intellectual property, b) funding of knowledge through public money, or c) disincentives on the rankings of scientists.
  3. Dissipation of rents. As no one has any monopoly power in perfect competition, because the threat of simply going away is credible, there are no rents in it. But even in that case, the State could create them in favor of the powerful. As an example, let’s think about the financial beach bars of so-called “fintech,” which could reduce part of the power of banks and wait to see how that possibility evolves. Also, we should remember the distinction between pleasure, produced by struggle, and comfort, created by enjoyment (Hirschman).

“The good life” and “the good society”

The problem with translation

I want identify the way of life to which I think a commoner aspires. I’m going to call it “The Good Life” [English words used in the original Spanish text], but immediately I find myself “Lost in Translation.” A “Good Society” is a set of individuals that lead a “Good Life.” Then, if I want know how translate a “Good Society” I have to translate first “Good Life.”

It has been tried many times. Sometimes as the good life (in the sense of holding to a good life), sometimes as a good life (the opposite of a bad life, like that of a criminal, let’s say).

I dare to try define the meaning of “The Good Life”:

The Good Life denotes a way of life that includes a certain care with things, living or dead, that surround us, so that they will remain there; an absence of abuse of things or self; a certain modesty (or only a small degree of arrogance) in the attitude towards life, except when facing the powerful.

Therefore, a good translation could be a dignified life, or full, or modest, or collected. I’ll stick with a dignified (or full) life, which I think can only be exercised in petty bourgeois liberalism.

Accordingly, I suggest that we translate “The Good Society” as a worthy society which, naturally, would include equality of opportunities.

The Bloomsbury Group

This group, so strange to us, can be the real corollary of what I now call petty bourgeois liberalism. The mix was very heterogeneous, because it included people like Virginia Woolf, J.M. Keynes, B. Russell, and others with highly variable positions and practices; but everyone had some common characteristics, such as a) pride in their education, b) a break with Victorian classicalism and c) pride in being light to the world.

Its situation in the world was, in some sense, like ours today, given technological changes and the need to reinvent themselves. Keynes belonged to this group, which met at home of the Bell sisters in Russell Square. Only this way can it be understood that he wrote The Economic Possibilities for Our Grandchildren, whose subtitle in Castillian Spanish is “What is Needed for a Good Life?” while in the original, “…for a Good Society” is used, which brings us back again to the problem of translation. In any case, it should be clear by now that a “Good Society” includes self-realization of the individual members that it is made up of.

Quantification of the Good Society

The two Skidelskis (Robert and Edward, father and son) make an effort to quantify the income necessary for a family to lead a “Good Life.” But they themselves say that this quantification is not very important: “Progress should be measured not by the traditional yardsticks of growth or per-capita income;” but by the seven elements of a “good life” or full life. These yardsticks are 1) health, 2) security, 3) respect, 4) personality (individual identity, perhaps “being someone”?), 5) harmony with nature, 6) friendship (fraternity) and 7) leisure.

In any case, I hurry to say that these are not the pillars of wisdom but only some ideas we will never be able to stop talking about in a community. Let us look at two qualified opinions on education, related, without a doubt, to several of the yardsticks. Phelps:

We will all have to turn from the classical fixation on wealth accumulation and efficiency to a modern Economics that places imagination and creativity at the center of economic life.

And Sen recalled that debates were the teaching methodology in the old University of Nalanda (the oldest in the world).

I dare to conclude this section saying that education must focus on values associated with the Humanities, in which efficiency and wealth do not stand out as much as happiness and the meaning of work well done, which are only acquired in an institution in which the primary consideration is learning through debate, without so much emphasis on study, which seemed to be so necessary in the last century.

Final Comments

And to finish, I’m going to limit myself to highlighting that Keynes and his teachings illustrate everything that he tried explain on the topics of liberalism, abundance, and the worthy life. I am going to do so by providing some quotes, both from John Maynard himself, and from Joaquín Estefanía in his lengthy introduction to the essays on persuasion by the master.

Estefanía

The academic economy did not stimulate his inventiveness, but the great problems of the applied economy and their discussion were able to drive his passion; then he set in motion his great intellectual faculties and his qualities of persuasion.
p.37.

I will not try to improve on Estefanía, but I want make it clear that we should clarify if there really is a distinction between a) applied economy vs. academic economy, b) inventive vs. intellectual faculties, and c) political persuasion vs. academic persuasion.

His scholars remind us over and over that for our author, the “good life” is the sole rational objective of economic effort; the rest—the deficit, debt, inflation and deflation—mere intermediate and instrumental stages.
p.51

This quote raises two concerns for me: a) to limit oneself to quoting only macroeconomic problems as topics of economic studies is not adequate, although the same affirmation would be appropriate even if he had added microeconomic issues. b) To what extent is the “good life” Estefanía refers to is specific to Bloomsbury?

Keynes

In the essay “Am I a liberal?”:

In a period of extreme abundance there is the maximum of individual liberty, the minimum of coercive control through government, and individual bargaining takes the place of rationing.

It’s not well-written, but it fits with my political talk, and what it means is that in the kingdom of abundance, we can live without spending all day thinking, and that lets us live the “good life.”

We have to invent new wisdom for a new age. And in the meantime we must, if we are to do any good, appear unorthodox, troublesome, dangerous, disobedient to them that begat us.

Here, it is fitting to remember the distinctions we’ve made between an education that, at another level, is Kontraren Kontra [contrarian] (although we are).

In “The Economic Possibilities for Our Grandchildren“:

The strenuous purposeful money-makers may carry all of us along with them into the lap of economic abundance. But it will be those peoples, who can keep alive, and cultivate into a fuller perfection, the art of life itself and do not sell themselves for the means of life, who will be able to enjoy the abundance when it comes.

Here, I would like to recall a detail personal. The economic wisdom of our parents, at least of my father: never spend your equity, and spend the interest on it very wisely.

The course of affairs will simply be that there will be ever larger and larger classes and groups of people from whom problems of economic necessity have been practically removed.

Abundance will arrive, but little by little, and by socioeconomic levels. And only as long as the rich do not abuse it by creating rents.

Conclusion

If I had to single out something from what has been said so far, I’d choose an implication that is not at all obvious, and, really, I haven’t said anything about. Namely, “performativity.” And I’ve built myself a quote, as if this idea of mine was memorable: When people are prepared to live in abundance, true abundance (not foolish waste), then it will happen.

If I am right, our task as communards is to build a new way of life.

Translated by Steve Herrick from the original (in Spanish)

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The pattern of the coming changes https://blog.p2pfoundation.net/the-pattern-of-the-coming-changes/2015/11/08 https://blog.p2pfoundation.net/the-pattern-of-the-coming-changes/2015/11/08#respond Sun, 08 Nov 2015 17:18:39 +0000 http://blog.p2pfoundation.net/?p=52536 What we take away from Somero 2015 is a model and a map of social, economic, and technological change that forces us to rethink and refine the framework of work. And internally, for the Indianos, it is the beginning of a new time with a new way of understanding what las Indias is. Last night... Continue reading

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What we take away from Somero 2015 is a model and a map of social, economic, and technological change that forces us to rethink and refine the framework of work. And internally, for the Indianos, it is the beginning of a new time with a new way of understanding what las Indias is.


Last night we said goodbye to the last participants from Somero 2015. Somero is meant to be our end-of-summer party and beginning of a new year, but also a succinct “Somero” catalog of the socio-economic change created by technological development. In both categories, it was a great success: we learned so many things and we met many new friends that it has forced us to stop and re-order the main reference points from which we understand reality.

The pattern of the emerging change

grupos de trabajo asarta somero 2015Throughout the presentations, interviews, and talks, we gradually discovered a common pattern in the changes in the production of software, objects and appliances, in energy, and in the coming finance system, but also, to the surprise of more than one person, in areas as apparently distant from each other as local development and the new missions and operational capacities of the FFAA. This is a radical change that also became transparent in the global view of the economy and geo-strategy.

It’s a relatively invisible but unstoppable change that uses the keys of what we have called the Direct Economy.

The heart of the change: less scale, more scope, lower cost

This common pattern is an across-the-board reduction in the scale of productive units and the growing centrality of economies of scope. What are economies of scope? The disproportionate improvement of productivity obtained from two things:

  • The capacity obtained through the intensive use of multi-purpose machines and systems–3D printers in prototyping, “recyclable” production chains in manufacturing, systems integrated into logistics–of multiplying the diversity of low-cost supply, marking a tendency towards low-cost customization.
  • The capacity for reaching, at a low cost, across greater distances by using networks and identifying concrete identarian networks, to make them customized offers.

The result of the balance between large scales that are suffering more and more inefficiencies and a new productive “SME” community that is producing a greater diversity of things, in smaller runs, and selling them globally by differentiating more kinds of customers, is clear: the whole sector of the new “small and globalproduces at a lower cost and is simply more efficient.

So the slogan of the change, in any setting, could well be less scale, more scope.

Distributed isn’t decentralized

Manuel en el GNU social Camp

The main contradiction of this world that we started to map out in Somero 2015 is the tension between the decentralized and the distributed.

entrevista mikael hannes manuel somero 2015The Internet of the giants of scale, the world of finance, and the industrial sector that is still dominant today, are the results of the connection of a series of centralized and centralizing systems. Twitter, Facebook, and Google are such centralized networks that they show the user a single entry page. Volskwagen, Endesa or any other industrial giant are such centralized transnational systems that they can plan not only their margins but updates to their equipment from their providers with their corresponding financial costs. These providers, who live in a true monopsony (a market with a single buyer) have no margin for any other technological innovation than that dictated and funded by the buyer.

But starting at certain scale, decentralized systems not only accumulate more inefficiencies, but turn them into costs that are higher than those of their distributed alternatives. These alternatives are not just more and more competitive in industry and even in the credit market. They are, by definition, more robust and resilient, and with a minimal regulation, as we saw in finance, they have systemic effects that underpin the main path of socio-economic and technological progress in our era: the dissipation of rents.

Additionally, when we joined the logic of distribution to that of free software, the free [of charge] nature of the underlying infrastructure appears easily, and the result is the appearance of resilient and accessible markets, and above all of a social fabric that gives a leading role to the community in the city and in conversation.

The key word is community

juan y jurg somero 2015

And as Juan had already told us on the second day and again remarked in the send-off, the new world doesn’t relate in impersonal ways, talking about “here’s what you should do,” but about many different versions of “here’s what we’re doing,” from many real communities, each one with their own values and ways of being themselves.

Somero 2015 was, above all, a community event. From the first days, we saw the birth of a powerful, imaginative and cohesive development community: that of GNU social. Working in parallel with the seminar of the “Sharing Cities Network,” in less than three days, it made a true show of force by developing the basics of the free and distributed toolbox of the “sharing city.”

cocktail somero 2015 isabel corral enriqueBut that wasn’t the only community that took shape in those days. The participation of many of our friends of la Matriz, who had jointly rented and organized accommodations and transportation to participate, gave shape to turning An?ovoligo into “las Indias Club.” Their participation in conversations and in software development, their contributions to the development of the event, and their interaction with the speakers were fundamental to everything turning out as marvellously as it did. In the end, as we wanted, we are something closer to a country than a landscape. Now the “Indianos” are not just the members of the cooperatives, but the network of friends of las Indias Club, our “happy few,” our “we,” united by values and ideas, but above all by experiences, feelings, and affections.

Towards Somero 2016

nat somero 2015 el comercioThis morning, while the apartment rented by la Matriz was emptying out and its Indianos were leaving for train stations and airports, the other one, that of the cooperators, was ringing with accounts, bills, and telephone calls. Among them were the first preparatory calls for Somero 2016.

We feel that we entered, reinforced and excited, into a new year, our fourteenth year, and into a new stage. This is a stage in which las Indias is no longer only a community with cooperatives but also a Club to think and do together. During the upcoming weeks, we will build its new webpage and we will publicize the first contents published and produced in and as a result of Somero 2015.

Somero 2015 was exciting–it gave us all momentum, filled us with ideas, and let us glimpse a powerful general framework from which many valuable things can be made. None of it would have been possible without all those who came and gave the best of themselves. Endless thanks to everyone!

Translated by Steve Herrick from the original (in Spanish)

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Current economics in comics, video and… “talking objects” https://blog.p2pfoundation.net/current-economics-in-comics-video-and-talking-objects/2015/11/01 https://blog.p2pfoundation.net/current-economics-in-comics-video-and-talking-objects/2015/11/01#respond Sun, 01 Nov 2015 12:08:36 +0000 http://blog.p2pfoundation.net/?p=52530 This is a new way of communicating economic theory that uses video, popular culture, and comics as a platform for “spimes,” “talking objects” that talk about the everyday importance of the advances in academic economics. There have begun to be some good MOOCs on Economy that provide the context necessary to be able to access... Continue reading

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Urrutia comix

This is a new way of communicating economic theory that uses video, popular culture, and comics as a platform for “spimes,” “talking objects” that talk about the everyday importance of the advances in academic economics.


There have begun to be some good MOOCs on Economy that provide the context necessary to be able to access that type of higher education that the continental European university seems to want renounce. But changing the tone and the depth of the social narrative requires much more than that. It’s hard enough to transmit economic culture, and spreading the advances in economic theory and incorporating them into the social debate on topics as hot as intellectual property or innovation seems completely out of reach.

Doing just that was the mission that we gave our companion María Rodríguez a few months ago. Her objective: create a new mode of communication capable of permeating popular culture. The result: Juan Pop, the first economist superhero.

Talking objects, informative content

objetos parlantes juanpopThe formula is simple: a story, a comic, and daily objects that “talk.”

The story: Juan Urrutia is a economist who, while on a visit to a particle accelerator, has his heart broken by a rise in electricity rates. His friend Doctor Generic gives him a free (libre) heart, and he becomes Juan Pop, the terror of crony capitalism. When he returns home, he realizes that he transfers his economist superpowers to all the objects he touches. From then on, with their friends Dr. Generic, D.J. Maresi, and his cow Abundance, he will fight against Count Monopoly to free the market from rents and privileges.

The objects: Mugs, blankets, cookies and all kinds of daily objects illustrated with by a comic strip artist from Buenos Aires, Clara Lagos, will carry a QR code that can be read with a cellphone and that leads to a page in which a video of Juan Urrutia and an informative text explain, in a simple and accessible way, the latest evolution in Economic Theory.

Dreams have no owner

taza juanpopDuring the recent Somero 2015, María presented the first “Juan Pop” object: a coffee mug illustrated with the slogan “Dreams have no owner” and a QR that leads to an accessible explanation on why Economic Theory no longer defends the need for intellectual property. It’s a polemic topic on which economic theory has advanced spectacularly in the last fifteen years, but without its conclusions and nuances reaching public opinion.

New adventures of the first economist superhero will follow, with new objects and messages. The objective, María tells us, is to create an emotional and attractive hook, taking current topics in economic theory and “give them a body and bringing them into everyday life.”

Bringing economic theory to objects and turning them into a new and informative medium means going from disseminating online content to the manufacture and physical distribution of goods. But that wasn’t the hardest part.

mayra juan pop someroThe hardest thing was convince Juan [confesses María with a sly smile]. When we recorded the video, we didn’t tell him that it was going to appear linked on a mug, or that the context was going to be the story of Juan Pop. We wanted him to see it first. And the time to do it was at Somero. We wanted him to see the reactions, to participate in conversations that would be started with the mug… and to realize that Juan Pop could become something really subversive.

And the results didn’t disappoint: few people who attended Somero 2015 left without a mug, and none without talking about it and commenting on the video and the text that accompanies it.

Our launch and first offer

At 4 PM today, we will open the JuanPop.com shop with the first product in the catalog: the “dreams have no owner” mug. For the occasion, a limited run of 200 mugs has been produced that will be our first offer, for only 10€ (VAT included). Don’t miss out — get yours!

Translated by Steve Herrick from the original (in Spanish)

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The strategy of las Indias for the new year (which begins in October) https://blog.p2pfoundation.net/the-strategy-of-las-indias-for-the-new-year-which-begins-in-october/2015/09/26 https://blog.p2pfoundation.net/the-strategy-of-las-indias-for-the-new-year-which-begins-in-october/2015/09/26#respond Sat, 26 Sep 2015 08:26:32 +0000 http://blog.p2pfoundation.net/?p=51990 Three axis: To give those around us a space to contribute and collaborate, to co-produce with more people, and to provide an integral education for a good life. Yesterday we had an intense morning meeting with Juan. It was time to catch up and discuss the beginning of our plan for the next Indiano year... Continue reading

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Three axis: To give those around us a space to contribute and collaborate, to co-produce with more people, and to provide an integral education for a good life.

Yesterday we had an intense morning meeting with Juan. It was time to catch up and discuss the beginning of our plan for the next Indiano year (which begins October second, the thirteenth anniversary of the founding of las Indias). Changes are coming, but above all, we’re enjoying a change of mood. We’re no longer trying to get somewhere in the middle of a storm. The storm has passed. And as the sky clears, we’ve have discovered some things:

  1. The most important one is, many restless and valuable people identify with us and with what we’re trying to do. We have to give them a space to contribute and collaborate, because we want share our bet on community and abundance.
  2. While we’re getting underway with new consultancy projects, which we enjoy a lot, the work that has fulfilled us this last year was what we’ve done together with other businesses and friends, in the logic of the direct economy. Continuing in that line, making products in alliance with others for the general public and launching them in the market, is what we’re most looking forward to in the new year. We’ve spent time laying the foundations to scale that experience and give it greater scope. This year, we have to start to create results.
  3. We are not the only ones to realize that the current growth model is broken, and that the alternative is either degrowth or radical change. What we learned this year is that if we want that radical change, it’s fundamental to promote cultural change, and to do this, we have to bet on promoting a new kind of training that provides “an integral education that leads to the good life.” With universities turning more and more into training centers to reduce costs and inefficiencies for Big Businesses, there’s an obvious need for a place of learning for multispecialists, that provides a profound philosophical and practical base to people who don’t see themselves becoming corporate functionaries, but “making an economic life” and entering the market for themselves or with their community.

pato laqueadoYesterday we started to put down in black and white these three ideas and, most importantly, taking concrete steps towards them. It was no small advance. So, we have to thank our friends for the conversations on la Matriz both on and off the blog, which have been very valuable. While we don’t yet have everything planned down to the last millimeter, thanks to the meeting yesterday, we do have a first draft that will be developed through practice beginning in October. When we finished, we were so happy that we went out to celebrate by having two delicious Peking ducks and talking about a thousand things that came into our heads with Juan, starting with his most recent posts and his upcoming books.

What’s next?

First stop: Somero 2015, the point of departure for a new year, the presentation of ideas, and the first concrete plans to materialize the three main points. You’ll want to be there. Reserve your place now!!

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A history of abundance https://blog.p2pfoundation.net/a-history-of-abundance/2015/09/05 https://blog.p2pfoundation.net/a-history-of-abundance/2015/09/05#respond Sat, 05 Sep 2015 09:21:40 +0000 http://blog.p2pfoundation.net/?p=51757 A brief tour of the imagining of abundance throughout history, from the Golden Age of the ancients to the P2P production of the current generation. Few ideas have been as powerful and subversive as abundance. For thousands of years, we humans have projected our desires onto it, we’ve been inspired by it to transform our... Continue reading

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A brief tour of the imagining of abundance throughout history, from the Golden Age of the ancients to the P2P production of the current generation.


Few ideas have been as powerful and subversive as abundance. For thousands of years, we humans have projected our desires onto it, we’ve been inspired by it to transform our forms of organizing, and we’ve raised it as the banner of a better future. Free food, the end of labor forced by need, and the end of conflicts and violence due to scarcity have been the image of the world that humans deserve to inhabit for hundreds of generations.

The Golden Age

In hundreds of mythologies all over the world, the myth of the “Golden Age” appears again and again: a remote historical period in which humans, as Hesiod tells us,

[…] had known neither work, nor pain, or cruel old age; they had always kept the vigor of their feet and hands, and were charmed with festivals, far from all of the evils, and their death was like falling asleep. They possessed all goods; the fertile ground produced by itself in abundance; and in profound tranquility, they shared this wealth with the masses of other irreproachable men.

Tiempo de Armonía por SignacSurely, Plato’s insistence on the absence of social classes and State, or perhaps that of Ovid in The Metamorphosis on the absence of agriculture, has been interpreted as a idealized “memory” of the primitive community, which was nomadic and dedicated to hunting, fishing and gathering. But among the many versions, there are those that locate the Golden Age in an agricultural world. And in fact, today, when we know that settling may have had a long “communal” period, it would be fitting to date its origins to a later era and link the myth to the vindication of commonly held lands.

In any case, it was possibly the most influential political myth in Antiquity: by associating abundance with the absence of State and property, it served to present the injustices and miseries of each age as the fruit of a mythic “fall” from which Humanity would recover by abolishing private property and the State… the ultimate program of the social revolutionaries in every age.

We are well aware that primitive human societies did not know abundance. On the contrary, the study of the last groups and cultures that have maintained an economy of hunting and gathering speaks to us of systems where scarcity imposes a total subordination of the individual and their desires to the always precarious and difficult survival of the community. That’s why the myth of the Golden Age is so interesting: it doesn’t talk about a “more just” society, it talks about a society of abundance, an abundance that could only be intuited briefly when the Neolithic Revolution started to create the kind of surpluses that had been unknown until then, when the State appeared, and with it, the first public works, and the productivity of human societies multiplied for the first time.

The Christian Era

Ravena capilla del arzobispo, arte paleocristianoCuriously, while they were born together, egalitarian social ideals would soon be divorced from the dream of an abundant society. Early Christianity would be centered on sharing and would have its glimpses of abundance, but would not be able imagine a world of broad needs covered for everyone. Its monastic versions and its heresies would accentuate this egalitarianism of scarcity to its limits.

The commercial “revolution” of the tenth to thirteenth centuries and the instinctive rejection of the Church of the first commercial bourgeoisie, is seen with ever-greater frequency in this Christian reflection. At first, the Church condemns the artisan merchant and commerce itself, as articulated in theologies of poverty and their rejection of misery. But this misery was produced by the resistance to change in the nobility of which the Church elite was part.

The Church would present the Second Coming as the move to Messianic society where, sated, “the wolf will graze with the lamb.” From there, it kicked the can down to an indefinite future. But fewer and fewer were willing to wait around. New groups sought to promote the arrival of Christ by going to live in community, raising up the egalitarian society of the Gospel. In short order, groups began to slip thorough the Church’s hands: Waldenses, Joachimites, fraticellis, Beghards, flagellants… What’s interesting is that the theological praise of poverty soon became, in the hands of the popular classes, identarian recognition (the imagined community of “the poor”). And this self-identity, accidentally promoted by the ecclesiastical message, in turn, quickly became a rejection of poverty and violent vindication of abundance. The Church soon responded by turning the Franciscans into an order (giving an internal organizational space to poverty), advancing the Dominicans, and the creation of the Inquisition to “repress excesses.” We can glimpse the troubles and confrontations of these “communisms of poverty” with royal and papal power in The Name of the Rose, the novel in which Umberto Eco ironically commented on the Italian Left.

Werner Tübke Batalla de Frankenhausen Detalle con Thomas MunzerThe theologies of poverty would be spread in the Protestant Reformation and would blossom in the peasant wars that would follow it in Germany. The tension between egalitarianism and scarcity would soon become obvious: when Thomas Munzer attempts the immediate establishment of the Kingdom of God, making work and property common, the results would be poor. Like the Anabaptist Hutterites who would follow him and the “Diggers” of the English revolution, who would appear later, everyone—in the case of the Hutterites, down to our days—would distrust technology and its use, and would only be able to build shared poverty.

Of course, we can explore this historical scenario in Q, another parable about the Italian contemporary Left written by the group of writers known as “Luther Blissett” and then as “Wu Ming.”

The era of discoveries

jaujaBut while Christianity continued its own evolution, the development of the first major commercial routes and European fairs would bring a new kind of popular myth that, while it wasn’t really about abundance, was at least about opulence. Then stories begin to appear about the “Land of Cockaigne” and of “Schlaraffenland.” These tales would merge as of of the second half of the sixteenth century with the stories of fabulous wealth that would follow the Castilian conquest of the Aztec and Inca empires, giving way to the stories of the “pais de Jauja” that are still told to children in Spain.

It is then, around the middle of the sixteenth century, when the lower classes of Europe begin to dream of abundance as such. It continues to be significant that this abundance appears as a “deposit” or as a “gift of nature.” Although it is an era of accelerated technological development, innovations are concentrated in sailing, war and engineering, rather than the direct production of goods. The popular classes thus understand abundance as unlimited access to meeting needs and the storehouses of an ever-more powerful crown, not as the development of capacities of their own work.

Vespucio en América, grabado de Théodore de BryIt also links this idea with the Jewish and Christian myth of paradise, a “garden” where it is not necessary to work, not even at gathering, to be sated with as much as one needs. And it shouldn’t be forgotten how far the idea and desire went that the Indies, recently discovered on the first transatlantic voyages, would be no more and no less than the earthly paradise itself. This myth became so influential after Columbus’ first stories that the Castillian crown soon prohibited those who were “of impure blood,” which is to say, the descendants of converted Muslims and Jews, from emigrating to the king’s new lands. And in fact, this association between “original cultures” and “Adam, free from sin,” would have a long run, until, two centuries later, it become Rousseau’s “noble savage,” who, still today, can be sensed behind more than a few narratives exalting the “wisdom” of indigenous peoples.

This environment at the dawn of the European expansion in the Americas would also lead, among the educated classes, to a new political-literary genre. In 1516, Thomas Moore publishes his Utopia. Utopia is not the land of abundance, it is a democratic and patriarchal country, organized as a confederation of cities in which private property doesn’t exist. But, by reviving the idea of egalitarianism and joining it with certain democratic forms, and above all, with material well-being, it would have a tremendous influence on all European political thought. That thought was fated to again encounter abundance.

The era of revolutions

blakeStill, it wouldn’t be until early industrialization and the French Revolution that abundance reappears. Once more, it would not be from the hand of egalitarianism. In all the works of Baubeuf, there is not one reference to abundance. The first reference would not be in rich revolutionary debates, but in an external observer who describes his times with the voice of a prophet. Between 1790 and 1793, William Blake, “mad Blake,” publishes “The Marriage of Heaven and Hell.” For the first time, abundance appears as the result and objective of a revolutionary process.

[…] the whole creation will be consumed, and appear infinite, and holy whereas it now appears finite & corrupt.

But what’s really interesting is that he imagines the change to abundance as a leap to a whole new form of human experience, radically different from that of the world of scarcity in which

Man has closed himself up, till he sees all things
thro’ narraow chinks of his cavern.

To the extent that he understands that scarcity is alienating in itself, he imagines the transition to a new world as a change in the very way that we feel and experience the world:

This will come to pass by an improvement of sensual enjoyment. (…) If the doors of perception were cleansed every thing would appear to man as it is, infinite.

población vs producciónThe world that immediately follows Blake’s book seems to point in just the opposite direction, however. The world at that time is experiencing an accelerated process of specialization and an unprecedented increase in income per capita in the first industrial nations: Great Britain and the US first, and northwestern Europe later. Around 1800, production starts to grow more than the population. Productivity, which had been relatively stable until then, takes off. Early on, it’s a consequence of the application of the new mechanical technologies and of the organization of labor: the steam engine and the factory system are expanding. Growing British power assures a certain freedom of market within their own borders and demolishes the commercial barriers of the old empires, from Spanish America to China. Economic development leads to a true blossoming of science and technology which, in turn, drive knowledge and productivity.

The productive leap is so great that anything seems possible. Abundance seems around the corner, and for the first time in human history, economic crises are not from underproduction, but overproduction. It is in this context that we should understand Marx.

Marx places abundance at the end of the historical process, as the necessary result of the evolution of productivity, which he calls “productive forces.” In his model, the history of human societies is the history of the development of their productive capacity and the moments of political and social transformation, the result of the adaptation of the political and legal systems to the needs imposed by those capacities, by those forces, defended in every historical moment by a characteristic social class committed to making revolution. For Marx, the class of wage laborers was called to “liberate the productive forces” unchained by capitalism from the restrictions that the system of private property and nation-States impose on them. The result, communism, would be a society where productivity would be developed even more rapidly, to the point of making abundance a reality for all.

Despite the monumental size of his work, Marx didn’t leave many texts dedicated to describing the characteristics of the society of abundance. From what he did leave, we can say with certainty that he was the first to imagine a society where the development of productivity would be so high that not only would make possible the end of wage labor, but also, as he writes in some reading notes, could turn work itself into “a free manifestation of life, an enjoyment of life.” The idea, which he develops in The German Ideology (1845), is that, as of a certain level of development of productivity, specialization would simply disappear, and with it, alienation, the new name for that restriction of perception that Blake already denounced.

For as soon as the distribution of labour comes into being, each man has a particular, exclusive sphere of activity, which is forced upon him and from which he cannot escape. He is a hunter, a fisherman, a herdsman, or a critic, and must remain so if he does not want to lose his means of livelihood; while in communist society, where nobody has one exclusive sphere of activity but each can become accomplished in any branch he wishes, society regulates the general production and thus makes it possible for me to do one thing today and another tomorrow, to hunt in the morning, fish in the afternoon, rear cattle in the evening, criticise after dinner, just as I have a mind, without ever becoming hunter, fisherman, herdsman or critic.

Marx would develop the idea of Blake’s “opening of the doors of the perception” and would add to his idea of a society of abundance the dream of the artistic vanguards of the beginning of the twentieth century. The human experience in a society of abundance would be, to a certain extent, an artistic experience.

The exclusive concentration of artistic talent in particular individuals, and its suppression in the broad mass which is bound up with this, is a consequence of division of labour. […] In any case, with a communist organisation of society, there disappears the subordination of the artist to local and national narrowness, which arises entirely from division of labour, and also the subordination of the individual to some definite art, making him exclusively a painter, sculptor, etc.; the very name amply expresses the narrowness of his professional development and his dependence on division of labour. In a communist society there are no painters but only people who engage in painting among other activities.

In his most famous work, Capital (1867), he points out that the development of productivity that capitalism creates “contributes to creating social time available for recreation by each and every one,” even if is through forced unemployment, and that the path towards a society of abundance, the development of productivity, leads to “appropriating” the increases of productivity in a progressive reduction of the time dedicated to produce goods:

[…] on one side, necessary labour time will be measured by the needs of the social individual, and, on the other, the development of the power of social production will grow so rapidly that, even though production is now calculated for the wealth of all, disposable time will grow for all. For real wealth is the developed productive power of all individuals. The measure of wealth is then not any longer, in any way, labour time, but rather disposable time.

In the same book, he would return to this idea of the society of abundance as a hyperproductive society in which human capacities are such that it does not make sense to maintain a life divided between between leisure and work.

It goes without saying, by the way, that direct labour time itself cannot remain in the abstract antithesis to free time in which it appears from the perspective of bourgeois economy. […] Free time—which is both idle time and time for higher activity—has naturally transformed its possessor into a different subject, and he then enters into the direct production process as this different subject.

And in one of his last works, the Critique of the Gotha Program (1875), he would insist on portraying the society of abundance as a stage of socioeconomic development produced by the sustained growth of productivity in which

[…] the enslaving subordination of the individual to the division of labor, and therewith also the antithesis between mental and physical labor, has vanished; after labor has become not only a means of life but life’s prime want; after the productive forces have also increased with the all-around development of the individual, and all the springs of co-operative wealth flow more abundantly.

derecho a la pereza lafargueLet’s stick with the idea that abundance opens a new kind of human experience, a “multifaceted development” of each one, because it will return in the twentieth century as the center of the ideas about abundance. But for the time being, we should underscore Marx’s emphasis on productive capacity. His son-in-law, Paul Lafargue, ended his personal manifesto, entitled The Right to Laziness, with a simplification of this idea:

[…] the machine is the redeemer of mankind, the God who will rescue humanity from the sordidae artes of wage slavery, the God who will give us leisure and liberty.

This vision of the society of abundance as a liberation of humanity made possible by technology wasn’t exclusive to Marx and his milieu. In 1892, Kropotkin publishes The Conquest of Bread, which confronts the Malthusian narrative that sees “indefinite growth” as impossible with the same underlying ideas:

[…] the productive powers of the human race increase at a much more rapid ratio than its powers of reproduction. The more thickly men are crowded on the soil, the more rapid is the growth of their wealth-creating power.

Kropotkin, like Marx, thinks that capitalism would be succeeded by a transitional period—certainly, without a State—in which the implantation of a decommodified economy guided by the needs of people through free confederation, would assure a “good life” to everyone and would develop even more productivity, to the point of reaching abundance, that stage where humans would dedicate themselves fundamentally to “the high pleasures of wisdom and of artistic creation”:

Henceforth, able to conceive solidarity—that immense power which increases man’s energy and creative forces a hundredfold—the new society will march to the conquest of the future with all the vigour of youth.

Leaving off production for unknown buyers, and looking in its midst for needs and tastes to be satisfied, society will liberally assure the life and ease of each of its members, as well as that moral satisfaction which work gives when freely chosen and freely accomplished, and the joy of living without encroaching on the life of others.

Inspired by a new daring—thanks to the sentiment of solidarity—all will march together to the conquest of the high joys of knowledge and artistic creation.

Kropotkin, like Marx, thinks that little can be imagined of a society of abundance: the human experience would be so different, as would the stories that humans would tell about life, which constantly limits itself to proposing forms of organizing for the transition period. He insists that the main task to reach abundance would be to reduce the number of hours of “work considered necessary to live,” which he initially puts at five, as productive capacity is developed and the division of labor is eroded.

los desposeidos ursula k leguinSurely the closest contemporary literary reference to the communities Kropotkin imagines would be those described in 1974 by Ursula K. Le Guin in The Dispossessed. Le Guin shows us a decommodified society, with deep-seated individual and egalitarian freedoms, but—because of external conditioning—basically poor, with a certain centralizing tension and without continued growth like that imagined by the “anarchist prince.” It continues to be interesting, because Le Guin approaches anarchism not from the perspective of abundance, but of egalitarianism. A similar thing would occur with the person who is usually considered the principle intellectual heir of Kropotkin, Enrico Malatesta. Malatesta, in contrast to Kropotkin, doesn’t understand the future society as the result of a possibility opened by the development of knowledge and the transformative capacities of the human race over time. He argues that anarchy is a system possible in any historical moment. That is why he does not associate it with either abundance or technological development, which, in turn, leads him to lose the view of a more complete and complex human liberation, accepting obvious needs imposed by scarcity, like the division of labor:

Certainly in every large-scale collective commitment there is a need for a division of labor, for technical direction, administration, etc.

And in the first half of the twentieth century, marked by the Russian disasters and two world wars, the revolutionary and egalitarian narrative would again separate from the dream of universal abundance. Trust in a horizon of abundance and its path—progress—was linked in the nineteenth century to a sense of wonder about science. But science and technology, which are associated in the 19th century with Verne’s dreams and Pasteur’s vaccinations, in the twentieth would also be associated with war gases, civilian bombings, the greatest genocides in history, and the atomic bomb.

dada berlinSurely because of this, the vindication of abundance during the first half of the new century did not come from scientifist philosophers like Marx or from philosopher scientists like Kropotkin, but from the heterogeneous group of artists and critics that formed the artistic “vanguards,” surrounded by the emergence of the new political movements and marked by the vital urgencies of a society plunged into war. But above all, they are quite conscious that, after the appearance and popularization of photography, art is first and foremost a narrative about the human experience in a historical context. In the first half of the twentieth century, that means proposing a new society. The artist goes from interpreter to prophet.

What the vanguards were pushing was the importance of “multifaceted development” of the individual as a fundamental feature of any society that would proposed to advance towards “true abundance.” This is an element that would gain more and more prominence as the totalitarian development of the Soviet State and the character of its economy become more and more obvious, but also as the economic cycle begun by the period after WWII reaches its end.

The era of well-being

herbert-marcuseIn 1933, while the last vanguardist manifestos are still fresh, Herbert Marcuse, a young German philosopher who had participated as a twenty-year-old in the Sparticist uprising, joins the new “Institute of Social Studies.” He publishes and comments on Marx’s Philosophical Economic Manuscripts. He discovers in them the “young Marx,” enlightened by abundance and the criticism of alienation, but that same year, he would have to leave the Institute—which was already beginning to be known as the “Frankfurt School”—to emigrate to the USA. There, he would work for the war machine and would end up being the head of intelligence analysts for Central Europe of the State Department. In 1952, after being widowed, he begins a life as an academic that would take him through some of the most famous Ivy League universities and would allow him to write two of the most influential books in the ’60s in the US: Eros and Civilization (1955) and One-Dimensional Man (1964).

In the framework of the opulent and conformist US society of the ’50s and ’60s, Marcuse takes up Marx’s old argument, leaving aside all the material needs that make up the “good life” that Kropotkin imagined. He accepts that that “good life” of the road towards abundance continues to be the main philosophical objective for historical change.

Analyzed in the condition in which he finds himself in his universe, man seems to be in possession of certain faculties and powers which would enable him to lead a “good life,” i.e., a life which is as much as possible free from toil, dependence, and ugliness. To attain such a life is to attain the “best life”: to live in accordance with the essence of nature or man.

But Marcuse is aware that capitalism of the postwar period is developing productivity in a way that both Marx and Kropotkin thought would only be possible after the revolution. The “good life” of US well-being—which would soon have a European social-democratic echo—produces an acritical and demobilizing consensus that is too similar to a diffuse and generic totalitarianism to be able to find in it a promise of true abundance. Tied to the limitations of Marxist economic theory, Marcuse finds himself in a basic contradiction that his readers in the French May would turn into a famous slogan: “be realistic, demand the impossible.”

At its most advanced stage, domination functions as administration, and in the overdeveloped areas of mass consumption, the administered life becomes the good life of the whole, in the defense of which the opposites are united. This is the pure form of domination. Conversely, its negation appears to be the pure form of negation. All content seems reduced to the one abstract demand for the end of domination—the only truly revolutionary exigency, and the event that would validate the achievements of industrial civilization. In the face of its efficient denial by the established system, this negation appears in the politically impotent form of the “absolute refusal”—a refusal which seems the more unreasonable the more the established system develops its productivity and alleviates the burden of life.

Fearful of economic development in itself, he equates abundance to what puts Marx in line with Blake and the vanguards: the beginning of a new sensibility, a new form of perception. To emancipate oneself from culture—an idea for which he resorts to Freud—and turn life, as the vanguards said, into an artistic project, would be a development beyond the rationality of today’s relations of production.

The advancing one-dimensional society alters the relation between the rational and the irrational. Contrasted with the fantastic and insane aspects of its rationality, the realm of the irrational becomes the home of the really rational—of the ideas which may “promote the art of life.” If the established society manages all normal communication, validating or invalidating it in accordance with social requirements, then the values alien to these requirements may perhaps have no other medium of communication than the abnormal one of fiction. The aesthetic dimension still retains a freedom of expression which enables the writer and artist to call men and things by their name—to name the otherwise unnameable.

The movement towards abundance, for Marcuse, can only be an artistic movement of those who feel dispossessed, not of basic well-being, but of the hope of find meaning in life and the world; those who are outside of an economic rationality that Marcuse understands is perfectly capable of perpetuating itself, of exceeding all limits. The central idea in Marcuse is that the development of knowledge and science no longer brings us closer to abundance, but rather, pushes it further away, substituting it with the control of a totalitarian consensus based on consumerist well-being.

Boulding en 1956What’s interesting is that, not very far from Marcuse, and while he is writing his most relevant works, an economist as far as possible from the Marxist economy is laying the foundations to disassemble the theoretical “ceiling” the “Frankfurters” have reached.

Kenneth Boulding, the father of the General Theory of Systems, a Quaker and pacifist, had a spirituality that was greatly influenced by Teilhard of Chardin. Following the path of his teacher, he would be the first theoretician to incorporate the evolutionist perspective into economic analysis.

In radical opposition to Marcuse, Boulding rescues the role of knowledge and in Economic Development as an Evolutionary System (1962) restores its centrality, allowing him to articulate the relationship between History and Nature.

This whole process indeed can be described as a process in the growth of knowledge. What the economist calls “capital” is nothing more than human knowledge imposed on the material world. Knowledge and the growth of knowledge, therefore, is the essential key to economic development. Investment, financial systems and economic organizations and institutions are in a sense only the machinery by which a knowledge process is created and expressed.

In this context, the important thing about the analysis, like for every evolutionist influenced by Chardin and his omega point, is what happens at the “limit,” wherever the trend leads us. For him, the limit, which occurs in the definable limits of a system, is especially important. And at the limit, the omega point of an economy of perfect markets is the end of the economic problem: abundance.

That same logic of the limit would allow him to define the key of why and how capitalism of over-scaled corporations that intimidates Marcuse is not an endless alternative path, but only another moment on the road towards abundance. In The Organizational Revolution (1953), Boulding had already given us the tools to understand what, decades later, we would call crisis of scale, modeling how macro-organizations, in spite of the development of communications technology, create inefficiencies as of a certain point of criticality that move into the whole economy through the rigidity of prices, weakening the ability of the market to reach efficient equilibria and placing the weight of the economic system in such a state that Big Businesses would see it more and more as an objective to capture, as a source of the regulatory and direct rents on which, in the end, they depend.

The Network Era

The final decades of the twentieth century would be marked by the emergence of information technology and distributed networks. Originally born of the need to reduce the inefficiencies created by excessive scale, their massive popularization in the ’90s creates new social phenomena and makes visible the first cybercultures that had been maturing since the ’70s at the crossroads of the libertarian counterculture and technological exploration.

In 2001, Pekka Himanen publishes The Hacker Ethic and the Spirit of the Information Age. In it, he describes the culture of free software developers: A set of values in which the idea of private property is dispelled, knowledge is in itself the principle engine of work, and in which the separation between leisure and work seems to have been overcome. The hacker world becomes a myth of abundance. It is still seen as a big island in the middle of an industrial world, but it shows the promise of abundance at the end of the world the Internet is creating.

juan_urrutiaBut Himanen is not the only one who knows how to see the promise contained in the new cultural forms. At the end of the ’90s, a chance meeting happens: Juan Urrutia, a disciple of Boulding and Marcuse, is beginning to work with the cyberpunks, with whom he would later found las Indias.

The first result of those conversations would be “The logic of abundance” a essay published at the beginning of 2001. In it, distributed networks and network effects appear for the first time as the economic foundation of abundance.

Urrutia would take up the Bouldinian idea of the importance of the limit and therefore of abundance as a result at the limit of a capitalism cleansed of corporate rents in The Coming Capitalism, published in installments between 2003 and 2008. A new concept, the dissipation of rents then serves as a link between the glimpses of abundance that characterize the emergence of distributed networks and the “de-marketized economy” with which Urrutia has characterized the economic analysis of a society of abundance, and which serves to address “Boredom, Rebellion and Cybermobs” (2003), processes of forming and changing consensus in identarian networks.

But Urrutia is not satisfied with building this unique bridge between the changes that he is experiencing in the first person and the society that he glimpses as possible. He extends the hacker ethic first to a “spirit of the bricoleur” that goes far beyond the world of software related by Himanen. He thus precedes the first narratives about “maker” world by nearly a decade, and foresees a growing “multi-specialization” that brings the “bricoleur” to the world of production. At the limit, this movement means the end of divisions in production and with them, the “change in perception” that we saw begin in Blake. This scenario leads him to give a progressive importance, beginning in 2014, to the distinction between knowledge^—born of the need to transform, and wisdom—the result and objective of the “good life” that the glimpses of abundance of a new communitarianism make more and more possible.

Sistema de producción p2pIn parallel and almost as publicists, the Indianos publish the Network Trilogy, whose first installment, “The Power of Networks” accentuates the influence of network topologies on forms of social and political organizing throughout history. This trilogy, published between 2005 and 2010, would culminate with The P2P Mode of Production (2012), a manifesto that presents productive examples of Urrutia’s model of “identarian communities” and their “confederalism,” an idea already present, as we saw, in Kropotkin’s society of the abundance—following Proudhon in this—but also in Hayek. The Indianos would also pick up on Boulding’s idea of the crisis of scale to explain the dependence of corporations on rents and explain the simultaneous destruction of markets and state that characterizes the social decomposition that is being made even more visible with the crisis beginning in 2008.

But what’s really interesting from the point of view of the “history of abundance,” is that, beginning with the social experience of free software, for the first time, beyond Kropotkin’s logic of the transition, a new kind of economic cycle is outlined, the P2P mode of production, where capital is substituted by direct knowledge and the market is complementary, to the point that, at the limit, it goes “extinct.” And what’s no less important, this model is linked to the present through the new emerging industrial forms like the direct economy and the metabolisms of generation of knowledge that appear for the first time in those years linked to the overcoming of the intellectual property and academic institutions.

Conclusions

futurismoNobody can yet present “detailed blueprints” of a society of abundance, but our brief tour through its imaginings, from the Golden Age to P2P production, tells us something extremely important. Abundance is not a dream that comes out of nowhere. It is not the fantasy of prophets and enlightened people. It expresses the development of knowledge and of their instrumentation in technology throughout history.

As we humans transformed nature more and more effectively, the more we learned about her and ourselves. And by knowing more about ourselves as a species and as part of that common metabolism, better approximations could be written of the same aspiration, intrinsic to our transformative nature, of a life not kidnapped by scarcity.

The “buts” and dismissals made of abundance and its spokespersons in every age by the “status quo” matter little. The mere imagination of abundance is the first place where we humans have found ourselves as such, as a species and leaders of time and nature. That’s why it is in the story of abundance where gods and supernatural beings were first dispensed with. Because, contrary to what Marx thought, it’s not only when abundance is the norm the human experience would be truly human—on the contrary, the really human experience is that which is oriented to building it.

Translated by Steve Herrick from the original (in Spanish)

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OuishareFest 2015: Interview with Juan Urrutia https://blog.p2pfoundation.net/ouisharefest-2015-interview-with-juan-urrutia/2015/06/02 https://blog.p2pfoundation.net/ouisharefest-2015-interview-with-juan-urrutia/2015/06/02#respond Tue, 02 Jun 2015 15:00:42 +0000 http://blog.p2pfoundation.net/?p=50369 Thursday, May 31, 2015. In the Circus of the Cabaret Sauvage, David de Ugarte interviewed Juan Urrutia during the OuiShareFest 2015. A rare and rich document explaining the foundations of a 20 years effort to create an Economics of Abundance. ¿What did happen in the nineties? How a distinguished professor of Economics, well known academic... Continue reading

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juan-ouisharefest-2015
Thursday, May 31, 2015. In the Circus of the Cabaret Sauvage, David de Ugarte interviewed Juan Urrutia during the OuiShareFest 2015. A rare and rich document explaining the foundations of a 20 years effort to create an Economics of Abundance.

¿What did happen in the nineties? How a distinguished professor of Economics, well known academic writer, got involved in communitarianism and started trying to build a New Economic Theory of the transition towards a society of abundance.

Las Indias and I were bound to come together around the issue of communitarianism. Yes I was a professor of Economics (completely orthodox) but I could not forget

  • May 68 in Europe and USA
  • Frankfurtian ideas (Marcuse)
  • Specific kind of psychology centered on Fritz Pearls¨Gestalt Therapy

And some young people around (members of las Indias today), a bunch of hackers indeed, showed me that something called ICT (Information and Communication Technology) could give rise to a new way of economic thinking called at the time «New Economy».

This New Economy developes around two important ideas:

  • abundance is possible
  • networking is crucial

The Great Recession forgot about the dotcom firms and it is only now that they (the hackers) and I (the old professor) can face the intellectual challenge of building up a new basic model of the workings of the economy build upon, not the I, but the «WE».

But it has to be done unless we are ready to accept to be lost in transition.

Identitarian communities and abundance

ouisharefest2015But in the course of your research you found this «we» is not every possible «we», but a very particular «we» called «identitarian community», product of the modelization of networking. So, in order to be clear, everybody has an intuitive concept of «networking» but… what really networking is from the point of view of formal economic analysis and how does it produce identitarian communities?

We call networking the formation of networks of persons through a process that can be modelled as an evolutionary game among them. The game is played among all pairs of persons formed at random and connected in the network at a given moment, a network that as time goes on increases the number of connections.

The interaction generates «memes» (social habits) that change as the network becomes more and more dense (or closed knit). In the limit this evolutionary game generates an equilibrium called evolutionary stable stategy in which the “memes” attained cannot be changed by mutants.

The corresponding society is what we call an identitarian community.

Both in practice and in economic modeling the distinctive culture of identitarian communities is fraternity, and old philosophical subject from Epicurus to the French revolution and so on. How does fraternity change the game, how does social results become subverted by the kind of fraternity an identitarian community produces?

Fraternity is in its foundations the pleasure of being together as it was already defined by the epicurean concept of «friendship», which in turn sustains mutual trust and credible commitments. And in such a society scarcity is overcome, abundance is possible.

  • Based on changes of costs
    • Transaction costs disappear because of mutual trust
    • There are increasing returns from the demand side. For example the «net effect» also called the «Mathew effect» produces these increasing returns becase “those who have will get more”
    • The economies of scope increase their importance
  • But also based on “rent dissipation”. Monopolies have disapeared because nobody gains anything threatening to leave the identitarian community because this threat is not credible since the equilibrium is mutant’s proof: perfect competition has been reached.

Revolution

ouisharefest 2015 foto julie«Rent Dissipation» is the main concept of your 2003’s book «Capitalism to come», the book in which you defined by first time the possibility of a sharing economy. But little time before you also published a brochure I would like to refer to now. It became very relevant those days because newspapers, specially conservative newspapers, said you cooked in that book the theory for the mobs against the government that followed the march eleventh alqaedas’s attacks. To me the relevant thing of the economic models you worked there is to show how «revolution» happens inside an identitarian community and how it is related to network architecture.

Yes, the identitarian community is always threatened by revolution which is possible or not depending on:

  • The threshold of rebellion: the number of other members of the network who would support the change, something I need to know for eventually changing my behavior myself.
  • The epistemic condition, i.e. who knows what.
  • The density of the network.

And this creates a paradox:

  • Classify communities in conservative (high) or progressive (small) according to its threshold of rebellion.
  • Resulting that in the conservative societies the revolution is easier the less dense is the structure.

An example could be the UK a collection of conservative and isolated overlapping communities in which nobody has sufficient knowledge about the threshold of rebllion of others.

Consumption and producction

So, you modeled how networks and communitarianism defined the horizon of abundance, then in detailed mechanisms of how it tend to happen as rent dissipation, and then you researched social network dynamics explaining revolution in networked behavior. Finally your work in las Indias focused in the creation of «new basic economic model» upon all those pieces…

For our desired new basic model there are two fundamental pieces: consumption and production.

  • On consumption. I know no theory of consumption based on WE and not on I. I only know first approximations like Marx’s Communist paradise, or Marcuse’s 68 ideas in California or, indeed the way of life in the Esalem Institute in Big Sur.So, we in las Indias work hard in formalizing the notion of the “good life”.
  • On production. We already know, in the context of abundance, of the Mathew effect and related economies of scales and economies of scope. But we have to take into account
    • Strategies: two well known strategies became impossible:
      • to take a possition.
      • to establish an standard
    • Rules of management. Two are selfdefeating:
      • conservation of clients.
      • education of workers. In fact distinctions between workers and clients disappear.

Commons

juan y david ouisharefest
In the Economics’s and Philosophical tradition, abundance is the opposite to the mere existence of merchandises. Is it possible even to imagine a path towards abundance based exclusively in market dynamics? Markets interchange merchandises and money, so… And on the other hand, markets offer universal solution that probably no other tool different of them could offer…

After Information and Communication Technologies in the New Economy the percentage of non tangible goods has increased heavily. And most intangibles are commons ( communal goods) characterized by non-rivalry and more or less exhaustibility.

Therefore, in our effort To rebuild the Economy, commons are a very important piece, although we cannot forget markets.

There are however no obvious and universal solution to the problem of common goods. All solutions are ad-hoc and local. Some are good solutions and some are bad.

Today’s examples of local bad solutions on commons:

  • Intellectual property laws are examples of local solutions which are already known as bad solutions
  • knoledge in general and how to finance it
  • Ranking of scientist or universities according to sociometrics distort incentives.

Politics

Well, then if you accept commons as a key piece of the path towards abundance, you will agree this way cannot be only an economic or cultural path, it has to be necessary a political path too which has to produce a change in political institutions and relationships

Yes, our basic model cannot be isolated from politics. The Sharing Economy generalization has to be diverse because of the local nature of identitarian communities making the whole. The political form we in las Indias cherish is confederation which preserves diversity. In a confederation there is no ultimate authority. But it is better to accept it than to try to bould one artificially. Remember the Central Bank Syndrome:

  • the only agent which cannot be forced to honor its promises.
  • Unless its promises are based in the common language and correspond to idiosincratic memes.
  • If we accept diversity
    • optimality might not be reached
    • but survival is maximized (as in Biology) under limited rationality and suboptimizing
    • Stochasticity is therefor implanted and his stochasticity lead to an unique equilibrium.

The post OuishareFest 2015: Interview with Juan Urrutia appeared first on P2P Foundation.

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