What Matters? - Wendell Berry

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the community. Chrematistics has not entirely displaced oikonomia, but it is trying to. In Wendell’s terms the little economy is trying to impose its puny logic on the mysteries and complexities of the Great Economy.

      Professional economists should thank Wendell for his sharp reminder about what matters. However, if we are too proud to accept correction from a poet and agrarian, we can claim to have rediscovered Aristotle’s forgotten definitions all by ourselves. But then we will still be obliged to apply those definitions to the modern world and be brought face to face with the collective fantasy, idiocy, and horror that Wendell has identified and discussed.

      The other thing economists can learn from Wendell Berry, as much from his example as from explicit discussion, has to do with the proper matching of our mode of thinking to the particular reality we are thinking about, and inevitably shaping. Blaise Pascal spoke of two modes of thinking: the “spirit of geometry” and the “spirit of finesse.” Similarly, economist Nicholas Georgescu-Roegen recently distinguished thinking with precisely defined analytic concepts that do not overlap with their other, from thinking with dialectical concepts that do overlap with their other at the boundaries. The best example of an analytic concept is a number. It is only itself and does not overlap with any other number. Land and sea would be dialectical concepts because, although for the most part distinct, they must overlap in tidal marshlands, estuaries, beaches, river deltas, or even the continental shelf, if they are to reflect reality. Each of these border areas in some reasonable sense is both land and sea—a logical contradiction but true to reality. Money is a notoriously dialectical concept, overlapping with nonmonetary assets of varying degrees of liquidity. When economists try to impose an analytical definition on money they end up multiplying categories (M1, M2, M3 . . .) or failing to capture the shaded subtleties of the borderlands. Analytical concepts employ mathematics to weed out contradictions where “yes-and-no” answers are not allowed. The virtue demanded by analytic thought is rigor; its defect is its inability to deal with qualitative change and evolution. If we do not allow something to overlap with its other then how could it ever evolve into anything different from what it is? The virtue of dialectical thinking is that it can accommodate qualitative change—what used to be dry land can gradually become sea or vice versa. Its defect is that it has to tolerate at least a range of contradiction. The virtue demanded by dialectical thought is good judgment, or as Pascal preferred, “finesse”—finesse in handling contradiction.

      Today analytic thought is very much in vogue, and in economics quite dominant. It has the aura of science. Analytic thinking requires a reality that is like a number, and since chrematistics is about the maximization of exchange value numerically measured by money, it tends to attract those with a strong prior commitment to analytical thinking. Dialectical thinking is required by a reality that changes qualitatively through overlapping categories. Oikonomia deals with use values that are embodied in products that evolve over the long run to serve changing wants, and with changing technical efficiency in an evolving community that coheres around values that also change. A preference for dialectical thinking leads to a focus on oikonomia, and vice versa.

      My point is not to say that one mode of thought is good and the other bad. Both are clearly necessary. There is a limit to what we can do with numbers, just as there is a limit to what we can do without them. But I do suggest that there is currently a bias toward the analytical and a corresponding prejudice against the dialectical. This quantitative bias is certainly not the only reason for the excessive importance given to chrematistics over oikonomia—greed, avarice, and intellectual sloth play a bigger role-—but I think it is a contributing factor. In sum, the second thing that economists can learn from Wendell Berry’s essays is that clear-headed reasoning with dialectical concepts about what matters is possible, necessary, and enlightening. Here Wendell persuades by example.

      When a problem yields neither to the spirit of geometry nor to the spirit of finesse, Wendell advises us to be more at home with ignorance and mystery. They are much better companions than either phony equations or empty verbiage, and more congenial to a creature trying to understand the overall workings of Creation and intuit the will of the Creator whose broken image he still bears.

      In my eagerness to convince my fellow economists to read this book, I am afraid that I have failed to specifically address the general reader. So, dear general reader, for whom Wendell Berry wrote these essays, let me assure you that if you have read this far, you have gotten through the most obscure and convoluted part of the book. The rest is smooth sailing with a clear-headed and trustworthy navigator, albeit through deep waters. The essays require wakeful attention and focused thought, but priestly intermediation by professional experts is surely not needed.

       I

       Money Versus Goods

      My economic point of view is from ground-level. It is a point of view sometimes described as “agrarian.” That means that in ordering the economy of a household or community or nation, I would put nature first, the economies of land use second, the manufacturing economy third, and the consumer economy fourth. The basis of such an economy would be broad, the successive layers narrowing in the order of their diminishing importance.

      The first law of such an economy would be what the agriculturalist Sir Albert Howard called “the law of return.” This law requires that what is taken from nature must be given back: The fertility cycle must be maintained in continuous rotation. The primary value in this economy would be the capacity of the natural and cultural systems to renew themselves. An authentic economy would be based upon renewable resources: land, water, ecological health. These resources, if they are to stay renewable in human use, will depend upon resources of culture that also must be kept renewable: accurate local memory, truthful accounting, continuous maintenance, un-wastefulness, and a democratic distribution of now-rare practical arts and skills. The economic virtues thus would be honesty, thrift, care, good work, generosity, and (since this is a creaturely and human, not a mechanical, economy) imagination, from which we have compassion. That primary value and these virtues are essential to what we have been calling “sustainability.”

      A properly ordered economy, putting nature first and consumption last, would start with the subsistence or household economy and proceed from that to the economy of markets. It would be the means by which people provide to themselves and to others the things necessary to support life: goods coming from nature and human work. It would distinguish between needs and mere wants, and it would grant a firm precedence to needs.

      A proper economy, moreover, would designate certain things as priceless. This would not be, as now, the “pricelessness” of things that are extremely rare or expensive, but would refer to things of absolute value, beyond and above any price that could be set upon them by any market. The things of absolute value would be fertile land, clean water and air, ecological health, and the capacity of nature to renew herself in the economic landscapes. Our nearest cultural precedent for this assignment of absolute value is biblical, as in Psalm 24 (“The earth is the Lord’s, and the fulness thereof . . .”) and Leviticus 25:23 (“The land shall not be sold forever . . .”). But there are precedents in all societies and traditions that have understood the land or the world as sacred—or, speaking practically, as possessing a suprahuman value. The rule of pricelessness clearly imposes certain limits upon the idea of land ownership. Owners would enjoy certain customary privileges, necessarily, as the land would be entrusted to their intelligence and responsibility. But they would be expected to use the land as its servants and on behalf of all the living.

      The present and now-failing economy is just about exactly opposite to the economy I have just described. Over a long time, and by means of a set of handy prevarications, our economy has become an anti-economy, a financial system without

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