Nothing Gold Can Stay: A thought experiment about money, wealth, power and the psychology of economy.

by | May 27, 2023 | 0 comments

Rethinking Money, Gold, and Value: A Thought Experiment on Alternative Economic Systems

What do we truly value as a society? This profound question strikes at the heart of how we structure our communities, economies, and ways of life. In this thought-provoking article, we’ll embark on a fascinating thought experiment to reexamine our unconscious assumptions about money, gold, debt, and worth. By challenging the status quo and exploring alternative economic models, we may gain fresh insights into creating a more equitable, sustainable, and fulfilling world.

Disclaimer: This piece is a thought experiment designed to stimulate reflection and reconsideration of societal norms and conceptions. The ideas explored here do not advocate for any specific political or economic changes but rather encourage readers to think critically about the foundations of our current systems. As a psychotherapist, not an economist or theologian, I approach this topic from a psychological and philosophical perspective.

Imagining a World Without Gold: The Yap Case Study

First, let’s imagine a hypothetical world without precious, non-perishable metals like gold, silver, and platinum. In this scenario, what would serve as the basis for money and value storage? To explore potential answers, we can look to the thought-provoking real-world example of the remote Pacific island of Yap.

On Yap, massive limestone discs called rai stones, some towering at 12 feet tall and weighing over 8,000 pounds, functioned as a form of currency. Remarkably, the Yapese never physically moved these cumbersome stones to complete transactions. Instead, they maintained a collective oral ledger of who owned which stones at any given time. Ownership could be transferred without the stones ever changing location, functioning like an ancient predecessor to modern digital banking.

The acquisition and allotment of rai stones on Yap were inextricably linked to social merit and status. Individuals earned stones through contributions and accomplishments that benefited the community as a whole, such as heroic acts, successful leadership, innovation, and exceptional artisanship. The community collectively determined and reached consensus on each person’s social merit.

Notably, rai stones weren’t meant to be hoarded for individual gain but rather signified one’s standing and prestige in society. Those with the most stones were respected and admired for what they had given to support the common good. In effect, the rai stones made social value tangible and quantified esteem, creating an economy that prioritized and incentivized contributing to collective wellbeing.

While the Yapese system is a specific cultural example, it provides a compelling thought experiment for how a society could conceivably store and measure value without relying on precious metals. By tying value to reputation, generosity, and making a positive impact, it presents an intriguing alternative to our current paradigms.

The Impact of Gold on Society and Power Dynamics

Of course, in reality, gold and other precious metals have played a pivotal role in shaping human civilizations. It’s fascinating to consider the cosmic rarity and happenstance of gold’s existence on Earth, resulting from cataclysmic stellar explosions billions of years ago. The symbolism of gold has taken on mythical proportions, often relating to the archetype of the Self in Jungian analysis of our unconscious psyches.

When gold emerged as a de facto currency in ancient Lydia around 600 BCE, it was largely due to its unique physical properties. Over time, gold became inextricably linked to money and economic power. But what other paths could we have gone down? What if, rather than latching onto gold as the universal equivalent and basis for money, we had continued to tie value to social reputation and merit as in the Yap thought experiment?

Contrasting Communal and Competition-Based Economies

In preindustrial, communal gift economies and barter-based societies, resources tended to be more evenly distributed, and generosity was prized. Social reputation acted as a form of safety net and insurance. Prestige went to those who gave the most to support others, not to those who hoarded material wealth for themselves.

In contrast, the non-perishable nature of precious metal-backed money incentivized and enabled the accumulation of wealth and power in the hands of a few. Because metals could be hoarded indefinitely without losing value, they facilitated the concentration of riches, creating self-perpetuating imbalances. Metal-based economies incentivized individualism and looking out for oneself over the collective good.

Rethinking Value in Light of the Yap Example

So what can we learn from this thought experiment and the contrasting Yap example? At the very least, it reveals that our current paradigms are not inevitable or the only possibilities. We have a choice in what we deem valuable and center our societies around.

Even as we’ve moved towards fiat currencies and digital money, our underlying conceptions of worth are still heavily tied to notions we ascribe to gold – scarcity, accumulation, and arbitrary value not tied to utility or social good. Perhaps it’s time we critically reexamine these paradigms and dare to imagine alternatives more aligned with our values and wellbeing.

What would it look like to have an economic system that actively incentivizes and rewards contributing to the greater good, as the Yap case study suggests? How would it change our social fabric if reputation, impact, and generosity were the most valuable assets one could attain? While there are certainly challenges in restructuring our fundamental systems, envisioning a world where the love of money and hoarding wealth are not the root of so much strife and inequality is a worthy undertaking.

Exploring scenarios like the Yap example can help jolt us out of complacency and open up new possibilities. In the end, where we choose to ascribe worth and direct our energy may just make all the difference. The future is ours to shape through our collective choices and creativity, guided by a clear vision of the values we wish to uphold.

 

References:

Fitzpatrick, S. (2018). Yap stones and the economics of traditional money. In The Construction of Value in the Ancient World (pp. 261-284). Cotsen Institute of Archaeology Press.
Graeber, D. (2011). Debt: The first 5,000 years. Melville House.
Hyde, L. (2007). The gift: Creativity and the artist in the modern world. Vintage.
Lietaer, B., & Dunne, J. (2013). Rethinking money: How new currencies turn scarcity into prosperity. Berrett-Koehler Publishers.
Mauss, M. (2002). The gift: The form and reason for exchange in archaic societies. Routledge.
Von Reden, S. (1997). Money, law and exchange: coinage in the Greek polis. The Journal of Hellenic Studies, 117, 154-176.
Wray, L. R. (Ed.). (2004). Credit and state theories of money: the contributions of A. Mitchell Innes. Edward Elgar Publishing.

Further Reading:

Eisenstein, C. (2011). Sacred economics: Money, gift, and society in the age of transition. North Atlantic Books.
Graeber, D. (2001). Toward an anthropological theory of value: The false coin of our own dreams. Palgrave Macmillan.
Hallsmith, G., & Lietaer, B. (2011). Creating wealth: Growing local economies with local currencies. New Society Publishers.
Jevons, W. S. (1875). Money and the mechanism of exchange. D. Appleton.
Keynes, J. M. (1930). A treatise on money: in 2 volumes. Macmillan & Company.
Polanyi, K. (1944). The great transformation: The political and economic origins of our time. Beacon Press.
Simmel, G. (2004). The philosophy of money. Routledge.
Weatherford, J. (1997). The history of money. Crown Publishers.
Zelizer, V. A. (1994). The social meaning of money. Basic Books.
Zohary, D., Hopf, M., & Weiss, E. (2012). Domestication of plants in the Old World: The origin and spread of domesticated plants in Southwest Asia, Europe, and the Mediterranean Basin. Oxford University Press.

 

Explore the Other Articles by Categories on Our Blog 

Hardy Micronutrition is clinically proven to IMPROVE FOCUS and reduce the effects of autism, anxiety, ADHD, and depression in adults and children without drugsWatch Interview With HardyVisit GetHardy.com and use offer code TAPROOT for 15% off

The Psychology of the Dragon Archetype

The Psychology of the Dragon Archetype

"Perhaps all the dragons in our lives are princesses who are only waiting to see us act, just once, with beauty and courage. Perhaps everything that frightens us is, in its deepest essence, something helpless that wants our love." - Rainer Maria Rilke Dragons have...

Who was Owen Barfield?

Who was Owen Barfield?

 Prophet of the Evolution of Consciousness Owen Barfield (1898-1997) was a British philosopher, poet, and critic whose groundbreaking work focused on the evolution of human consciousness and its relationship to language and imagination. A close friend of C.S. Lewis...

The Mystical Roots and Therapeutic Fruits of Initiation Rites

The Mystical Roots and Therapeutic Fruits of Initiation Rites

Is Psychotherapy a Type of Initiation Have you ever been part of a fraternity, sorority, or similar organization? If so, you may have experienced rituals or ceremonies that felt both challenging and transformative. Even if you haven't, you've likely encountered such...

Unraveling the Mystery of the Roman Dodecahedra:

Unraveling the Mystery of the Roman Dodecahedra:

   An In-Depth Exploration of the Orphic Cult Object Theory Among the most enigmatic artifacts from the ancient world are the so-called Roman dodecahedra - small, hollow, twelve-faced polyhedrons made of bronze or stone, each face featuring a circular hole of...

Why Consciousness Won’t Emerge from Large Language Models:

Why Consciousness Won’t Emerge from Large Language Models:

 The Competing Elements of Human Consciousness Introduction The quest to create artificial consciousness has long captured the human imagination. From the golems of Jewish folklore to the robots of modern science fiction, we have dreamed of breathing mental life into...

Consciousness and Depth Psychology: Insights from Michael Gazzaniga

Consciousness and Depth Psychology: Insights from Michael Gazzaniga

What are the Origins of Conciousness? The nature of consciousness has long been one of the most profound and perplexing questions in psychology, neuroscience, and philosophy. How does subjective experience arise from the objective, physical processes of the brain?...

Consciousness, Emotion and the Self

Consciousness, Emotion and the Self

Where Does Conciousness Come From? Where did conciousness come from?The nature of human consciousness has long been one of the great mysteries of science and philosophy. What is this subjective inner experience that seems to define our existence? Where does our sense...

Glossary of Blog Articles

Glossary of Blog Articles

Our blog is designed as a resource for those seeking to deepen their understanding of the human psyche and its expression through culture, therapy, and history. Below, you'll find an overview of the diverse topics we cover and an invitation to explore the categories...

Walter Ong: Orality, Literacy, and the Jesuit Worldview

Walter Ong: Orality, Literacy, and the Jesuit Worldview

I. Who was Walter Ong Walter J. Ong (1912-2003) was an American Jesuit priest, professor of English literature, and cultural and religious historian. Ong made groundbreaking contributions to the fields of literacy studies, media ecology, and the evolution of human...

The Future of Therapy: Navigating the Tensions of Our Time

The Future of Therapy: Navigating the Tensions of Our Time

As a practicing therapist, I find myself constantly grappling with the widening gulf between the realities of clinical work and the priorities of the academic and research establishment in psychology. We are living through a time of profound cultural and...

The Existential Psychology of Viktor Frankl:

The Existential Psychology of Viktor Frankl:

 Finding Meaning in the Face of Suffering "Everything can be taken from a man but one thing: the last of the human freedoms — to choose one's attitude in any given set of circumstances, to choose one's own way." Viktor E. Frankl, Man's Search for Meaning Viktor Emil...

The Bridge Between Ancient Wisdom and Modern Practice

The Bridge Between Ancient Wisdom and Modern Practice

How Can Ancient Practices Inform Modern Therapy In today's fast-paced world, an interesting phenomenon has occurred - ancient spiritual practices that originated hundreds or thousands of years ago have undergone a remarkable transformation, evolving from their roots...

Ethics of Care in Psychotherapy

Ethics of Care in Psychotherapy

Interdisciplinary Insights from Philosophy, Anthropology, and Therapy The ethics of care is a moral philosophy that emphasizes the importance of empathy, compassion, attentiveness, and responsibility in human relationships. It challenges traditional Western ethical...

Psychedelic Therapy and Shamanism:

Psychedelic Therapy and Shamanism:

What Can We Learn from Indigenous Practices? The Resurgence of Psychedelics in the Modern World In recent years, there has been a resurgence of interest in psychedelic substances as potential tools for healing and self-discovery. After decades of stigma and...

The Philosophy of Suffering:

The Philosophy of Suffering:

Insights from Global Cultures on the Nature of Pain and Healing What can therapy learn from ancient cultures? Suffering is a universal human experience, yet the way we make meaning of our pain is profoundly shaped by our cultural context. By examining diverse...

The Rituals of Healing:

The Rituals of Healing:

Anthropological Insights into Modern Psychotherapy Throughout human history and across cultures, rituals and storytelling have played a central role in addressing psychological ailments and facilitating healing. While modern psychotherapy can seem like a far cry from...

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *