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The Hierarchy of Money

187 points · 102 comments · gwgundersen

  1. skybrian · · focus · HN ↗
    The villager parable is too egalitarian. That's not really how it worked.

    For most of history, peasants were sustenance farmers, meaning they grew their own food and if the harvest was bad, they could starve. For them, there was no such thing as insurance and they really needed ways to reduce risk. For example, they'd feast their neighbors so that when times were hard, the neighbors would hopefully help them out in turn. Investing in close-knit relationships isn't like barter - it's more like informal credit. Kinship networks still work something like this today.

    And this meant they didn't really need money. Social obligations were everything.

    But how do people who aren't peasants themselves get food? By extracting rents and taxes, in return for protection and certain services, perhaps plowing fields. Local "big men" might take payment in kind, but for a more organized government, they'd collect taxes using money, which gave the peasants incentives to grow and sell food for money.

    So villages would monetize or demonetize depending on the state of nearby governments. A monetized society allows people who aren't farmers to buy food. It allows cities to exist. Therefore, civilization was built on military force, taxes, and rent extracted from peasants, who were the basis of a mostly agricultural economy.

    Be glad our civilization isn't built on sustenance farming anymore.

    1. aeternum · · focus · HN ↗
      >By extracting rents and taxes, in return for protection and certain services, perhaps plowing fields.

      Why use the term extract rather than trade? Protection was quite valuable. Those peasants could have tried their luck planting a field in the middle of nowhere, far from any village. There was plenty of unused land.

      They didn't because the peasant and their family would not last long.

      This idea that civilization is somehow oppressive rather than a great achievement just doesn't make sense. Force is the natural way of things. Alone those peasants would likely have 100% of the harvest taken by force, whether it be by wild animals, roving bandits, even locusts. It's a far better deal to have some percentage of it taken in return for having it protected.

      In nature, protection is the thing that matters.

      1. blargey · · focus · HN ↗
        It's entirely other humans that the lords offered protection from; peasants were near universally left to fend for themselves when it came to "animals and locusts". And they could handle nature just fine (for the technology level) and could very much move to more land "in the middle of nowhere", if local lords didn't complicate that issue.

        The idea of the old farmer-peasants as single-task specialists in the same vein as us city-dwellers is an anachronism.

        1. aeternum · · focus · HN ↗
          For sure and that doesn't decrease the value of the protection. There seems to be this somewhat quaint idea that the crops belong to the peasant because he/she planted and grew them.

          That's a very modern concept. In the natural world they belong to whatever entity is able to take them.

          Life has always been about grabbing as many macronutrients as you can by whatever means possible.

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