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Class 2 Part 1 Historical Development of the Social Sector
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hello again everybody this is john glaser
glaser
in medieval european times
um the um
feudal societies that existed at that time
time
um were a network of reciprocal obligations
obligations
that people had to to each other and
those obligations
uh defined um uh our duties and our standing
standing
and our role um in common
life in in the shared world of the
society that we lived in
who you were and where you were born and
the circumstances of your life
determined all that for you wasn't any
you know sort of upward
mobility from being a peasant and uh
getting to be
you know a noble person
although there was a path from um being
a peasant to becoming
part of the clergy but at any rate it's
important to realize that
there are alternative ways of organizing
social life
um and in in these days um and during
medieval europe
land was the most important thing the
proclaimed sovereignty over the land and
in exchange for services
granted land to the nobility
and the nobility in exchange for services
services
um got the uh peasants and the
uh and the serfs to to actually work the
land and
and uh populate you know the armies and
and fight those wars and um you know be the
the
the foot soldiers in both uh production
as well as military adventurism but at
any rate
land rather than money was the
organizing principle
and it's interesting to note the history
of money
at this time is a fascinating subject
um from one point of view
um money was um
modern money was created and utilized
in order for the nobility to
privatize the costs of
war um war
was the main game of uh the nobility
and the quest for domination um
uh and power um you know came at a
at a bloody cost and the um
important than as it was as it is now
but creating a money a money system
and taxation was used so that people had
had the obligation to pay taxes
um upward in the hierarchy that means
that they had to have
uh cash they had to have money um and that
that
need for money was
only a need when
you needed it to pay taxes the rest of life
life
eating drinking living accommodations
were governed by a different set of
norms it wasn't as if
you bought your way through everything but
but
the invention of money and the use of
money during medieval europe
had a lot to do with how armies equip themselves
themselves
so i want to like point out a couple of
interesting factoids
and draw a quick conclusion from them
one is
that money didn't play the role
in medieval europe that it plays in in
our current
money had different functions land
obligations title um
family history uh governed much more
um the way people lived together of
and it was all held together with the authority
authority
of the church with the with the divine authority
authority
that um made this the prescribed order
of things
and god's uh ordained
um way of organizing the world the
divine right of kings for example
what made somebody say that they could
be king
and it was the blessing of the clergy
and the plaque proclamation that this
was a divine right
that the authority behind the hierarchy
uh came from religiosity came from
uh the organization of the of the clergy
you know was the bridge between
the secular and the and the sacred um
and those networks of relationships
is what uh prescribed how one lived
what one did what one owed each other um
and so one thing that you can conclude
from this
is real fast money is
an invention that is malleable
to the way humans want to shape it that
there's no preordained as it were
law of nature that makes money
an objective uh universal uh
force that has its own rules and laws and
and
always exerted them in the world no
money is a
human invention it's something we agree
upon with each other it's
part of our social contract and as such
it's open to change and has
changed in modern times
and we'll talk some about that but i did
want to point out
that history shows us that these things
are not
carved in stone that there's a human element
element
which means a degree of decision and
freedom it also means
an open question whose interests are
served by this
why it did the money system that emerged
emerge what was its true function
uh in terms of who did it benefit
and who did it not and those are
important questions
to understand the role of money today
are benefiting from the money system and
that the monetary system is
established to deliver those benefits
now there's ideology and belief systems
around that
that if you you know feed the investment
class if you
uh make the wealthy wealthier um then
you know investment will happen and
economic activity will trickle down and
all boats will rise and
the private sector will grow and the
private sector
is is what we need in order to live a
good life
uh there's lots of uh arguments and and
political points of view
that are wrapped up around that and a
couple of others that relate to the
issues of the
social realm um hunger
other than scarcity um what wasn't a
pervasive issue in the middle ages um
in times of scarcity hunger of course
was um very important but
you weren't hungry because you didn't
have money
you weren't hungry because you didn't
have a job
there were no jobs per se
in the middle ages wage labor
was an invention of the industrial revolution
revolution
and people's livelihoods were bound up
in their social networks
and the role that they had and the
good devout life they were trying to lead
lead
the obligations that they saw themselves
as under
and their contributions to their fellow citizens
citizens
or citizens might be the wrong word but
they're they're fellow
subjects of of god um and they're
um relationship upward so the peasants
from the bourgeoisie
they had obligations to local landlords
local landlords had obligations
to the nobility that controlled the
lands and the nobility had obligations
to the
sovereign that provided them with the lands
lands
and that was the principle that
organized things so as a result
in the middle ages it's not the case
that if you didn't have a job you didn't
eat yeah
it is the case now if you're
if you're on unemployment because of the pandemic
pandemic
making rent and paying food bills and
getting health care are all at risk
because you lack money
not true in medieval times there were
obligations that people had towards you that
that
you benefited from and that you were a
part of and that you owed things back in return
return
but it wasn't based on money and
there's a notion a concept that's very
much at play these days
that was much bigger during medieval europe
europe
and that's the notion of the commons um
what is it in our world that resists
private ownership that resists
concept of property but instead
is a you know divine gift to
to humanity um for us to steward
uh well and according to to dictate
um but not to control
and exclude people from it was the commons
commons
it was the shared uh part of the world
land was very much a part of the commons
which is why it could change hands
at the whim of of uh yeah nobility
um so the world that we shared together
the common world that benefited us all
was much deeper and richer during that time
time
than today today one perspective
is that the commons what we share
in our in our world um has been monetized
monetized
has been privatized uh belongs to
somebody now
um in the past you didn't have to pay
in order to eat um you ate because of your
your
your standing in the community in which
you lived
now there's a line from a springsteen
don't you know these days you pay for everything
everything
and it's true more and more of what used
to be
part of the commons is now monetized
and needs to be paid for um
think of you know living in a in the
middle ages where
you could retrieve water from a common well
well
well now you gotta pay for water or you
don't get water um
where you could you know eat at a common
table where if you were visiting from
one community to another
you knew you had a place to stay and
food to stay alive with
um because of your participation
in a larger whole so and in many ways
the the social sector is up against some
of the challenges
of the shrinkage of the comet with the
industrial revolution and the rise of
the middle class
and the increasing dominance of the
bourgeoisie and
and certainly with the industrial
revolution the economic hierarchy
that we now live with uh has emerged and
and has become part of our historical presence
presence
and you guys know these sectors you know
there's the private sector the public
sector and the social sector
and we talked some last time about the
ways in which they overlap
about the ways in which they can work
together about the opportunity for
for creative alliances and
collaborations public
private partnerships are an example of that
that
but if we take a quick look at the
economic hierarchy we'll get some
insight into the
language that fills our public discourse
and the
way in which we approach issues
and wonder what sector does that belong to
to
is that a private sector problem or a
public sector problem
those are questions that wouldn't arise
under a different
um you know social organization
and so having the the anthropologists
point of view
on our own culture reminds us that those
constraints that
we take for granted as you know brick
walls that we bump into
really are human inventions um and the
real question is
um what are the purposes that they serve
and are those the purposes that
they ought to serve so there's a lot of
value questions there
but anyway the private sector clearly
they undertake
private action for a private game to enrich
enrich
um shareholders there's a
famous book called rich dad poor dad
and it's about the difference between how
how
the wealthy raised their kids and how
um the the working population raised
their kids
and you know if you're wealthy
you try to get your kids to understand that
that
wages salary working for money is not
the way to get rich
instead you want to build wealth you
want to own stuff
you want to have shares you want to have
stock you want to have
ownership you want a stake in activities that
that
will pay you from the work of others and that
that
getting a job that's well paying good
for you that's a good thing
but at the same time to build wealth
means to build capital
to accumulate capital to own
capital to control it and not necessarily
necessarily
you know to to have a successful uh
job whereas if you're the kid of a
working class
family it's all about you know getting a job
job
being reliable being loyal doing a good
work taking pride in what you do
the the values that um a
working class family tries to
provide to to its kids are
from a money standpoint different from
the values that
the the elite um try to install in their kits
kits
and so um sometimes entrepreneurship
is all about that sometimes um
you hear an entrepreneur say things like
i don't want to work for anybody else
i want to work for me now sometimes they're
they're
um they got a fantastical idea
as to what that means um i often respond
and go
yeah i get it man that's real freedom
you can pick whatever 80 hours every
week you work
you don't have to work the the 40 hours
for the man
you don't have to put in your time and
go home and do something else
you just need to devote yourself you know
know
80 90 100 to what you want to do but it's
it's
there's a lot of work involved so being
your own boss
uh isn't necessarily um you know
the image of uh being able to
do what you want in fact it's quite the
opposite and also it's a mistake too
because um uh of the role of capital
um if you're an entrepreneur and you
want to be your own boss
the minute you take capital the minute
you get financing for what you do
you got bosses um the
um suppliers of capital
um are the ones that really are your bosses
bosses
and can fire you um and take away your
your uh can't take away your stock in
the company
um but can certainly take away your your
role in it um i've had many
conversations with ceos
where they were the founders
and the investors came to the conclusion
that they were no longer the right
person to take this company to its next level
level
that they were great as founders they
were great as inventors
way to go you you grew your company this far
far
um but it's time to pass on
uh control um to somebody else um
and that's a hard conversation to have
with an entrepreneur
whose business is their baby and that
they were growing on their own
but at any rate the private sector
is private action for a private game and the
the
private gain is all about who owns it
it's all about shareholders it's all about
about
um the folks who um
have bought or earned a stake in your company
company
the public sector these days
is is being emptied right i mean they're
more and more
public functions are being privatized
the current debate in the news about the
future of the post office
um a venerable historical institution
that um you know meant a lot
and provided a lot in our history is um
you know on the block um could be privatized
privatized
highways now the transportation system
um many of them have turned into
private hands and there's of course powerful
powerful
move from the public sector
to the private sector what used to be
and though in that movement thinks of
itself as
selling that public good in order for
them to achieve private gain
well those are dynamics and some of the
issues of our times
the social sector is the hybrid
the social sector undertakes private action
action
for public good the social sector
tries to fill in the gaps um if there's
something needed for the public good
and there is no effective government
program that's that's addressing that
for whatever reason whether it's you
know political or economic
or whatever and there's not enough money
there to to provide the profit motive
for a private enterprise to enter and
try to you know pick up that slack and
do what needs to be done
then the social sector
often steps up and says let's organize ourselves
ourselves
and create this social value let's try to
to
solve this problem together nobody else
is doing it
and it needs to be done and here
we often focus
on the mission side of of the social
sector for sure
and so we should our role is to remind us
us
that without money there is no mission
got to throw that in there
alan proctor wrote a book called
mission and money so he knows this stuff
but at any rate um social sector
are private actions social sector are
individuals and
and entities and communities organizing themselves
themselves
into non-profits in order to try to create
create
that public or social value but they are
private actions
they're not um you know government
actions they're not
public actions and it's important to
again put this in historical perspective the
the
um social sector emerged
in uh western civilization uh
as a part of um actually there were two
independent paths that all came together
often related to each other and overlapping
overlapping
and um primarily it was communities of faith
faith
it was um religiosity it was
um the people who saw
in their personal lives um
and in their obligations you know sort
of related back to the
medieval world where where the
where those were the forces that
organized him and blessed everything and
was the source of of authority behind it all
all
um well it continues to exert an
influence on people
and education and healthcare in particular
particular
were two areas where communities of faith
faith
really put their resources behind it to
get it done
and the other parallel path
for the emergence of the social sector
were the robber barons
was the concentration of wealth
that the industrial revolution and the
private action for private gain um
brought about
um the wealthy got wealthier there was
an accumulation of capital um
wealth became outrageously
um uh uh under
the control of a single family
a rockefeller but the the names of our major
major
national foundations derive their corpus their
their
investment money from the wealth created
during the industrial revolution and post-industrial
post-industrial
revolution you got the gates foundation
being a
major major part of the the social sector
sector
and it too is a giving back on the part of
of
folks who who gained wealth from the system
system
and perhaps their motivations for doing so
so
might be religious might also be
um you know evoke ideas of those commons again
again
um you know the world that you guys
created enabled me to be successful
i need to contribute back my share
to the world that made me successful and
so i am
you know um contributing to the commons
and and building our our social life together
together
using the wealth that i accumulated uh
through private gain well anyway those
two different
economic and religious hierarchies
are different ways of organizing
our our social life together and the
private public social are the key
sectors of of the current time
that the private sector is designed
to respond to human needs and desires where
where
you know there's a free marketplace
where you can charge a price and get
paid for doing it
and the social sector addresses human
needs and desires
that aren't served by those free market enterprises
enterprises
fills gaps by creating and delivering
social value
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