Graeber is an anthropologist laying out an anthropological history of the economy and money. He outlines several themes though the book, touching on the interactions between credit/debt, slavery, violence, etc.
He was one of the organizers of the Occupy Wall Street movement. So I was expecting his politics to clash with mine, but that expectation did not play out.
Starting point is a dismissal of the “barter myth explanation” for the development of money and the market. The anthropological evidence shows that ancient peoples did not barter in their day-to-day life. Instead, a better model is that “credit/debt” was the basis of the economy. Layered on this was the development of the “state” wherein “violence” was an alternate mechanism for resource exchange and debt resolution.
Graeber describes 3 types of “human economies”: communism, hierarchy, and market.
In his usage, ‘communism’ is NOT socialism. Communism is “from each according to his ability, to each according to his needs”. From the anthropological evidence, this is the “economy” is effect in small tribal groups. The better hunters share their kills with the tribe. The artisans share their creations, the medicine women share their knowledge of herbal cures, etc.
Graeber also presents evidence of this communist economy through the ages. In a village, people may “run a tab” at the butcher, baker, or pub, settling the account at harvest time.
In medieval times, after the fall of the Roman Empire (and the disappearance of Roman currency), accounts were kept on paper or with tally sticks. The village would meet twice a year and settle the accounts.
The anthropological literature has many cases of gift-based economies. People would give gifts or do favours to others in the tribe. The ‘accounting’ was an “I owe you a favour” approach. Eventually, a gift/favour would be returned. Ideally, the return gift would be a bit better than the original gift. This minor imbalance would in turn need a gift back. The whole community was thus in a situation where everyone indebted to their neighbours.
Hierarchical is the second form of economy. Think ‘feudalism’. The guys with the weapons took whatever they wanted from the peons.
The origins of the market economy (and money) arose as the reach of hierarchies expanded. E.g., coined money in the Roman Empire was used to supply the Roman armies with food and other needs. The Romans insisted that taxes be paid using this coined money, thus creating a demand for coined money.
Another theme through the book is how slavery, debt, and usury (interest) were intertwined. Hard to summarize…
Bottom line: A very interesting book. Presents a lot of mind-stretching ideas and themes. Somewhat scatter-shot in presenting the ideas/themes. I found it hard (often) to understand “what’s the point Graeber is making in this section?”