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The transition from foraging to farming, paradoxically, accelerated the growth of meanings and at the same time slowed it down. An increase in activities meant an acceleration, an increase in order—a slowing down of cultural evolution. The entire history of traditional society is a very slow and gradual increase in the proportion of people who are subjects of choice. Why was this process so slow? Perhaps because personal freedom depends on the progress of personality, that is, consciousness. It is personal freedom, the ability to choose for oneself, that is the main condition for the growth of meanings and for the acceleration of this growth:

“Locke says that ‘Freedom of Men under Government’ means ‘not to be subject to the inconstant, uncertain, unknown, Arbitrary Will of another man.’ Uncertainty in general and man’s inconstancy in particular therefore become the arch-enemy that needs to be exorcised” (Hirschman 1977, p. 53).

We would not reduce the complication of thinking and consciousness to the division and addition of knowledge, personality or identity. We are talking about the division and addition of active power as a whole. The division, addition and multiplication of active power means an increase in the complexity of the subject, both the individual human being and the culture-society as a whole. An increase in the number of counterfacts with which a culture-society or an individual operates means an increase in the entropy of the source of meanings, i.e. an increase in the minimal subject.

The division of active power develops along with the division of activity and the division of order that we discussed earlier. Historically, the division, addition and multiplication of meanings leads to a gradual and eventually major divergence between the complexity of the individual and the complexity of the culture-society. An individual takes part in only some of the activities produced by culture-society and operates within only a small part of the socio-cultural order. As a result of this divergence in the growth of meanings, a culture-society creates more counterfacts and produces more complex activities than any one person, or even all of them individually, could create and produce.

We have seen that meaning is not reducible to a minimal action: it contains “redundant” figurae. Likewise, the subject is not reducible to a minimal subject: it also contains “redundant” figurae. The mass of the subject, that is the length of the string of figurae or cultural bits by which it is described, depends on the mass of meanings of which it is the product. The result of the historical division, addition and multiplication of meanings is a growing multiplicity and mass of activities and meanings. However, the multiplicity and mass of meanings necessary for the reproduction of a culture-society as a whole are much greater than those necessary for the reproduction of the individuals who make up that society. We call the multiplicity and mass of activities that reproduce a culture-society the added activity, and the multiplicity and mass of activities that reproduce individuals the necessary activity.

Chapter 3. Simple circulation: surplus activity and exchange value

1. The origin of exchange value and money

Cooperative, administrative and competitive circulation

At the Paleolithic site, appropriation was inextricably linked to consumption: hunters and gatherers consumed where and when they derived their livelihood from nature. In the Neolithic village, agricultural production was isolated in space and time from the consumption of agricultural products: cultivated fields were located away from housing, harvests were stored to be consumed throughout the year. With the growth of crafts unrelated to agriculture, production became further separated from consumption. Production separated from consumption gave rise to circulation. Circulation is the direct or indirect exchange of actions and their results between economic units in the form of a gift, tribute or exchange of goods.

As long as the subjects of production and consumption coincide, there is no circulation. It arises where the subject of production is separated from the subject of consumption. Economic theorists usually link the separation of the subject of consumption and the subject of production with the emergence of exchange:

“As long as the development of a people is so retarded economically that there is no significant amount of trade and the requirements of the various families for goods must be met directly from their own production, goods obviously have value to economizing individuals only if the goods are themselves capable of satisfying the needs of the isolated economizing individuals or their families directly. But when men become increasingly more aware of their economic interests, enter into trading relationships with one another, and begin to exchange goods for goods, a situation finally develops in which possession of economic goods gives the possessors the power to obtain goods of other kinds by means of exchange” (Menger 2007, pp. 226-7).

But in reality, the division between producing and consuming subjects did not come about through exchange. Circulation arose through production in excess of necessary consumption, that is, through the production of goods to be given away as voluntary gifts or forced tribute. The emergence of chiefdoms and states obviously preceded the emergence of markets, and production for giving preceded production for exchange. Production for exchange arose from production for self-consumption (i.e. household or subsistence economy) via production for giving.

Every economy combines three forms of relations between its participants. There is cooperation based on reciprocity (that is, on morality and gifts as a means of maintaining reputation), administration based on a plan, and competition based on conflict. Accordingly, the three main types of circulation are (1) cooperative circulation based on the exchange of gifts, (2) administrative circulation based on redistribution, and (3) competitive circulation based on the market (or occasionally on barter).

“Karl Polanyi analyzes the diversity of economic systems and identifies three logics of exchange: reciprocity or exchange through gifts; redistribution, which presupposes the existence of a center where goods are stored before being distributed; and market exchange. He notes that these logics of exchange most often coexist with what he calls householding, which consists of production for one’s own use” (Aglietta and Orléan 2002, p. 39).

Householding has always functioned on a social, not an individual level. In subsistence economy, the economic unit was the entire community (originally the extended family), which produced and (re)distributed products. The small family, separated from the extended family, is a later product of cultural evolution:

“The individualistic savage collecting food and hunting on his own or for his family has never existed. Indeed, the practice of catering for the needs of one’s household becomes a feature of economic life only on a more advanced level of agriculture; however, even then it has nothing in common either with the motive of gain or with the institution of markets. Its pattern is the closed group. Whether the very different entities of the family or the settlement or the manor formed the self-sufficient unit, the principle was invariably the same, namely, that of producing and storing for the satisfaction of the wants of the members of the group” (Polanyi 2001, pp. 55-6).

The development of the competitive circulation has economic and political conditions. The economic condition is the division of activities. When economic units specialize, they compete with each other and move from internal to external exchange. The political condition is the autonomy of economic units. When they become more independent of the community and more sovereign in their choices, the circulation of gifts and tributes turns into the circulation of goods produced for exchange. As economic units specialize and become independent, they require a neutral place for a more or less regular exchange of goods.

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