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Taylor & Francis, Ltd. is collaborating with JSTOR to digitize, preserve and extend access to Review of Social Economy. http://www.jstor.org Taylor & Francis, Ltd. EMULATION: AN INSTITUTIONAL THEORY OF VALUE FORMATION Author(s): William M. Dugger Source: Review of Social Economy, Vol. 47, No. 2 (Summer, 1989), pp. 134-154 Published by: Taylor & Francis, Ltd. Stable URL: http://www.jstor.org/stable/29769450 Accessed: 14-10-2015 20:53 UTC REFERENCES Linked references are available on JSTOR for this article: http://www.jstor.org/stable/29769450?seq=1&cid=pdf-reference#references_tab_contents You may need to log in to JSTOR to access the linked references. Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at http://www.jstor.org/page/ info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions EMULATION: AN INSTITUTIONAL THEORY OF VALUE FORMATION* By William M. Dugger** DePaul University INTRODUCTION Illegal insider trading in the stock market is a highly visible symbol of the fact that American morality is on the decline. Our values are degenerating. The pundits of the New right have noticed the decline and the degeneration but blame them on the rise of the liberal welfare state and on the spread of the so-called permissiveness that allegedly has accompanied the liberal welfare state. [Gilder, 1981] But the reactionaries are wrong. They have set up a scapegoat. And they wish to re-establish the authority of a more patriotic, patriarchal, and respectful age. Their nostalgia is not harmless, for their reminiscences reek of proto-fascism, and the reasons they give for our moral malaise are dangerously deluded. In short, the reactionary conven? tional wisdom as to why morals are declining and values degenerating is wholly inadequate. More adequate insight can be gained into value forma? tion and value transmission by contrasting how socialization processes affect the individual in a hegemonic institutional structure versus a pluralistic institutional structure and by exploring emulation ? a socialization process that is transforming pluralism into hegemony in the United States. Here is the cause of moral degeneration in the United States, not the permissive? ness of the liberal welfare state, for pluralism fosters free will and moral integrity while hegemony fosters mindless conformity and moral opportun? ism. Besides, the insider traders responsible for demoralizing our securities markets were not exactly products of the welfare system. The reactionaries of the 1980s were right about only one thing: something has gone dreadfully wrong with American values. Nevertheless, we must turn away from reaction to understand what and why. This journal pub? lished a formal framework that can be used to analyze the shortcomings of rampant consumerism. [Dugger, 1985c] And in a major book, Christopher *0034-6764/89/0601-l/$1.50/0. **Presented at the annual meetings of the Association for Social Economics, December, 1987, Chicago. Generous release time and support was provided by DePaul's College of Commerce, and by the Dean of the College of Commerce, Brother Leo V. Ryan, C.S.V. Rick Tilman and Kendall P. Cochran made careful comments on an earlier draft. John B. Davis, Arnold McKee, Robert A. Solo, and anonymous referees for this journal were helpful. The views are my own alone. 134 This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions EMULATION 135 Lasch summarized several decades of social and psychological research: William H. Whyte's "organization man" Erich Fromm's "market oriented personality," Karen Horney's "neurotic personality of our time," and the studies of American national character by Margaret Mead and Geoffrey Gorer all captured essential aspects of the new man: his eagerness to get along well with others; his need to organize even his private life in accordance with the requirements of large organizations; his attempt to sell himself as if his own personality were a commodity with an assignable market value; his neurotic need for affection, reassurance, and oral gratification; the corruptibility of his values. [1978, pp. 63-64] So the evidence is in; the reactionaries are right; American values are slipping. In fact, Lasch believes that we have slipped so low that, "[T]he prostitute, not the salesman, best exemplifies the qualities indispensable to success in American society." [Lasch, 1978, p. 64] But why has this happened? Who is to blame? Where do values come from and how are they corrupted? To what extent are the values an individual holds products of that individual's intellect and will? To what extent are those values products of the social milieu in which the individual is engaged? These questions in value theory (not to be confused with questions in price theory) are similar to the nature versus nurture questions in social theory. These questions are the meat and drink of social economics. These questions are also central to the philosophical debate between the methodological individualists and the methodological collectivists. Under methodological individualism, the individual invents her own values through her free will ? institutions do not value; only individuals value. But under methodological collectivism, the individual is taught traditional val? ues through socialization into a set of institutions. No definitive answer can be given to these methodological questions. But insight can be gained by contrasting how socialization processes affect the individual in a hegemonic social milieu versus a pluralistic social milieu and by exploring emulation ? a socialization process that transforms a pluralistic institutional structure, conducive to free will, into a hegemonic institutional structure, conducive to mindless conformity. Pluralism is the domain of methodological individual? ism because pluralism provides the social conditions necessary for the exercise of individual intellect and free will. Hegemony, on the other hand, is the domain of methodological collectivism because hegemony provides the social conditions necessary for the inculcation of traditional or authori? tarian values. Emulation is important. It is the driving force behind the transformation of pluralism into hegemony, of free will into mindless con? formity. This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions 136 REVIEW OF SOCIAL ECONOMY Pluralism is the crucible of individuality. A pluralistic society is made up of autonomous, conflicting institutions. In a pluralistic milieu, the individual participates in independent and autonomous institutions, each of which focuses on values that contradict the values of the others. These institutional contradictions force the individuals caught up in them to exercise their intellects and their wills in constructing their own sets of values out of the conflicting and competing values they encounter as members of different, autonomous institutions. Or, perhaps, these institutional contradictions force the individuals caught up in them to go mad. In a hegemonic milieu, on the other hand, there is no such risk and no such challenge.A hegemonic society is made up of dependent, complementary institutions. In a hege? monic milieu, the individual participates in dependent and coordinated institutions, each of which reinforces the values of the others. These institu? tional reinforcements allow the individual simply to absorb the values inculcated, exercising a minimum of will and intellect in the process. If the values of different institutions reinforce each other, no act of will or intellect is necessary to construct a set of values. The already constructed ones can be accepted without adaptation or amendment. Mindless conformity to existing values is all that is needed. Rather than struggling against the gathering chaos and potential madness to make ethical and moral sense out of one s experiences in conflicting institutions, no struggle is necessary, no madness is risked, no chaos is encountered. Passive acceptance is easy, risk free. In short, pluralism forces individuals to be ethnically active and mindful; hegemony forces individuals to be ethically passive and mindless. [Classic treatments are Gramsci, 1971 and Gerth and Mills, 1953] EMULATION Definition Emulation is competition for status. It is personal rivalry based on envy. The rivalry is directed against one's competitors by becoming like one's betters. Acquiring the symbols of high status and displaying them to others, while simultaneously denying them to others, is the essence of emulation. Emulation is what drives the rat race. Viewed in the large, emulation is clearly irrational. Each individual in the emulative race tries to get ahead of every other individual. But, since we cannot all get ahead of everyone else, trying to do so is irrational. C. Wright Mills called the race the status panic, and he argued that the movement of millions of people into white collar employment in large, bureaucratic organizations significantly stepped up the panic. [Mills, 1951, pp. 239-58] The only rational thing for an individual to do when caught up in such a race or in such a panic is to drop out. But few This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions EMULATION 137 do so. Only the hippies, the earlier beatniks, and the bohemians before them, have seen the light. These secular monks, these strange inhabitants of even stranger cloisters, these refugees from materialism run amuck, have induced few to follow them. Like their religious counterparts, they are not of the mainstream. Thorstein Veblen was probably the first secular thinker in America to understand fully the deep irrationality of the emulative life. [Veblen, 1975] Veblen was a secular humanist, outside the Judeo-Christian tradition. Nevertheless, his "Christian Morals and the Competitive System" was a profound statement of a social gospel in the United States. Of course, he found the two incompatible. [Veblen, 1964] The Rationalization Myth Max Weber argued that Western man was rapidly rationalizing his world by modernizing his organizations in both the private sector and the public sector. The modern organization, Weber argued, was based on bureaucracy ? on the impersonal and rational application, on a large scale, by trained specialists, of formal rules to the pursuit of shared objectives. These ration? ally organized human activities would be the wellsprings of progress, ban? ishing the outmoded, honorific behaviors that used to interfere with the coordination of human action in pursuit of goals, or so Weber and most mainstream social scientists thought at the beginning of the twentieth century. [Weber, 1946, pp. 51-55 and 196-264] But in analyzing the impact of the organizational revolution, Weber grossly underestimated the impor? tance of emulation, particularly in corporate capitalism. Contrary to Webers false optimism, the organizational revolution did not reduce the irrationality of status; it did not free us from envy and spite. Instead ? as Lasch summarized the findings of psychologists, sociologists, and anthropologists ? the bureaucratic organizational revolution actually increased envy and spite, particularly in the United States. The U.S. Census Bureau does not classify occupations as bureaucratic and nonbureaucratic, so to show the twentieth century movement of Ameri? can workers into bureaucratic occupations, a proxy has been constructed for the number of people engaged in bureaucratic occupations. My proxy includes accountants and auditors, managers, officials, and proprietors, excluding farm, and clerical and kindred workers. Unfortunately, nonfarm proprietors are not tabulated separately by the Census Bureau, so my proxy includes them as being in bureaucratic occupations. My proxy measurement of people engaged in bureaucratic occupations from 1900 to 1970 is shown in Table 1. Bureaucratic occupations accounted for 2.6 million economically active people in 1900, which was 9 percent of the total economically active This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions 138 REVIEW OF SOCIAL ECONOMY population. After steadily rising throughout the century, bureaucratic occu? pations accounted for 20.4 million people in 1970, 25 percent of the total economically active population in both the public and the private sectors. My proxy measure shows that, by 1970, one out of four of the economically active population was a "bureaucrat," was engaged in telling others what to do, rather than doing it themselves and/or was engaged in checking, record? ing, filing, and tabulating how those people do it. TABLE 1 MOVEMENT INTO BUREAUCRATIC OCCUPATIONS, 1900-1970 (In thousands) Mgrs, Officials, Accountants, Total in Total Econ. & Proprietors, Auditors, & Bureaucratic Active Percent Year exc. Farm Clerical Occupations Population of Total 1900 1,697 900 2,597 29,030 9% 1910 2,462 2,026 4,488 37,291 12% 1920 2,803 3,503 6,306 42,206 15% 1930 3,614 4,528 8,142 48,686 17% 1940 3,770 5,220 8,990 51,742 17% 1950 5,155 7,232 12,777 58,999 22% 1960 5,489 10,094 15,583 67,990 23% 1970 6,224 14,170 20,394 80,603 25% Source: Bureau of the Census, Historical Statistics of the United States, Colonial Times to 1970; Bicentennial Edition (Washington, D.C.: U.S. Government Printing Office, 1975), pp. 140-41. But my proxy measure constructed from occupational data misses an important dimension of bureaucracy. Bureaucracy has to do not only with the occupation of employees but also with the size of employers. Bureauc? racy means large-sized organizations. Tables 2 and 3 show the size dimen? sion of U.S. companies. The picture presented in the following tables is one of a dual economy composed, on one hand, of millions of insignificantly small companies and, on the other hand, of a few thousand significantly larger giants. [Further discussion of the dual economy is in Averitt, 1968.] In 1982 the giants accounted for about one-fourth of all employees, one-third of all payroll, and one-fourth of all sales and receipts of surveyed companies. This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions EMULATION 139 TABLE 2 EMPLOYMENT, PAYROLL, AND SALES AND RECEIPTS BY COMPANY SIZE, 1982 Company Size by Number of Employees Number of Companies Number of Employees Annual Payroll (millions of i Sales and Receipts (millions of $) All Companies Over 999 Over 9,999 Companies in Manufacturing Over 999 Over 9,999 Companies in Retail Trade Over 999 Over 9,999 Companies in Services Over 999 Over 9,999 Companies in MineralsOver 999 Over 9,999 Companies in Construction Over 999 Over 9,999 Companies in Wholesale Trade Over 999 Over 9,999 Companies in Agriculture Over 999 Over 9,999 4,256,243 3,506 444 293,556 1,875 300 1,055,095 626 83 1,220,631 516 42 43,366 93 4 449,388 150 11 326,492 156 4 867,715 90 none 61,660,233 23,032,904 14,938,420 22,007,978 14,256,681 9,904,062 14,845,081 5,269,865 3,768,835 10,792,294 1,992,491 826,176 815,667 321,126 61,240 4,321,677 653,989 317,547 4,120,876 384,559 60,560 4,756,660 154,193 none 913,862 435,882 297,030 442,415 319,535 234,606 137,170 55,255 40,111 153,622 27,336 10,462 19,250 8,519 1,678 80,066 17,265 9,090 73,157 7,631 1,084 8,182 345 none 5,362,011 2,338,080 1,504,000 2,198,920 1,630,789 1,166,685 1,039,454 373,966 257,915 423,477 82,772 30,824 125,056 55,760 7,697 329,452 62,345 26,994 1,150,690 130,252 13,885 94,963 2,195 none Source: Bureau of the Census, 1982 Enterprise Statistics, General Report on Indus? trial Organization (Washington, D.C.: U.S. Government Printing Office, 1986), pp. 93-145. This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions 140 REVIEW OF SOCIAL ECONOMY TABLE 3 SHARES OF EMPLOYMENT, PAYROLL, AND SALES AND RECEIPTS BY COMPANY SIZE, 1982 (In Percent) Size by Number of Employees Percent of Companies Percent of Employees Percent of Payroll Percent of Sales & Receipts All Companies Over 999 Over 9,999 Manufacturing Over 999 Over 9,999 Retail Trade Over 999 Over 9,999 Services Over 999 Over 9,999 Minerals Over 999 Over 9,999 Construction Over 999 Over 9,999 Wholesale Trade Over 999 Over 9,999 Agriculture Over 999 Over 9,999 100.00 0.08 0.01 100.00 6.39 0.10 100.00 0.06 0.01 100.00 0.04 A 100.00 2.14 0.01 100.00 0.03 A 100.00 0.05 A 100.00 0.01 none 100.00 37.35 24.23 100.00 64.78 45.00 100.00 35.50 25.39 100.00 18.46 7.66 100.00 39.37 7.51 100.00 15.13 7.35 100.00 9.33 1.47 100.00 3.24 none 100.00 47.70 32.50 100.00 72.73 53.03 100.00 40.28 29.24 100.00 17.79 6.81 100.00 44.25 8.72 100.00 21.56 11.35 100.00 10.43 1.48 100.00 4.22 none 100.00 43.60 28.05 100.00 74.16 53.06 100.00 35.98 24.81 100.00 19.55 7.28 100.00 44.59 6.15 100.00 18.92 8.19 100.00 11.32 1.21 100.00 2.31 none Note: A = less than 0.01 percent. Source: Author's calculations from Table 2. Concentration by organization size has gone to extraordinary lengths in the dual economy. The most size-skewed sector clearly is manufacturing, where a small number of giant companies with over 9,999 employees account for an inordinately large share of all manufacturing employees. The 300 giant manufacturing companies of Table 2, though only 0.10 percent of all manufacturing companies, employ nearly half of all employees ? 45.00 percent, to be exact. As shown in Table 3, these giants account for over half of the payroll in all of manufacturing and for over half of the sales and This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions EMULATION 141 receipts as well. Manufacturing is not the only size-skewed sector. The giants in all sectors employed about one-fourth of all employees, even though those giants accounted for only 0.01 percent of all companies surveyed by the Bureau of the Census. After manufacturing, the next most size-skewed sector is the retail sales sector, which is composed of millions of tiny companies and then a relative handful of behemoths. Even the service sector is size-skewed. The 42 giants in services, though a minuscule propor? tion of the million-and-a-quarter service companies, accounted for 8 percent of all service employees. The minerals, including petroleum, and construc? tion sectors show a similar size distribution. The only sectors where the size-skew has not gone very far are wholesale trade and agriculture. But their day is coming. If the trend continues, they will not escape the drive toward immense size and the accompanying bureaucracy. Large size and the requisite bureaucratic organization that accompanies it put people into large-scale enterprises composed of finely graded systems of organized ranks. Each rank fits into the well-known pyramid of authority or organization chart shown in all the business management textbooks. Higher ranks supervise the lower ranks, making sure that the goals of the organization, set at the top, are achieved, by those at the bottom. To reinforce their authority, the higher ranks are given more power, more income, and more status than the lower ranks. This ranking of organizational authority to supervise getting the job done does help get the job done, but in the United States it has also greatly aggravated the envy and spite of an individualistic people fresh from the raw struggles of the frontier. So, the bureaucratic organization of business corporations greatly intensified emu? lation in America. In the 1950s C. Wright Mills described the result as the "status panic," and he described the psychology of the white collar employee caught up in it as "the psychology of prestige striving." [Mills, 1951, p. 240] William H. Whyte, Ir. explained that the organizational revo? lution in America had given rise to the "organization man." Whyte describes these new men: They are competing; all but the fools know this ? but for what, and against whom? They don't know, and there is the trap. To keep even, they must push ahead, and though they might like to do it only slightly, who is to say what slightly is. Their contemporaries are in precisely the same doubt, and thus they all end up competing against one another as rapaciously as if their hearts were set on the presidency itself. [1957, p. 176] Rosabeth Moss Kanter found quite similar kinds of distortions in the organization woman when she studied the corporate world in the 1970s. This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions 142 REVIEW OF SOCIAL ECONOMY [Kanter, 1977] Michael Maccoby, in a psychological study of corporate executives, found that fear and anxiety were pervasive in the organizational world. [Maccoby, 1976, pp. 200-204] More recently, in the 1980s, Terrence E. Deal and Allan A. Kennedy find that organizations are becoming highly manipulative, forming their own little "corporate cultures" to indoctrinate and to motivate their striving employees. [Deal and Kennedy, 1982] Also, Ralph Nader and William Taylor interviewed several top executives, finding them to be aggressively manipulative and socially irresponsible in the pursuit of their driving ambitions. [Nader and Taylor, 1986] Grouping individualistic careerists close together in large companies and putting them in ranks, particularly when they are out to make a buck for themselves in a business career, make them more personally competitive and more acutely aware of gradations in status. The constant personal contact between business rivals, which occurs in corporate bureaucracies, has made Americans far more emulative. It makes them corporadoes, the twentieth century equivalents of the nineteenth century desperadoes.So the bureaucratic principle applied to corporate organization has not pro? moted rationality, at least not in the character of the great American middle class. Instead, because it has intensified emulation in an already envious people, it has added more than a touch of frenzy to the American character. These are strong statements, but they are fully supported by the psychologi? cal, sociological, and organizational evidence. [Further discussion is in Dugger, 1980, 1984, 1985a.] The Importance of Emulation Emulation distorts the culture as much as it distorts the individual. Emulation is of fundamental significance to pluralism because it eats away the separating walls so important to the theory and practice of pluralism. A pluralistic society is supposed to be composed of separate, independent institutions. Within each institutional sphere, participating individuals par? take of and contribute to the values, beliefs, and meanings of that sphere. As long as the institutions are roughly coequal, the beliefs, meanings and values of each can more or less coexist. But with the rise to preeminence of one institution, the individuals participating in all the different institutional spheres begin to emulate the values, beliefs, and meanings of the one preeminent institution ? forsaking the values, beliefs, and meanings of the alternative, declining institutions. Emulation facilitates the interpenetration of the dominant institution's values because, in the case of twentieth century America, it allows a corporate leader to usurp leadership roles in other institutional spheres without the participants in those other spheres object This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions EMULATION 143 ing to the usurpation. Successful corporate leaders, though they lack expertise in other areas of life, can use the aura of status that surrounds them as leaders in the corporate sphere of life to support them in leadership roles in other spheres of life. Because corporate executives are emulated by those in all walks of life, churchmen, educators, government officials, even family members accept the status claims of a corporate leader, even in noncorporate affairs. The acceptance of status claims is not reciprocated, however. This last point is extremely important. Emulation is a strictly one-way relation. For exam? ple, while a leading educator would be hesitant about telling a leading corporate executive to mind his own business, particularly if the busines sperson is a contributor to the endowment, a corporate leader would feel far less status anxiety in doing so to a leading educator, even though the educator supplies the businessperson with needed trained employees. The status, wealth, and power of the leading corporate executive all contribute, through the power of emulation, to his/her overwhelming ability to domi? nate those who lack them. Emulation is the principal avenue of domination. It corrodes away the independent worth of competing others. It belittles the many as it elevates the few, and it enforces a competitive conformity on us all. Although big businessmen give advice to everybody else, they accept advice only from other big businessmen ? witness the predominance of corporate executives on national-level presidential advisory commissions, on university governing boards, on church boards, and on the various philanthropic boards. The token representation of churchmen and educators on the boards of large corporations is merely the exception that proves the rule. Nonreciprocal emulation allows the corporate institutional sphere to penetrade the other institutional spheres while remaining inviolate itself. The only significant exception to nonreciprocal emulation is the consulting relation between big name business professors and their corporate clients. But that relation has become so incestuous that it is difficult to tell the difference between the academics and the businesspersons, if differences remain. [Mark, 1987] Those who think that American society is still pluralistic go to great lengths to separate wealth, power, and status, in theory, as if doing so would keep us safe, in fact, from the emerging corporate hegemony. [Further discussion of the pluralism debate is in Dahl, 1961 and Domhoff, 1983.] But emulation ties all three together. That is, emulation makes the power of the wealthy legitimate and the wealth of the powerful respectable by inducing the ambitious among us to admire them both. So emulation protects the use This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions 144 REVIEW OF SOCIAL ECONOMY of corporate power by cloaking it with the status of legitimacy, thus turning raw corporate power into accepted authority. Emulation also protects the accumulation of corporate wealth by admiring it, thus turning the spoils of power into the fruits of enterprise. Emulation is the strongest integrating force working on our culture. Unfortunately, the first major social scientist to explain the integrative effect of emulation on American culture, Thorstein Veblen, did so in a writing style so droll that after reading him, it is hard to take emulation seriously, as he certainly did. His Theory of the Leisure Class, published first in 1899, is a literary classic and is still widely read as the definitive statement on emulation in American culture. [See the Mentor edition, 1953, for the C. Wright Mills introduction.] "Conspicuous con? sumption" and other phrases from it have become standards parts of the language. But rather than just something to snicker at, emulation gives the lie to the pluralist picture of America. Not only does emulation allow the corporation to break through the walls of other institutional orders without reprisals and to integrate all three forms of social standing ? wealth, power, and status ? into an impressive whole, that whole being a cultural phalanx, if you will, but emulation also allows the corporation to recruit and coopt into its lower ranks a steady stream of highly ambitious and highly talented young bloods from whichever institu? tional spheres of life and from whatever social strata it desires. The young man or woman on the make admires and envies the successful corporate executive, not the politician, not the churchman, not the teacher, and certainly not the housewife. This admiration and envy gives the corporation the first pick of middle class American youth. And ever since the closing of the frontier, they have pushed their way aggressively into the higher corporate ranks. [See Warner, 1959, Lipset and Bendix, 1964, and Jencks, et al, 1979] Emulation penetrates so deeply into our culture that it poisons the simple things in life. Not even Thoreau and his Waiden would be exempt from the effects of emulation. Were he alive, his gardening technique would be sold in serial form to women's magazines, his little cabin would be duplicated all over upstate New York and New Hampshire, and he would be beseiged by new commercial offers night and day. His picture would be on the covers of Time and Newsweek simultaneously, making him a celebrity known to all, and making it impossible for him to continue living the good life. The simple, contemplative life has become virtually impossible for any self respecting American. The hippies, the secular monks, were the last ones to try it seriously and look what happened to them: Their clothes were turned into high-fashion, their hair became a smash Broadway musical, their slang This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC Alluse subject to JSTOR Terms and Conditions EMULATION 145 became high English, their neuroses became the stuff of avant-garde psy? chology, their recreational drugs became the cutting edge of consciousness, and their symbols of rebellion became cultural icons. After the hippies, even status-seeking Muscovites wear bluejeans. So hungry is this world of hire? lings for new things to emulate and so boring is this world of corporate conformists, that any simple act of creative living will be immediately snapped up, commercialized, and all the fun completely emulated out of it forever. The best example of the emulative dry rot is in physical fitness. The simple, creative act of being more physically comfortable with oneself by cutting out cigarettes and drugs and by getting some fresh air and exercise has turned into a fitness mania. Smokers, in addition to druggers, now face legal sanctions and social ostracism. And while participation in health clubs, spas, and diets is becoming mandatory for everyone, masochistic joggers and speed-crazed bikers have taken over our sidewalks and parks. Emulation has touched even our debauchery with the dry rot. You cannot just roll one of your own, light up, pass it around, and get stoned. Before you do, you must finish an elaborate, emulative ceremony that goes something like this: First you have to discuss the genetic origins of your grass, describing how and where it was grown ? indoors or out, artificial or natural light, and what kind of soil ? trying all along to impress everyone with the quality of your cannabis and with the stylishly advanced nature of your personal knowledge of drugs. Next, you must state whether it came from a male or a female plant, and compare it, invidiously, to the local, national, and international varieties available at the time. Only then will people consider having a hit with you. But after all that, the thrill is gone. For those who prefer legal drugs, the fun of getting drunk on cheap wine is now out of the question, even for the lower classes. For all but the destitute, wine drinking has become a highly competitive sport, complete with spe? cialized magazines, newspaper columnists, wine-tasting classes, and snob? bery raised to the nth degree. With wine in permanent decline, beer swilling is being ruined by imported brands, and hard liquor is running against the grain of the physical fitness craze. No wonder people are drying out and going straight. The fun is gone from drinking and drugs. The only things left of the hippie trinity (sex, drugs, rock and roll) are sex and rock and roll. But rock and roll lost its soul years ago to commercialization and payola and what with the rise of the sex manual, the spontaneity of sex is gone too. Everything, now, is competitive and commercial. [An analytical framework is in Dugger, 1985c] So, of course, now the detox centers and rehab programs are being redesigned for the emulative. What with the wife of a former President This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions 146 REVIEW OF SOCIAL ECONOMY opening up her own substance abuse center for rich and famous drunks and druggies (Betty Ford), and what with the wife of the current President frequently visiting various substance abuse centers to sell them and herself on national television, the repentant abusers are all paying $400 a day to dry out in the proper style. Pity the old-time, ex-junkie who has managed to turn straight and just wants to help others do the same. He has no one to help. They are all tastefully straightening themselves out at high-brow drug centers, rubbing elbows with the elite, getting on national television with Nancy Reagan, and crowding out the honest, simple abuser who just wants to quit. Drinking and drugging will never be the same again. Because of emulation, even recreational drug use has become a competitive pastime for middle class climbers, and visits to expensively stylish detox centers have become symbols of arrival. The spreading drug phenomenon in America shows the strength of emulation and the relative weakness of advertising in the shaping of American culture. For it is emulation, not advertising, that has led to the widespread use of illegal drugs. Alcohol may be another matter, though. The spreading drug phenomenon also shows something about the U.S. labor movement. Labor leaders are not joining hands with their member? ship in the name of national sanity and class solidarity to overthrow their drug-crazed masters. Instead, in the name of progress and more for us, the most aggressive trade unions are pushing for insurance coverage of detoxing at substance abuse centers in their collective bargaining contracts. The labor leadership is eager for their membership to share in all the good things in life. So, of course, is the membership. It does not want to transform the way of life but to have more of it for itself. Labor is striving mightily not to be left behind in the mad emulative scramble. Emulation is the American way. Emulation, not sanity, and certainly not class solidarity, shapes the folkways of the U.S.A. Emulation s Impact on the Institutional Order Emulation does more than just poison the folkways. It also distorts the entire institutional order by forging it into hegemony rather than plurality. Emulation makes the corporate leader's prestige count in noncorporate institutions, insuring corporate domination of the noncorporate world. Busi? nessmen have long tried to buy their way into positions of respect and power outside of their own narrow fields of activity. Nevertheless, like gangsters, they have found it difficult to buy status in the eyes of those outside the business. Status is not a simple function of wealth alone. However, with the rising prestige of corporate leadership roles, the position This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions EMULATION 147 of the businessmen occupying those roles has changed fundamentally vis-a? vis those outside the business world. Now corporate leadership roles can be used to transform their occupants' high standing in the corporate world into equally high standing in the noncorporate world. The emulative transfer? ence of role status can do what money alone cannot ? give a big business? man the same status and power outside his business role as he has attained inside it. This emulative transference of role status is replacing institutional plurality with hegemony. In the educational sphere, the emulative transference of role status allows corporate leaders to assume leadership roles in the schools. When educa? tional leaders at the national or state level desire a new direction in education, they often turn to corporate leadership to provide it. For exam? ple, in 1985 when the state of Texas tried to develop new directions in education, it turned for leadership to H. Ross Perot, founder and former CEO of the old Electronic Data Systems Corporation (EDS was acquired by GMC, along with Hughes Aircraft, in a major diversification move in 1985). Perot became a major force within the Texas educational establishment. [Rips, 1985] Corporate leaders dominate the governing boards of universi? ties and colleges, even state ones, giving a decidedly corporate flavor to university fiscal affairs. Corporate domination goes beyond the fiscal office into the curriculum itself. Business schools are the most notorious, often being little more than vocational training centers for corporate-bound youth. This scandalous state of educational affairs is exemplified by an episode at the William E.Simon School of Business of the University of Rochester. According to articles in the New York Times, Mr. Tfuneo Sakai, an employee of the Fuji company of Japan, applied in 1987 for admission to the Simon School. He was admitted, but his admission was then rescinded by the Business School after the Eastman Kodak Company, a long-time supporter of the University of Rochester, suggested that it would withdraw its employ? ees from classes at the Business School. The Fuji Company is a business rival of Kodak, and Kodak did not appreciate a Fuji employee at the Rochester school. After first admitting Mr. Sakai, then rescinding his admis? sion, the school reversed itself again. Seems the influential financier after whom the business school is named ? William E. Simon ? and the business school faculty were able to overturn the cancellation. Nevertheless, Mr. Sakai plans to attend the Alfred E. Sloan School of Management of MIT. [Daniels, 1987a, 1987b; also Dugger, 1974] Even in the pure liberal arts college, with no business school at all, corporate vocationalism is advancing rapidly in the form of runaway enroll? ment in the college s economics department. In such instances, the eco This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions 148 REVIEW OF SOCIAL ECONOMY nomics department capitalizes on its new-found emulative popularity by offering mostly vocational courses of a decidedly business school nature like accounting, marketing, management, and finance. When a true economics course is offered, like micro, macro, or development, its content is blue sky. The content of economics courses has been determined, more or less for two decades now, by the Joint Council on Economic Education. The Joint Council is a corporate dominated group that funds workshops, seminars, and curriculum guides for economics teachers all over the country. [Domhoff, 1983, pp. 103-105] The substance of its workshops, seminars, and curricu? lum guides is free enterprise, Pollyanna-economics. It is boringly upbeat, optimistic, American, and pro-business. Every economic cloud has a silver lining. We will all get rich, by and by, if we deserve it. The propaganda is dished out as if it were purely the result of rigorous scientific investigation. While dishing it out, the instructors surround themselves with a false aura of scientific objectivity, constantly referring to the laws of supply and demand as if they were the equivalent of the laws of physics and couching their ideology in mathematical rigor. Some teachers of economics have resisted this corruption of the discipline with great courage and imagination. Theirs has been a valiant but losing battle. When forced to do battle with the objectivity of science, the rigor of mathematics, and the prestige of the corporate executive, the simple hon? esty of the schoolmarm and the intellectual integrity of the college prof are hopelessly outclassed. In the educational sphere of institutions, the war has been lost to corporate emulation. In the religious sphere of institutions, many American churches have long been dominated by the business animus, if not by the businessman himself. Among the smaller churches, most of which are constantly on the verge of financial collapse, church leaders must be more businessmen than church? men. Survival requires financial, not spiritual ability. Here the effects of emulation are the strongest. The television and radio churches are orga? nized on a business basis from the very beginning. They buy airtime to deliver a spiritual service over the public airways, and they solicit a mone? tary payment for it in return. If what they pay for the airtime and for their solicitation and related expenses is less than what they receive from those they solicit, they earn a profit. If they prosper, they soon diversify into additional products and services. Oral Roberts, for example, has invested so far in a hospital, a university, and a retirement real estate community. Now he can birth them in his hospital, book them in his university, and bunk them in his retirement village, all the while he continues to save them on his television show. His is a vertically integrated ministry with a diversified This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions EMULATION 149 portfolio run by an inspired businessman, himself. God save us all. Churchmen on the make long have emulated successful businessmen, distorting the church as they did so, giving it that Elmer Gantry flavor so unique to American spiritual life. But interestingly enough, unlike the role transference in education, high status corporate leaders have seldom tried to transform their high business status into equally high status in the religious field. Instead of corporate leaders turning their status to account in the church by becoming leading churchmen, leading churchmen have increased their own status by becoming leading businessmen, while remain? ing churchmen, at least in name. So, the distortion of religious life in America has been done by the churchmen themselves, with little direct transference into the religious field by corporate executives. Not all church? men and church women have participated in this degradation of their roles. Many have bravely resisted, but to little avail, given the current drift of things. [Young, 1982, Harrington, 1983] In the governmental sphere of institutions, the impact of emulation has been obvious. While the status of corporate managers has been raised by emulation, the status of government officials has been reduced. So, when the government needs decisive action or new direction, corporate leaders, not government ones, are tapped to provide it. When the government wants to save money, for example, the President of the United States does not call on the leaders of government agencies to determine what is to be done. Instead, he asks corporate executives to form a Commission and to draft a Report for use in attacking the very government it was aimed to help. (The Grace Commission and its catalogue of suggestions to dismantle or cut back the welfare state is the most prominent example from the 1980s.) Privatiza? tion is another example of the mindless denigration of government com? bined with the mindless emulation of the corporation: When government at the national, state, or local level needs to step up its efficiency, the govern? ment level involved does not improve its own operations. That would be too obvious. Instead, it just sells the operations. That is, it resorts to privatiza? tion ? to selling off the right to perform public functions to private corporations and to deregulating those corporations which already perform privatized functions, but under the scrutiny of regulatory agencies. [Tolchin and Tolchin, 1983 and Schwarz, 1988] This, in our mindless age, allegedly raises the efficiency of the auctioned-off and deregulated functions. Because of emulation, we think anything done by a private corporation is done more efficiently than if it were done by a government entity. In an earlier mindless age, the French king before the 1789 revolution, was also in the habit of privatizing many of his functions by selling them in the form of This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions 150 REVIEW OF SOCIAL ECONOMY rights to private investors. After all, it was the pre-revolutionary French economists, the Physiocrats, and not Adam Smith, who first invented laissez faire. In an early French experiment that blended privatization with mone? tary quackery, the kingeven sold the government's right to coin money to a private speculator, John Law, who promptly ruined the currency. [Galbraith, 1975, pp. 22-33] This historical episode, unknown by most contemporary economists, foreshadowed the outcome of the more recent American experiment, of a like nature, which also mixed monetary quackery (monetarism) with privatization (supply-side economics). Privatization in France certainly raised the short-term revenues of the crown, giving it temporary help in reducing its growing deficits. The practice seemed to reach a peak right before the French revolution, during which the king lost his head. The relations between privatization, monetary quackery, deficits, laissez-faire economists, regicide, and revolution are all quite complex and problematic. And far be it from me to suggest that history can repeat itself, particularly if we are ignorant of it. Nevertheless, the impact of emulation on American government has been catastrophic. The emulative glare emit? ted by the corporation has blinded the political leadership and the underly? ing population to the folly of making government work better by disman? tling it and auctioning off the pieces. In the family institutional sphere, the impact of emulation has been just as profound. The corporation's emulative glare has blinded the women's liberation movement, just like it earlier blinded men. It has blinded both to the importance of family. It has attracted both men and women on the make, drawing them away from the narrow confines of family-imposed traditions with the blue sky promises of a corporate career. For women, the forward attraction of corporate career has proved stronger than the backward drag of sex stereotyping. Corporate career has provided many women with a way to escape the dead hand of patriarchal tradition. An economically independent woman does not have to suffer in silence the abuse of a macho husband. She can hire lawyers, get court orders, leave the lout, support herself, and protect herself. So for many women, corporate career has been a blessing, providing an alternative role to play as they freed themselves from the stultifying sex stereotypes imposed upon them by the traditional patriarchal family. Women have demonstrated beyond a doubt that their place is not just barefoot, pregnant, and in the kitchen. Corporate careers for women have opened up educational opportunities for women, and corporate women provide admirable role models for other women to follow. This has all been positive, in innumberable ways, particularly in enlarging the personal autonomy and self-worth of women. And, of course, much more can and This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions EMULATION 151 should be done. But on the negative side, the emulative attraction of corporate career has turned the women's liberation movement, like the labor movement before it, toward the traditional careerist goal of more for me. Emulation has diverted at least a part of the great energy of the women's liberation movement away from developing personal autonomy for women into devel? oping successful corporate careers for women. The two are not the same. In search of more for me, the energies and imaginations of women are turned to corporate account rather than toward personal autonomy and self worth. Furthermore, emulation in the form of corporate careerism has meant major opportunities lost in the art of living together, in exchange for minor opportunities in the scramble to get promoted before your rival. It not only diverted energies away from developing personal autonomy and self worth, it also removed men and then women from the home and destroyed the potential of the home in the process. Emulation diverts energy away from not only the patriarchal family, but also the gay family, the open family, the single-parent family, and the commune. These are all families that men and women should be trying to reconstruct but are too enthralled by corporate careerism to even try. [For a fascinating contrast, see Kanter, 1972 and 1983] To sum up, emulation has touched every major American institution with the dry rot, always in a way that has raised the status of the corporation and its roles above the status of alternative institutions and their roles. The social result has been a strengthening of corporate hegemony and a loss of institutional plurality. The personal result has been a mindless conformity and a loss of free will. The ethical result has been a generation of moral weaklings (the Yuppies) whose personal strivings have no real meaning and, therefore, whose ambitions can easily be turned to someone else's account. But, of course, our youth are restless under the current dispensation and no one can say for sure how long the current malaise will last. The young could still save us. They could reconstruct a mind of their own, as other youth have done before them. CONCLUSION Values Are Endogenous In the jargon of econometrics, values are endogenous, not exogenous. The values held by individuals are products of the institutional structure in which the individual finds herself. That is, values are not pulled out of thin air by individuals. Values are learned. But the learning process of pluralism is strikingly different from that of hegemony. In a pluralistic society, the This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions 152 REVIEW OF SOCIAL ECONOMY learning is active. Individuals cannot simply accept what they are taught, because different institutions teach them different things. They are forced to make choices and to defend the choices they make. Individuals are forced to take an active role in the formation of their own moral character, to synthe? size creatively their own values from the competing ones they encounter all around them. Under pluralism, individuals go mad, or they acquire moral integrity. Under hegemony, individuals go soft. In a hegemonic society, such as ours is becoming, the learning is purely passive. Individuals accept what they are taught, because all institutions teach them the same thing. The individual plays a dependent role in the value formation process of hegem? ony. She is not forced to make choices and defend them, so she does not synthesize or reconstruct her own values out of the competing ones she encounters. She does not acquire moral integrity. Moral integrity is increasingly lacking in the American character. The American character is being tamed because pluralism is being lost. The diverse institutions which should be teaching contradictory values are not doing so. Emulation has emptied them of their force. But emulation has filled the corporation with the force lost by the other institutions. Rising to hegemony, corporate values are replacing the diverse values of the formerly independent church, state, family, school, and union. This is not to say that American youth are becoming loyal servants of the corporation without a struggle, for they are not. Some of them are showing refreshing new signs of moral revulsion. But it is to say that American white collar strata are coming to accept one particular set of values, beliefs, and meanings, inculcated through emulation, through mindless striving after more for me. Church, state, family, school, and union have fallen away as sources of values, beliefs, and meanings. Corporate ones have come to dominate. In the resulting corporate hegemony, moral choice and challenge are gone ? so too is the moral integrity forged by making choices and by overcoming challenges. Values have become more endogenous thanever. The reactionary right is onto something ? our values, beliefs, and meanings are disintegrating, collapsing into conformity. This collapse is a very important subject for social economists to study. But the reactionary right fails to identify the real cause of the collapse, so this social economy analysis helps to set the record straight. The values corrupting us are products of corporate hegemony, not of welfare statism. The organizational revolution, not the New Deal, is the fountainhead of competitive conform? ity. And, the collapse into conformity is driven by emulation, not secular humanism. As more and more of us have moved into the large-scale, This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions EMULATION 153 bureaucratic organizational world, we have taken on more and more of the values, beliefs, and meanings useful for getting ahead in that world. We have adapted to the organizational revolution. Nevertheless, we have failed to understand what has happened to us as we adapted to hegemony. Instead, we have accepted the ready-made scapegoats offered us by the reactionaries. And yet, in spite of all our confusion, some facts are hard to avoid: It was Ivan Boesky, financial capitalist, not Beatrice Washington, welfare mother, who was caught with his hand in the till to the tune of $100 million. References Averitt, Robert T. The Dual Economy, New York, 1968. Dahl, Robert A. Who Governs? New Haven, 1961. Daniels, Lee A. "Rochester U. President Troubled by Fuji Case," New York Times, 2 September, 1987a. _. "Rochester About-Face on Student," New York Times, 11 September, 1987b. Deal, Terrence E. and Allan A. Kennedy. Corporate Cultures. Reading, Mass., 1982. Domhoff, G. William. Who Rules America Now? Englewood Cliffs, N.J., 1983. Dugger, William M. "Corporate Bureaucracy," Journal of Economic issues, 14 (June 1980), pp. 399-409. _. An Alternative to Economic Retrenchment, Princeton, 1984. _. 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This content downloaded from 128.135.12.127 on Wed, 14 Oct 2015 20:53:42 UTC All use subject to JSTOR Terms and Conditions Article Contents p. 134 p. 135 p. 136 p. 137 p. 138 p. 139 p. 140 p. 141 p. 142 p. 143 p. 144 p. 145 p. 146 p. 147 p. 148 p. 149 p. 150 p. 151 p. 152 p. 153 p. 154 Issue Table of Contents Review of Social Economy, Vol. 47, No. 2 (Summer, 1989) pp. 113-224 Front Matter THE METHODOLOGY OF ECONOMICS AND THE CASE FOR POLICY DIFFIDENCE AND RESTRAINT [pp. 113-133] EMULATION: AN INSTITUTIONAL THEORY OF VALUE FORMATION [pp. 134-154] CAPITAL GAINS AS ECONOMIC RENT [pp. 155-172] WHAT IS JUST PROFIT? [pp. 173-184] PROPERTY RIGHTS IN CONTEMPORARY ISLAMIC ECONOMIC THOUGHT: A CRITICAL PERSPECTIVE [pp. 185-211] Book Reviews Review: untitled [pp. 212-214] Review: untitled [pp. 214-217] Review: untitled [pp. 217-220] [NOTES] [pp. 221-223] Back Matter
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