The Approval Economy as an alternative to P2P Trade economies

Heather Marsh describes the logic of the approval economy.

Excerpted from “Georgie BC“:

“To benefit all of society, an economy needs to be based on service to all of society. In today’s economy, service is bought and sold as a good; instead goods must be provided as a service. An economy benefitting all of society should include service to ourselves, service to others and service to society at large. An elderly person who keeps themselves healthy and fulfilled or an addict working to conquer their addiction may be giving only to themselves but both are making society a much better place and lessening the work for others. To create a giving economy instead of a gift economy, currency is not exchanged between two trading partners but societal approval is awarded from all of society to the giver. Societal approval and trust then entitles each member of a society to receive benefit from that society, through a living and immediate social contract. As a reputation economy allows you to participate in trade, an approval economy allows you to become part of a society.

Trade economies attempt to symbolically represent societal approval by possessions. As monarchs were formerly held to rule by divine right, trade economies insist wealth is due to virtue. While hoarded possessions have been used as a symbol of acceptance, they do not fulfill the real social need for acceptance. The wealthy are instead resented and isolated, shunned by the society they supposedly are the elite members of. Underlying every patriarchal society is the idea that caregivers, children and dependents should be grateful as trade economies see them as burdensome. Those who see a disparity in labour for the family and community are not at all grateful. Family wage earners resent not gaining love and approval for their work in trade, but because trade economy derides unpaid service, they receive no respect for support and creation of the family either. In a trade economy, the currency exchanged separates the giver and receiver; because the currency entitles the receiver to the gift they are not grateful. The human need for social and familial approval is almost never adequately met in trade economies.

As possessions in a trade economy include the service of others, those who do not work for the benefit of others are the powerful. An economy based on societal approval equates not working for others with being excluded or shunned. In an approval based economy, control of assets does not bring power. Assets are not assigned worth until they are contributed to the society. Internal support contributions are not valued less than external trade contributions.

Work in an approval based economy provides society and affinity groups; it is less stressful to be part of the society than to be isolated. Gifts are bonding, both within family and friends and at a community level. In an approval economy gifts are not a tax or state confiscation which leaves nothing; wealth is created by giving. Acceptance by society is based on actions instead of assets. Those dependent in society for some things also have gifts to give, acceptance and approval being the most valuable. Politicians propped up by military and corporate interests hated by the people are the antithesis of societal approval as the mark of acceptance. The dissociation of power in society from service to society provides fertile ground for sociopaths to seize power.

Those creating and supporting society should not need charity, they should have power. An inclusive society does not leave some dependent on the charity of others, or make some work far harder for the same ends. Where there is inequality there will always be tyrants; giving birth, aging or accepting responsibility for another should not be equivalent to accepting a slave role. ‘Women’s issues’, the elderly, the youth and the less able cannot be special problems to be dealt with on the fringes of society. Care for dependents of society is the responsibility of all, and dependents should have power to gift approval to those who assist them. Economy cannot be rigged to favour one special interest group. The solutions for all of society must be inherent within the economic system.

Diagram: http://georgiebc.files.wordpress.com/2013/02/approval.png?w=869

In an approval economy, effort to benefit society is recognized and acts against society are penalized. Approval is related to assessment of fairness, not the value of the gift. The work of an elderly person talking to a child, a scientist conducting research, a maker providing goods, a child learning and a mentally less able person gardening have no value differences, though the effort expended might. In the chart above, the person with a score of 91 has decided to be a pillar of their society. They probably belong to few other societies, and devote formidable energy to providing for this one, belonging to many working and discussion groups and making themselves available and responsible for the wellbeing of others. The people scored 58 and 52 may be just visiting or may belong to many networks or perhaps they prefer to spend their days on the beach, doing only the basic amount necessary for good standing. They may be entitled to basic essentials like food and lodging but not community resources such as cars and maker labs without additional barter. 55 and 50 expend effort, but also cause harm. Perhaps they are struggling with addiction or mental illness, Their effort is recognized by continued support but at basic levels to restrict their ability to harm others. The person scored at 15 is probably completely shunned by the society, perhaps even imprisoned.

An approval economy is the economy people rely on when they do not use direct coercion, the one typically seen in families and unfunded cooperative and volunteer groups. What the approval ratings mean in terms of benefits earned and whether there are formal values at all varies by society. Being part of a society may require more effort at some times than at others. For instance, not assisting to put out a fire or provide emergency aid to another may be considered an act against society rather than simply a failure to contribute. The benefits of belonging to a society will dictate how motivated people are to contribute to it.”

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