AT THE INTERSECTION: EXAMPLES FOR THE MATRIX

by Dr. James W. Jackson

Founder, Project C.U.R.E.
Author, The Happiest Man in the World: Life Lessons from a Cultural Economist

We have now discussed the components of economic production: Land, Labor, Capital, and the Entrepreneur, and also the components of our cultural structure: Traditions, Institutions, Family, and the Individual. Our premise is that Transformation takes place at the intersection of Culture and Economics. Wherever the components of Culture and the components of Economics cross in the intersection of real life, you can expect change.

I’m going to resort to the chalk board and see if we can walk through some common examples in order to see just how such a thing works. The components of Economics will be positioned along the left side of our matrix and the components of Culture will follow the bottom line. The dynamics of the situational example will determine the point of intersection and which of the components will be involved in the confrontation that sets up the incidence of transformation:

• We talked earlier about the incredible global transformation that took place based on the intuition and action of Alexander the Great after being influenced by the cultural and economic insights of his personal teacher, Aristotle. He conquered the known world.
• Two hundred seventy- one years later, Julius Caesar laid claim to Alexander’s dream and once again, transformed the global system at the intersection of culture and economics.
• King James of England, in 1606, granted rights to a business investment company to establish the first American colony in an area designated as Virginia. But the second contract was made with another organization to establish a colony in America. That contract was born out of conflict and the desire for change and freedom. The Pilgrims were a group of settlers who had previously left England to seek relief and freedom in Holland. Disappointed there, they found investors willing to underwrite the expenses of a contract to colonize in America. On September 16, 1620, the Pilgrims set sail on the Mayflower and landed sixty-five days later. At the intersection of culture and economics, the Pilgrims employed their powerful traditions and even religious institutions and families. They set into motion transformation in areas of land use, labor, and capital and the individuals eventually realized the fruits of a new world

• Eventually the American Revolutionary War between young America and England would be fought at the intersection of culture and economics. Institutions, traditions, families and individuals were pitted against each other on matters of land, labor, capital, and entrepreneurial enterprises.

• Within recent years, China’s citizens have experienced immeasurable transformation due to national laws implemented in 1979 limiting the family’s size to one child per couple. I personally visited many orphanages throughout China and have been acquainted with the affects of the policy that was fully centered at the intersection of culture and economics. The policies were initiated to alleviate social, economic and environmental problems in China, but have set into motion firestorms of consequences.

• A bit closer to home . . . we commonly experience the intersection phenomenon in controversial land use situations. Traditions endeavor to dictate how a certain piece of property will be used regardless of personal or institutional ownership rights. Or, a municipality may want to appropriate or condemn a property and build a big box store or commercial strip in order to generate higher tax revenues. The battle is waged at the intersection of culture and economics.

• Divorce settlements, civil suits, and estate squabbles so very frequently find the principles yelling at each other in the middle of the intersection of culture and economics.

• Individual families, also, find themselves hammering out philosophical differences at the intersection when it comes to making decisions regarding how they will earn and spend their resources.

• Don’t be surprised when it dawns on you that this same matrix works even for such issues as dealing with the disciplining of the children, (Land = Resources, Labor = Activities, Capital = Rights and Rewards, Entrepreneur = Creativity and Independence). We can count on major transformation taking place at the intersection of culture and economics even when applied to the components involved in domestic situations.

We live in a world of transformation. It is good for us to concern ourselves with how we can more efficiently allocate and manage our resources and abilities. It is also to our benefit to discover and understand how various aspects of human cultures interact with economic events, behaviors, and conditions. Economic philosophies and systems have the power to affect and shape our culture, as well as our culture having influence on our political systems, inherited traditions, religious beliefs and the formation of our institutions. It is imperative to lay aside the notion that economic has only to do with money. It is also imperative to more fully comprehend the scope and sequence of culture.

As we move into a more complete understanding of the eight components listed herein, and see how they work together under a larger umbrella of cultural economics, our identification of problems and even our tasks of conflict resolution will be more easily accomplished.

Next Week: Our Market Basket

(Research Ideas from Dr. Jackson’s new writing project on Cultural Economics) 

© Dr. James W. Jackson  

Permissions granted by Winston-Crown Publishing House

www.drjameswjackson.com  

Dr. James W. Jackson often describes himself as "The Happiest Man in the World." A successful businessman, award-winning author and humanitarian, Jackson is also a renowned Cultural Economist and international consultant, helping organizations and governments to apply sound economic principals to the transformation of culture so that everyone is "better off."

As the founder of Project C.U.R.E., Dr. Jackson traveled to more than one hundred fifty countries assessing healthcare facilities, meeting with government leaders and "delivering health and hope" in the form of medical supplies and equipment to the world's most needy people. Literally thousands of people are alive today as a direct result of the tireless efforts of Project C.U.R.E.'s staff, volunteers and Dr. Jackson. 

To contact Dr. Jackson, or to book him for an interview or speaking engagement: press@winstoncrown.com

AT THE INTERSECTION: CULTURE AND ECONOMICS

by Dr. James W. Jackson

Founder, Project C.U.R.E.
Author, The Happiest Man in the World: Life Lessons from a Cultural Economist

You and I live in a world of transformation. I predict that change is here to stay . . . unless something changes. My personal observations have convinced me that global transformation, national transformation, corporate transformation, domestic transformation, and even personal transformation take place at the intersection of culture and economics. Wherever the cultural factors of traditions, institutions, families, and individuals intersect with the economic production factors of land, labor, capital, and the entrepreneur, you can count on change.

It is exciting to see how the phenomenon of transformation takes place. Once you begin to recognize the function, you can better understand, and in some cases even predict, the associated behavior that results. When I was a kid, my grandfather used to tell me, “Jimmy, if you want to know why something happens . . . follow the money.” But I have discovered that if you really want to get a glimpse of why and how things happen you must follow that money trail down to the curbside of the intersection and observe what happens when the economic factors try to cross the intersection at the same time as the cultural factors.

In these next few articles, I am going to try to assume the assignment of presenting this facet of cultural economics so that we can better understand the idea of global, national, corporate, domestic, and personal transformation.

To begin, let’s establish some simple guidelines for our thoughts:

Traditional economics concerns itself with how we efficiently allocate and manage our resources—land, labor, capital, and the entrepreneur—as well as how we organize the production of goods and services. Economists collect this data and develop charts, or matrices, to project our conclusions into the future on the basic assumption that future reality will be an extension of past reality.

The subject of culture suggests an integrated set of behavior patterns learned by members in a society, but not necessarily inherited biologically. The behavior patterns, over time, become traditions that are passed on to future generations through institutions, family units, and individuals.

Cultural Economics is the branch of economics that concerns itself with the relationship of culture to economic outcomes. It studies how various aspects of human cultures interact with economic events, behaviors, and conditions. Ultimately, the study of economics is all about people with their needs, talents, abilities, propensities, and even their emotions of love, joy, surprise, anger, sadness, and fear.

A given culture will influence the political systems, traditions, religious beliefs, the formation of institutions, and even the value we ascribe to individuals. Likewise, economic philosophies and systems have the power to affect and shape our cultures.

In the year 336 B.C., a twenty-one- year- old was placed on the Greek throne following the assassination of his father, Philip. Young Alexander of Macedonia had been schooled at the feet of the Greek philosopher, Aristotle, who had made Alexander aware of a world that was fragmented economically into countless little city-states. Each dominion had its own government, money system, army, and customs.

With Aristotle’s help, Alexander began to comprehend the high cost of fragmentation, and in the next dozen years Alexander the Great “conquered” the known world for Greece. He conquered it with such interesting subtleties that more often than not the countries in his path simply threw open their gates and welcomed him in. He brought with him security, protection, and fairness, and encouraged free trade within his new world based on a dependable metallic coinage of gold and silver. The genius of that economic enterprise and availability rested in the fact that it did not cost his constituents more out of their purses for those additional benefits, but less . . . a whole lot less!

Where the citizens had been paying as much as seventy to eighty percent in taxes to operate their fragmented city-states, Alexander reduced those tax rates to around fifteen percent. Little wonder that they threw open their city gates and welcomed him with open arms!

But, alas, with no more worlds to conquer, Alexander the Great died at the early age of thirty-three as a result of a wild drinking party. His obtuse generals decided to divide up the empire and, along with the insecure propensity of the Europeans and Asians, the populaces began to move back to a model of fragmented city-states, no longer unified by protection and a stable economy. The Greek empire began to crumble, but his dream lived on.

Two hundred seventy-one years later, Julius Caesar laid claim to the dream of Alexander the Great, overhauled it, and began to implement the “great experiment,” Pax Romana.

The global economy was not nearly as fragmented as it had been prior to Alexander, and the Greek Philosophy, literature, and ideas of democracy had done much to break down the barriers between the Greeks and the barbarians. Julius Caesar, like Alexander, began building his empire, not through brutal conquest but rather through economic and political liberation.

Five years after he had taken over Gaul, Julius Caesar entered Italy, where Rome opened her gates and welcomed him as her new champion and leader. He made the stability of the Roman currency so attractive, the mildness of Roman taxation so alluring, the openness of world trade and commerce so desirable that his empire expanded by the force of demand. He treated the conquered nations with such secure leniency that even if they could have revolted, they didn’t.

The economy began to grow, trade began to flourish, and the Roman Empire was established. Julius Caesar perceived that individual initiative and creativity that was rewarded produced more individual initiative and more creativity, thus a more stable and wealthy empire. He also perceived that exorbitant taxation squelched individual initiative and creativity.

Each of those classic examples includes major global transformation taking place expressly at the intersection of culture and economics. Let’s take a closer look at the factors gathered at the curbside of that intersection of culture and economics.

Next Week: Components of production

            (Research Ideas from Dr. Jackson’s new writing project on Cultural Economics)

 

© Dr. James W. Jackson  

Permissions granted by Winston-Crown Publishing House

www.drjameswjackson.com

 

Dr. James W. Jackson often describes himself as "The Happiest Man in the World." A successful businessman, award-winning author and humanitarian, Jackson is also a renowned Cultural Economist and international consultant, helping organizations and governments to apply sound economic principals to the transformation of culture so that everyone is "better off."

As the founder of Project C.U.R.E., Dr. Jackson traveled to more than one hundred fifty countries assessing healthcare facilities, meeting with government leaders and "delivering health and hope" in the form of medical supplies and equipment to the world's most needy people. Literally thousands of people are alive today as a direct result of the tireless efforts of Project C.U.R.E.'s staff, volunteers and Dr. Jackson. 

To contact Dr. Jackson, or to book him for an interview or speaking engagement: press@winstoncrown.com