Sacred Economics – Life After Capitalism

Sacred Economics: Money, Gift & Society in the Age of Transition

by Charles Eisenstein

2011,  Evolver Editions (link to free download)

Book Review

The title Sacred Economics sounds like a New Age treatise on spirituality. The book is actually about the end of capitalism. It offers an extremely well-researched discussion of the history of money, capitalist economics and the world wide movement for economic re-localization. By avoiding simplistic clichés about greedy corporate CEOs and amoral banksters, Eisenstein arrives at some startling conclusions. Tracing the western conception of money back to its earliest origins, he makes a strong case that money itself is responsible for rapacious growth and resource depletion, greed and the demise of community.

Money and the Loss of the Commons

The main focus of Part I is an exploration of the profound effect money has on human thinking and psychology. Part II focuses on economic relocalization and other practical steps activists can take to restore the original gift economy.

Part I begins with an analysis of the dual illusions of separateness and of scarcity. Both, Eisenstein argues, are mistaken beliefs stemming from the privatization of communally owned land. This, in turn, was an early consequence of the introduction of money.

Prior to Roman times, land, like air and water, was considered part of the commons and couldn’t be owned. Under Roman tradition, there was no way for an “individual” (a Greek invention related to the concept of money and personal wealth) to legitimately take possession of common lands. Thus the Roman aristocracy had to seize it by force, just as Europeans stole the communal lands of Native Americans, Maori and indigenous Australians.

During the many centuries our ancestors had access to communal lands for their herds and crops, they enjoyed a sense of interconnectedness and interdependency. This was lost when the wealthy began fencing it off as private property. This loss of interconnectedness has left all of us with a profound inner emptiness we experience as never having enough.

How Money Destroyed the Gift Economy

Part I also describes the gift economy that characterizes all primitive cultures. Public gift giving was the primary mechanism all early societies used to satisfy basic survival needs. As civilizations became more complex, gift exchange and barter were impractical over long distances. This led money was introduced as a common medium of exchange.

An early artifact of the introduction of money is the mistaken belief that the basic necessities of life are in short supply. This illusion underpins all western economic theory. In fact many textbooks define economics as the study of human behavior under conditions of scarcity. As Eisentein points out, this is a ludicrous notion in a world in which vast quantities of food, energy and raw materials go to waste.

The Origin of Greed

Eisenstein attributes greed to this illusion of scarcity. He can see no other explanation for low income people giving away far more money, relative to income, than their rich counterparts. Rich people worry about money more and are more inclined to perceive scarcity when none exists. Einstein talks about the immense anxiety people in rich countries experience over “financial security.” No matter how much they accumulate, it’s never enough.

Debt, Usury and Perpetual Growth

Sacred Economics argues that what economists commonly refer to as growth is the expansion of scarcity into areas of life once characterized by abundance. Fresh water, which was once abundant, has become scarce following its transformation into a commodity most of us are forced to pay for.

The fractional reserve banking system, which allows bankers to loan money they create out of thin air, accentuates the pressure to convert more and more of the commons into commodities. The amount of debt created is always greater than the money supply. Current global debt ($75 trillion) is more than twice global wealth ($30 trillion). This results in constant pressure to create more goods and services to repay personal, corporate and public debt.

Growing pressure to repay debt only hastens the rate at which natural resources, such as fossil fuels, minerals, forests, fish and water, are converted to commodities. A parallel process is causing the social, cultural and spiritual commons to be dismantled. Stuff that was free throughout all human history – stories, songs, images, ideas, clever sayings – are copyrighted or trademarked to enable them to be bought and sold.

Einsenstein’s Confusion About Marxism.

The only weakness of Sacred Economics are some mistaken and contradictory assumptions Eisenstein makes about Marxism. He makes the assertion in Part I that capitalism needs to be replaced, but not in a “Marxist” way. He claims this would remove any “monetary” incentive for people to produce goods and services that are useful to the community. This seems to contradict his call for the a return to a gift economy in which people contribute to the community for intangible rewards (public recognition, status and esteem) rather than monetary reward.

Below Eisentein speaks briefly about his book.

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The Multibillion Dollar Depression Industry

(Thanks to the corporatization of health care, Americans pay double what other countries pay for health care but have much worse health. The recent Obamacare roll-out has heightened public awareness about the role of private insurance companies in sucking billions of health dollars out of the health care system. There is far less scrutiny of the role of Big Pharma in driving up health care costs.

This is the first of several posts on “disease mongering” by pharmaceutic companies  – i.e. the invention of fictitious diseases to market drugs that supposedly treat them.) 

Marketing Serotonin Deficiency

With the release of Prozac back in 1987, the pharmaceutical industry began systematically indoctrinating doctors with the theory that depression is caused by a genetic deficiency in a brain neurotransmitter called serotonin. Big Pharma then spent the next 25 years reaping billions of dollars from marketing high-priced SSRIs to treat this so-called deficiency.

There are several obvious flaws in the theory that depression is a genetic brain disorder. The first is the skyrocketing increase in depression and suicide triggered by the 2008 meltdown. The prevalence of a genetic illness should follow the same predictable growth curve as population. The second is the total absence of so-called “serotonin deficiency” in lower mammals. The third and most obvious is the extremely low response rate to SSRIs and other antidepressants. Only 50% of patients who take them ever achieve full recovery.

The Learned Helplessness Model of Depression

The absence of “serotonin deficiency” in lower animals means that depression has to be artificially created to research prospective antidepressants. Most of this animal research is based on the “learned helplessness” model. In a common experiment, mice are dropped into a large vat of water and the researcher times how long they keep swimming before they give up. After taking a dose of Prozac, they swim longer before giving up.

There is something incredibly sad about the drug companies’ persistence in torturing small animals. If the medical profession is serious about addressing the immense suffering caused by the costly and disabling condition, surely they need to start addressing some of the other known causes – for example, nutritional deficiency, derangements in intestinal bacteria and the total degradation of family and community life.

Depression Caused by Poverty and Malnutrition

Doctors have known for half a century that specific nutritional deficiencies can cause depression. Western countries are particularly known for depression-linked deficiencies in omega 3 and Vitamin D. Cross-cultural research shows that Asian and Scandinavian countries consuming quantities of fish (which contains both omega 3 and Vitamin D) have extremely low rates of depression. The phytonutrients found in fresh fruits and vegetables also seem important in preventing depression, though the evidence is less strong.

Owing to recent skyrocketing food costs, I feel a little silly advising low income patients to eat more oily fish and fresh vegetables. I also feel angry and disgusted about a corporate-driven health policy whereby Medicaid, Medicare and Obamacare happily pay for a Prozac prescription (to help their friends at Big Pharma) but not to subsidize fresh, organically grown food for low income patients with obvious nutritional deficiencies.

Depression Caused by Unhealthy Gut Bacteria

Pioneering gastroenterology research suggests that the microbiome (the resident bacteria in our intestines) also plays a major role in brain function. The overuse of antibiotics, in medicine and factory farming, has killed off normal bowel flora in a large segment of the industrialized world. This, in turn, has led to a near epidemic levels of irritable bowel syndrome and inflammatory bowel disease. Surprisingly both conditions have links to arthritis, obesity, autoimmune diseases, and so-called “brain” diseases, such as depression, anxiety, migraines, and even autism.

Recent studies suggest that treating this type of depression can be as simple as taking probiotics or eating fermented foods, such as yoghurt and sauerkraut. Yet because these treatments aren’t medication-based, they aren’t covered by health insurance, Medicare or Medicaid.

Human Misery, Stress and Social Isolation

Obviously the worsening depression, along with epidemic levels of foreclosures, bankruptcies and evictions, is a far bigger culprit than nutritional deficiencies or gut bacteria in the recent exponential increase in depression and suicide. The best way to trigger depression in higher mammals is through massive, unrelenting environmental stress. Surely the pharmaceutical companies know this, or they wouldn’t be using learned helplessness in their animal research, would they?

It’s also striking that the current economic depression has hit people a lot people harder than the Great Depression of the 1930s. This seems to relate to the overall breakdown of family and community life. Prior to World War II, the family and social networks people belonged to exerted a protective effect during stressful times. Human beings, like other primates, such as apes, monkeys and gorillas, are fundamentally social beings. We are all hard wired to have strong social needs and function very poorly when they go unmet.

Recent neurophysiologic research shows that the human brain produces specific “feel good” neurochemicals (e.g. oxytocin, endorphins, and dopamine) to reward people for social activity. Social isolation appears to produce a deficit in these chemicals.

The Absence of Social Needs Research

Research into non-pharmaceutical treatments for depression is unlikely to occur in the US, where Big Pharma oversees the vast majority of medical research. For obvious reasons, drug companies have no incentive to investigate treatments that don’t involve a product they can sell for profit. It hasn’t helped that Obama has slashed research budgets for National Institutes of Health and National Institutes of Mental Health.

photo credit: Tidewater Muse via photopin cc