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Topic: Lets kick start the NTR with an Inter Tribal Economy

Part of the forum "Garden Workshop" in the IshCon Forum Archive

Poster and Date Post
MatthewJ
Wed Jul 12th, 2006 at 12:02 PM
I don't know how many people here at IshCon are still interested or still have any hope for a new tribal revolution. For myself personally, the biggest stumbling block has been that while tribal businesses might offer more to people who are passionate about a particular pursuit (note the large number of media/artistic tribes, including most examples Quinn gave in BC), for the average Joe, a tribal business seems to offer less. It is too risky, often includes a wage job on the side, and requires a huge burst of initiative and creativity to start up and find a niche.

So, since the NTR can only really occur when it offers normal folk more than civ, the tribal business model isn't going to get the NTR going.

However, the inter-tribal economy that Matt described here, seems to fit the criteria to be the seed for a successful NTR. It would allow people who don't have fringe (in the sense that only a small minority can successfully pursue them) passions like music, film, or circus, to be able to participate. The more room a new tribal economy creates for itself outside of the civilized industrial economy, the more room there is for ordinary folk (like me) who can do ordinary, but fulfilling work (from hunting, foraging, permaculturing, scavenging off of civ, to selling "things" to the civilized, writing computer games, whatever) to make a living for a fraction of the time and stress of a civilized job (and, of course, a fraction of the useless things that come with them to fill the voids they create).

However, the biggest hurdle to creating an Inter-Tribal economy is that you need a fairly large group of people to kick-start the first one. It wouldn't even need to be totally self-sufficient, but it would need to be large enough to stabily support its members (avoiding the insecurities of a tribal business), to have enough resources to work its way out of dependence on civ (to create space for people to make a living outside of the limited economic niches of civ), and be vigorous enough to allow for new blood.

Once the first ITE is started, if it is successful, I think it would be enough to kick-start the NTR, creating imitations in other places, starting the snowball down the hill so to speak.

To start an ITE, we need a group of people to geographically converge. We'd need tribes of hunters, foragers, and permaculturists. One cardinal rule of the ITE would be that all members must know and teach others how to hunt, gather, and garden their own food, both to dodge hierarchy as much as possible, and for daily practical purposes. Everyone to different degrees would produce food for the ITE and sell to the civilized. There would be room for trades people of all varieties, from carpenters to engineers to masons who would help with shelter for the ITE (for those that want those kinds of shelter), as well as contract to the civilized, if they wanted to. Scavengers of food, metal, and all things "wasteful" in civ would be hugely beneficial. The traditional entertainment and media types would actually be the last thing the ITE would have room for, but they could contribute as much as they liked.

The ideal area would, in my mind, be an ellipse the size of a one-day cycle trip with one end in a wild spot, the two narrow sides being in semi-arable land, and the end being in a progressive city. Thus there would be access to the biosphere, and to the resources of civ, with the ability to pull out at any time.

The specifics really can't be mapped out by me (I'm not very economically savvy), or by anyone else alone in advance. But to truly start this thing, I think we need to intentionally gather a group together and start making a living with each others support.

As I said in the original thread, a bunch of people with changed minds who want to make a tribal living are far less effective both for themselves and others if they are spread out than if they are together supporting each other.

Is anyone interested in this changed-mind's-project, even if it might involve moving at some point?

Really wanting to jump off this cliff and see what happens,
Matthew J
Rogerflat
Wed Jul 12th, 2006 at 12:20 PM
Matthew,

You have the same ambitious and chimerical dreams of many others here. You want to build a perfect intentional community that is self-sufficient and sustainable. This isn't impossible but the same problems still apply. Who has the land? Does the land have water and good soil and a plethora of game? Who is going to work to pay the tyrannical taxes that are assessed on the land every year? After all, even if you purchase land outright, amazingly enough you still have to pay (often thousands of dollars) every year just to keep the government from stealing the land back from you. So will your tribal economy account for that?

Dancing Rabbit has some sort of currency based economic sysem which measures work in units of currency. 1 hour equals the equivalent of 7 bucks. But I don't know how effective that system really is. I guess you'd just have to try different things and see what happens. No point in shooting down the idea without even trying it.
Nene
Wed Jul 12th, 2006 at 12:24 PM
Hey Matthew --

First off -- I have thought this a few times, but been disinterested in posting at the time -- I fundamentally disagree with you that tribal businesses are harder, more demanding, less secure etc than normal businesses.

I think what you are expressing, perhaps, is a common reaction to ANY small business/entreprenurial venture. However, being an entreprenuer myself, I can say with some confidence that if (when) it became tribal, it would be MUCH easier and MUCH more secure.

That being said, my family and I DO intend to move (probably) when we find the right place, group, idea etc... but we are restricted by the fact that we have promised our son that we will not move again until he is done with school... he found our last move to be quite traumatic and I promised him we would not do that to him again. So we are, as of today, on a five year time frame to figure out, plan and decide our future.

Now, any opportunity that was not ONLY one group, but in fact a fully forming network would be of great interest to us, for all of the practical and obvious reasons. In fact, that is why we have (and will continue) to attend gatherings ALL OVER the country, not only in our current region -- because any of them MAY turn out to create opportunities for us.

Janene
Talvir
Wed Jul 12th, 2006 at 01:51 PM
Hey Matt,

Well, it sounds like a good idea to me. Not so sure what my wife will think of it though ( ;) ). I don't have the skills that you're looking for, unfortunately. :(

I think leveraging by getting together the people that are already changed minds and here at Ishcon is a good idea.

- Joe
Ghost
Wed Jul 12th, 2006 at 02:10 PM
Hey, Janene.

Expect an e-mail from me today. It's good stuff 8)

"Janene" wrote:
I fundamentally disagree with you that tribal businesses are harder, more demanding, less secure etc than normal businesses.


I do too. But I think I know what he meant. You're both wrong if speaking in absolute are/aren't terms.

SOME tribal businesses are very easy. You're absolutely right to defend this point and I totally get why you are.

However, other tribal businesses have to compete directly with the basically unlimited ability of hierarchical businesses to increase production and capture larger market share. On their own, they are definately more demanding and nigh impossible to keep affloat. Check out the link Mat provided. I go into more detail there.

Hey, Roger.

Now don't just go pointing out the problems that hold us back. Let's think like new minds. What do we have to do to make what we want to happen, happen?

"Mat" wrote:
It would allow people who don't have fringe (in the sense that only a small minority can successfully pursue them) passions like music, film, or circus, to be able to participate.


True.

Eventually.

"Mat" wrote:
The more room a new tribal economy creates for itself outside of the civilized industrial economy, the more room there is for ordinary folk (like me) who can do ordinary, but fulfilling work (from hunting, foraging, permaculturing, scavenging off of civ, to selling "things" to the civilized, writing computer games, whatever) to make a living for a fraction of the time and stress of a civilized job (and, of course, a fraction of the useless things that come with them to fill the voids they create).


Hunting and foraging aren't very good businesses. If hunter-gatherer's exist, then they don't really have to participate in an intertribal economy because they're likely self-sufficient. That's why anarcho-primitivists like them. They might trade a little fresh game here and there, but that's just trade, not commerce.

We would need a business capable of providing food. Ie, the reason for their existence would be to provide food for the intertribal market. That's their business. That could mean, meat, produce, bakeries, restauraunts, etc...

Scavenging is also not a business. Scavengers might be self-sufficient (the Tribe of Crow) or scavenging might be just a part of how a given tribe claims resources (Dancing Rabbit scavenges). Recycling might be a good business though. Scavenging for the express purpose of cleaning/refurbishing and re-selling is a fine business.

There will most likely be a transition though. A tribal restauraunt might need to buy produce from a hierarchical distributor. The people in the Neo Futurist theatre group all have part-time jobs. An intertribal economy will probably not come into existence fully self-sufficient. That's a process, not an act. But the stronger it gets, the less reliant we'll be on the market economy.

I'm just pointing all of this out because I think it's important to know what really constitutes an intertribal economy.

I realise that coming together is probably good. However, it is not good in-and-of-itself. You can't just do it anywhere and hope to succeed. For instance, all a hunter-gather tribe requires to succeeed is a good range and some skills. An intertribal economy REQUIRES a market economy in order to get off the ground.

The nacent tribal businesses cannot conduct 100% of their trade with each other becuse they aren't established yet and don't have the resources to support themselves, let alone each other.

In the formation of the intertribal economy, which me must remember is PARASITIC, meaing a host is required, the businesses will conduct the MAJORITY of their trade with hierarchical businesses in the market economy. It is through this trade that the tribal businesses will generate revenue that can then be re-invested in the intertribal economy, slowly bringing it to the point of self-sufficiency. But even when an intertribal economy is fully-formed and absolutely self-sufficient, it will still exist as a parasite up until and including the day that the host collapses.

So if your intention is to create an intertribal economy, then moving to a place where there is no market economy to trade with isn't a very good idea. Moving to a place where there is a very ROBUST market economy to act as your host, is.

But certainly, once the first one is up and running and working well, people will have something to emulate.

There is a quasi-intertribal economy in Montreal.

It's a barter economy. Everyone who joins must provide a service or product. They use the labour theory of value, meaning for each hour of work you get an hour of credit (there is no one right way to organise an economy). So one hour of sewing will get you an hour of massage, or brick laying, or carpentry.

The problem is that the economy is not self-sufficient. People join as individuals. A single sewer is incapable of providing for all of the sewing needs of the rest of the membership. The demand is too high. So in most secotrs, each person is forced to remain reliant on the market economy.

There further problem is that they are not addressing this. They are not trying to attract individuals to the sectors where production is insuficient. So they will likey remain non-self-sufficient.

It's an interesting system but it's not very deliberate and it's very limited in what it can produce/provide for its members so it's not very alluring.

The same problem can plague an intertribal economy. If there are 1 000 people in the economy and the lone baker can only bake for 100 people, then the economy will not be self sufficient. But an established intertribal economy (not self-sufficient, but established) will attract producers to that sector (the invisible hand at work). Once there are enough baker tribes to fulfil demand, that sector will be self-sufficient. When ALL sectors can fulfil their demand, then the intertribal economy will be self-sufficient.

"Mat" wrote:
One cardinal rule of the ITE would be that all members must know and teach others how to hunt, gather, and garden their own food, both to dodge hierarchy as much as possible, and for daily practical purposes.


Not so much 8)

There isn't enough land to support so many people through hunting. If there was, we wouldn't NEED an intertribal economy. Every tribe could be self-sufficient on their own.

But producing your own food will reduce reliance on the market economy and reduce how many food producing tribal businesses are required to attain self-sufficiency. Good idea? Sure. But it certainly isn't required.

I know that you hate rent, but until people in the intertribal economy have enough resources to purchase land, they're going to have to spend some revenue on rent.

"Mat" wrote:
There would be room for trades people of all varieties, from carpenters to engineers to masons who would help with shelter for the ITE (for those that want those kinds of shelter), as well as contract to the civilized, if they wanted to.


Janene, these are some of the difficult kinds of businesses I refered to.

This is a big hurdle. How do we get these kinds of businesses, that have a hard/next-to-impossible time, competing with hierarchical businesses, to join the intertribal economy?

I don't think they'd come first. I think step one would be to establish an economy of the kinds of businesses that CAN compete: restauraunts, niche businesses. Once they're up and running, these other businesses will have at least some small niche to occupy, ie, have a base of people to trade with to offset their problems competing in the market economy.

I really have to figure out what the economic terms for "the two kinds of businesses" are. Until then, I fear what I'm saying is unclear and at least certain that it's clumsy.

"Mat" wrote:
The traditional entertainment and media types would actually be the last thing the ITE would have room for, but they could contribute as much as they liked.


Hey, I resemble that remark 8)

Actually, quite the opposite. Entertainment and media tribes are quite capable of competing in the market economy. That means they'll generate a lot of revenue that they can then re-invest in the intertribal economy: buying tribal products and services. So really, they'd be among the FIRST businesses in the economy.

:P

Just a note on self-sufficiency. An intertribal economy that is not self-sufficient is still good because you are less a part of the culture of maximum harm and getting more of what you want and need. That's a good thing and a great start. But an intertribal-economy that IS self-sufficient can withstand the collapse of its host.

Peace and Love and Empathy,

Matt
TwoRoadsTom
Wed Jul 12th, 2006 at 02:20 PM
Just a quick point -- for masons, carpenters, engineers, etc., try people who have retired or been laid off / are unhireable. Hook them up with some young folks who want to learn a trade but are in the middle of a tribal-style state of mind.

It's Elders teaching the young'uns.

BTW, this was inspired by a businessman I met yesterday who runs a company that inspects commercial properties. It's a small niche market that requires specialized personnel but nobody really knows about it or cares. Therefore, they hire retired folks, who enjoy the extra income, and everyone makes out well.

Best

Bill Maxwell
Nene
Wed Jul 12th, 2006 at 02:36 PM
Hey --

Quote:
Expect an e-mail from me today. It's good stuff


Ooohhh... goodie. Can't wait. \:D/

"Matt" wrote:
However, other tribal businesses have to compete directly with the basically unlimited ability of hierarchical businesses to increase production and capture larger market share. On their own, they are definately more demanding and nigh impossible to keep affloat. Check out the link Mat provided. I go into more detail there.


Well, yeah. That's exactly what I was getting at... This factor will be the same for ANY small business... but for a tribal small business, it will be easier than a non-tribal small business. See?

Quote:
Recycling might be a good business though. Scavenging for the express purpose of cleaning/refurbishing and re-selling is a fine business.


Business Model: (I don't think I'm ever going to use it, so I'll throw it out there...)

Bio-Diesel Retailer:

Buy used grease from existing grease collection companies at a very low rate (currently, I believe they have to pay to process the grease they collect). Buy it as is, no filtration or other processing neccessary, the price framed as a 'delivery fee'

Filter it: use the waste product as food for worm composting...

Sell worm compost as a product for organic gardeners etc

Process the vegie oil into bio diesel...

Drain off the glycerin... and I haven't figured out how yet, but there should be a mechanical, or more likely chemical, way to purify it. Then use it to produce post-consumer recycled soaps. Sell soap.

Sell Biodiesel... at first within a network of OTR Truckers or, if available, a local organic/green community.

All Product. No waste. Minimal production costs....

Other potential sidelights...

**buy an old gas station that is in need of remidiation (SIGNIFICANTLY reducing the cost)... and explore bio-remediation techniques (ala Tony's discussion of fungal remediation) and eventaully permaculture on site.

**look into recycling possibilities with other waste-oils.

**use permaculture to grow plants that can be processed into essential oils for direct sale AND soap production

**offer training courses in any/all of the processes you are using

**create a network of recycled biodiesel producers to help enable long distance travel for existing and potential customers.

**If you really have a large group, you might even do the Step 1 yourself: ie form a Grease collection Company that is able to significantly undercut the competition on pricing.... but then you need collection trucks, additional labor etc...

Quote:
I know that you hate rent, but until people in the intertribal economy have enough resources to purchase land, they're going to have to spend some revenue on rent.


I know this is the general thought process of most here.... but we bought our first house because we could not afford to rent. It can be done, if you are willing to adjust your wants-needs-must haves...

Quote:
This is a big hurdle. How do we get these kinds of businesses, that have a hard/next-to-impossible time, competing with hierarchical businesses, to join the intertribal economy?


This is where region becomes important. If you are somewhere like the Pacific Northwest, you can generate business simply because you are following a new model. Use it, exploit it, find ways to make that priority one amongst your customer base.

Quote:
I really have to figure out what the economic terms for "the two kinds of businesses" are.


Well, the first are generally service businesses.

On the other side are 'production' AND cottage industries. (The difference being size and focus)

Quote:
Just a note on self-sufficiency. An intertribal economy that is not self-sufficient is still good because you are less a part of the culture of maximum harm and getting more of what you want and need. That's a good thing and a great start. But an intertribal-economy that IS self-sufficient can withstand the collapse of its host.


Incremental, baby 8)

Janene
Rogerflat
Wed Jul 12th, 2006 at 02:43 PM
Somthing like Gaviotas?
Talvir
Wed Jul 12th, 2006 at 03:18 PM
Hey,

Matt, I think Janene hit it on the head - cottage businesses. I recently read a book called "How to Live Without a Salary". Pretty good book, his suggestion is for people to run cottage businesses. Start off doing it as a hobby, and when you think the time is right, quit your day job and turn your hobby into a cottage business.

I think of it as a sort of return to what was going on before the Industrial Revolution in Europe. Villages produced their own goods - you had your own cobbler, blacksmith, etc.

- Joe

P.S. So, Matt, you wanna come out West and do something along these lines? :) C'mon, you know you wanna...just think, it's what the pioneers did, and nothing bad came out of that! ;)
memeshredder
Wed Jul 12th, 2006 at 03:27 PM
pardon the pithy protrusion, but speaking of framing, you charge THEM to take away the oil, undercutting the lowest market rate. which will work for a while, until the price then drops to ero as tribe B outcompetes you.

But never undersell yourself, you can always LOWER your price, but you can never RAISE it.
JCamasto
Wed Jul 12th, 2006 at 03:43 PM
A cottage biz "service industry" is more or less what I've stumbled into doing for the last 8 years... It's not tribal (just me) but with very low overhead and minimal startup cost. Gotta have a service that people "want" and will pay for, but are otherwise too -insert distraction here- to do for themselves. The whole game is growing the informal, local referral network that keeps biz coming in...

It also provides me ample opportunity to try out a little Ish on folks. And I get to scout up close the (dysfunctional) ways people of our culture believe and perpetuate, often without even questioning. Such observation reinforces my desire to keep moving other directions. (Just like hangin' 'round an obnoxious drunk reinforces behavior to not be an obnoxious drunk (all the time).

-----

Bill: Incidentally, I "was" that unhireable former engineer... "unhireable" because I had had enough hierarchical civil shitmaking, had built a glass ceiling over my head, and took up brick throwing as a hobby...

And your example dovetails with something I've been thinking about: namely a energy auditor for buildings/residences... Load analysis, efficiency and weatherproofing consultation, RE and the like. (Tho I dig Janene's idea, too)

-Jim
MatthewJ
Wed Jul 12th, 2006 at 07:38 PM
Hey all,

Thanks for reading and responding. I want to first apologize for being the new guy here and poking at people to do things. Although I've read and thought about Ish type stuff for years, I am new to this community, and should probably stop being a shit-disturber.

However... I have a desperate need to get out of this cultural mess, am scared of what looks like could be coming, and am currently at a time in my life where I am making big decisions - hense the "immediacy" of my posts.

I hope to swing down to the 10k ways and perhaps to the mountain festival if I can. There is actually not much more important to me atm, so we'll see what happens.

Anyway.

Hey Roger,

Ambitious, chimerical, and really really tough. Yep. Though I'm not so interested in intentional communes (most I've seen involve people living together and working apart).

In my naivite I've suggested more than is possible, but working incrementally I think its a good direction.

Hey Nene,

"Nene" wrote:

First off -- I have thought this a few times, but been disinterested in posting at the time -- I fundamentally disagree with you that tribal businesses are harder, more demanding, less secure etc than normal businesses.

I think what you are expressing, perhaps, is a common reaction to ANY small business/entreprenurial venture. However, being an entreprenuer myself, I can say with some confidence that if (when) it became tribal, it would be MUCH easier and MUCH more secure.


I don't disagree. I guess part of what I'm trying to hit on is that there is limited space at all for small business with the free-market squeezing them to death.

If the New Tribal Revolution is to have an effect it must offer more than a wage slave position. Currently you either have to start your own business, which requires filling one of the few, limited niches, and surviving as a small business. Both are too risky and too alien for most people. An inter-tribal economy would create an already functioning space and example for people to either join tribal businesses or start their own with support.

Matt:

I think these two points I interpreted from your host are bang on.

1) Gotta think incremental. Start with what is immidiatly possible, and step by step get self-sufficient.
2) Take and use the niche markets first (media types :)), then expand into the more mundane practicalities.

I would, however, say that hunters and gatherers (though perhaps not hunter-gatherer primitivists) could serve a few very important roles in an ITE. Wild meat and wild eddibles can fetch a high price on the free market, and, given that there isn't space for many people to live a primitive life, an ITE could provide things for them.

Also, I am unsure how a group of successful niche-based tribal business is going to lead to the non-niche businesses (especially if you want something that works on a level other than "shared ideals).

I.e. how does a successful theater company and a successful publisher lead to a successful permaculturist? After all, food is cheaper to get from the industrial system (for now at least). I can see how a successful food company and a successful tailor could create space for a successful theater company, but the reverse seems harder to me.

I guess this link between niche-service providers and directly-competing basic neccistiy producers needs to be more thought out.

This is, after all, where I see the greatest potential benefits for an ITE. It could, eventually, create space outside of civ for a much larger group of people.


================

This seems like fruitful discussion.

So the questions still in my mind are
1) Where and what are the best places and conditions to start with?
2) What are the best types businesses to start with, with the goal of ending self-sufficient ITE in mind?
3) How do you move incrementally from niche service to cottage industry to self-sufficeinty
4) Is this proposal actually attractive to many people, or am I getting worked up on crazy ideas? :P

Thanks all,
MatthewJ
Ghost
Wed Jul 12th, 2006 at 07:41 PM
Hi, ho.

Ok. There's something I'm trying to get across but I know that it's unclear because it's unclear to me. Not conceptually mind you, but linguistically. I don't have the proper terms.

There's five ideas I'm trying to make clear (I think the language got clearer as I was writing this):
1-Self-sufficient tribe
2-Niche market
3-Open market
4-Limited sectors
5-Unlimited sectors

These terms are SOOOO not perfect, but at least they'll help me frame what I mean.

Ok... let's try this...

1-SELF-SUFFICIENT TRIBE

"Roger" wrote:
Somthing like Gaviotas?


Gaviotas is not a part of an intertribal economy. Gaviotas is a self-sufficient village.

There's about 250 members (at the time of the publishing of the book). They live off the land. They get grants from governments and such and they do some trading in the market economy, but they don't have to. They only do that to help pay for their crazy scientific/engineering ideas.

I'd call them a large anarcho-primitivist tribe, but they aren't anarchists and they aren't primitivists and they don't consider themselves a tribe. But they are a self-sufficient village.

That's the reason they aren't a part of an intertribal economy. They can do everything themselves.

What they did, was move to the Illanos and CLAIMED territory that no one else was using (because it was considered uninhabitable). Ie, they moved into a wide open niche and set up shop.

Now here's the thing, there aren't that many open niches left in the world. So slipping back into the wilderness to form a self-sufficient tribe is a good idea, but it's not available to the vast majority of people.

This is the entire POINT of an intertribal economy. It's about building an economy that works smack dab in the middle of claimed niches. It's about becoming a parasite in an established host and re-claiming parts of their already claimed niches. It's an opportunity for the millions not able to flee to the countryside to survive collapse. It's a solution for the here and now.

2-NICHE MARKET

The East Mountain News is a perfect example of a tribal business that claimed a niche market.

(Niche sector might be a better term. Not sure. I've always heard niche market.)

There was no one covering the news in their area. So when they did, people bought their paper. They claimed an open niche; a niche market.

They could never have started the Houston News, because the large dailies in Houston would have swallowed them whole. The large dailies have claimed every niche in town.

Niche markets are SMALL MARKETS and generally can't support any competition. They are generally occupied by a single small business with 100% market share.

For instance, you won't find 25 transexual clothing shops in one area of a city because they just can't be supported. There's such a small market for those clothes, a single small store will suffice (and only the largest cities would even have one).

You WILL find 25 Subway restauraunts in one area because fast food is not a niche market. There is a LARGE MARKET for that stuff.

Thankfully it doesn't matter if the small business occupying the niche market is hierarchical or tribal. The added advantage is that tribal businesses require less revenue and generally have lower operating cost and are BETTER suited to niche markets than their hierarchical cousins; the small business. That's why when the East Mountain News was purchased and turned into a hierarchical small business, it folded.

Jim too has found a small niche market where there is demand for a competent handy man to do one-man jobs. Loews (They're American, right? Do they do contract work? Well, imagine they did) doesn't want to bother competing in that market because the profit margin is too low for them, but just fine for Jim.

Once the market gets to a size that it can support competitors, it switches from a niche market to a full fledged member of the open market.

3-OPEN MARKET

An intertribal market is limited because only tribes can participate. But these same tribes, until they become independently self-sufficient (not likely, they're businesses) or until the intertribal economy they belong to becomes self-sufficient, need to involve themselves in commerce on the open market. They simply need the client base in order to survive.

The open market is unlimited because anyone can participate.

That's the problem. Annihilators are allowed to participate too.

Tribal businesses can no more compete with Annihilator businesses than tribes can compete with Annihilator societies.

So tribal businesses have a hell of a time on the open market when competing directly with Annihilators.

Jim can handle maybe 20 clients, but not 200. The problem with niche markets is that if they become very popular, ie, if demand goes up and the market becomes large, they'll attract producers because there will be UNCLAIMED MARKET SHARE. The cardinal rule of niches? Nature abhors a vacuum. Annihilators go at market share like sharks on the wounded. Jim would be fucked.

So Janene's biodiesel business is a great idea until Willie Nelson figures out there's money to be made there or until the oil collectors reaslise that they can use the product themselves.

That's the bad news. The good news is that if the tribal business survives in the niche market to the point that the intertribal economy that it is a member of becomes self-sufficient, it no longer has to worry. If the niche becomes larger it will only attract other tribal businesses willing to compete in a healthy manner. It's only the Annihilators that we have to worry about.

But the open market isn't comprised of just niche markets. It's chock full of sectors.

4-LIMITED SECTORS

A market sector is just an part of the larger market in which businesses sell similar products. All markets have sectors; open and intertribal alike.

Each sector has the capacity to support many small businesses or (in the case of a market economy where hierarchy is permitted) fewer medium to large size businesses (or a single giant monopoly).

Some tribes in certain sectors can compete DIRECTLY with hierarchical businesses on the open market and do quite well for themselves. The reason for this is that every individual business in that sector, hierarchical or cooperative, is restricted to serving a limited clientelle.

For instance, the reason there are 25 Subways in a small area is because each individual Subway can only be so large and can only handle so many customers. There is a ceiling to how much they can produce and; therefore, a ceiling to how many clients they can take on.

Here's a great story. A buddy of mine was on an exercise once and the commanding officer decided to feed all of his troops. So he rolled a couple of APCs up to a McDonald's and ordered 500 big macs. Naturally the people working there shat themselves because as large as the McDonald's CHAIN is, THAT McDonalds couldn't handle that kind of demand (they ultimately filled the order but it sure wasn't easy).

So a tribal restauraunt like Mondragon can compete DIRECTLY against other restauraunts on the open market because it's virtually IMPOSSIBLE for an individual restauraunt to gain a monopoly in that sector because no one restauraunt can feed everyone on the same night. If you walk into a restauraunt and they can't seat you, you just go to another restauraunt. Mondragon can't compete with the international marketing power of McDonald's, but it doesn't have to. It competes LOCALLY ONLY. As long as the people in the region know it exists, it'll survive. This is why MOST restauraunts survive without any advertising whatsoever.

All restauraunts are small businesses. Hierarchical ones have a little bit of an advantage because exploitation means that they can pump out more food faster and likely have lower operating costs. Hierarchical CHAINS can buy things centrally to further reduce costs. But it's not enough of an advantage to crush their competition. In military terms, they can't project sufficient force. Most tribal restauraunts can keep up because the sector is "limited".

5-UNLIMITED SECTORS

Some sectors are unlimited.

Take your local cable company. They could start out as a small business. But over the years, they just keep adding customers. All they have to do is set up new connections and update their proprietary system. To keep pace with this growth, they have to keep hiring employees. So something that started as a small business can quickly balloon to a large corporation with thousands of employees.

A tribal cable business CANNOT grow in this manner. There is only X amount of customers that they can handle and that's it. Eventually, because the hierarchical businesses offer the same service but with all the speed and glitz and bells and whistles of a large corporation, they simply get outcompeted.

These "UNLIMITED" sectors are the ones where tribal businesses find it hard to compete on the open market because these are the sectors where the hierarchical Annihilators reign supreme:
-Coke
-GM
-Ben and Jerry's

"Janene" wrote:
Well, yeah. That's exactly what I was getting at... This factor will be the same for ANY small business... but for a tribal small business, it will be easier than a non-tribal small business. See?


Yes and no.

A tribal business is great because they're a snap to set up; whereas, hierarchical small businesses require all kinds of start-up capital. But small hierarchical businesses have the advantage in the open market in that they can expand.

Imagine that the East Mountain News was actually in Houston and that it was founded at the birth of the city. It had three other competitors. The A news, B news and C news. Newspapers are a sector where a business can just keep adding customers. In short order, A, B and C would grow past the point that could be supported by the tribal model and would have to grow into a hierarchy to keep up with demand. Eventually, A and B and C just drown out the Houston News because that's what they do; they're annihilators. Eventually, A and B wipe out C. Eventually A wipes out B and has a MONOPOLY on the city. Then A gets wiped out by the National newspaper.

The open market is a place where the small are eaten by the large who are eaten by the larger who are eaten by the largest who then enjoy a monopoly. This is the exact phenomenon that Marx pointed out and Feurbach before him.

The problem is that these "unlimited" sectors are often of great use to an intertribal economy that might want to be self-sufficient.

Retail is such a sector.

A good example would be a hardware store or a clothing store. A small tribal store can be of great use to an intertribal economy.

But the local giant hierarchical Jim's House of Hardware and Billy's House of Fashion, each with 600 employees, can simply outcompete them.

But they in turn are easily destroyed by your "big box" CHAINS of the world, like Canadian Tire and WalMart.

"Janene" wrote:
Well, the first are generally service businesses.

On the other side are 'production' AND cottage industries. (The difference being size and focus)


Seems right intuitively, but it's not true.

The unlimited sectors are home to goods producers, like Coke, GM, Breyers, and Matel (Barbie can crush the little doll store on the corner), but they are also home to service providers: MCI, Rogers, Amped Mobile, AOL as well as retailers: Lowes, K-Mart, Costco.

---

So, to recap.

Self-Sufficient tribes don't need to be a part of an intertribal, market or any other kind of economy.

In order for us to create an (not "the") intertribal economy I imagine that we're better off starting with businesses in the "limited" sectors and the niche markets because they have a much better shot at survival in the open market. Once they get established, then the "unlimited" sector businesses have a client base that they can serve, not exclusively mind you, they can still make a go of the open market, but at least there's some guaranteed business.

---

"Janene" wrote:
I know this is the general thought process of most here.... but we bought our first house because we could not afford to rent. It can be done, if you are willing to adjust your wants-needs-must haves...


Good point.

"Janene" wrote:
This is where region becomes important. If you are somewhere like the Pacific Northwest, you can generate business simply because you are following a new model. Use it, exploit it, find ways to make that priority one amongst your customer base.


This is the hope right? If tribal businesses can become trendy, if it's chic to shop at them, then that's good for us (More testicles means more iron... er... more business means more revenue means more re-investment in the intertribal economy). But that's just a market trend. Like fair trade coffee. It will last as long as it's trendy and then business will level off.

---

As for the cottage industry thing, all a cottage industry is is a rural small business. If they're hierarchical, then that's that. If they're tribal then they're subject to what I outlined above.

So yeah, Joe, slowly grow your tribal business and then take the plunge when it can support you.

An intertribal economy will likely have a mix of part-time and full-time tribal businesses. Some businesses will have taken off and can be a primary income source, some take more work than they give back. That's fine.

In terms of surviving the collapse, only intertribal economies that are self-sufficient will survive. The businesses that rely on the market economy will die. Take Jim for instance. If the market economy goes kaput, so does Jim's business (no one will be able to pay to hire him and his suppliers will have gone out of business too). If those businesses are an integral part of the intertribal economy, it will die just as an ecosystem will if you take out the wrong node.

Just an adition to everything, a self-sufficient intertribal economy requires tribal businesses that are suppliers of sustainable raw materials as well. That's it's own can o' fish.

Peace and Love and Empathy,

Matt
Nene
Thu Jul 13th, 2006 at 10:28 AM
Hey --

"Matt" wrote:
All restauraunts are small businesses. Hierarchical ones have a little bit of an advantage because exploitation means that they can pump out more food faster and likely have lower operating costs.


hmmm... see, this is exactly what I disagree with.

In theory it is true that through exploitation, they can theoretically have lower operating costs and therefore have an 'easier' time of it.

But I have worked with MANY small businesses over the years (I used to do client bookkeeping). In practice, and maybe particularly in the US, this is NEVER the case, because owners of small businesses are entitled. They will cut staffing, avoid neccessary expenses, shaft thier employees, whatever it takes to make sure that THEY are getting the salary that is 'due to them' as owner. I have seen companies with consistently negative P&L's that are only negative because the owner is taking a six figure salary (plus paying thier mortgage, taxes, car payments etc through the company).

[interestingly, you will see these people take a huge salary, etc,driving the p&l into the tank... and then they will 'loan' the company cash to pay for shortfalls... which they then take later in repayment, ensuring that the company can never truly recover from an off-business period]

In a tribal format, however, there is no one person that can dictate how the proceeds are spent AND everyone is vested in making the business work. So when profits are down, everyone takes a little less, and works a little more. When profits are up, then they are able to 'recover' from the down-times.

"Matt" wrote:
A tribal cable business CANNOT grow in this manner. There is only X amount of customers that they can handle and that's it. Eventually, because the hierarchical businesses offer the same service but with all the speed and glitz and bells and whistles of a large corporation, they simply get outcompeted.


I have often pondered the concept of a cooperative network of tribal businesses... like, all in a single sector with overlapping regions. I hadn't considered something like cable companies... but perhaps Dairies... instead of having a Dairy company that buys from individual farmers, have a dairy comprised of individual farmers. You could 'brand' the network, and in theory, the network could stretch out 'infinitely' while maintaining localized cores: ie each region with its own processing/bottling/distribution center (with distribution being fully local as well), each facility bought and paid for by the local farmers.

In a lot of ways, this is exactly how the old-time dairies work, except that the network itself IS hierarchal, and so the network itself always gets a portion of the farmers labor....

Quote:
These "UNLIMITED" sectors are the ones where tribal businesses find it hard to compete on the open market because these are the sectors where the hierarchical Annihilators reign supreme:
-Coke
-GM
-Ben and Jerry's


hmmm... I think two of those three were the WORST possible examples 8)

You're right, no small competitor is going to directly challenge Coke... but it is QUITE possible for a local 'gourmet/organic/old fashioned/whatever soda company to compete in a particular localized OR specialized market.

Ben & Jerry's, on the other hand, began as an idea almost kinda like what we are talking about here. But at some point the opted for growth rather than ideology. What would they be now if they had gone the other way back then? And, of course, they did EXACTLY what I was just suggesting to compete with Coke. They came out with a unique product that could, therefore compete for a niche just off the edge of the main ice cream market.

"Matt" wrote:
A tribal business is great because they're a snap to set up; whereas, hierarchical small businesses require all kinds of start-up capital. But small hierarchical businesses have the advantage in the open market in that they can expand.


Its not necessarily true that tribal businesses are any cheaper to start than hierarchal ones -- all depends on the business at hand. MY small business has involved almost zero investment... (and what investment my folks made back in the day were predominantly worthless compared to the low budget operation we eventually developed)

However, if someone wanted to start a tribal cable company, just the equipment neccessary can run into the millions of dollars.

As far as expanding... that's when we go back to the network concept. The tribal business can expand up to a point... ie to the labor value of +/- 150 individuals, or self imposed, lower limits... but there is nothing stopping a tribal business from talking to other interested folks, sharing thier business model, and perhaps thier DBA...

Doesn't work with the newspaper... but it could work for a large variety of products, and almost ANY service...

"Matt" wrote:
Seems right intuitively, but it's not true.


You're right, of course. I think it was naggling me when I wrote it, but I ignored myself. Silly me :-)

"Matt" wrote:
An intertribal economy will likely have a mix of part-time and full-time tribal businesses. Some businesses will have taken off and can be a primary income source, some take more work than they give back. That's fine


hmmm... perhaps, in an ideal world, we would see limited sector full time businesses and part-time unlimited sector businesses... ie, people that already work in those unlimited sectors could, in theory, have regular jobs, but then start building their tribal business based on ONLY members of the tribal economy. That provides the tribal economy with a required node, while providing a 'safe harbor' for people in those businesses...

Janene
Ghost
Thu Jul 13th, 2006 at 12:04 PM
God damn it, Woman, we've gotta stop arguing about shit we agree about 8)

"Janene" wrote:
In practice, and maybe particularly in the US, this is NEVER the case, because owners of small businesses are entitled.


I do not disagree with this. Your point is totally valid.

I was speaking more about productivity. If you have ten members of a tribal business, they're only going to work so hard. But if you have ten employees, you can demand they work overtime, threaten to fire them and use all manner of coercion to increase production. That's where that advantage comes from. But it's not all that impactful in such a limited sector because all it means is that they can serve a few more clients a night. They can't parlay that advantage into projected force and monopoly beyond that.

Their operating costs can be lower. These entitled jerks you're speaking of increase the PROFIT MARGIN by lowering OVERHEAD, ie, operating cost. Salary is a great way to reduce operating cost. That's the battle of exploitation. The employees are always fighting for the highest wage possible, and the employers are always trying to push income levels towards the subsistence level. It's a little harder to push tribal dividends down to the subsistence level because everyone shares and no one really has the power to do it.

So yes, boobery and mismanagement means the hierarchical restauraunt will have a harder time of things.

But the point was that in limited sectors, tribal businesses can compete directly with hierarchical small businesses and that exploitation only offers a limited advantage.

Once you get past the small business model (hierarchical or tribal) and into an unlimited sector (which are the only ones that can support medium, large size and multinational businesses) then exploitation becomes a HUGE advantage. Pretty much insurmountable.

"Janene" wrote:
In a tribal format, however, there is no one person that can dictate how the proceeds are spent AND everyone is vested in making the business work. So when profits are down, everyone takes a little less, and works a little more. When profits are up, then they are able to 'recover' from the down-times.


True.

This is actually an advantage for an intertribal economy.

Economies remain healthy when people are spending in them. When things get tough, hierarchical businesses (which are entirely self-interested) "downsize". It streamlines them and lowers operating costs, but it fucks the economy because there are LESS people spending. In an intertribal economy, it's impossible to fire people (well not impossible, you can detribalise people but that's generally not a reaction to scarcity). Since no one is ever REMOVED from the economy as a spending force, it's much easier for the economy to recover.

"Janene" wrote:
I have often pondered the concept of a cooperative network of tribal businesses... like, all in a single sector with overlapping regions. I hadn't considered something like cable companies... but perhaps Dairies... instead of having a Dairy company that buys from individual farmers, have a dairy comprised of individual farmers. You could 'brand' the network, and in theory, the network could stretch out 'infinitely' while maintaining localized cores: ie each region with its own processing/bottling/distribution center (with distribution being fully local as well), each facility bought and paid for by the local farmers.

In a lot of ways, this is exactly how the old-time dairies work, except that the network itself IS hierarchal, and so the network itself always gets a portion of the farmers labor....


This is a really good point.

I disagree; however, that the network is hierarchical. It's not. It's intertribal. The independent producers are all cooperatives. The central collector can be a tribal business too. Just another one in the intertribal economy.

(see the newspaper example further down)

The danger is that a monopoly would form; however, the central collector tribe is limited in how much milk they can process. That's a good thing. It's always important to maintain diversity.

I think that it would allow tribal businesses to become MORE competitive in unlimited sectors. It would allow them to grab more market share, but they'd still be vulnerable to Annihilators. Intertribal networks are themselves limited in size. Multinationals are not.

BEST case scenario, a large hierarchical distributor agrees to take them on. Then we have a psycho leading the charge, more money is made in the market economy and more re-investment in the intertribal economy.

"Janene" wrote:
You're right, no small competitor is going to directly challenge Coke... but it is QUITE possible for a local 'gourmet/organic/old fashioned/whatever soda company to compete in a particular localized OR specialized market.


Keep up with me here.

Did you not read the part about niche markets?

Your organic soda dude will do fine until Coke decides it's no longer a niche market and buys them out or launches it's own product.

Niche markets are great for tribal small businesses, moreso than for hierarchical small businesses, so long as the niche is a small market that can't support competition. Once it grows into a large market that can support competition, if it's an unlimited sector, the tribal business is doomed.

"Janene" wrote:
Ben & Jerry's, on the other hand, began as an idea almost kinda like what we are talking about here. But at some point the opted for growth rather than ideology. What would they be now if they had gone the other way back then? And, of course, they did EXACTLY what I was just suggesting to compete with Coke. They came out with a unique product that could, therefore compete for a niche just off the edge of the main ice cream market.


They'd still be a small tribal business in Vermont.

They occupied a niche market. They DIDN'T compete with larger businesses. They didn't compete with ANYONE. NO ONE had Cherry Garcia and Banana super-duper brain explosion (I don't actually eat ice-cream so I don't know the names). That's the advantage of a niche market. You're the only producer. You have 100% market share.

Once that market grew from a niche market to a large market, they became hierarchical in order to keep up with demand. They became a large chain with thousands of employees. But when the market in that sector expanded, they lost their 100% market share, meaning that the market could then support competitors. Once the Annihilators caught wind that there was market share to be had, they swooped in. Now Ben and Jerry's is owned by Breyer's.

The small are eaten by the big are eaten by the biggest.

"Janene" wrote:
Its not necessarily true that tribal businesses are any cheaper to start than hierarchal ones -- all depends on the business at hand. MY small business has involved almost zero investment... (and what investment my folks made back in the day were predominantly worthless compared to the low budget operation we eventually developed)

However, if someone wanted to start a tribal cable company, just the equipment neccessary can run into the millions of dollars.


You're right. It's generally true rather than necessarily. Primarilly because you don't necessarily have to raise start-up capital to buy stuff for the business. The members often contribute personal capital and don't immediately require a salary.

In the cases where they have to buy crazy expensive equipment, it's still essentially cheaper. No salaries in the begining, possibly a donated space, maybe someone has a van they can use...

But you're right. It's not hard and fast.

"Janene" wrote:
As far as expanding... that's when we go back to the network concept. The tribal business can expand up to a point... ie to the labor value of +/- 150 individuals, or self imposed, lower limits... but there is nothing stopping a tribal business from talking to other interested folks, sharing thier business model, and perhaps thier DBA...

Doesn't work with the newspaper... but it could work for a large variety of products, and almost ANY service...


You hit the nail on the head. Labour value of +/- 150. Good way to put it. That's the upper production capacity of a tribal business and they can't expand beyond that.

What will happen in an intertribal economy is that if there is a demand past what they can provide, other tribal businesses will pop up to fill the void (unlimited sectors aren't a problem WITHIN an intertribal economy because there is nothing larger than a small business and no annihilators).

If we're smart, tribal businesses swamped with demand will undergo tribal mitosis.

They can also speak to other businesses about forming a network. That's a fine idea and it will help them compete on the open market.

It could work with a newspaper. Say you have one tribe that puts the paper together. They then licence the paper to four other tribes who do the printing (and each of those tribes licence between one and five other newspapers). They then contract three paperboy tribes each to do the delivery. A network can't add employees in order to expand, but they can add other tribes.

The intertribal economies will have to learn to do business differently. Things like intellectual property and patents lead to monopoly. Open source and GPL will have a huge place in an intertribal economy. It'll be the Post-Information Age.

"Janene" wrote:
hmmm... perhaps, in an ideal world, we would see limited sector full time businesses and part-time unlimited sector businesses... ie, people that already work in those unlimited sectors could, in theory, have regular jobs, but then start building their tribal business based on ONLY members of the tribal economy. That provides the tribal economy with a required node, while providing a 'safe harbor' for people in those businesses...


Yup.

I think that it's much easier to get niche market and limited sector tribal businesses off the ground. Once they are, they can become the client base for the unlimited sector tribal businesses who won't do that well on the open market, but who will really get off the ground inside the intertribal market (Which is what we want anyway. Activity in the open market is just a means to the end of a robust intertribal market). Once they do, that's really when we'll see self-sufficient intertribal markets.

Peace and Love and Empathy,

Matt
Nene
Thu Jul 13th, 2006 at 12:45 PM
Hey --

Quote:
God damn it, Woman, we've gotta stop arguing about shit we agree about


But we have so much fun doing it ;-)

"Matt" wrote:
I was speaking more about productivity. If you have ten members of a tribal business, they're only going to work so hard. But if you have ten employees, you can demand they work overtime, threaten to fire them and use all manner of coercion to increase production.


Yes...but... it HAS been shown with some rigor that individuals are NATURALLY more productive in a cooperative model compared to a competitive one. The heirarchy can coerce people to work MORE, spend more time, more energy, compete with thier co-workers for status, etc... but the end production tends to DROP in these scenarios.

Dave Pollard wrote about this recently... which led to a discussion at our house a week or so ago... in heirarchal models, employees spend a lot of their energy on covering thier butts, resolving issues in ways that LOOK good, but are often less effective, less efficient and/or less long-term than they could/should be, politiking, sabotaging other employees to thier own benefit, etc. Add to that, when people are doing something that they totally believe in, love to do, find satisfying and gratifying in and of itself... they will work not only harder and longer... but will generally ALWAYS look for (and find) the best solution rather than the flashy one.

But it is really EASY to accept the 'common knowledge' that hierarchy prevails because it is the most effective/efficeint system available. Point blank... that's a lie.

"Matt" wrote:
Their operating costs can be lower. These entitled jerks you're speaking of increase the PROFIT MARGIN by lowering OVERHEAD, ie, operating cost. Salary is a great way to reduce operating cost.


Well... technically...salary IS an operating cost.

"Matt" wrote:
Economies remain healthy when people are spending in them.


Good Point.

"Matt" wrote:
I disagree; however, that the network is hierarchical. It's not. It's intertribal.


No... I was talking about 'old time dairies' being hierarchal. Morning Glory and such... that this network idea is simlar to how things USED TO BE done... except for that.

"Matt" wrote:
The danger is that a monopoly would form; however, the central collector tribe is limited in how much milk they can process. That's a good thing. It's always important to maintain diversity.


Well... that's why I wouldn't want to see a central 'collector' tribe form under this model. The same families/groups/tribes that are raising and milking the cows should be providing the funds and labor for the proceessing and distribution. That prevents it from becoming a true monopoly, by virtue of the nature of rhizomatic nodes...

"Matt" wrote:
Intertribal networks are themselves limited in size.


Not if it is, in fact, a rhizomatic network. Think Daisy Chain....

"Matt" wrote:
Did you not read the part about niche markets?

Your organic soda dude will do fine until Coke decides it's no longer a niche market and buys them out or launches it's own product.


No, I got it... and I did consider that in what I was writing -- I just didn't write my considerations ;-)

I think I'm just looking at it from a slightly skewed angle. Coke could never truly compete in that soda market -- because a multinational soda producer CANNOT be a local 'gourmet soda.' (Although they can 'mock it up' by using a different name... it all depends on whether people catch on or not.) The frame is part and parcel of the model. At the same time, IN that local market, the local gourmet soda company IS competeing with coke for the general 'soda market.'

"Matt" wrote:
They occupied a niche market. They DIDN'T compete with larger businesses. They didn't compete with ANYONE. NO ONE had Cherry Garcia and Banana super-duper brain explosion (I don't actually eat ice-cream so I don't know the names). That's the advantage of a niche market. You're the only producer. You have 100% market share.


Sure they competed with Breyers and the rest... but maybe you could say that Breyer's didn't compete with them.

"Matt" wrote:
If we're smart, tribal businesses swamped with demand will undergo tribal mitosis.


RIGHT!

"Matt" wrote:
The intertribal economies will have to learn to do business differently. Things like intellectual property and patents lead to monopoly. Open source and GPL will have a huge place in an intertribal economy. It'll be the Post-Information Age.


:werd:

Janene
MatthewJ
Thu Jul 13th, 2006 at 01:35 PM
Agh.
This stuff is too good.
Quit torturing me.
Ghost
Thu Jul 13th, 2006 at 04:02 PM
Hey, Janene.

"Janene" wrote:
But we have so much fun doing it


All right. (rolls up sleves) YOU ASKED FOR IT!

"Let me hear your war cry."

AHHHHHGHGHGHGHASHFHAFFDHFLSDHFHHHHHHHHHHHHHHHHH!

"Janene" wrote:
Yes...but... it HAS been shown with some rigor that individuals are NATURALLY more productive in a cooperative model compared to a competitive one. The heirarchy can coerce people to work MORE, spend more time, more energy, compete with thier co-workers for status, etc... but the end production tends to DROP in these scenarios.

Dave Pollard wrote about this recently... which led to a discussion at our house a week or so ago... in heirarchal models, employees spend a lot of their energy on covering thier butts, resolving issues in ways that LOOK good, but are often less effective, less efficient and/or less long-term than they could/should be, politiking, sabotaging other employees to thier own benefit, etc. Add to that, when people are doing something that they totally believe in, love to do, find satisfying and gratifying in and of itself... they will work not only harder and longer... but will generally ALWAYS look for (and find) the best solution rather than the flashy one.

But it is really EASY to accept the 'common knowledge' that hierarchy prevails because it is the most effective/efficeint system available. Point blank... that's a lie.


Oh yeah... well... uhmm... that's a good point.

So yeah, tribal small businesses can go toe to toe with hierarchical small businesses so long as the hierarchical small business can't expand. They can't expand in a limited sector but they sure can in an unlimited one.

But larger hierarchies can certainly produce more. Ohh, snap!

"Janene" wrote:
Well... technically...salary IS an operating cost.


Which is why reducing it reduces your operating cost 8)

"Janene" wrote:
No... I was talking about 'old time dairies' being hierarchal. Morning Glory and such... that this network idea is simlar to how things USED TO BE done... except for that.


Gotchya.

"Janene" wrote:
Well... that's why I wouldn't want to see a central 'collector' tribe form under this model. The same families/groups/tribes that are raising and milking the cows should be providing the funds and labor for the proceessing and distribution. That prevents it from becoming a true monopoly, by virtue of the nature of rhizomatic nodes...


We don't have to worry about monopoly in an intertribal economy.

By your rationale, a tribal grocery store would be out of the question. Also, restauraunts would have to buy directly from the farms. HArdware stores would have to make their own hardware and clothing stores make their own cloth, design, cut, sew and sell their own clothes. This isn't the case.

THIS is the difference between a self-sufficient tribe and an intertribal economy. A self-sufficient tribe has to do everything themselves. An intertribal economy AS A WHOLE needs to be able to do everything themselves; however, there is no rule governing who has to do what and how.

There's nothing wrong with having a number of tribes produce milk and one tribe collect and process it and another distribute it. That's how the complex division of labour in an economy works. But because of the invisible hand, as soon as there are more milk producers, you're going to need more collectors and perhaps more distributors.

In other words, the milk collector tribe will have a monopoly if they occupy a niche (ie, they're the only one with 100% market share). That's just because a niche market can't support more than one business. ALL businesses enjoy monopoly in a niche market. But outside of a niche market, monopoly is ABSOLUTELY IMPOSSIBLE to maintain in an intertribal economy. There's nothing stopping another tribe from becoming a collector tribe (there IS in a market economy). Once a niche market expands to a size in which it can support competition, then the original collector tribe cannot stop other tribes from claiming market share because they can't expand to keep pace with demand (LV+/-150) and they can't/won't Annihilate them.

Monopoly is ONLY a problem in the market economy becuase monopoly can only be maintained, first, by an organisation capable of growing to any size to deal with demand and second, through the Annihilator strategy.

"Janene" wrote:
Not if it is, in fact, a rhizomatic network. Think Daisy Chain....


Rhizomatic networks are not permanent.

Daisy chain?

I'm thinking tribe of tribes here. Ie, the network of tribes is limited to +/-150 too. Remember? The math was something like, a tribe of tribes could support 22 500 people.

But hey, having multiple intertribal economies is a good thing. Diversity, diverstity, diversity. Who wan't a globe-spanning intertribal milk producer?

"Janene" wrote:
I think I'm just looking at it from a slightly skewed angle. Coke could never truly compete in that soda market -- because a multinational soda producer CANNOT be a local 'gourmet soda.' (Although they can 'mock it up' by using a different name... it all depends on whether people catch on or not.) The frame is part and parcel of the model. At the same time, IN that local market, the local gourmet soda company IS competeing with coke for the general 'soda market.'


If by "slightly skewed" you mean "wrong" then yeah. Ohhhhhh, boom, headshot :twisted:

Yes, Coke will never be a local producer. But that doesn't limit it's response.

1- It could buy the company and retain the brand.
2- It could launch it's own brand.
3- It could sell below cost and watch as the local company died off.
4- They could find a way to destroy the market outright.

That's the Annihilator strategy in the marketplace. Exterminate anything that stands in the way of claiming market share. Take em over, bump em out or destroy them.

Now, niche producers DO NOT compete with anyone. A niche market is what it is BECAUSE it can only support one producer. As soon as it can support more than one in a market economy, it invites Annihilators (if it's an unlimited sector). If it can support two producers and it's a limited sector, then it's a limited sector, not a niche market.

Cola is an unlimited sector. Fast food is not.

"Janene" wrote:
Sure they competed with Breyers and the rest... but maybe you could say that Breyer's didn't compete with them.


You're right that Breyer's didn't compete with them. A niche market is generally unatractive to large businesses. It's just not worth the effort. So small businesses don't have to compete with anyone when they occupy a niche.

Similarly, no, they didn't compete with Breyer's and for a number of reasons.

1- They didn't sell in grocery stores.
2- They sold gourmet flavours. Breyer's had no equivalent. The point is not that both companies were selling ice-cream, but that Ben and Jerry's was selling a specific type of ice-cream that no one else was.
3- Ben and Jerry's sold through their ice-cream stand (a limited sector). Breyer's didn't do that until they bought Ben and Jerry's).

This is conflict resolution 101. The only time there IS conflict is when competitors CLAIM the same resource. In this case, Ben and Jerry's and Breyer's NEVER claimed the same resources. It was only when Ben and Jerry's became so successful that the market grew that they became attractive to Breyer's.

Peace and Love and Empathy,

Matt
Nene
Thu Jul 13th, 2006 at 05:01 PM
Hey --

You really wanna go there??? :~~

"Matt" wrote:
So yeah, tribal small businesses can go toe to toe with hierarchical small businesses so long as the hierarchical small business can't expand. They can't expand in a limited sector but they sure can in an unlimited one.

But larger hierarchies can certainly produce more. Ohh, snap!


Oh no you di'n't....

A watermelon produces more volume than a grape... and your point is????

"Matt" wrote:
Well... technically...salary IS an operating cost.


Which is why reducing it reduces your operating cost


Except... we were talking about the inflated salaries of the owner, not the crunching of the employees... I mean, really... the owner may squeeze his staff for an extra percentage point or two (because they are already barely making it)... but his salary, by comparison may be 3 or 4x the combined total of his staff.

Therefore, he is NOT decreasing his operating costs...

Top that, buddy.

"Matt" wrote:
We don't have to worry about monopoly in an intertribal economy.


You're the one that was concerned about a possible monopoly... I was just responding to that.

"Matt" wrote:
By your rationale, a tribal grocery store would be out of the question. Also, restauraunts would have to buy directly from the farms. HArdware stores would have to make their own hardware and clothing stores make their own cloth, design, cut, sew and sell their own clothes. This isn't the case.


No... not at all. I DO, however, think that there are certain business models that are MORE INCLINED toward inherant exploitation... and 'middle men' are sort of the definition of what I mean. That does NOT include retailers... the service they are providing is obvious... but in a localized economy, distributors become less and less necessary and more and more redundant as you go. If a grocer is selling food exclusively produced in the local region, why NOT get all thier product from the source, directly? If either the grocer or the farmer wants to pay 'joe bob' to do the pick ups and deliveries, then fine. But when a distributor comes in, they tend to accumulate the influence to say, NO, you' can't buy from farmer joe... it HAS to go through me... he's not available to you. Oh, and BTW, I'm gonna charge you for my brokering...

"Matt" wrote:
There's nothing wrong with having a number of tribes produce milk and one tribe collect and process it and another distribute it. That's how the complex division of labour in an economy works. But because of the invisible hand, as soon as there are more milk producers, you're going to need more collectors and perhaps more distributors.


At the same time, I don't REALLY have a problem with this... unless ALL of the distribution tribes are cooperating to the detriment of the rest of the community. Once you create that dependancy (for the farmers AND the retailers) it can be really hard to figure out that, you know what, they are not ACTUALLY dependant...

"Matt" wrote:
Rhizomatic networks are not permanent.


sez who?

"Matt" wrote:
Daisy chain?

I'm thinking tribe of tribes here. Ie, the network of tribes is limited to +/-150 too. Remember? The math was something like, a tribe of tribes could support 22 500 people.


I don't necessarily think that is true. I remember the original idea... but between rhizome and daisy chains, I am reconsidering...

Daisy Chain: I know you, you know bob, bob knows george, george knows bubba and bubba knows leroy.... everyone is always working with people that they know and relate to as persons (or as interdependant tribal businesses), but I don't NEED to know everyone that you know, in fact, its likely that I don't. Its all about the edges.

"Matt" wrote:
But hey, having multiple intertribal economies is a good thing. Diversity, diverstity, diversity. Who wan't a globe-spanning intertribal milk producer?


:werd:

"Matt" wrote:
If by "slightly skewed" you mean "wrong" then yeah. Ohhhhhh, boom, headshot


Again! Oh NO you di'n't. That ones gonna cost ya :twisted:

"Matt" wrote:
Yes, Coke will never be a local producer. But that doesn't limit it's response.

1- It could buy the company and retain the brand.
2- It could launch it's own brand.
3- It could sell below cost and watch as the local company died off.
4- They could find a way to destroy the market outright.


#1 Only if the company wishes to be bought. See Doctor Bonner's Soap

#2 Only so long as people did not see that Coke was behind it: they cannot by definition, be a 'local gourmet soda bottler'

#3 Not if it does not have a product to sell...

#4 Maybe... but I think you are giving them too much credit. Certainly it CAN happen, and it HAS happened... but I think in general even the mega corps are somewhat beholden to the market itself. They can twist and distort and coerce ... but they can't QUITE control.

"Matt" wrote:
You're right that Breyer's didn't compete with them. A niche market is generally unatractive to large businesses. It's just not worth the effort. So small businesses don't have to compete with anyone when they occupy a niche.

Similarly, no, they didn't compete with Breyer's and for a number of reasons.

1- They didn't sell in grocery stores.
2- They sold gourmet flavours. Breyer's had no equivalent. The point is not that both companies were selling ice-cream, but that Ben and Jerry's was selling a specific type of ice-cream that no one else was.
3- Ben and Jerry's sold through their ice-cream stand (a limited sector). Breyer's didn't do that until they bought Ben and Jerry's).


I think you're looking at it backwards. Breyer's didn't compete with them, because Breyer's didn't have the capacity for innovation that Ben & Jerry's brought to the table. Neither did anyone else. So they created a new 'sub' market based on thier innovation. They could have kept it small and eventually others would have heard about them and tried it for themselves... creating multiple localized sub-markets (and each region being effected by reduced sales of Breyers at the grocery store...whether they knew WHY immediately, or not). Instead, Ben & Jerry's decided to expand thier market by expanding themselves... and in the process destroyed thier own future.

"Matt" wrote:
This is conflict resolution 101. The only time there IS conflict is when competitors CLAIM the same resource. In this case, Ben and Jerry's and Breyer's NEVER claimed the same resources. It was only when Ben and Jerry's became so successful that the market grew that they became attractive to Breyer's.


Of COURSE there was a conflict. But it was the conflict of a gnat buzzing around your head. More effort than it is worth to do anything about it. Do you honestly believe that the locals were buying thier normal share of grocery store ice cream AND going and buying from Ben & Jerry's at the same time? NO. So sales for the megacorps dropped off. But it was only when Ben & Jerry's started to seriously expand that the gnat became a swarm of wasps and THAT is when the megacorps dragged out the bug spray.

Janene


:lol: :lol:
Ghost
Thu Jul 13th, 2006 at 11:11 PM
Stop it.

Very silly indeed 8)

"Janene" wrote:
A watermelon produces more volume than a grape... and your point is????


That hierarchical businesses in unlimited sectors can grow in size to hundreds, thousands, tens of thousands and even hundreds of thousands of employees. Once you're that big you can out-muscle a small business. There's examples of that everywhere:
-Factory farms wipe out family farms
-Mega cinemas wipe out single screen cinemas
-Giant bookstores wipe out tiny book stores

David can't fight Goliath. Ask the Mohicans. And the Taino.

But when hierarchical and cooperative businesses are restriceted by a limited sector, they can go toe to toe.

"Janene" wrote:
Except... we were talking about the inflated salaries of the owner, not the crunching of the employees... I mean, really... the owner may squeeze his staff for an extra percentage point or two (because they are already barely making it)... but his salary, by comparison may be 3 or 4x the combined total of his staff.

Therefore, he is NOT decreasing his operating costs...

Top that, buddy.


Profit isn't an operating cost.

This is the entire POINT of exploitation.

Peep dis. A tribe shares labour burden equally right? Because of that, they decide AS A TRIBE where they want to set their standard of living. That will dictate how hard the group will work. Now, the likelyhood of them setting their standard of living right at the subsistence level is possible, but more likely, they'll want to have some luxury and be able to store some assets. Even nomads made jewlery and musical instruments 60 000 years ago.

So what's my point?

Employers are always trying to depress wages as close to the subsistence level as possible. Chris Rock said it the best. "Know what minimum wage means? If I could pay you less, I would." The reason is because they're always trying to lower their operating costs precicely so the owners can line their pockets as you say.

So a tribe with a decent standard of living isn't going to do that. As a result and yes, only as a general rule, they have higher operating costs.

Now, throw into the mix that an intertribal economy will likely INTERNALISE its costs rather than externalise them.

Anyhoo, it's a small point.

"Janene" wrote:
You're the one that was concerned about a possible monopoly... I was just responding to that.


What? A man can't silence his own fears?

"Janene" wrote:
No... not at all. I DO, however, think that there are certain business models that are MORE INCLINED toward inherant exploitation... and 'middle men' are sort of the definition of what I mean. That does NOT include retailers... the service they are providing is obvious... but in a localized economy, distributors become less and less necessary and more and more redundant as you go. If a grocer is selling food exclusively produced in the local region, why NOT get all thier product from the source, directly? If either the grocer or the farmer wants to pay 'joe bob' to do the pick ups and deliveries, then fine. But when a distributor comes in, they tend to accumulate the influence to say, NO, you' can't buy from farmer joe... it HAS to go through me... he's not available to you. Oh, and BTW, I'm gonna charge you for my brokering...


A middle man is not inherently an exploiter. They're just a step in the production chain.

For instance. If a tribe collects produce from farmers and then delivers it to restautraunts, who is being exploited? No one. They're just offering a service that restauraunts might be willing to pay for.

I don't know. I don't buy your retailer argument. They don't produce what they sell. That's what they do. So why are they ok and other middle men not? Makes no sense.

I'm not saying distributers are a requirement. And you're right, they'll probably be less useful in a local economy. But that doesn't mean that something is wrong with them or that they have no place.

Say you run a local market. You have to run the market AND drive to 50 different farms to get all your wares. OR, some dude could deliver it to you. Again, doesn't have to be that way, but there's nothing wrong with it.

Again, on your last point, monopoly is IMPOSSIBLE in an intertribal economy. The strategy you suggest is Annihilator.

As far as farmer Joe goes, if the distributor gets his produce from farmer Tim, you get farmer Tim. If you really want farmer Joe, what's he going to do to stop you from going to famer Joe? Now if he's the only distributor in town and he's not fulfiling the demand for farmer Joe, then the market is obviously too large for him to handle by himself; therefore, farmer Joe can claim some market share and so can the other distributor who wants to shlep farmer Joe.

So I think I can see the source of your worry, but it's an artifact of the market economy I think.

"Janene" wrote:
At the same time, I don't REALLY have a problem with this... unless ALL of the distribution tribes are cooperating to the detriment of the rest of the community. Once you create that dependancy (for the farmers AND the retailers) it can be really hard to figure out that, you know what, they are not ACTUALLY dependant...


Uhhh... what?

Why would they want to hurt their community?

If I'm a business man and my distributor starts to fuck me, guess what? I'm going to another distributor and if there isn't, I'm going directly to the source. And if they're colluding? That's not even legal in a market economy, why would people tolerate it in an intertribal one?

Because monopoly is impossible, the BOYCOTT has INCREDIBLE power. You can shut a business out of the economy. It's a terrible thing for a tribe to risk.

"Janene" wrote:
sez who?


Sez Vail, Biahitchislapistanitrondijikistan :!:

"Janene" wrote:
Daisy Chain: I know you, you know bob, bob knows george, george knows bubba and bubba knows leroy.... everyone is always working with people that they know and relate to as persons (or as interdependant tribal businesses), but I don't NEED to know everyone that you know, in fact, its likely that I don't. Its all about the edges.


Well, this seems like an entirely different can o' beans.

You'd have to school me about this, but my immediate reaction is that this IS how the intertribal economy functions. Each business is a tribe and they interact with other tribes. No one CAN know everyone. But this isn't the case from an organisational standpoint. For each tribe to function INTERNALLY, it can't be about edges, it's about core relationships.

I wanted to say more about how tribes interact but I really should learn more first.

"Janene" wrote:

#1 Only if the company wishes to be bought. See Doctor Bonner's Soap

#2 Only so long as people did not see that Coke was behind it: they cannot by definition, be a 'local gourmet soda bottler'

#3 Not if it does not have a product to sell...

#4 Maybe... but I think you are giving them too much credit. Certainly it CAN happen, and it HAS happened... but I think in general even the mega corps are somewhat beholden to the market itself. They can twist and distort and coerce ... but they can't QUITE control.


1- If you will not be turned to the dark side, then you will be destroyed!
2- Most consumers are "unconscious". They don't buy based on ideals. If they did, WalMart would be dead in the water. Also, they can market it as locally produced (somewhere). If the market is lucrative enough, they'll set up a local producer if they have to.
3- If it doesn't have a product to sell it's because they haven't bothered trying to fulfil that demand. If that's the case, they aren't competing.
4- Corporations have all kinds of ways to destroy small businesses. All they really need is to want to do it.

Have we destroyed the Yanomami? The Gebusi? No. Why? Because they don't have anything we want. We are NOT competing with them. Conversely, they aren't trying to take our food, or water, or electricity, or anything else for that matter. They are NOT in competition with us. If we ever DID want what they had, well, history speaks for itself. That's Annihilator for you.

If a business occupies a niche market, they aren't in competition with anyone. Let's look at another example. Transexual clothing. I use it because there is an actual store like that in Montreal. Thier market is SMALL. Not a lot of transvestites. That store has 100% market share because they're the ONLY store providing that product. The market is so small that if another business opened up, they'd divide the client base and BOTH businesses would go out of business. There's just not large enough of a market to share. Why doesn't WalMart get in on the action? There's not enough action to get in on. It's not worth the pain. That's why a niche market is called a niche market. If it ever did catch on, WalMart would carry "transvestite: by Hillary Duff". The store would be crushed because clothing is an unlimited sector.

Yet another example. My mother's cousin had a friend that had her tongue pierced in like 1990. He told me how painful it was and that her tongue turned grey for three days. It was so primitive because people had just started to do it. The person who did it was the only person who did it in Montreal. It was a great niche market. Then it caught on. The market grew. Now you can throw a rock and hit a piercing shop. The market is no longer a niche market. There's room for tons of competition. But it's a limited sector. Maybe one day we'll see a chain of "EasyPierce" stores, but a tribal piercing shop will always be able to compete.

"Wikipedia" wrote:
A niche market is a focused, targetable portion of a market.

By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. You can think of a niche market as a narrowly defined group of potential customers.

A niche market usually evolves from a market niche, where potential demand is not met by any supply.

Why should one bother to establish a niche market? Because of the great advantage of being alone there; other small businesses may not be aware of a particular niche market, and large businesses won't want to bother with it. The trick to capitalizing on a niche market is to find or develop a market niche that has customers who are accessible, that is growing fast enough, and that is not owned by one established vendor already.


Now, fast forward 10 years and transexualism increases 60 000%. NOW the market is LARGE. NOW it can support competition. And you can bet that WalMart and any other business that thinks it has a chance to get it's cut of market share will come in guns blazing.

But as long as the transexual clothing market remains small enough that it can only handle one business, that business enjoys a 100% market share; a monopoly, ie, no competitors.

"Janene" wrote:
I think you're looking at it backwards. Breyer's didn't compete with them, because Breyer's didn't have the capacity for innovation that Ben & Jerry's brought to the table. Neither did anyone else. So they created a new 'sub' market based on thier innovation. They could have kept it small and eventually others would have heard about them and tried it for themselves... creating multiple localized sub-markets (and each region being effected by reduced sales of Breyers at the grocery store...whether they knew WHY immediately, or not). Instead, Ben & Jerry's decided to expand thier market by expanding themselves... and in the process destroyed thier own future.


Ben and Jerry's didn't make ice-cream. They made gourmet ice-cream and sold it at a premium.

Breyers didn't compete with them because they didn't have a product to offer that niche and couldn't be bothered to make one, ie, they didn't make gourmet ice-cream that you sold at a quaint stand, they made regular-ass ice-cream that you bought in tubs in a supermarket.

Gourmet Cherry Garcia ice-cream is not in DIRECT competition with regular-ass vanila ice-cream any more than French restauraunts are in DIRECT competition with McDonald's.

They're all in the same markets, ice-cream and restauraunts, but their in totally different segments. So competition is OBLIQUE, not direct.

For example, buzzards and those anoying little birds compete with lions for kills, but that competition certainly is not direct. The lions don't care because the dregs aren't very lucrative. Hyenas DIRECTLY compete with lions. That might not be the best example, but do you follow my point?

Ben and Jerry's found a niche market, gourmet ice-cream STANDS (because Haggen Daz was certainly selling gourmet ice-cream, just not in a stand in Vermont). NO ONE ELSE was doing that. Ben and Jerry's had a monopoly.

Then they decided to go hierarchical and start a chain. They, like all good hierarchical businesses obsessed with unlimited growth, grew their business. They advertised, they piqued interest, they attracted new customers. They CREATED demand. As a DIRECT RESULT, the market for gourmet ice-cream stands became larger. What Ben and Jerry's tried to do was grow at pace with the increased demand in order to maintain their monopoly. But once they grew their market, they INVITED competition into their no-longer niche market. The problem they didn't forsee was that there were bigger fish.

Breyer's bought them and turned right around and put them in supermarkets to go head to head with Hagen Daz. Why? They wanted some of that market share.

Take Jim. If he was so good that suddenly, every family in America wanted their own private handyman, how long do you think it would be before a large corporation swooped in with 1 000 handyman employees ready so suck up that market share?

It doesn't matter if you expand the market or the organisation to fit the market, once there is room for others, they will come.

"Janene" wrote:
Of COURSE there was a conflict. But it was the conflict of a gnat buzzing around your head. More effort than it is worth to do anything about it. Do you honestly believe that the locals were buying thier normal share of grocery store ice cream AND going and buying from Ben & Jerry's at the same time? NO. So sales for the megacorps dropped off. But it was only when Ben & Jerry's started to seriously expand that the gnat became a swarm of wasps and THAT is when the megacorps dragged out the bug spray.


Of course they weren't. When they wanted regular ice-cream for the house they wen't to the supermarket and bought a valu-tub. When they wanted "special" ice-cream and a treat for the kids, they all piled into the SUV and went to the Ben and Jerry's stand. That's not DIRECT competition.

It's only when the profits dropped of SIGNIFICANTLY (because it was inconsequential when a single stand was selling 100 cones a day, as you say, when they were gnats). The reason sales dropped off significantly was because the niche market was no longer a niche market. It was strong enough to draw customers away from them. So what's their response? Control that market by any means necessary. Annihilators ho!

Peace and Love and Empathy,

Matt
memeshredder
Fri Jul 14th, 2006 at 08:52 AM
Mat(t)s and Janene,

Any interest in a tribal economics Web site? These ideas should be better organized than on threads that will be buried in a month. ya'll are putting in too much work, you knwo this is one of my favorite subject, but I have onyl stepped back out of this fray because I'm actually writing stuff down and trying to organize it.

So what do you say, are you guys in?
Nene
Fri Jul 14th, 2006 at 11:57 AM
Hey --

"Matt" wrote:
Profit isn't an operating cost.


OOOhhhh... I see the disconnect. You are equating the owners salary WITH profit... but I am looking at it from an accounting perspective. From the perspective, an owners salary (in all but the smallest, usually emloyee-less sole proprietorships -- like Jim) IS an operating cost. It goes through the payroll system, decreasing corporate profits (and taxes and capital gains).

But from the owners pespective (at least his CASH perspective) it is basically the same thing...

"Matt" wrote:
Uhhh... what?

Why would they want to hurt their community?

If I'm a business man and my distributor starts to fuck me, guess what? I'm going to another distributor and if there isn't, I'm going directly to the source. And if they're colluding? That's not even legal in a market economy, why would people tolerate it in an intertribal one?


Yeah... the premise is that there would be no good reason for the distributors to hurt thier community... but so long as we are raising fears... this is one that I see. Why with distributors in particular? Maybe its the whole teamster framing... I dunno.

The basic problem, I think, that I see, is the idea of entrenching the idea of 'this is how it works'... And the distributor -- unlike the producer OR the Retailer, is an invisible force in the market from the 'consumer' perspective. Does that make sense? Its easy for a consumer to boycott a particular retailer or producer... but how do they boycott a distributor? The retailers and the farmers can do so... but if the idea of a distributor is entrenched, then are they going to be effectively shutting themselves down in order to make a point? I dunno. Like I said, its just a worry of min...

"Matt" wrote:
Sez Vail, Biahitchislapistanitrondijikistan


I musta missed that bit. And I think it is incorrect... Rhizome is flexible, changeable, perhaps 'always in motion', but because of that, I don't think it can be framed as 'temporary'.

"Matt" wrote:
You'd have to school me about this, but my immediate reaction is that this IS how the intertribal economy functions. Each business is a tribe and they interact with other tribes. No one CAN know everyone. But this isn't the case from an organisational standpoint. For each tribe to function INTERNALLY, it can't be about edges, it's about core relationships.


yeah... in my original post on the topic, I was trying to get at the idea that perhpas in tribe formation drawing together many edges might be a really good way to go. Then, in practice, of course the internal tribe becomes your core... but at the same time, you still have some personal core connections elsewhere... which then strengthens the inter-tribel edges by default. Make sense?

"Matt" wrote:
1- If you will not be turned to the dark side, then you will be destroyed!
2- Most consumers are "unconscious". They don't buy based on ideals. If they did, WalMart would be dead in the water. Also, they can market it as locally produced (somewhere). If the market is lucrative enough, they'll set up a local producer if they have to.
3- If it doesn't have a product to sell it's because they haven't bothered trying to fulfil that demand. If that's the case, they aren't competing.
4- Corporations have all kinds of ways to destroy small businesses. All they really need is to want to do it.


1 -- tell that to Doctor Bonner 8)
2 -- But that's the point... I am positing a product that specifically appeals to an ideal, rather than consumption itself. So in that case, it DOES matter. If someone wants to buy local, organic produce... no way that DelMonte is going to be able to capture thier business. Because it is by definition NOT what they are looking for.
3 -- Or because they cannot provide that particular product by default
4 -- So long as they are in a market where they CAN compete. Local organics is a good example where they cannot.

"Matt" wrote:
Of course they weren't. When they wanted regular ice-cream for the house they wen't to the supermarket and bought a valu-tub. When they wanted "special" ice-cream and a treat for the kids, they all piled into the SUV and went to the Ben and Jerry's stand. That's not DIRECT competition.


Check me on this... did Ben & Jerry's originally only offer cones (etc) or did they sell tubs? And if they sold tubs, how much of thier business was this? If it was a lot (which I am assuming, at least by the time they started to consider significant expansion) then I have to assume that it DID impact other sales of tub ice cream from all other sources...

And I would say that they ceased to be a gnat only AFTER they started to expand into new regions. Not because they changed thier basic model, but because they increased their presense into additional regional markets. Now its not just Vermont, but all of New England... all of the Eastern Seaboard, etc.

Hey Tony -- A website? We're already getting started on the book, so maybe a website to sit along side when the book is ready?

Janene
memeshredder
Fri Jul 14th, 2006 at 12:12 PM
Sounds good. Gerald showed me a drupal module where people can write a book together over the internet, and even make that process available to the public.
BrettC
Fri Jul 14th, 2006 at 02:32 PM
Matthew,

You can count me in. I'll do whatever I can to help.

--Brett


"MatthewJ" wrote:


Is anyone interested in this changed-mind's-project, even if it might involve moving at some point?

Matthew J
MatthewJ
Fri Jul 14th, 2006 at 07:05 PM
Yay!

So we have Brett, Joe, and myself on the overeager "doing shit" side, Matt and JaNene providing the cool, collected, brains, and Tony who is just way ahead of us :P

My question for the brains:
If you have a small group of people who are starting, not from the position of wanting a particular tribal business (i.e. a bunch of artists or computer game designers), but whose express aim is to start an inter-tribal economy, what kind of tribal business(es) is the best place to start from? A niche, entertainment style business doesn't create any room or momentum towards inter-tribal self-sufficieny, while the self sufficent permaculturists can barely pay the bills.:roll:

How do you intentionally seed this damend thing? I don't think it is naturally emergent (at least, I don't think it is naturally emergent in the timeframe we have).

Also, please continue to publicly collaborate on this book project, cause I love reading it :D

Thanks,
MatthewJ
memeshredder
Fri Jul 14th, 2006 at 07:29 PM
obviously, you need to start businesses that provide you a life, directly.

if you start a software company, you have to first make the food that feeds the people who build the computers so THEN you can have software people.

So start with food and shelter and clothing.

then see what you've got time to do after that!

The amish make a shit load of money building for pther people, and they get paid more because building isn't a job for them, it's a lifestyle. I've met some pretty damned good amish carpenters that totally get this whole tribal thing.

think of a clothing line with no middle man, where you grow or raise the clothing materials, make it yourself, dye it yourself, and then you have artisan artifacts worth much more than chinese textiles. mushrooms provide an entire spectrum of dyes, and spinning and growing hemp/raising sheep is damned easy! forget ecnomy of scale, that shit is barely worth the price you pay.

When stuff is handmade, it's value goes up, so you dont' ahve to make as much.

when you and the crew get good at building houses for your eco villiage, people are going to want those simple, decent, affordable, energy-efficent homes. and they will pay you double to build a home form materials on their land than a contractor using big-box materials would get paid.

so food production, boutique clothing, and green building, sounds like a pretty awesome trifecta, eh? plenty of work to keep 150 people happy and busy, wouldn't you think?

then, can you imagine what happens when you get GOOD at these things...

my god people!

get busy!

(jesus is coming)

hahaha
Talvir
Fri Jul 14th, 2006 at 10:29 PM
I'm intrigued. Keep talking folks! :)

- Joe
Ghost
Sat Jul 15th, 2006 at 01:32 AM
Yo, yo, party people.

I'm taking a vacation tomorrow 8O 36 whole hours at my friend's cottage 8) This is a big thing for me. I don't take a lot of vacations.

Anyhoo, back to that which I can't not do :D

Yo, Tony and Mat.

Tony know's that I wrote a book called Saving the Human Race on a Shoestring Budget. Daniel Quinn read it about a year and a half ago. He tore me a new one. He's a brutal critic. He told me to go back to the drawing board. That took some time to get over. But like the day after I had the economic epiphany, I figured out a new way of going about the book. Janene and I are starting from scratch and you can be damned sure that this stuff will be in the new version 8)

"Janene" wrote:
OOOhhhh... I see the disconnect. You are equating the owners salary WITH profit... but I am looking at it from an accounting perspective. From the perspective, an owners salary (in all but the smallest, usually emloyee-less sole proprietorships -- like Jim) IS an operating cost. It goes through the payroll system, decreasing corporate profits (and taxes and capital gains).


True dat.

I was all on the, profit goes into the owner's pocket, tip. But yeah, his "salary", ie, 300k a year salary for being a douche, IS an operating cost. But anything over that is profit that just goes into his pocket (or the shareholder's, if it's a corporation, pockets).

On the Jim tip, there is no hierarchy 8)

"Janene" wrote:
Yeah... the premise is that there would be no good reason for the distributors to hurt thier community... but so long as we are raising fears... this is one that I see. Why with distributors in particular? Maybe its the whole teamster framing... I dunno.

The basic problem, I think, that I see, is the idea of entrenching the idea of 'this is how it works'... And the distributor -- unlike the producer OR the Retailer, is an invisible force in the market from the 'consumer' perspective. Does that make sense? Its easy for a consumer to boycott a particular retailer or producer... but how do they boycott a distributor? The retailers and the farmers can do so... but if the idea of a distributor is entrenched, then are they going to be effectively shutting themselves down in order to make a point? I dunno. Like I said, its just a worry of min...


My gut tells me that it's market economy fears carrying over.

But I'm thinking hard on this one. I'd hate it to be the fatal flaw that got past my radar.

The 'this is how it works' fear may be warranted. But it's not problematic. There is no right and wrong, there is only what works. If one intertribal economy has a bully distributor and that works, so be it. If it doesn't work, it won't last. But that one intertribal economy is not ALL intertribal economies.

I get your boycott angle. I guess it wouldn't be members of the economy doing the boycott, but the clients of the distributor. But I guess you can't really boycott something unless you are a client, can you?

Will they shut themselves down? Maybe. The thing is, in a market economy, say it was... uhh... fuck... Coca-Cola distribution that was the offending distributor. The companies boycott them and then Coke says, "who else are you going to turn to?" The companies say, "Ted is starting a new company and he'll take away your business (grab market share)." Coke then dutifully goes about destroying Ted a la basically legalised Al Capone Annihilator tactics and says, "who now?"

In an intertribal economy, NOTHING can stop people from claiming market share. Pissing off your customers is a great way to lose them to other enterprises.

For instance. I'm basically unemployed this summer because not only has the Montreal film industry taken it in the poop shoot from a rising dollar, fights between ACTRA (my union) and American producers and the anti-Canada antics of Governor Schwarznegger and King George the Second, but now, there is a fight to the death between two technical unions so bad that Universal called Montreal a no-shoot zone.

AQTIS, the homegrown union that enjoyed a monopoly until this year (because the niche market for a technical union in Quebec was small until our local industry took off and grew about 15 years ago), according to a lot of it's members, well, sucks goat ass. So 800 members invited the union that represents technicians everywhere in North America outside of Quebec, IATSE, to set up shop in Quebec (to grab market share). They happily obliged (providing an alternative to these workers). But then AQTIS FREAKED because it didn't want to lose its monopoly and now there is a bloody turf war. AQTIS is pulling every trick out of it's ass to make it IMPOSSIBLE for IATSE to operate here (including having hardliners walk out of union meetings just so the majority didn't have quorum to ratify a compromise).

Now here's the thing. IATSE is HUGE. That's why it has the resources to fight. But if those same 800 workers tried to make a new local union, they would have been crushed by AQTIS' resources.

In a market economy, monopolies are VERY easy to defend against small newcommers, but difficult to defend against comprable organisations and impossible to mantain against LARGER Annihilators.

Point is, AQTIS wouldn't have been able to do sweet fuck all about IATSE moving in (imagining they were both tribal businesses allowed to participate in the economy) if they were in an intertribal economy.

In an intertribal economy, monopolies are IMPOSSIBLE to maintain because the only way to maintain one, eliminating your competitors, is not available because that's the whole POINT of creating a limited intertribal economy; not allowing Annihilators to participate so you can have diversity. Not allowing Annihilators to participate doesn't ensure that you'll never have monopolies (like a single species occupying a given niche in an ecosystem), but what it DOES guarantee is that if a niche opens up, anyone has the CHANCE to fill that void.

As an analogy, if you unearth a ten square foot chunk of your lawn, all manner of species will try to move in. The only way to stop them is to wipe them out. If you can't wipe them out, well, then you're shit out of luck, they're a comin'.

I THINK that mechanism is enough to save us from what you're worrying about, but it warrants further thought.

"Janene" wrote:
I musta missed that bit. And I think it is incorrect... Rhizome is flexible, changeable, perhaps 'always in motion', but because of that, I don't think it can be framed as 'temporary'.


Check out his post in the 'Problems with Rhizome?' thread. Correct me if I'm wrong.

"Janene" wrote:
yeah... in my original post on the topic, I was trying to get at the idea that perhpas in tribe formation drawing together many edges might be a really good way to go. Then, in practice, of course the internal tribe becomes your core... but at the same time, you still have some personal core connections elsewhere... which then strengthens the inter-tribel edges by default. Make sense?


Sort of. Not because you're dumb, but because I am.

I was thinking about the maximum size of a tribe of tribe. It's not 150 tribes. Each tribe needs to have a FUNCTIONAL relationship with EVERY OTHER TRIBE. Without exception. That means that at least ONE person from each tribe has to know all of the other tribes (more specifically, at least ONE person from each tribe). It's actually probably more than one. But even at one person, that person needs to know 149 people in his own tribe AND 149 people in other tribes in order to have a 150-strong tribe-of-tribes. Making the total 298. Dunbar says that's impossible; or at least unlikely. So functional tribes of tribes can't get anywhere near 22 500 people.

"Janene" wrote:
1 -- tell that to Doctor Bonner
2 -- But that's the point... I am positing a product that specifically appeals to an ideal, rather than consumption itself. So in that case, it DOES matter. If someone wants to buy local, organic produce... no way that DelMonte is going to be able to capture thier business. Because it is by definition NOT what they are looking for.
3 -- Or because they cannot provide that particular product by default
4 -- So long as they are in a market where they CAN compete. Local organics is a good example where they cannot.


1- I might consider it if I had a fucking clue who he was. Is that like, Dr. Banner's alias in Cleaveland? My gut response, it doens't matter if the tribal business sells out, it matters if they lose their client base.

2- Big response...

If Delmonte has to set up a local producer just to compete in that market (like local soda producer franchises) then they'll only do it if the market is lucrative enough. It's a cost/benefit thing. If, like the French say, ça vaux pas la paine (it's not worth the pain), they won't do it.

HOWEVER...

If another LOCAL producer does...

It's only a niche market if it can support ONE producer. The moment the market get's larger, if it's an unlimited market (like selling soda is) then watch the Annihilators flock.

Then watch it catch on and local organic soda producers spread to every city. THEN watch Delmonte buy them all up and consolidate them as a chain.

3- There is no limit to what a company can produce. There's only whether or not it's a profitable venture and whether they have the resources to make a play for more market share (the small do not annihilate the big, the big annihilate the small).

4- Again, the BIGGEST Annihilators don't have to want to compete. If ANY Annihilator can, it's all over. Remember, McDonald's was a single restauraunt like 50 years ago.

"Janene" wrote:
Check me on this... did Ben & Jerry's originally only offer cones (etc) or did they sell tubs? And if they sold tubs, how much of thier business was this? If it was a lot (which I am assuming, at least by the time they started to consider significant expansion) then I have to assume that it DID impact other sales of tub ice cream from all other sources...


Think of it like this. Do companies sell hamburgers in supermarkets? Are they in direct competition with McDonald's?
"Eddy Murphy" wrote:
"Where you get that
big, welfare, green-pepper burger?"

And you cry.

"My mother made it."

And long slob...
When little kids cry,

some long slob come
out of their mouth

and it hangs this far to the ground.
And it won't break.


It won't break, Janene.
IT WON'T BREAK!

Even if they sold tubs, the product was different, the retail cost was different, the target was different, the experience was different, the market was different. But when that market suddenly had A LOT of clients, it could support competition and the Annihilators wanted their market share.

ANYONE could have bought Ben and Jerry's. GM could have. Lockheed-Martin could have. It's just that Breyer's had experience with ice-cream and they want to be dominant in ALL profitable ice-cream markets.

Remember the Wikipedia quote. The advantage of being in a niche market is that you are ALONE. NO ONE ELSE offers the product that you do. You are the ONLY ONE to fill that demand. If Ben and Jerry's were selling tubs directly against Breyer's, then they wouldn't be IN a niche market, they'd be in the tub market. And their fun would have been over quick, fast and in a hurry.

But remember the other part of the quote, "The trick to capitalizing on a niche market is to find or develop a market niche that has customers who are accessible, that is growing fast enough, and that is not owned by one established vendor already."

Ben and Jerry's found a niche market and INTENTIONALLY tried to grow it. But that's where they fucked themselves. They left the door open for Annihilators to roam in. They already had a ton of momentum behind them, so they could themselves crush any small start-ups. But once the market got to the point that Breyer's wanted a piece, they swooped in and gobbled up Ben and Jerry's (We make it sound like it was a hostile take over. It wasn't. They happily sold it for millions.)

"Janene" wrote:
And I would say that they ceased to be a gnat only AFTER they started to expand into new regions. Not because they changed thier basic model, but because they increased their presense into additional regional markets. Now its not just Vermont, but all of New England... all of the Eastern Seaboard, etc.


Gnat is a bad metaphore. Ben and Jerry's DIDN'T bug Breyers. They had their OWN market.

It's a lot of effort on this one subject.

Lest we forget, the point is:
-A small business enjoys a monopoly and can survive UNMOLESTED if it occupies a niche market.
-The open market is problematic because it can support multiple competitiors and Annihilators, hungry to gobble up market share, are free to roam.
-Limited markets are great because small tribal businesses can go toe-to-toe with small hierarchical businesses; even with chains of them.
-Unlimited markets suck because Annihilators are free to try and capture 100% market share, meaning they're more than willing to TAKE it from small tribal businesses who have even slight market share and, well, annihilate them in the process.
-If you're under attack from an Annihilator, there's only a few things you can do: fight a losing fight, surrender and be assimilated, or run for your life and let them have what they came for.
-The intertribal market functions because it does not permit Annihilators to participate.
-The reason Annihilators can't FORCE their way into an intertribal economy is: because the members DO buy their stuff until they are self-sufficient, bcause of the host's own laws and bureaucracy, because there are alternatives to them once the economy is self-sufficient and because the point of maintaining an intertribal economy is not cheap stuff now, but the ability to survive beyond the collapse of the host later.

"Mat" wrote:
If you have a small group of people who are starting, not from the position of wanting a particular tribal business (i.e. a bunch of artists or computer game designers), but whose express aim is to start an inter-tribal economy, what kind of tribal business(es) is the best place to start from? A niche, entertainment style business doesn't create any room or momentum towards inter-tribal self-sufficieny, while the self sufficent permaculturists can barely pay the bills.

How do you intentionally seed this damend thing? I don't think it is naturally emergent (at least, I don't think it is naturally emergent in the timeframe we have).


1- The best place to start is in niche and limited markets. They're the only markets that tribal businesses are guaranteed a reasonable shot at succeeding.

2- Contrary to what you're saying, these businesses provide ALL the momentum an intertribal economy needs. What they create with every ounce of their success is a NICHE client base with disposable income. They will use this disposable income to survive in whatever way is available to them. At first that means buying from the market economy; however, they all have a vested interest in re-investing as much of this as possible back into the intertribal economy. In this way, they will become progressivly capable of supporting each other financially, in increasing the resources circulating exclusively within the intertribal economy and in decreasing their reliance on the market economy. This progressively stronger niche client-base provides an opportunity for unlimited market tribal businesses to enter the intertribal economy; and into existance really; they have a hell of a time coming into being in the market economy. The stronger these niche unlimited market tribes become, the larger their markets will become. When those markets become capable of supporting competition, they will not attract Annihilators, as none are allowed into the economy, but other tribal businesses. That will allow those businesses to slowly set up their valuble infrastructure; an imperative step towards self-suficiency. Once the mix of niche market, limited market and unlimited market tribal businesses can provide each other with everything they need, reducing their reliance on the market economy to 0%, then the economy as a whole will be officially self-sufficient.

3- A self-sufficient permaculturalist HAS NO BILLS. They're SELF-sufficient. Permacultury is NOT a business. It is a way to make a living. Selling produce from your permaculture garden IS a business. An intertribal economy is an ALTERNATIVE to the need for self-sufficient tribes. It is a place where tribal businesses, INCAPABLE of surviving on their own, can find self-sufficiency by functioning as a support-network that is self-sufficient as a WHOLE. But SPECIFICALLY, a network of tribal BUSINESSES. If it aint' a business, it ain't got a place.

4- I haven't figured out how to seed this thing yet. I'm still trying to figure out how it works.

5- I think that it's POSSIBLE to put this together organically. The kinds of tribal businesses that CAN survive in a market economy are the exact ones we need first. So if people have already created them, all they have to do is locate each other and start working together. I'm not saying better or more desireable, just possible.

6- Never forget, we're owed nothing. The planet doesn't owe us the time we need to pull this off. We may have already passed the point of no return. We may be at the point where only hunter-gatherer's will survive. Who knows? All I know is that for three years, I've ignored learning how to save myself and have been looking for a way to save as many people as humanly possible. This is that way; or at least the best I can come up with. All any of us can do is try our best. If we don't try, then what's the point of getting out of bed in the morning?

POINT - From a sustainability standpoint, EVERY ASPECT of the intertribal economy must be sustainable if the economy as a whole is to be self-sufficient and capable of surviving the collapse of its host (from the raw materials and production inputs, through every step of production, to distribution, to sales, to consumption, to treatment of waste). Ie, if the economy can't function without US dollars, or without Oil, or without steel, or without the electrical grid and these things go tits up when the host collapses, then the intertribal economy will go tits up too. Fortunately, it is perfectly fine for the participating tribal businesses to rely on ANY resource that can be secured from the host in order to GET THEM to the point that they are self-sufficient. As long as everything is sustainable at the point of collaspe, then the intertribal economy will survive.

Tony,

Your idea of starting with food, shelter and clothing tribes is difficult because all three are unlimited markets; making competition on the open market near impossible. However, it's not so difficult if they occupy a niche market.

For instance, a tribe that grows organic food in a permaculture garden to sell to specialty vegetarian restauraunts, or to tribal restauraunts is definately a niche market. They don't have to compete with Delmonte, because Delmonte doesn't occupy that niche market.

A clothing designer that tailors clothes for that cities SPECIFIC climate, would be a good niche market. Or clothes designed by a specific local designer. Or made by an indidgenous people. Or that are made out of an indecipherable secret blend of 11 herbs and spices.

It would be harder for homebuilders to offer something region specific because most homebuilders ARE local anyway. If they could offer a special kind of niche house design, then they could licence the desing through the GPL. So other home builder tribes could use it, but hierarchical ones would have to share anything they gained from using that design with the GPL. That would protect their design from exploitation from Annihilators but allow other tribal businesses to use it freely.

Basically, the way for unlimited sector businesses to survive in the market economy is to occupy a niche and KEEP IT a niche.

It's also a good way to get them into the economy as early as possible.

Ahhight... see, y'all on Monday 8)

BTW, Janene, I've worked on the new outline some more. I'll send you my progress by Monday.

8O Some vacation-taker I am eh?

Peace and Love and Empathy,

Matt
memeshredder
Sat Jul 15th, 2006 at 06:53 AM
Oh I'm sorry i thought we were discussing INTER-tribal economy.

How would providing for yourself be difficult?

The niche you find is when your tribe realizes there is something about NEEDS that they are good at.

Then, because it's the food YOU eat, it's specialty. Because it's the clothes YA'LL wear, it's indigenous, because it's a whole new way of building, the market is WIDE OPEN.

You trade with other tribes, and sell to the gentiles. Jews have been doing it for a while now, nothing new there.

You see, I value sustainability above all else.

What happens when your software people make a bad game? they will ahve to rely solely on someone else to provide for them.

What happens when the theater troupe collapses under real-life drama?

Your ideas keep people dependent on money. granted, it's the easiest way to get yourself into the tribal economy... but I wouldn't want that at the moment.

I would want to CAPITALIZE my work and labor as much as possible, for a short of a time as possible.

That way, I can move up a caste into land ownership....

I don't need to go tribal RIGHT NOW!

I would probably end up living in an abandoned wherehouse somewhere hoping someone will tip me at the next poetry reading.

I believe, after 7 years on this journey, that sustainabilty is goal number one, then participation in a tribal economy.

We have to know that our needs are going to be met, long term, I think, before we can really start getting creative.

The block for most of our juices are becuase of that 9-5 bullshit.

I think reasonably 25 people could make a large piece of land purchase affordable. They could bring hundreds more under their wing, and come up with a plan for growth.

Land land land land land. I think that's the key, to wake up and see trees and birds, not cars and roads.

I think a great way to make enough money to get to a piece of land you can call home is HARD WORK and BUDGETING. Giving up the periphrials to strengthen the core.

I'm not saying don't do your thing, but I've thought through my thing a lot, and I think your thing will be difficult.

I'm gonna be a good, hopefully GREAT capitalist! and I don't necessarily want it all egalitarian in the beginning, becuas I feel like I have so much to go to elevate myself out of poverty. To get the land to get the food to get the business, I don't see how sharing profits equally would work that way.

You see, my tribal vision, if you could call it that, doesn't involve me sharing a yurt with five other people I just met. It took me 10 years just find a girl that didn't totally drive me insane.

I'm nto going to be able to share with peopel at the beginning because i know not everything is going to work out in the end.

What happens, say I join a tribal theater troupe, and we're really good, but things don't work out? Do I get my share of the general fund that was going towards buying land?

that's not how Bread and Puppet worked.

Oh, I know I'm being confusing and not giving other ideas proper due right now, but it's early, and I wanted to catch ya'll again before I, too, was gone for the weekend.

I value your ideas, Matt, but all of our ideas will be difficult to implement.

All i can say, as a partial economist, is that you are pretty much over-analysing the situation. You can be just a profitable enetering a low complexity, high density market like vegetable pushing.

I have realized through working at an organic farm that it's not how agressive or how special your entry into the market is, what matters is how many markets you yourself and your compatriots can physically enter.

Tomato mountain made some decent cash at the Madison Farmer's market. we made a little more at the Milwaukee farmer's market, even still more at the Rockford market, and finally, Whole Foods bought the rest.

had we tailored everything to just one of those markets, we wouldn't have goten paid. So they found four markets we could compete in, and so the pressure to sell everything, THAT DAY, was off, because we hadn't put all our eggs in one basket.

There are many, many sides to it all other than your direct competition.
MatthewJ
Sun Jul 16th, 2006 at 05:30 PM
Hey all,
Few ideas to float.
First point of clairification, for Matt:
People who practice self-sufficient permaculture do have bills, from property taxes to mortages. This is why, I guess, no one can be truely self-sufficient inside of civ, because civ has a number of passive tools to keep people attached. Furthermore, since civ keeps the price of food, wood, and fiber is low (government subsidies, industrial annhilator tactics) and the price for a place to sleep and grow food high (oligopoly of land owners, interest on mortages, minimum acerage and building codes), permaculturalists, have a hard time paying the bills.

Second on the size limit of the thing. 150 (or 298 if you somehow magicly optomize it) would seem to be the limit for self-sufficiency. So each individual must be self-sufficient, (food, water, shelter, medicine, personal affection, support, and many other things) within their network of 150 people they know. However, there doesn't seem to be any reason to me that there couldn't be non-neccisity trade within a much larger group (and this is kindof neat, cause it would allow for complexity without increasing intensification). After all, while you want to keep resources inside the ITE, you don't want to get economically inbred (or somehing).

Third, on sustainability: I am wary of the term. At best, it seems to be the natural but unattainable desire to keep a comfey, secure and constant way of making a living, in a highly dynamicly and cyclical world. At worst, it seems to be the desire to sit on the summit we are at after growing for so long without facing the shrinking and decent. I am more a believer in becoming unaddicted to growth, culturally able to live with pulses of growth and shrinkage, learning to developing redundant skills and connections to supply your own basic needs in many ways close to home, and learning to invest in your own security by not damaging your landbase.

Nothing will sustain for long, but humans are remarkable for their adaptability

"memeshredder" wrote:
We have to know that our needs are going to be met, long term, I think, before we can really start getting creative.

The block for most of our juices are becuase of that 9-5 bullshit.


I couldn't agree more, especially for the seed group. But I am finding it really really difficult. This is actually one of the main reasons I'm interested in the ITE, because it would provide a semi-secure way for people to ditch the 9-5 without entering the scary, ambiguous world without direction.

But on living simply to save up to bail out. I hear you loud and clear.

"memeshredder" wrote:
I'm gonna be a good, hopefully GREAT capitalist! and I don't necessarily want it all egalitarian in the beginning, becuas I feel like I have so much to go to elevate myself out of poverty. To get the land to get the food to get the business, I don't see how sharing profits equally would work that way.

You see, my tribal vision, if you could call it that, doesn't involve me sharing a yurt with five other people I just met. It took me 10 years just find a girl that didn't totally drive me insane.


Hmm... I dont think egalitarianism means sharing everything equally. I think more skilled, more hard working hunter got better meat, and that Quinn's wife got paid most cause she was boss of the East Mountain News.

But neither of these created hierarchy. Being the boss or the better hunter does not put you on top and everyone else subservient (hierarchy). In fact, these two things should be actively avoided, cause hierarchy is near the root of the annhilator/taker suckyness.

Thanks all
MatthewJ
Ghost
Sun Jul 16th, 2006 at 08:09 PM
Hey, Tony.

Sorry, dude.

Sometimes I have a tendency to critique people's ideas as they relate to my own while I'm in the middle of working them out in my head because I tend to roll pretty quick when I'm in the zone. The problem seems to be that my ideas are not complete yet so although I can see the links, not everyone else can and it seems to come off as pretty thoughtless. So sorry about that.

I wasn't saying your ideas were bad. They're not. You always have great ideas. I was saying they were problematic within a very specific context; my ideas.

I really hope that last sentence didn't make that sound backhanded. If it did, just let me know because I don't want it to.

Yo, Mat.

1 - Yes they have bills but no they're not a business. People CAN be self-sufficient inside of civ if they create a self-sufficient parasitic altarnative.

2 - You didn't grok my 298 number. I was saying that that was actually impossible. It's an old idea that I just realised was wrong. I will say say that you're right. Intertribal economies can certainly do some trade with each other to avoid being 'inbred' as you say. Good point.

3 - Accepting pulses of growth and shrinkage IS what sustainability is all about :D

I've done a lot of work on the new outline for the book and a lot of this makes so much more sense in context. Dave Pollard just critiqued me HERE and he misunderstood a lot of what I was saying. That's cool. I have a lot of work to do this summer 8)

Peace and Love and Empathy,

Matt
Nene
Mon Jul 17th, 2006 at 10:34 AM
Hey --

Gotta catch up before I'm leave and get WAY behind ;-)


"Matt" wrote:
On the Jim tip, there is no hierarchy


True dat... that's why he doesn't NEED a corporate shield? 8)

"Matt" wrote:
I get your boycott angle. I guess it wouldn't be members of the economy doing the boycott, but the clients of the distributor. But I guess you can't really boycott something unless you are a client, can you?

Will they shut themselves down? Maybe....<>...

In an intertribal economy, monopolies are IMPOSSIBLE to maintain because the only way to maintain one, eliminating your competitors, is not available because that's the whole POINT of creating a limited intertribal economy; not allowing Annihilators to participate so you can have diversity.


I think, maybe, that the point hee is that the individuals involved in any of these ventures have a different type of relationship than the current system. So if the grocer wants to boycott the soda distributor becuase of percieved 'bad behavior' he has the ability to go to his customers and explain what is going on. In theory, in a give support - get support environment, if his customers thought that he was being reasonable, they would support his boycott by doing without soda for a time (and potentially help expand the boycott to other retailers). On the other hand, if they felt he was being unreasonable they would be able to employ a variety of responses... from boycotting the grocer, to setting up a mediation session...

Interesting...

"matt" wrote:
Janene wrote:
yeah... in my original post on the topic, I was trying to get at the idea that perhpas in tribe formation drawing together many edges might be a really good way to go. Then, in practice, of course the internal tribe becomes your core... but at the same time, you still have some personal core connections elsewhere... which then strengthens the inter-tribel edges by default. Make sense?


Sort of. Not because you're dumb, but because I am.


Yeah, phooey.

An example... over the last couple years I have reconnected with and forged stronger relationships with, some of my oldest frineds. Certainly, strong, core connections to have survived mostly intact through a decade of disconnection.

During the same period, I have forged some really strong NEW connections here at Ishcon (or rather, IRL at various 'cons'). Those new coneections have the potential to get as strong as the old ones, if the effort and energy continues to flow.

Now, in forming a community... woudl I best pulling together ALL of those close connections (or as many as I could, plus other 'strong' connection of those close friends)?That would be the instinctive thing to do, right?

But then I am struck that REALLY of all those close frineds, very few of them have goals and aspirations that are REALLY compatible with mine...

So what happens if I go find people with similar GOALS, even if I don't know them so well? If we manage to create an IC of some sort, we WILL become close (even those that I don't 'like' so well) and i will STILL have all of the OTHER strong connections that I built over YEARS.

Also, on the Dunbar's number, tip. Remember that the 150 threshold is VERY MUCH related to internal connections. IE, the reson we have such a relatively low threshhold, is because for each person we add to our community, we need to know them and exactly how thier relationship exists (and changes) with every other member of the group. So each individual added create an exponential growth in 'number of relationships tracked'.

So what happens when you have, say, 50 people that you build a community with, and 100 OTHER people that you are close to(or more precisely, HAVE BEEN close enough to to maintain a relationship separated in space and time). Each of those connections adds one, two, five more 'relationships' to track...

So when you have more 'edges' (close friends NOT inside your community, AND not necessarily themselves friends with each other) you have both the potential for 'understanding' more than 150... and LOTS of once-removed (the communities of each of those 100 friends) people to 'call on'...

"Matt" wrote:
I was thinking about the maximum size of a tribe of tribe. It's not 150 tribes. Each tribe needs to have a FUNCTIONAL relationship with EVERY OTHER TRIBE. Without exception. That means that at least ONE person from each tribe has to know all of the other tribes (more specifically, at least ONE person from each tribe). It's actually probably more than one. But even at one person, that person needs to know 149 people in his own tribe AND 149 people in other tribes in order to have a 150-strong tribe-of-tribes. Making the total 298. Dunbar says that's impossible; or at least unlikely. So functional tribes of tribes can't get anywhere near 22 500 people.


Yeah, but how about that math from above? 100 people per tribe, 50 outside connections per person... IF (which is absurd) every person had 50 unique connections... that is 5000 tribes of 100 people, right?

And what if it is NOT necessary for every tribe to be directly connected?

Just thing geography... each tribe has a functional relationship with ALL of the others that geographically connect... plus MOST of those that are once removed in space, and more than half of those twice removed... and so forth. Wel EACH tribe has a different 'list' of who is once, twice,m thrice removed... and THAT is the daisy chain. Get 100 miles north of my community, and I probably don't knwo anyone... but I ALSO don't interact... but between me and they, lost of people know each other and interact at various levels creating a 'buffer' between 'known' and 'unknown'.

"Matt" wrote:
1- I might consider it if I had a fucking clue who he was. Is that like, Dr. Banner's alias in Cleaveland? My gut response, it doens't matter if the tribal business sells out, it matters if they lose their client base.


http://www.drbronner.com/index.html

Don't mistake me... its not tribal, or networked or whatever... but it is a family based, 'ideaogicolly' concerned business that has seen its share of corporate raiders, governmental backlash, etc. But they keep fighting and keep holding out....

"Matt" wrote:
Then watch it catch on and local organic soda producers spread to every city. THEN watch Delmonte buy them all up and consolidate them as a chain.


Dave's response hit on some of the same things I've been trying to express in this. A 'tribal' 'network' and/or cooperative business model is not ONLY about the product itself. Its a package of things held together by an idea: whether that idea is organics, green industry, localization, anti-corporatism, etc... whatever that IDEA is, makes the company fundamentally different from the large multinational version.

So what we are talking about is the difference between a soda bottler, and a local, organic something -- doesn't matter what. Because the PRODUCT is the idea, as much as, or more than the actual item purchased.

So at the start, the niche is green business (or whatever -- Dave's 'Customer Service' based is another TOTALLY valed version of what I am talking about -- in fact it is the model I am working on now)... and then as these issues become more tangible... transportation costs skyrocket, entire production lines fail for lack of resources, whatever... then these businesses appeal NOT ONLY to the idealists, but also to the practicalists... BUT FOR THE SAME REASONS. BP bio-diesel is NOT going to be able to compete with the 'bio-diesel co-op' once it is up, running and successful... because there is nothing in it for the consumer.


"Mat" wrote:
People who practice self-sufficient permaculture do have bills, from property taxes to mortages. This is why, I guess, no one can be truely self-sufficient inside of civ, because civ has a number of passive tools to keep people attached. Furthermore, since civ keeps the price of food, wood, and fiber is low (government subsidies, industrial annhilator tactics) and the price for a place to sleep and grow food high (oligopoly of land owners, interest on mortages, minimum acerage and building codes), permaculturalists, have a hard time paying the bills.


I can't give you a reference... but I saw a presentation on permaculture last summer, and the guy talked about a guy (ya, I know, not the strongest support... but I am fairly sure that he was talking about a fairly well know pc guy -- I just don't remember who) that successfully layered and structured his permaculture operation so that once established, he did almost NO work and yet cleared 40K per year...

It was things like, interplanting tulips and daffodils on the swales of his hillside garden... and then 'letting' a local florist come and pick them for sale... and pay him for it. And he had similar arrangements with other local vendors for most of his productive capacity...

He had something like five acres... and a farming rate property taxes couldn't have been mor than a few grand... so I'd say that he had a pretty sweet setup (AFTER the five-ten years he invested developing his land...)

"Mat" wrote:
But neither of these created hierarchy. Being the boss or the better hunter does not put you on top and everyone else subservient (hierarchy). In fact, these two things should be actively avoided, cause hierarchy is near the root of the annhilator/taker suckyness.


Jason deals with this very effectively... Imagine a group of thirty people... in that group, there will be a best cook, a best hunter, a best shaman, a best forager, a best seamstress, a best listener, a best storyteller... but in general, any one person will be, at most, best at only ONE thing. But all things are equally valuable to the group. Therefore power is diffused OVER ALL without needing to 'get rid of' the utilitarian value of 'best at'. Make any sense? Over on Anthropik he discusses this in detail with pictures :-)

Janene
DavePollard
Mon Jul 17th, 2006 at 12:13 PM
MatthewJ has asked that I post my blog article, responding to (and apparently misconstruing) some of Matt's points here, just in case anyone wants to refer to it. Just as a bit of background, I'm an IshCon member (but non poster), regular browser, and writer on my own blog about finding better ways to live and make a living. I've read Ishmael, Story of B and Beyond Civilization. I worked for 20 years helping entrepreneurs succeed, including some Tribal Ventures (what I call Natural Enterprises) and I'm writing a book on how to discover what Natural Enterprise you were meant to start, and with whom.

I apologize if the format of this post doesn't conform to IshCon protocol -- I just wanted to the get the ideas in here, in the hope that they add to rather than distract from this important conversation. Thanks all, here we go:

. . . . .

Hierarchical Corporation's Offerings:
Advantages to the Customer


1. Recognized, popular brand (a salve for low self-esteem)
2. Low price (possible because of massive government subsidies and favours like 'free' trade agreements)
3. Efficiency (as long as your needs are standard)

Natural Enterprise's Offerings:
Advantages to the Customer


1. Personal relationship (knowledge, trust, partnership, friendship, even love)
2. Customization (really have it your way)
3. Local just-in-time service (responsiveness)
4. Superior innovation
5. Low pressure (since supplier is not dependent on growth for survival)
6. Reciprocality (mutuality, flexible pricing)
7. No corporatist costs to pass on (huge management salaries, huge margins to achieve 20%+ ROI demanded by shareholders, massive advertising, marketing, transportation and packaging costs)
8. Resilience (reliability in the face of economic or other crises, due to superior improvisational capacity and focus on effectiveness rather than more vulnerable efficiency)
9. Quality and durability (no crap from indifferent Chinese factories)
10. Appeal to altruism (supplier is good to its people, its community, its environment, and good for the local economy)

Two points to start: I agree entirely with most of what Ghost says in these threads, and I'm 'picking on him' in this article because I think he has a few misunderstandings about how economies and societies work that are making what he's trying to do unnecessarily more difficult. So please IshCon'ers, don't construe this article as being critical of Ghost or what IshCon is trying to do with New Tribal Ventures (very close to what I call Natural Enterprises). And secondly, several others have contributed importantly to this thread and to developing Ghost's ideas, and I hope those I don't mention don't feel slighted that I'm focusing this article on just one contributor's ideas. I do understand the power of collaboration.

So here, unfairly out of context of all that Ghost has said that is exactly right, are some points that I would take issue with, and why. They're important because, I think, they're very common misconceptions about the workings of our economy, and of modern complex societies, misconceptions that are so subtly and relentlessly perpetrated that we tend to accept them as conventional wisdom, when they are in fact propaganda that advances the interests of a powerful and wealthy corporatist elite. Where I have used, on this blog, different terminology from that generally used on IshCon, I note my equivalent terminology after an equal sign (=like this) for 'ease of translation'.

Quote:
[ghost said] : The entire point of an intertribal economy (=networked economy) is about building one that works smack dab in the middle of claimed niches. It's about becoming a parasite in an established host and reclaiming parts of their already claimed niches. It's an opportunity for the millions not able to flee to the countryside to survive collapse. It's a solution for the here and now...Niche markets are small markets and generally can't support any competition. They are generally occupied by a single small business with 100% market share...Until they become independently self-sufficient, they simply need the [open market] client base to survive.


I think this is far too negative a view of the situation and need for struggle of Natural Enterprises. It's a very popular, traditional and well-ingrained perception that entrepreneurship is an enormous amount of hard work and constant struggle fending off threats from bigger, established, well-bankrolled competitors. In my experience working with hundreds of entrepreneurs, nothing could be further from the truth.

Large, multinational, hierarchical corporations are not designed to provide customer service. They are designed to maximize margin and profit for senior executives and major corporate shareholders, by charging the customer as much as possible and giving them as little as possible. Under their charter (and under threat of dismissal or legal charges if they defy it) they can do nothing else; they are tied to this model of operation and decision-making. Worse, they have to grow each year or die. The model is inherently unsustainable, and Fortune 500 companies all, inevitably, crash and burn.

All Natural Enterprises need to do is focus on meeting customers' evolving unmet needs effectively. Talk to anyone who is buying from a small business with no growth aspirations, instead of from a 'competing' large hierarchical corporation, and in so many words they will tell you that is why. The chart at the top of this page summarizes the 10 enormous advantages a Natural Enterprise has over a hierarchical corporation, when it ignores all the absurd conventional wisdom (about growth, external financing, advertising, huge risk, endless struggle, the need to do everything yourself etc.) and just focuses on meeting customers' evolving unmet needs effectively.

As my book explains, doing this takes a lot of work, but it is low-risk, low-stress, low-cost, joyful work. It is the antithesis of what most people do (even those who should know better) when they actually start to establish their own business.

Today, customers place a high, but declining, premium on brand, on low-price, and on efficiency of purchase ("at your door in 30 minutes or it's free"). Because of the Internet and the explosion of available information through it, those three advantages of large, hierarchical corporations are waning in importance. Fewer customers are buying into the nonsense that brand equates with self-worth, that "you are what you own". Brand as a surrogate for quality and integrity is shattering as more an more corporations reveal their true stripes (lying to customers, suing customers, shutting down local operations and attaching their name to shoddy imported goods and services, and massive Enron-type frauds). After a few trips to Wal-Mart to buy the same thing over and over because everything bought there breaks in a day, customers are realizing that "you get what you pay for" (if you're lucky) and, even if it hurts, are starting to make price/quality trade-offs in buying decisions. As the US government teeters over the edge into bankruptcy, it will no longer be able to afford the massive subsidies to big corporations that allow those corporations to sell stuff (with your tax dollars) to you so cheaply. It will no longer have the clout to bully other nations into 'free' trade agreements that distort and cripple those nations' local economies for the benefit of the colonizers. And as we move to a network-facilitated economy of 'mass customization', fewer and fewer will opt to buy the 'standard vanilla one-size-fits-all' product today. They will opt instead to wait until next week and get precisely what they want from a (Natural) enterprise that has the capacity to provide that.

So Natural Enterprises, if they've done their homework, ignored the conventional wisdom, set themselves up properly, and focused on meeting customers' unmet evolving needs effectively, do not need for one moment to be parasites on the existing economy. When the customers are delighted, they will 'work around' the inhibitors and obstacles in the existing economy with you. If what you're doing works for them, that's all that matters.

Quote:
[ghost said:] Tribal businesses (=natural enterprises) can no more compete with Annihilator businesses (=hierarchical corporate oligopolies) than tribes (=networked societies) can compete with Annihilator societies (=hierarchical, imperialist societies)... [a] biodiesel business is a great idea until Willie Nelson... or the oil [oligopoly] figures out there's money in it... or that they can use the product themselves.


I think the chart above addresses this concern. A reading of Clay Christensen's The Innovator's Solution might alleviate some of these concerns, as it contains dozens of examples of small, customer-focused, well-researched entrepreneurs who made a very comfortable living off the many customers that large corporations simply are incapable of serving effectively, for the reasons I described above. What's interesting is that the large corporations were aware of the 'loss' of these customers and made no move whatever to respond to it -- it was a diversion from their obsession with growth and high margins -- and eventually in many cases they lost all of their customers to the renegade who just provided solutions to unmet customer needs better.

Suppose you were to set up a local all-renewable energy co-op to serve your community. Your initial customers might only be altruists willing to pay a premium to you to 'be good'. But the grid providers, while efficient, are horrifically vulnerable -- to The End of Oil, to terrorist activities, to weather-related transmission problems, to energy speculators, and many other factors, some of them inevitable. They don't think ahead. They aren't rewarded for doing so. There is insufficient short-term payback for their shareholders. They will ignore your co-op, even when your price drops below theirs (as renewable technology improves, and as their variable price soars, your fixed price drops). Their price increases will give you an ability to expand your capacity until the whole community is your customer. And when the grid goes down, you party. Is the community worried about your 'monopoly'? No, because the whole community, all your customers, are your partners. They share in your success. Many of them probably work with you in the now-prosperous Natural Enterprise. And you never have to worry about terrorists, about war, resource depletion, transportation costs and disruptions, new pollution and global warming findings, or great depressions. You're all in it together. You are resilient, immune to the effects of the 'market' economy. You never have to grow.

I wrote recently about how many examples there are that work just as well as local energy co-ops, and cut across every sector of the economy.

Quote:
[ghost said:] Small hierarchical businesses (=enterprises that use the traditional hierarchical corporate model to establish, fund and grow themselves, instead of the Natural Enterprise model) have the advantage in the open market in that they can expand...We're better off starting businesses in the 'limited' sectors and the niche markets because they have a much better survival in the open market...If tribal businesses can become trendy, if it's chic to shop at them, then that's good for us...


There is no 'open market' or 'free market'. We live in the most tightly-controlled oligopolistic economy in history. These oligopolies buy politicians (and hence subsidies and favours), corner supply, buy up competitors to eliminate competition, and blanket the media with an unprecedented and relentless flood of propaganda called 'advertising'. We don't want to compete in that market, and we don't want to 'expand'. Growth is unsustainable, period. What we do instead is outmaneuver. We're better off starting businesses wherever there is a significant, researched, evolved unmet customer need that we have the competencies, knowledge and resources to fill. Every sector, every market has lots of them.

And trendy business is not good for us. It's ephemeral, it's tying into people's wish for escape. You can't jam the culture; it will just co-opt you.

Quote:
[ghost said:] Allegedly, the Chinese government condemns Falun Gong practitioners to death, executes them, and then harvests their organs (which are generally in good shape because of their health regimen), and sells them on the black market...for $40k...The commodification of humans is the ultimate expression of the free market, [which] is about unlimited competition...The free market violates the Law of Limited Competition...Today, small businesses are being swallowed whole by large multinational corporations, from the local cinema to the family farm. In an economy of Limited Competition, the small business would flourish.


The Law of Limited Competition is a principle arguing for a mixed economy, where some competition is encouraged to promote 'efficiency' but (now-defunct) anti-combines and anti-trust laws are used to prevent too much 'efficiency' leading to oligopoly and monopoly, which many view as the inevitable consequence of unregulated capitalism. But it doesn't apply in today's world at all, where we have no real competition left, and where politicians are bought to ensure, through subsidies, intellectual property laws, corporate indemnification and global 'free' trade agreements, that no significant competition is allowed to emerge anywhere on the planet.

We are way past the point of being able to reign in multinational hierarchical corporations and 'force' them to allow new entrants to compete with them through regulation. That doesn't work, and never has. What's more, a lot of hierarchical, traditionally-structured small businesses are specifically designed to be swallowed up by large multinationals -- that's the whole point to their existence ("buy me, Google!"). I've spoken to many 'small farmers' who admit their goal in life is to wait until the city expands to their doorstep so they can sell their farms to real estate speculators and developers for fifty times what they're 'worth' in the 'open market' as farms, and retire forever.

The businesses that are swallowed reluctantly by bigger corporations generally have not realized or been able to capitalize on the ten advantages on the right side of the chart above, advantages they could or should have, but, (perhaps because they've bought too much of the conventional entrepreneurial wisdom), have not. Generally, because they have few or none of these ten advantages, they have no value, in any market, and usually get sold for a song, or just shut down, bankrupt. They're not Natural Enterprises, just failed corporate wannabees.

The bottom line here is that entrepreneurs (and aspiring entrepreneurs) should stop worrying about competing with hierarchical corporations, and instead just focus on discovering and meeting customers' evolving unmet needs effectively. Through millions of Natural Enterprises doing just that, we could provide everything that we need that way. The collaboration together in a Networked Society of Natural Enterprises supporting and helping each other would just be a bonus, making us even stronger. Until that arrives, we would just operate below the radar of the hierarchical economy, disruptively innovating it from below, as Christensen explains. The only thing the hierarchical economy corporations can do in response is what they already do -- advertise like hell, squeeze their hapless suppliers (to the point of bankruptcy) to keep "lowering prices every day", and squeeze more money and favours from largely tapped-out governments. That is their 'competitive advantage', and it can't hold a candle to the ten advantages of Natural Enterprise.

Quote:
[ghost said:] [ultimately] , the hierarchical economy...will begin to collapse, not because of any kind of attack, but through simple abandonment.


Now you've got it.

Quote:
[matthewj said:] The only way I see this happening is if a fairly significant number of people who share these ideas...intentionally, physically get together, and start this from scratch. I don't see the intertribal economy emerging from randomly forming tribal businesses (at least in the beginning)...We all need to move to one place and start this damned thing.


MatthewJ underestimates, I think, the power of complex adaptive systems. Nature, which understands exactly how such systems work, does not put all its eggs in one basket. Evolution is trying a large number of small, independent and diverse experiments, and seeing which ones 'work'. The ones that work propagate in Darwinian fashion. I think it would improve our chances if "we all...moved to a bunch of places and started a bunch of different things", and visited and communicated with each other to learn what's working and what isn't. As you probably know, I'm a believer in Intentional Communities, and I think they could be great incubators for whole sets of Natural Enterprises that collectively meet most of the needs of those communities. If they succeed, they would have great viral power and spread, I think, quickly to other communities.

What I'm hoping to establish, in concert with some sustainable entrepreneurial associations like BALLE, is a centre and network where those wishing to establish Natural Enterprises can invite, find and meet partners to go into business with, get the tools, knowledge, resources and training needed to establish such an enterprise (and ignore all the dangerous conventional wisdom). This is not rocket science. Between us we have everything we need to make it happen. No war with oligopolistic hierarchical corporations and corporatist politicians. Just having fun experimenting with a new model that delights customers, and slowly weaning us all off dependence on the old, unsustainable, dysfunctional economy, until it collapses, starved of customers.

Just gotta make sure this is a labour of love with the right people. Even when you're saving the world, life's too short to not love getting up in the morning to do the work you were meant to do with those you were meant to do it with.

. . . . .

Apologies for my presumptuousness in interjecting this indigestible bit into the conversation. Hope you find some of it useful or at least interesting. The original article, with some links to related articles I've written, can be found here.
Ghost
Mon Jul 17th, 2006 at 01:37 PM
Hey, Janene.

I'll be sending you that new outline later today 8)

"janene" wrote:
I think, maybe, that the point hee is that the individuals involved in any of these ventures have a different type of relationship than the current system. So if the grocer wants to boycott the soda distributor becuase of percieved 'bad behavior' he has the ability to go to his customers and explain what is going on. In theory, in a give support - get support environment, if his customers thought that he was being reasonable, they would support his boycott by doing without soda for a time (and potentially help expand the boycott to other retailers). On the other hand, if they felt he was being unreasonable they would be able to employ a variety of responses... from boycotting the grocer, to setting up a mediation session...

Interesting...


I think the point we all have to remember is that an intertribal economy is as limited and closely knit as an individual tribe. There is no THE intertribal economy. There will be tens, if not hundreds, of thousands of them.

I'm reminded of a passage in Gaviotas (I'm not near my library or I'd try to pull out the quote) where a quartermaster was overcharging because he wanted to make a few extra bucks for he and his wife to go on honeymoon. When the community found out, they ostracised, ignored, the two of them until they paid back the money. They did, all was forgiven and life went on.

In an intertribal economy it's not faceless people dealing with the problems, it's Bill dealing with Ted. Or tribe A dealing with tribe B. Like you say, the way to deal with problems is a great deal more human.

This power, to deal immediately with problem cases and even to detribalise tribes that use Annihilator or hierarchy is IMPERATIVE to an intertribal economy if it to survive. As Vail said, they must be self-aware of the need for this.

"Janene" wrote:
Yeah, phooey.


8)

I still don't think that I'm quite picking up what you're putting down.

"Janene" wrote:
Yeah, but how about that math from above? 100 people per tribe, 50 outside connections per person... IF (which is absurd) every person had 50 unique connections... that is 5000 tribes of 100 people, right?


I really don't think that's a good idea.

You need to have a functional relationship between ALL of the tribes. Every tribe has to know EVERY other tribe. If not, you're trusting Ted to broker your dispute with Bill's tribe rather than being able to deal directly with Bill's tribe. And this is how cooperatives WORK. Interpersonal relationships. If you get too big, you need managers and such and you basically have a hierarchy of tribes.

So I'm not saying I know where the optimal number falls, I was just pointing out that the initial idea of 22 500 was WAY off the mark. It has to be smaller than that.

"Janene" wrote:
And what if it is NOT necessary for every tribe to be directly connected?


Then the network can be much larger than I'm giving it credit for. I just don't see how it could function cooperatively at that point. Remember, the tie that binds tribes together is love, not familiarity.

I mean, you can trade with anyone. Go right ahead. But an intertribal economy is about so much more than trade.

For instance, Tribe A in BC can trade with Tribe B in California. If both tribes are self-sufficient, then it's just trade. But if they require this activity of each other in order to BE self-sufficient, then they have an intertribal economy.

The economy functions as a superorganism. Each tribe contributes to the self-sufficiency of the whole. Each tribe has to trust the others with their lives. The economy doesn't work without everyone. One economy can trade with another, but if it's just trade, it doens't require a relationship.

"Janene" wrote:
Dave's response hit on some of the same things I've been trying to express in this. A 'tribal' 'network' and/or cooperative business model is not ONLY about the product itself. Its a package of things held together by an idea: whether that idea is organics, green industry, localization, anti-corporatism, etc... whatever that IDEA is, makes the company fundamentally different from the large multinational version.


Here's the thing. Intertribal economies are CLOSED, not OPEN.

Internally, none of this is relevant. A single tribe either helps the intertribal economy or not.

We're talking about how tribal businesses compete in the OPEN market (the stepping stone, the way to secure the resources to build the intertribal economy).

People pay a premium on ideas. A lot of people will pay them. But if a comprable product hits the market for cheaper, then people will buy that.

Get large multinational out of your head. They're not the only Annihilators. They're just the biggest. There are MORE local Annihilators than there are multinational.

If a LOCAL market grows to the point that it can support competition, then LOCAL Annihilators will swoop in to grab market share. Local hierarchical businesses certainly can produce soap.

The only demand that hierarchical producers can't fill is being cooperative.

If the market grows to national size, then national producers will jump in (and a lot of multinationals have national subsidiaries). If it grows to intertatioal size, then international producers will jump in.

The only question is, is there market share to be had? If the answer is yes and the hierarchical organisation is in a position to take market share (by annexing their competition, or by offering their own product and trying to destroy their competitors) they will try.

Hey, Dave.

I really don't at all think that you're wrong in your critique. I'm just going to try and speak to your misconceptions about what it is I'm saying.

"Dave" wrote:
I think this is far too negative a view of the situation and need for struggle of Natural Enterprises. It's a very popular, traditional and well-ingrained perception that entrepreneurship is an enormous amount of hard work and constant struggle fending off threats from bigger, established, well-bankrolled competitors. In my experience working with hundreds of entrepreneurs, nothing could be further from the truth.


Life isn't a struggle in a tribal business. But there are some areas that tribal businesses can flourish and some where they are crushed.

I'm saying that in NICHE MARKETS, there is no competition, that in LIMITED MARKETS (for lack of a better term), tribal businesses can go toe-to-toe with hierarchical ones and that in UNLIMITED MARKETS (for lack of a better term), they get crushed.

This explains why there are an array of tribal businesses in limited and niche markets by none that I can think of in unlimited ones.

"Dave" wrote:
Large, multinational, hierarchical corporations are not designed to provide customer service.


Like I told Janene. Multinationals are just the biggest players in the world. It's Annihilators in general that are the problem. That includes a local company of 50 or of 500 employees.

"Dave" wrote:
All Natural Enterprises need to do is focus on meeting customers' evolving unmet needs effectively.


This would be an example of what I'm saying about niche markets.

I'm going further than this though. I'm saying that tribal businesses are great but they won't survive the collapse of the economy they are reliant upon for essential inputs.

"Dave" wrote:
So Natural Enterprises, if they've done their homework, ignored the conventional wisdom, set themselves up properly, and focused on meeting customers' unmet evolving needs effectively, do not need for one moment to be parasites on the existing economy.


Let me explain the parasite angle.

A tribal business functions in the open market. But in the case of building an intertribal economy, they are siphoning resources from those transactions and funneling them into the intertribal economy. That's being parasitic (like a cancer taking over cells). Eventually, they will have siphoned enough to make their intertribal economy self-sufficient (it CAN trade with the host economy if it likes but it no longer has to AND it no longer has to grow. It differs from cancer in that regard as cancer is an Annihilator, ie, a SINGLE tumour can grow until it kills the host). It remains in the host in order to be protected from Annihilators exterior to the host and from the host itself. The more of these parasites develop (akin to there being multiple tumours), the weaker the host becomes (because everyone walking away is a removal of energy and a reduction in complexity, ie, collapse). When the host dies, a parasite still reliant on it's host for survival, dies with the host. The self-sufficient parasite is free to go about it's own way.

Question: can anyone think of a better example of a parasite? Ie, I need one that enters a host, steals resources (blood, cells, food) grows to a certain point and then STOPS, will remain in the host for some time, doesn't kill the host by itself but will if there are too many and that can survive after the host dies.

"Dave" wrote:
There is no 'open market' or 'free market'. We live in the most tightly-controlled oligopolistic economy in history.


Exactly my point... of a fashion 8)

There IS an open market. It says "anyone can compete in this market. It is OPEN to all."

The problem is that ANNIHILATORS compete. They actively seek monopoly and are willing to destroy their competitors in order to attain it.

We DO want to compete in that market. In fact, we are forced to compete in it. Why? Because it's the only game in town.

Individual tribal businesses can't go any further than that. They have to compete in it and that's that.

But, going back to the parasite model, a parasitic intertribal economy uses what the revenue it gains from competing in the open market in order to build an alternative that will survive past the death of its host.

The intertribal economy is NOT open. It is very much limited. It is limited in how many people and tribes can participate and it is limited to a certain type of organisation; the cooperative. Why? Because they all obey the Law of Limited Competition by design. They will compete in a limited manner. No Annihilators are allowed.

"Dave" wrote:
Growth is unsustainable, period.


Not true. Growth is fine so long as you also shrink.

UNLIMITED GROWTH is unsustainable, period.

"Dave" wrote:
And trendy business is not good for us. It's ephemeral, it's tying into people's wish for escape.


You're right. It is ephemeral. It won't last. But business booms when it happens. That means more revenue. That means more resources for setting up one's intertribal economy.

"Dave" wrote:
The Law of Limited Competition is a principle arguing for a mixed economy, where some competition is encouraged to promote 'efficiency' but (now-defunct) anti-combines and anti-trust laws are used to prevent too much 'efficiency' leading to oligopoly and monopoly, which many view as the inevitable consequence of unregulated capitalism. But it doesn't apply in today's world at all, where we have no real competition left, and where politicians are bought to ensure, through subsidies, intellectual property laws, corporate indemnification and global 'free' trade agreements, that no significant competition is allowed to emerge anywhere on the planet.


I think I have the biggest problem with this paragraph.

1- It doesn't argue for a mixed economy. It's just a principal.
2- An intertribal economy is diverse BECAUSE everyone follows the Law of Limited Competition.
3- Anti-trust laws aren't needed. No legislation is. An intertribal economy is self-regulating by design.
4- Monopoly is only possible when the market is either too small to support more than one producer (which instantly changes if the niche market grows) or when a single producer wipes out the rest of it's competition.
5- An economy devoid of Annihilators is an economy devoid of monopoly.
6- The Law of Limited Competition is WANTONLY IGNORED in the open market. Annihilation is not only encouraged but CELEBRATED in the open market. This is why we must create a self-regulated alternative where there is no room for Annihilators.

"Dave" wrote:
We are way past the point of being able to reign in multinational hierarchical corporations and 'force' them to allow new entrants to compete with them through regulation.


Exactly. So walk away from that model. To where? To an alternative one.

But you can't do that without getting your feet wet (unless you're independently wealthy).

"Dave" wrote:
What's more, a lot of hierarchical, traditionally-structured small businesses are specifically designed to be swallowed up by large multinationals -- that's the whole point to their existence ("buy me, Google!").


Good point.

Growth is God in the open market.

The small are eaten by the bigger are eaten by the biggest.

This is IMPOSSIBLE in an intertribal economy because all of the players are small businesses.

---

Anyhoo, I've gotta slow my participation in this thread. Don't get me wrong, I don't think I have all the answers, I'm still going to be here to hash stuff out. I just think that I have to allocate more energy to re-writing the book at this point so I can get all of these ideas into a proper context. Once that happens, I'm confident that what I'm saying will be far clearer.

Peace and Love and Empathy,

Matt
Talvir
Mon Jul 17th, 2006 at 02:18 PM
Hey,

I just have to say it's great to see Dave Pollard posting here. I've read some posts on your blog and I've really enjoyed it. Thanks!

- Joe
DavePollard
Mon Jul 17th, 2006 at 06:30 PM
I have to say I agree violently with everything you're saying Matt. Our differences are all, I think, ones of semantics and different frames of personal experience.

A few days ago I wrote this article, illustrating how I think a Networked Economy might evolve (we can't build it, it must evolve as a collective bottom-up effort, free of any predesigned plan, as any student of complexity theiry will tell you). It is a loose an permeous structure of roles that correspond to competencies necessary for collective survival, that allow each of us to do what we love and do best. As in some gatherer-hunter societies, it consists of two 'layers': Intentional Communities (of 150 or 299 or whatever evolves to be the right number of people for what anthropologists call a 'clan'; and Natural Enterprises (of 20 or 50 or whatever evolves to be the right number of people for what anthropologists call a 'band' -- the extension of a 'work-party' or New Tribal Venture. Anthropologists also use the term 'tribe' to describe a larger aggregation of 'clans' consisting of several thousand people. My instincts tell me that the Internet (if we can keep it free and open) could allow us to collaborate now without the need for (in that sense) 'tribes'.

As a fan of complexity theory, I believe in autopoiesis -- that these Intentional Communities and Natural Enterprises will be self-forming, self-organizing and self-managed -- completely un-hierarchical. They also need to be (and here's the rub) somewhat self-sufficient, so that what they trade to other ICs is only products surplus to their own needs, in return for other ICs' surplus products. This keeps the price down and prevents the re-emergence of a 'market' based on scarcity and resultant price extortion. Instead, it creates what I have called a Generosity Economy.

It will take some time before ICs will re-acquire the skills, knowledge, and capacities to become substantially self-sufficient, but this goal must be paramount from the outset. Weaning ourselves off the Hierarchical Economy, off the grid, off of dependence on others for basic necessities, is vital.

That's why my action plan is to work with local organizations of sustainable businesses to help Natural Enterprises form, and to help collectives of Natural Enterprises form themselves into self-sufficient Intentional Communities. That involves:
(1) Creating a mechanism where people who want to do this can meet each other, and find the people with complementary skills that they want to form Natural Enterprises with (as lovable as the people on this thread are, they are unlikely to have just the right skills and passions to form a Natural Enterprise -- we need to draw on a larger pool of people Living on the Edge.
(2) Helping each other discover what our true Gift and Passion is, and how our collective Gifts and Passion can provide something that is genuinely needed. That involves sharing organization tools, knowledge and experience.
(3) Helping each other (re-)learn the skills and capacities needed to make Natural Enterprises and Intentional Communities work effectively and joyfully.

My upcoming book is, and a lot of my recent blog posts have been, about this. It is this Complex Systems-aware, evolutionary, connected, multiple parallel experiment approach that, I think, can bring Daniel Quinn's vision of New Tribal Ventures and post-civilization Tribes to fruition. It promises to be a lot of work, and a lot of fun.

I'm sure I'll meet you all there, as a part of it.
Talvir
Mon Jul 17th, 2006 at 06:53 PM
"DavePollard" wrote:
(as lovable as the people on this thread are, they are unlikely to have just the right skills and passions to form a Natural Enterprise -- we need to draw on a larger pool of people Living on the Edge.


Hey Dave,

Well, wait a second there! If that TonyZ fella has half the goods he says he does ( ;) ), I've got some $$$...and dual Canadian/US citizenship...

- Joe, who heard that fungus is where its at!

(I'm already married though, Tony, so even though we "do" same-sex marriages up here, I can't help you get Canadian citizenship ;) )
MatthewJ
Mon Jul 17th, 2006 at 10:20 PM
"DavePollard" wrote:
As a fan of complexity theory, I believe in autopoiesis -- that these Intentional Communities and Natural Enterprises will be self-forming, self-organizing and self-managed -- completely un-hierarchical


"DavePollard @ howtosavetheworld.ca" wrote:

There are, of course, many experiments in all these areas going on now. Should we be concerned that none of them have 'caught on' yet? I would be more concerned if some of these experiments had caught on. There is not yet a broad sense of urgency -- we do what we must, and there is not yet that kind of imperative for the majority of people that they must do something other than what they're already doing.


This is a very good point, if I am interpreting it correctly. Perhaps the reason the ITE and networked economies haven't caught on is that the time is not yet ripe.

I still do believe, however, that there are many many people who really really want to drop out now, but need some help doing so.

I think Dave's points on mechanisms, rediscovering our gifts and passions, and relearning skills are bang-on. However, I also think a living, breathing, practical example of an inter-tribal economy (which, I believe, provides the level of economic space and support that is really needed to make the tribal business appealing) to point to and say "look, it works! its easy!, just do it!" would be another major contribution. And, while it should not be planned out meticulously in advance, and should not be forced, or require "self-sacrifice", gathering a sufficient concentration of people who already have changed minds (who are already on the edge) together, would facilitate creating this space, and would be difficult (for now) without an intentional effort to do so.
memeshredder
Tue Jul 18th, 2006 at 10:54 AM
We had a lot of fun discussing ripeness in my law classes(back when I thought that was the best way to save the world).

It really is an issue of ripeness.

But by delivering local goods to a local market, not the uspermarket, not hte department sotre, you are making and delivering products on an appropraite level.

Trying to deliver goods to supermaerkets and department stores is the first mistake.

Trying to break into the "mall" scene, other than setting up a tribal "kiosk", is where ya'll are going wrong in the first place.

I have a first-rate education in a totally different market system.

you see, I used to sell food at a vegetarian food stand that followed the regional art festival scene.

working just at about 5-7 events a year, my spanish teacher and I, with a few others here and there, put her daughter through college. To Vassar.

why can't we young people, with all we've got, do the same?

ripeness, ripeness indeed. fruit only rots in supermarkets, never at the farmers market.

-----

if you dont' like the market, or if the market doesn't like you, you have options, you don't need to plug into supermarkets to sell food. you don't ned to plug into department stores to sell clothes.

I wish i could just scan my brain and my experiences in a way that would help ya'll make sense of the limitless opportunities people have to spend and make money.
Ghost
Tue Jul 18th, 2006 at 11:36 AM
Hey, Tony.

"Tony" wrote:
Trying to deliver goods to supermaerkets and department stores is the first mistake.

Trying to break into the "mall" scene, other than setting up a tribal "kiosk", is where ya'll are going wrong in the first place.


I don't know.

For me, it's about re-claiming niches. Selling to a supermarket or working out of a mall are both ultimately unsustainable because the supermarket and the mall will both go tits up. It might even be morally repugnant. But in the interim, while people are just trying to establish a business and make some loot so they can establish an intertribal economy, or even if they just want to have a tribal business because it's better for them, it's not a necessary evil.

All the niches are claimed. So we're like grass under asphalt. We stick our necks out wherever we can find a crack.

I do prefer the kiosk idea personally, because it's the most mobile. Ie, get in, make some loot, fold up and get out.

Peace and Love and Empathy,

Matt
memeshredder
Tue Jul 18th, 2006 at 12:02 PM
yeah, I realized upon writing what I wrote that a soterfront in a mall sucks (literally, oon your wallet) but that the kiosk was a good idea, axtually, especialyl when I see so many people who barely speak english do so well at those (or barely speak french, as it may be in your case, Matt)

I was pooping earlier, and thought of three markets to enter, distinguished upon their frequency.

there are your:

daily markets
weekly markets and
itinerant markets.


daily markets
daily markets are tools of the state. they have a permanent place and reflect the attitudes of the people, who are supposedly the key players within the state. this is your bazaar, your walmarts of the world. these are often large in scale, and have regular, daily hours of operation, the advantage for the consumer is regular availability of goods. the advantage of the market owners are being a member of establishment of society. what people eat and buy are the cornerstones of civilization. daily markets are deeply tied to our "raison de etre"
from the owners perspective, taking in money as a trickle or stream is the water metaphor. despite the large cost of overhead, the daily market eeks out a living for everyone involved with proper marketing, but no one comes out of this system as "wealthy."

so basically, no serious wealth is accumulated, but needs are addressed. a adily marekt, with it's trickle, serves only needs, and does not build up the community, it sels everything at marginal prices and marginal cost, to the perceived benefit of the community, the same community who works at the market and makes little money and buys and makes the marginal products being sold for marginal proce. diminishing returns starts kicking in for supermarkets right as they cut they yellow ribbon to open the store. the risks are low given the right products for the right population.


weekly markets
these markets represent more direct relationships, even though they are not daily relationships. weekely markets either share or have no overhead.
their "water flow" is comparable to a thunderstorm. They happen regularly, and can provide all of the life who dont' live near a stream or trickle. weekely markets require more risk, but the payoffs are nto marginal. most of the market participants an find great deals without hte overhead of daily markets, and form direct producer-consumer relationships. not market research need, just ask your customers and adjust.

itinerant markets
a waterflow comparable to a desert deluge. nto good for a lush scene, where a flood whould kill all life, but great for a place with no water at all, and only gets a little life breathed into it every once and a while, like our creative faculties.basically, this market requires no overhead, and fills a particulr spiritual, artistic, or creative need. these are comparable to lots outside of jam-band shows, art festivals, and other "yearly" events.

wealth comes at an even great frequency, but for fewer particpants. you have to "effectively" flood this type of market. you have to read and know what throngs of thousands will be flocking to this festival. you must find what that particular market is thirsting for,and flood the dry deserts of that area's soul (or stomach)


I'm sorry the explanation of this model started out strong and ended weak, but you guys get the picture, right? please flesh it out more, I'm feeling a little sick today, it's hard to carry on. you'll see it in the book.
Ghost
Wed Jul 19th, 2006 at 12:11 PM
Hey, Tony.

That's good stuff. I don't know that the terminology is sound, but the idea sure is.

The city is actually defined as a place with a permanent central marketplace.

Perhaps COMMERCE is a better term? I don't know.

Daily markets: Your typical store.

Weekly markets: A farmer's market is a good example. Once a week, farmers converge on a single location and people flock to buy fresh produce.

Itinerant markets: Remember the barge from My Ishmael? Festivals are another great example.

Good stuff :D

Peace and Love and Empathy,

Matt
memeshredder
Wed Jul 19th, 2006 at 02:14 PM
I'm glad you liked it. The water methaphor literally dawned on me while pooping right before I wrote the post.

Soundness will come later, but I just got the idea out on paper. I actually FORGOT the barge from my Ishmael, good catch!

as far as daily, weekly, and itnerant, can you think of anything that can go above and below (or in between) that flow?
MatthewJ
Wed Jul 19th, 2006 at 02:21 PM
The big ones around these parts are the seasonal markets (I think of the regular week of steady rain that happens regularly in desert-SCal.). We have 2-3 big festivals every year here during harvest season.
Ghost
Wed Jul 19th, 2006 at 02:25 PM
Seasonal is a good one. But so is monthly, yearly...

I think that INTERMITTANT would be a better term for weekly, monthly, seasonal markets. Infrequent yet predictable.

Peace and Love and Empathy,

Matt
MatthewJ
Wed Jul 19th, 2006 at 02:27 PM
If so, than there should be a distinction between the predictable intermittant and the unpredictable intermittant. A traveling show, peddler, or some such commercial venture would be long between each visit, and with a large amount of unpredicability. Like an irregular geyser.
memeshredder
Wed Jul 19th, 2006 at 03:04 PM
that may be true form the consumers perspective. I think a good businessperson plans at least five years in advance. maybe yearly is a scope that shoudl be considered, since I have done many annual events, like the Broad Ripple Art Fest, the Atlanta earth festival, the Madison Chataqua.....and so on.

I remember my first phish show. we sold beers for five bucks a pop and left the show with more money than we came with!
Ghost
Wed Jul 19th, 2006 at 05:39 PM
Tony already hit that. It should be:
Daily
Intermittant
Itinerant

Perhaps permanent instead of daily. Ok... that's me being anal 8)

Peace and Love and Empathy,

Matt
Talvir
Thu Jul 20th, 2006 at 04:06 AM
"Ghost" wrote:
Ok... that's me being anal 8)


That's ok, Matt, your anus is fine with us. Well, except for Adam, he thinks it smells funny. But the rest of us think your anus is just grand ;)

Did I just say that? 8-[

- Joe
memeshredder
Thu Jul 20th, 2006 at 09:28 AM
now that's good, it fits with the lingo of the other two words. what about constant instead of permanent(interchangeable, I think)?

so now we're getting a good sense of time (and place) with the economy.

as we begin to understand the times and places(the elemental equivalent is fire-in-water) of our economy, let's move to describe types of activity


Let's think of the types of activity as, elementally, earth-in-water

there are many archetypical understandings that will increase our common sense abotu economics.

first of all, obviously, too much earth in the water wil stop it's flow.

no content of the earth mean while there is a flow of people, there is no flow of goods.

we must put in water the right amount of goods(earth) that we want to flow downstream.

so we must perceive:

constant needs
intermittant needs
itinerant(or specialized) needs

permanent needs, things we must have flowing towards us all the time include food, shelther, clothing, warmth, and love. these are physical needs

intermittant needs include entertainment, art, music, fashion, presents, spiritual and mental needs, basically

itinerant (or specialized) needs include education, homebuilding, computer repair, basically, needs one cannot fill themselves.


each need that needs to be sent downstream is alike the model of flow from before.

depending on the amount of people with needs you have (fire-in-water), that tells you the amounts of down stream flows.

let me draw a picture:

this stream represents constant needs:
- - - - - - - - - - - - - - - - - - - - - - - - - >

this stream represents intermitant needs:
- -- - -- - -- - -- -- - -- -->

this stream represents itinerant needs:
- ---- -- --- --- >


can you see now visually what i was putting into words?

hitting people "on the dashes" is the most important thing in economics.

If you send "earth" downstream when no dash is present, your product or service will either go to waste or not be purchased at all. it will in the figurative sense settle in the bottom of the ocean, lost forever...

so now we have needs and flows and desires.

can anyone else guess what element comes next?
MatthewJ
Thu Jul 20th, 2006 at 10:03 AM
I like the fire bit - the living energy that which transforms the fresh people and goods into used people and goods into, finally, raw living matter and materials (difference?).

The funny thing is, the waste materials are usually only one step away from the raw materials. They just need some living fire. Poop becomes food. Rust, with the life-energy of charcoal - becomes metal.

Old plastic, that "immortal" substance, just needs some fungal and bacterial fires help to become young carbon again.

So you want to take advantage of fire as much as possible, to both hit the strongest flames and then be there to catch the ash that gets spit out.
[code:1:1c561ce746]
|
|
V
-- --- --- --- --- ---> You want to hit the fire-in water need, and then catch
\__/ What comes out the other end.
[/code:1:1c561ce746]

Air... what role does air play?

I'd say air is the Zephyrous material that keeps this whole process interesting. It is the windstorm that changes the course of the river. It is the clouds that move water from the ocean to the lake to the river.

Its that random-like, never-certain, dynamic element that makes the whole thing need to adapt.

One thing that isn't quite sitting well with me about this, though, is that the relationship between the person providing a good or service and person who consumes it, is limited to just that. It seems that the producer and the consumer should be less divided... :?:
memeshredder
Thu Jul 20th, 2006 at 12:01 PM
well, of course as a tribe you would be taking advatage of all the goods and services you provide. then there is that thing where you can produce more than you need, or want to share with others becuase you think they will benefit form your product.


----

the last element is of course air, which translates into marketing.

small air is the sound of your stomach growling(air being moved out of the stomach), the best marketing a farmer could ask for.

medium air is the conversations you have with people

big air is the billboards, radio commercials, etc.


it's all being worked out in this thread, so feel fre to come up with other models.

Tony
Ghost
Mon Oct 9th, 2006 at 01:53 AM
Ok, so I did some thinking.

So, as pertains to the open market, I introduced the ideas of limited and unlimited markets.

A limited market is one in which the involved businesses have a maximum growth capacity, ie, a restauraunt. There are no 50 000 seat restauraunts in the world. The only way for limited market businesses to grab large amounts of market share is to franchise. But even so, a limited market tribal business can go head-to-head with limited market class-stratified hierarchical businesses with little to no problem. There will always be room for the mom and pop restauraunt. This is limited to the small business model.

Although the medium sized limited market business, like retail chains, follow the same rules, they simply have access to more products and can buy more in bulk and pass those savings on to the client. A small business of any kind can't go head-to-head with a medium sized one. A medium sized limited market tribal business is limited to 150 people anyway and so the hierarchical medium sized businesses tend to cream their competition anyway. All of that is to say that in limited markets, tribal businesses are pitifully outgunned by medium sized businesses.

Now the initial really bad news had to do with unlimited markets.

An unlimited market is one in which a given producer can conceivably achieve a 100% market share, ie, the entire human population. For instance, it is conceivable that an Internet service provider, Microsoft, Coca-cola or British Airways could attain worldwide market share. This is because there is no limit to how many clients they can take on. All they have to do is appropriately expand their operation by adding facilities, distribution networks and employees, to keep up with demand.

Not only that, but the open market corporate model is one in which corporations are rewarded for being annihilators and actively wiping out their competitors.

This is why on the open market, tribal businesses, at least on the surface, cannot compete with hierarchical companies in unlimited markets. They can neither grow unlimitedly in reaction to demand as the larger corporations can, nor can they resist being attacked by annihilators.

That's what I said initially. Then I thought about it. Tribes do have an advantage, one that might allow them to not only survive, but flourish in an unlimited market.

Coca-cola and Pepsi are the two largest soda manufacturers in the world. But through a tacit collusion, neither company undercuts the other. They both sell their wares for the same price; knowing that if one lowered their price it would attract new customers (but incite a price war) and more importantly, it would CUT INTO PROFIT.

Corporations are always looking to maximise profits and so undercutting is generally not used.

I say generally because it can be used to great effect. Walmart has been known to move into an area, sell items below cost, drive their local competition to bankruptcy and then return their prices to normal; but this is not a sustainable long-term practice.

Tribes have no need to maximise profit. Tribes can SET their standard of living and only need to fulfil it.

So, say there was a tribal internet provider. They wouldn’t need huge startup capital. They could just buy a dedicated line and start taking on clients (most start-up corporations want to come in guns blazing to try and capture the largest market share and require huge investment). They would be small and only able to sustain a few members. Over time, they could take on more clients and grow, just like any other company in an unlimited market.

So what is their advantage?

UNDERCUTTING.

Because tribes have no obligation to maximise profit, they can sell their products at COST. Now cost does not mean the price of production, it means the price of maintaining the tribe’s standard of living.

A tribal business can charge VARIABLE rates depending on the client base. Say the overall budget for the business was $20 000 a month to maintain a tribe of 10 people and their infrastructure. Say they could service a client base of 2 000 customers. They then charge their customers $10 a month for the service. But say those same 10 people can service 3 000 customers. They have two options. They can watch their gross come in at $30 000 dollars, or they could lower their prices accordingly to $6.67 a month.

This process can contiune until a tribe reaches its maximum comfortable membership limit. Every time they add a new member and the operational costs go up and every time more clients are added, the rate changes. But because they are only charging cost rather than trying to maximise profit, they would likely be able to undercut the larger providers and survive in the open market.

The short term benefit of increasing the profit line is obvious but the long term benefit of keeping costs low is surviving next to giants. By maintaining a promise to clients that they will always keep the prices as low as possible (a promise that, unlike corporations, they can legally keep; because corporations are legally bound to maximise profit) they offer clients something that corporations simply cannot.

Because tribes have a limited growth potential (creating an environment in which MANY tribes can exist side by side) and (possibly) IF they run off the premise of the Post Information Age in which information is regarded as a public good to be shared freely, INTERTRIBAL INNOVATION would allow them to share their secrets with other tribes so that tribal businesses could together capture larger a larger market share until, ideally, the majority of markets were dominated by tribal businesses.

Peace and Love and Empathy,

Matt
MatthewJ
Mon Oct 9th, 2006 at 02:31 AM
Ghost is up late!!!

"Matt" wrote:
Because tribes have no obligation to maximise profit, they can sell their products at COST. Now cost does not mean the price of production, it means the price of maintaining the tribe’s standard of living.

But because they are only charging cost rather than trying to maximise profit, they would likely be able to undercut the larger providers and survive in the open market.


Hmm. At first I was suspicious of this, but, in thinking it over, I agree, with reservations.

Here is an example:

My family owns a business that is directly competing with Wal-Mart. Their prices and selection are similar. My family has a downtown location, Wal-Mart is just out of town. The Wal-mart has a larger selection and is serving a wider market (mainly electronics, food products, and outdoor supplies). Some items it sells are cheaper, while some are more expensive.

The employees in the store make under what I'd call a basic living, while the two owners take the profit - making quite a bit more. Classic employer employee relationship. Although I do not know the number, I would hazard to guess that if you redistributed what the owners make among the staff so as to support everyone with a decent living (15$/hour - 30 hour work weeks), there would be no remaining profit. However, then we are equalizing what the managers make and what hte workers make. Even tribally, the boss makes a bit more due to his or her added responcibilities.

Now, the store is staying afloat against Wal-Mart due to location and its history in the town. However, there is no way it could undercut Wal-Mart in terms of prices.

Wal-Mart is a well oiled machine, and, while they do make siginficant profits, this is mostly because of their size. I heard that only 1% of the money you give them is profit.

A smaller business is simply not going to have the efficiency of scale that a huge one does. My family's business is part of a larger co-op, so they do get some efficiency from that scale, but not to the extenet of Wal-Mart.

However, te business is staying afloat, so competition is possible. And I would imagine that if everyone were motivated to work at a personally invested level (i.e it were tribal), it would give the store a significant edge.

Anyway, Good stuff.
Ghost
Mon Oct 9th, 2006 at 03:22 AM
Hey, Matt.

Re-read the section about medium sized businesses (I even used Walmart as an example). It IS hard for tribal medium and small sized businesses to go up against hierarchical medium sized businesses.

Undercutting is a POSSIBLE advantage for tribal businesses in an unlimited market. Doesn't mean that it will always be available or that it will always work. But it's ONLY possible for tribal businesses. For instance, when Ford was selling the Model T, it was going for like $900 a pop or something. So he reinvested that money into the company and passed the savings on to the customer; bringing the price down to like $450 a pop. The Dodge brothers (founders of Dodge) saw their profit margin going up in smoke (money they needed to found Dodge) so they sued Ford and won. It's now illegal for the CEO of a corporation to spend corporate profit on anything that will not increase profit, ie, what Ford did, or like donating money to charity, or like cleaning up toxic waste your company dumped somewhere (the exception to that being if it's self-serving; like if donating to charity increases your public standing and leads people to buy more from you). In fact, Milton Friedman would call such an act IMMORAL.

There is no legislation binding cooperatives to increase shareholder profit because there are no shareholders and if there were they would be the tribemembers (I should double-check the Canda Cooperatives Act for that one). Tribes are esssentially non-profit organisations. They decide what they need, set a maximum level for growth (something a corporation, communist state, factory owner, king or slave owner would NEVER do) and produce to meet that need and no more. So whenever they make more than they need, they can reinvest it into the company, as Ford once did, and pass the savings onto the consumer. Thus, they aren't basing their prices off of the all-knowing, all-seeing, all-powerful market forces but rather, thier prices are always as low as they could possibly be. Thus, it's really easy, theoretically, for tribes to undercut their market force-driven rivals.

But like I said. It's a strategy that won't always work, just one that is available.

In the case of your family's business, remember that your suppliers are selling you your stock according to market forces (which is why Walmart can usually fuck you in the poop shute, becuse they can buy in mega-bulk). If your suppliers were part of your intertribal economy, they'd be selling to you at cost, brining down your overhead and allowing you to pass the savings on to your customers in the open market.

Peace and Love and Empathy,

Matt
memeshredder
Mon Oct 9th, 2006 at 11:38 AM
I like your comment about there being no 50,000 seat restaurant (unless you count the hot dog stands at college football games).

The economics you are describing are exactly why habitat and other large non-profits are so competetive. The actual number always changes, but Habtiat is one of the five largest developers and mortgage companies in the world. They accomplish this through serving people who are able to help themselves, rather than "feeding a man fish", they help build the boat.

I have learned to stop worrying and love at least county-level government. This is how building codes are set, and since habitat usually builds to the community standards, raising community standards is top priority for us, so that we may use our money in ways that enhance the community over time, rather than doing the same thing, every year.

I am currently working on using some of our land to start a community gardening program, with tie-ins to self-sufficiency, including food preservation and waste-recycling. I am going to ask for input on my program later this week on Ishcon when I get some other stuff out of the way first.
prometheus235
Mon Oct 9th, 2006 at 06:29 PM
that is exactly how we stay alive and afloat with the recording studio, by undercutting the competion.

The only problem we have so far is the inability to support from just the business, which is why we use a three-prong strategy.

First, we undercut and have a low standard of living, as far as actual money that is able to be spent on frivolty. The place is awesome, but that 4k/month in expenses is a killer

Second, we consciously try to operate under a hunter's strategy. Real foragers don't spend all day looking for one bison to kill when they can bag a deer in the first 20mins. One never knows where oppotunity will knock, so it is imperative that we keep our eyes open for new chances. I have made more money from on the fly deals than i ever have from the usual channels,ie advertising and waiting for the phone to ring.

Third, diversity in actions. do as much different things as you can, within the capacity of your tribe, to leverage activity in different ways into cash flow. i guess an example would be best

this month, we started with an art fest and italian feast, where we charged artists to show work, let viewers in free, and charged everyone to have an italian lunch. friday, i have a battleof the bands to judge, which we made money off of by selling studio/film time to the bar that is throwing it. Next week is for recording, and on halloween we are having a big bash, with fire/suspension show, belly dancers, acoustic sets from a couple of bands, all the beer and food one can drink, and to top it off 5 bars give our people free admin and free drinks or specials all night.


So, undercut, a forager strategy, and diversity in action has been what works for us.

Really, i could probably stop at the law office and survive off of tribal work, but i have a few large purchases that i must get before the apocalypse. Plus, my fiance' wants a makume, which is hurting me financially.

An advantage the early tribal startups can have is to own all your equipment. By owning your equipment, it allows you set your own pricing b/c aren't enslaved to make certain payments. Form an LLC and get credit cards under it. Get cash advances, and purchase your equipment. You won't be personally liable for any business purchase, and they can't come repossess the cash, nor prove you bought X item with it. some months you make the minimum, and others you drop aloton the principal. it allows foramore flexible pay plan than the bank's 850/month, with no negotiation allowed.

Somone had mentioned how it has been mostly artistic types of TBs, and lacking in more "solid" types of business such as pc repair or autoshop, or ac work.

I want to say that these business actually have better long term outlook, b/c they have a service or product that people need, rather than the arts, in which styles flitter in and out. I may be bigtime tribal theater now, but the a/c repair tribe has something lotso people will use in five years. i personally would like to see more "solid" businesses, rather than artsy stuff.

Though, I have been working on a theoretical business plan for a tribal titty bar, but I doubt that'll ever go anywhere.

just wanted to throw that out there.

R
JCamasto
Mon Oct 9th, 2006 at 10:39 PM
Cash obfuscation via credit advance under an LLC is quite an inspired bit of conniving.

I dig it.

-----

What's a makume?

-Jim
prometheus235
Mon Oct 9th, 2006 at 11:38 PM
one of these

www.mokume.com
Ghost
Tue Oct 10th, 2006 at 11:57 AM
Hey, Rory.

That's awesome! Thanks for sharing. I was talking about how undercutting was an important tool for surviving in unlimited markets but you've shown how businesses in limited markets can use it just as well to compete on the open market. I hadn't even thought of that. I don't think it's quite as necessary but it sure can't hurt 8)

I think you've nicely illustrated the central point. Your studio CAN undercut BECAUSE your tribal. You all COLLECTIVELY determine where to set your standard of living and work to fulfil that and no one can force you to work harder than that.

Nice point about startup capital.

Peace and Love and Empathy,

Matt
 
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