Economics

Ostrom’s Nobel and Lanham’s Economy

Yes, it’s been too long since I’ve posted here: other concerns, other priorities. I’ve got a milestone coming up, though, after which I’ll likely be posting more.

To that end, an observation: I was glad to see that Elinor Ostrom won the Nobel for economics. I’ve only read those who’ve been influenced by her work, even though clew pointed me her way six years ago (d’oh!), so now I need to get a copy of Governing the Commons from the library. But the accounts I’ve looked at lead me to wonder: Lanham talks about the so-called information economy being actually an economy of attention, and then undertakes a wholly market-based discussion of that economy. But what if that economy of attention isn’t a market (as I’m pretty sure it isn’t), driven by scarcity and competition?

What if attention is a commons?

Reading Hayek Again

When I wrote my dissertation, I first thought it was going to be about socioeconomic class. But everything I thought and wrote about convinced me that class was a disguise, a facade, a mask for much deeper economic concerns that writing teachers often didn’t know how to deal with, didn’t think the discipline had the authority or legitimacy to deal with, and so turned concerns of economy back into concerns of class and thereby into the much more (apparently) manageable category of identity.

That didn’t work out very well.

I thought (and think) that any identity-based approach to economy in composition has reached the limits of productivity, in composition as much as in literature. There’s only so much you can say about socioeconomic class before you start saying stuff that everyone else has already said. But if class (which I would argue composition has always only understood as identity, and would welcome examples of counterarguments to said perspective) is the point of articulation (cf. Hall, Bourdieu) between economy and culture, well, I think we’ve done a fine job as a discipline of examining culture, and a poor job of examining economy.

So the first thing I did after writing my prospectus was to look over a bunch of Econ 101 syllabi, and to work my way through their texts, and the texts they led me to. Sure, there was the Marx. But there were also the Freidrich Hayek and the Adam Smith, neither of whom gets read nearly often enough by the folks who like to invoke them the most. And that’s what I’d say the project that I’ve finally been able to start imagining as a book does: it reads closely, in Hayek and in Smith and in Marx, but takes those close readings as signposts through a series of case studies of writing and its value through the economic cycle of production, distribution, appropriation, ownership, use, and re-production.

I’m surprised by some of the things I’m re-seeing Hayek and Smith and Marx saying, just as much as I’m surprised by some of the things I’m re-seeing in the production and reproduction of writing.

More soon.

NYPL Lecture: Remix (Part 1)

Last night was a sold-out lecture at the New York Public Library’s Celeste Bartos forum, featuring Steven Johnson, Lawrence Lessig, and Shepard Fairey speaking on a panel titled “Remix: Making Art and Commerce Thrive in the Hybrid Economy.” The panel posed their guiding question as follows: “What is the future for art and ideas in an age when practically anything can be copied, pasted, downloaded, sampled, and re-imagined?” The audience was mostly what you’d imagine, on the younger side and with a visible hipster contingent. It doesn’t seem to be available on iTunes yet (search “nypl”), but I’m betting it will be eventually, which would be rather in keeping with the panel’s topic. I came, of course, because of my interest in the political economy of textual production, distribution, appropriation, use, and re-use; and because of the ways I see that cycle relating to what we (me, you, our students, our colleagues) do in the classroom, but also because it was an excuse to get into the city on a weeknight, to have a tasty NYC meal (OMG Bangladeshi spiced lamb), and to feel like a bit of an itinerant again, at loose ends and doing interesting things.

Interior of the Celeste Bartos forum

The panel began with Andrew Filipone Jr.’s hilariously surreal and somewhat menacing video of Charlie Rose interviewing himself, titled “Charlie Rose by Samuel Beckett,” as a sort of introduction to the panel’s concern with remixing.

Steven Johnson then started his talk by suggesting that what he hoped would be exciting about the panel conversation would be both its timeliness and its timelessness.

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Writing for the Turk

A few weeks ago, I netstumbled again upon Amazon’s Mechanical Turk, a for-hire crowdsourcing system that I remember causing a brief buzz when it came out in 2005 or 2006. I was deep in dissertation tunnel vision at the time, not wanting to let myself be distracted, but I remember thinking it held interesting possibilities as a highly decentralized market for immaterial labor, and wondered how it might connect to what I’d been saying about the economics of writing.

So I’ve finally caught a short breather from the end-of-the-semester crunch — I’m presently sitting in the hall while my plebes are about 25 minutes into taking their term-end examinations and typing busily away — and did some poking around. Interesting stuff. The job requester command-line interface stuff is a little daunting, but on the worker side, there are — as of this morning — 111 jobs available with the keyword “write” in the listing. Which made me wonder once more: how much should you pay for a C+ paper?

Or, OK, to be a little less opaque about it: the Amazon Mechanical Turk offers one system of thinking about the value of what they call Human Intelligence Tasks. In looking over those Human Intelligence Tasks, I think they’re certainly a form of Hardt and Negri’s immaterial labor, but of a somewhat different order than, say, writing an essay. Yet some of them — e.g., writing reviews — come close to the types of low-stakes tasks we sometimes assign in FYC. And “stakes” is yet another term related to value.

Curious. Further investigation needed.

The Long War and Its End

I met with a group of seniors today; students I’m mentoring in their writing projects as they apply for certain nationally-known graduate scholarships.

There’s a lot of interest among these soon-to-be Army officers, as one might hope and expect, in international relations. Perhaps less expected was the interest taken in international relations in conjunction with development economics.

But when one of the intelligent and well-read young officers-to-be elaborated upon a claim in his essay by proposing to us that the American campaign to end global terror might most effectively begin by seeking to remedy two of terror’s dominant causal economic factors — entrenched third-world poverty and gross international economic inequality — I steepled my fingers to hide my grin.

“You might want to put that in there,” I said.

Recuperating the Individual

In his chapter “Can Economics Start from the Individual Alone?,” Geoffrey M. Hodgson gives an account of how economics turned its attention as a discipline away from a systemic focus and toward the individual homo economicus as its sole starting point. As Hodgson describes it, within the span of a few decades, scholars in economics chose to make their topic the “allocation of scarce means between alternative uses, as a universal matter of choice for every individual in a world of scarcity. Instead of the whole system of production and allocation of the means of life, the choosing individual alone became the foundation stone of economic theory” (57). To the contrary, Hodgson proposes that “the isolated individual is not viable as an analytical starting point” (58), and I see in his argument some instructive parallels to the shift in philosophical emphasis that some in composition have called “the social turn.” One of the more widely recognized indicators of that social turn is James Berlin’s landscaping of the field, wherein scholars focusing on formal concerns were labeled current-traditionalists, others focusing on the mental processes of composing were labeled cognitivists, and those focusing upon the authorial choices of the composing individual were labeled expressivists, to whom Berlin counterposed social-epistemic rhetoric, with its examination and critique of the ways social structures and institutions construct knowledge and interpellate individuals into hegemonic ideologies.

Berlin sets up social-epistemic rhetoric as a strong critique of what he characterizes as expressivism’s focus on the authorial choices of the individual composer, indicting that focus as divorced from the social and thereby unable to engage in anything other than apolitical, disconnected writerly solipsism. So, too, does Hodgson see a shift in political economy toward an emphasis on the choosing individual, which his essay strongly critiques — but his critique takes a direction quite different from Berlin’s.

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“Here, See for Yourself”

I see direct application to composition studies for two complementary social impulses that Yochai Benkler describes as being characteristic of the shift from industrial mass capitalism to a networked economy. I’m trying to get an article written now that condenses some of the work I’ve been doing over the past few years — not all of the dissertation, but some of it, the new stuff I have to say about being careful in talking about writing studies and political economy, particularly in relation to the digital — and Benkler has been useful in helping me re-see how what I’m looking at isn’t just Pollyanna Web 2.0 evangelism plugged into the writing classroom or critical pedagogy fodder for jeremiads about access.

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Scarcity Versus Growth

Yochai Benkler describes “three primary categories of inputs” for the production of information and culture that I think bear considerable relevance for composition:

  1. “existing information and culture,”
  2. “the mechanical means of sensing our environment, processing it, and communicating new information goods,” or in other words, information technology, and
  3. “human communicative capacity — the creativity, experience, and cultural awareness necessary to take from the universe of existing information and cultural resources and turn them into new insights, symbols, or representations meaningful to others with whom we converse” (52).

“Inputs” are here meant in the economic sense, in the same way that neoclassical economists looking at industrial capitalism talked about the “inputs” of labor, land, and capital being the most important factors of production. Writing and its teaching, of course, are deeply concerned with the production of information and culture. Benkler then goes on to point out that “given the zero [marginal] cost of existing information and the declining cost of communication and processing, human capacity becomes the primary scarce resource in the networked information economy” (52). In this statement, he seems to agree with the strong position Richard Lanham takes in The Economics of Attention about the contrast between a glut of information and a scarcity of attention — and that attention, that human communicative capacity, is composition’s chief disciplinary concern. At a fundamental level, it’s what compositionists teach.

But Benkler cautions that “human communicative capacity, however, is an input with radically different characteristics than those of, say, printing presses or satellites” in its individuated and non-aggregate nature (52) — and this is where I think Benkler’s analysis is more careful and useful than Lanham’s. Lanham seeks to apply economy as metaphor to the production, circulation, and use of information, and his economic metaphor is a capitalist one. Benkler’s analysis, on the other hand, deals with economy not as metaphor for something other than itself, but as actuality, and so illustrates with much more suasive force the ways in which “we live life and exchange ideas in many more diverse relations than those mediated by the market” (53). While Adam Smith powerfully illustrates how markets benefit from the individual’s self-interested actions, there are other spheres of economic activity wherein individuals acting on their own in diverse relations and for diverse motivations produce surplus value. As Benkler argues, “the economics of production in a digital environment should lead us to expect an increase in the relative salience of nonmarket production models in the overall mix of our information production system, and it is efficient for this to happen — more information will be produced, and much of it will be available for its users at its marginal cost” (56). I’m a little confused by that last bit, in two ways: first, what exactly is that marginal cost and how is it calculated? (This is why I was going on a while back about Piero Sraffa and the Cambridge capital controversy.) Second, I understand that there are costs (opportunity and otherwise, and Lanham’s focus on attention seems to me to deal chiefly with opportunity costs) accounted for in many forms of nonmarket and alternative market transactions, but I’m not sure what Benkler’s getting at here unless he’s being witty and expecting us to fill in the caveat that he’s already shown in pages previous that said marginal cost is zero.

Doubts aside, though, the question remains: what does this mean for the composition classroom? What happens when we consider how human communicative capacity, the diverse individuation of production, and the production of value in a diverse array of market and nonmarket transactions for diverse motivations? What does it mean in an economic sense when we understand that freewriting, peer response, drafting, revision, and reflection are deeply inefficient processes? There’s a fairly simple answer, I think. I’ve had students here who come to me, frustrated with their writing, frustrated with their drafts, and ask: “Sir, what’s the approved solution for this essay?” That approach gets me frustrated, as well, because it’s the Army ideology, the idea that there’s a single right answer that everyone can get to by using the same sets of steps, the substitution of the idea that there is a single unitary writing process for the understanding that writing is a messy, complicated, recursive multi-step process that differs from individual to individual; a process that needs to be learned on the diverse terms of those individuals. In that learning and understanding, nonmarket transactions and transactions that take place at economic locations other than the margin — the sloppy, inefficient transactions — are products and indicators of surplus. Going beyond the ideology of scarcity — beyond Lanham’s implications that we have only so much attention to give and must therefore ration it with maximal efficiency — is what produces and sustains growth.

Adam Smith and Discipula Scribens

Or, literally, “the writing student,” as an attempt to play on homo economicus. On Monday, Becky responded to my thoughts about the link between composition’s expressivism (which I do not in any way use as a term of condemnation: too frequently, folks who try to dismiss Peter Elbow’s work have failed to read him carefully) and Benkler’s re-thinking of political economy in the information age, and suggested some concerns with Benkler’s individualism. I’d meant to reply in the comments, but the stuff I was thinking about kept getting bigger and messier and more out-of-hand until I figured it merited its own post. Basically, my response is this: I read Benkler, especially given his title, as trying to re-imagine the evolution of classical economics into neoclassical economics in the steps of Adam Smith, who so carefully initiates his analysis from the figure of the individual in both The Wealth of Nations and The Theory of Moral Sentiments. From Smith’s moves, we see how today’s microeconomics begets macroeconomics — and so, too, even in Marx, the architecture of base and superstructure always emerges from acts of production and appropriation performed by and upon the individual. I’m not seeking to deny that “the social” doesn’t exist as a concern in our disciplinary discourse, but I think that describing and accounting for and characterizing various things as components of “the social” is a homogenizing move that glosses over the heterogeneity of economic work, relations, transactions, enterprises at the individual level as undertaken in the composition classroom. Individualism — for Smith, for Marx, for Benkler — is a good and demanding thing, I think, because it asks us to pay attention to the way works and enterprises are transacted at the closest scale and lets us see the limit cases, the moves of production and appropriation that disrupt conventional macroeconomic expectations, and so doing complicate those expectations.

Consider Benkler’s assertion that

Because welfare economics defines a market as producing a good efficiently only when it is pricing the good at its marginal cost, a good like information (and culture and knowledge are, for purposes of economics, forms of information), which can never be sold both at a positive (greater than zero) price and at its marginal cost, is fundamentally a candidate for substantial nonmarket production. (36)

If writing teachers understand that marginal cost is the increase in total cost incurred per extra unit of production, the language becomes a little less scary: it’s costly to write that paper or that dissertation. It’s not so costly to (digitally) reproduce an extra copy. (Let’s not talk about Sraffa, counting inputs, and sunk costs right now, k thx?) Academic writing, by students and professors, is more likely to be produced and exchanged in nonmarket ways because of the nature of information goods, and as Benkler demonstrates, even the orthodoxy of neoclassical economics supports this. There is, as well, the flip side: as Benkler acknowledges (37), regulation of information goods — such as, for example, via copyright — is inherently economically inefficient. We maintain the institution of limited-term copyright not for the inefficiencies it creates, but for its incentive effects; the way it draws other creators into the production of an intellectual commons. As we’ve lately seen, though, copyright’s inefficiencies are not the only incentive (economic or otherwise) acting upon the individual composer. As Benkler points out, individuals produce information goods for a variety of motivations — for reasons of pleasure, politics, belonging, and gain, among others — and we understand beyond Benkler that such production requires work, and the value of that work is appropriated, whether by the individual producer or another or others, and that such appropriation leads into concerns of ownership and then into the use by the owner, and often back into the work of production by other individual writers and other individual composers.

The critique of expressivism as overly focused on the individual is a useful one, I think. But such a critique makes it also very easy to dismiss anything that might happen at the closest level, the individual’s personal and conscious choices and disruptions in composing, and instead scan for the homogeneities of the grand trends — economic, social, or otherwise.

Benkler’s Production Grid

In my CCCC presentation, I tried to mash together Yochai Benkler’s diverse motivations for production, my own thoughts about the work > appropriation > ownership > use > work cycle, and Gibson-Graham’s tabular charting of the various market, alternative market, and nonmarket forms of economic activity, and to apply that mashup to the composition classroom. Right now, I’m planning out how to turn that mashup into an article, and I’ve gone back to Benkler and re-stumbled across yet another table, on page 43 of The Wealth of Networks. Benkler charts three types of strategies for “Cost Minimization / Benefit Acquisition” across three domains: the public, the intra-organizational (he calls it “intrafirm” but I want to open up that term to more explicitly include noncapitalist or alternative capitalist enterprises), and the semi-private. His three strategies are those of rights-based exclusion (in other words, profiting from copyright and associated strategies), nonexclusion-market (producing information from which to profit, but not via exclusivity), and nonexclusion-nonmarket (e.g., reputation economies and the like). I think Benkler’s taxonomy is helpful, particularly in considering the domain/context/scope of activity, and I want to work to map it over Gibson-Graham’s and my own subsequent elaborations, but I also think it’s somewhat incomplete, particularly in light of Benkler’s own work on non-market motivations for information production.

Which is what I’ll be working on as soon as I see the light at the end of the end-of-semester forced march.