Extract
from Understanding the Financial System is
published as a tribute to Hazel Henderson ((27 March 1933-22 May 22) who passed away recently. She is thanked for her support and advice
in the Acknowledgements to my book, and she endorsed my earlier book,
What Everybody Really Wants to Know about Money.
* * * *
The
Henderson Cake
Extract
from Understanding the Financial System (p41-4)
The
corporate world is concerned with the securing of ownership and
control so that power can be exercised without responsibility. It is
not particularly interested in the needs of the poor, the concerns of
women or the state of the environment. The whole range of skills
associated with what it is to be a mature human being, the skills
Veblen termed ‘workmanlike’, are considered surplus to
requirements by the formal money economy. Nevertheless the corporate
world, and the political and economic institutions which give it
body, remain utterly dependent upon the land and its people for their
very existence. During the twentieth century a number of women have
written perceptively on the problems caused by irresponsible
profiteering, most notably Rachel Carson, Silent Spring.
The whole
picture has been comprehensively summarised by Hazel Henderson, who
likened the twentieth century economy to a layered cake. The top half
of the cake consists of the monetised, officially measured forms of
national production which generate all economic statistics, plus an
estimated 15% of monetised but illegal ‘underground’ forms of tax
dodging. The bottom half of the cake consists of the non-monetised
altruistic ‘Counter-Economy’ of social co-operation, which itself
is founded upon the real wealth of the natural world. The two bottom
layers subsidise the monetised layers, providing essential unpaid
labour and natural resources, with environmental costs being absorbed
if possible. Henderson terms the ‘Counter-Economy’
‘Sweat-Equity’: it includes ‘Do-it-yourself, bartering,
familial, community structures, unpaid household and parenting,
volunteering, sharing, mutual aid, caring for old and sick,
home-based production for use, subsistence agriculture’. (See: The
Politics of the Solar Age: The Alternative to Economism (1988)
and Building a Win-Win World: Life beyond Global Economic Warfare
(1996) The top monetised half of the ‘cake’ consists of all
activities for which money changes hands. ‘Official’ market
transactions are divided into private and public sectors, with the
former taking precedence. Private sector transactions are concerned
with production for market exchange, employment, consumption,
investment and savings. Public sector transactions are concerned with
the infrastructure, including
roads, bridges, sewers, schools, defence, and municipal, local and
state government.
It is
possible to take issue with Henderson’s portrayal of the private
sector of the cash economy as the top level of the ‘cake’,
suggesting that, like the icing, it is the most desirable yet least
sustainable part of the whole. To the simplistic controllers of the
corporate world, acquiring more of the monetised ‘icing’ may well
appear to be the only game worth playing. However, it is infants who
tend to desire the icing, while rejecting the nourishing richness of
the body of the cake. Feminist economist Susan Feiner has
perceptively portrayed ‘Rational’ Economic Man, the key actor in
the corporate world economy, as an infant, displaying a set of
behaviour patterns associated with siblings vying for the favours of
Mother Market. (See Susan Feiner,(1999) “A
portrait of Homo Economicus as a Young Man”, in Martha Woodmansee
and Mark Osteen (eds) The New Economic
Criticism, Routledge.) As any
parent knows, it is very difficult to reason with an incorrigible
infant. So far as the dominant males holding positions of power
within the key institutions of corporate capitalism are concerned,
there is no earthly reason for them to hold in check their
self-centred desires.
* * *
Hazel
Henderson (27 March 1933 – 22 May 2022)
was a
British American futurist and an economic iconoclast. In her later
career, she worked in television. She authored several books
including Building a Win-Win World, Beyond Globalization,
Planetary Citizenship (with Daisaku Ikeda), and Ethical
Markets: Growing the Green Economy.
Henderson
was a television producer for the public television series Ethical
Markets. She was Regent's Lecturer at the University of California
(Santa Barbara) and held the Horace Albright Chair in Conservation at
the University of California (Berkeley), and worked as a travelling
lecturer and panelist. In her later career, she has served on the
boards of such publications as Futures Research Quarterly, The State
of the Future Report, and E/The Environmental Magazine (US),
Resurgence, Foresight and Futures (UK). She advised the
US Office of Technology Assessment and the National Science
Foundation from 1974 to 1980. She was listed in Who's Who in the
World, Who's Who in Science and Technology, and in Who's
Who in Business and Finance.
Fritjof
Capra credits Henderson with being a major influence on his thinking
on ecological issues.
In 2005,
Henderson started Ethical Markets Media, LLC, to disseminate
information on green investing, socially responsible investing, green
business, green energy, business ethics news, environmentally
friendly technology, good corporate citizenship and sustainable
development by making available reports, articles, newsletters and
video gathered from around the world. In 2007, Henderson started
EthicalMarkets.TV to showcase video of people and organizations
around the world with socially responsible endeavors. Henderson was
awarded Honorary Doctor of Science degrees from the University of San
Francisco, Soka University, and Worcester Polytechnic Institute.
(Taken from
Wikipedia 27 May 22).