Plato's Allegory of the Cave and Modernity

In the beginning of book VII of Plato's Republic, Socrates begins to describe his most famous story -- the allegory of the cave. 

"And now, I said, let me show in a figure how far our nature is enlightened or unenlightened: Behold! Human beings living in an underground den, which has a mouth open toward the light and reaching all along the den; here they have been from their childhood and have their legs and necks chains so that they cannot move, and can only see before them, being prevented by the chains from turning round their heads. Above and behind them a fire is blazing at a distance, and between the fire and the prisoners there is a raised way and you will see, if you look, a low wall built along the way, like the screen which marionette-players have in front of them, over which they show puppets" [514]. 

An illustration would aid in understanding Socrates' scenario, with shadows being created on the wall the prisoners are facing. 

"To them, I said, the truth would be literally nothing but the shadows of the images" [515c].  

To Socrates, this is the dark aura of the unenlightened persons -- living in the mere shadows of reality and lacking any movement beyond the state of mind that was molded of them. Unable to move their heads, the prisoners are unaware of the real mechanisms that guide their lives, instead they resort to the reflections as an understanding rather than being able to comprehend the reasons behind these reflections. So what occurs when the prisoners are released from their shackles, and forced to see the light? Socrates explains.

"And now look again, and see waht will naturally follow if the prisoners are released and disabused of their error. At first, when any of them is liberated and  compelled suddenly to stand up and turn his neck round and walk and look toward the light, he will suffer sharp pains; the glare will distress him, and he will be unable to see the realities of which in his former state he had seen the shadows; and then conceive someone saying to him, that what he saw before was an illusion, but that now, when he is approaching nearer to being and his eye is turned toward more real existence, he has a clearer vision -- what will be his reply? And you may further imagine that his instructor is pointing to the objects as they pass and requiring him to name them -- will he not be perplexed? Will he not fancy that the shadows which he formerly saw are truer than the objects which are now shown to him?" [515d] 

"...and if he is compelled to look straight at the light, will he not have a pain in his eyes which will make him turn away to take refuge in the objects of vision which he can see, and which he will conceive to be in reality clearer than the things which are now becoming shown to him?" [515e]

Socrates here makes a crucial point, and it is this aspect of his telling that is the most relevant. Although the individual has been freed of the prison he was once kept in, he still yearns to go back to the comfortable reality of ignorance (the shadows). The newly-awakened sense of consciousness is suppressed, and replaced with comfortable thoughts; those that coincide with the reality the individual once took as 'real.'

Socrates, with this simply allegory, describes a phenomena that is common and persistent in modern social groups and cultural mores. He also describes psychological attributes which are a common theme in psychiatric studies, which have ramifications far beyond individual enlightenment. In Freudian terms, such mechanisms can be described as one of the major defense characteristics of the mediating ego -- outright simple denial, in this case. Being one of the more primitive of the mental defenses, such a reaction is knee-jerk one which lacks any rationalization when initially done. It is done to purely derive pleasure (i.e relieving anxiety and restoring one's comfort zone), and, lacking any justification, it falls into the trap of succumbing to the id, the instinctual drives that seeks to maximize pleasure. It is unresponsive to one's real positioning in reality, which is shown when the freed individual in the cave rejects what is true. 

Now, the basic question -- what does this all this Freudian lingo translate to and what are its implications? In modern society, especially in the Western world, we are bombarded with information more so than any other period in history. With such immense amounts of information, one must, consciously or not, form a concrete methodology of understanding; choosing out of this immensity, what one wishes to engage in. Much of this "choosing" occurs unconsciously; we are driven towards our ideology, at least to the unaware, towards what is fed to us. The media cultivates our perceived normality, reinforces our social positioning, and ferments in us certain desires. This is what I would presume Socrates would call "the cave" -- be it through reality TV, or creating a character of ourselves on social networking, these all create reflections that we perceive as integral to our consciousness. The shadows themselves are manifested in viewing our personal taste as authentic, but they are merely constructs of social mediums (i.e the puppeteers). Submitting to the id, certain such mediums tap into our pleasure principle -- creating desires and indulgences, or as Marx would call it, the fetishism of the commodity.

There is a twist to Socrates' tale, however. There is no need for such a 'bringer of light' that shows the prisoner the enlightenment. Knowledge in the Information Age is not suppressed, rather it is steadily subdued and structurally ignored. The knowledge of the internet is in the open, ready to be accessed, however social mechanisms and cultural norms that have been created over the years have created such a culture where information is paradoxically restricted. Be it in the political sphere, in literature, or any other -- structures within our own system facilitates "the cave" while subduing the enlightenment Socrates' pushes. Alienating to an insatiable degree, it bears resembles to one of the eerie mottoes of The Party in George Orwell's book 1984; IGNORANCE IS STRENGTH. It grants strength to the structures that dominate our consciousness, and consequently empowers the overseers of our individualistic demise.

Aristotle and Markets

Writings on the different kinds of exchange can be traced back to Classical Antiquity. The Greeks were fascinated with markets, especially the ethical implications of such transactions, and soon began to formulate their  own opinions on the emerging markets in ancient Greece. Aristotle, especially, devoted some of his writing to understanding its complexity. He observed four types of exchanges in the developing market of Ancient Greece:

      1.     C --> C ; where C = commodity

Better known as bartering, Aristotle had little issue with this mechanism of exchange in the market. He found it to be the most "natural" out of all exchanges, but saw major drawbacks in its inability in dealing with surpluses and deficiencies properly. The reason for exchange, from Aristotle's understanding, was because an individual viewed the seller's surpluses as being of higher value than his or her own surpluses, thus creating a transaction of equal value. He based the need for exchange around the concept of "use value" or "true value," which a commodity holds if it is necessary for one's life, household, or even community. He equated value with necessity. Therefore, Aristotle's reasons for exchange can be seen as one of the early precursors the the subjective theory of value, since it acknowledges different use values for different households -- based on their respective surpluses.

     2.     C --> M --> C ; where M = Medium of exchange (i.e money) 

The most prevalent method of exchange today -- Aristotle was ambivalent to it. He found money to be necessary in establishing a common comparable measurement for all commodities in the market, however he also felt it facilitated the next two forms of exchange (3 & 4).  This particular transaction is very similar to barter in that the purpose of it is consumption. The use-value for each receiving end of the transaction is virtually the same, therefore the exchange is equal, with money serving as simply a means, rather than as an end. Important to note also, is that Aristotle did not see money as a representation of value or wealth; it was a representation of want by agreement. Keep this in mind, because this is the one of the foundations for his criticism of the next two transactions.   

The economy of Ancient Greece is useful to bear in mind when trying to understand Aristotle's  analysis of markets. The majority of the work in Ancient Greek society was done by slave labor, mostly agricultural work, and many of the commodities on the market were products of individual artisans. Therefore, the full value was realized in its exchange of another commodity because the artisan's sweat and work was fully accounted for in the transaction -- the artisan kept all of what he produced, including his surpluses, and traded it likewise for a commodity of relatively equal value. 

     3.    M --> C --> Mp ; where Mp = M prime or M + profit 

This mechanism of the market Aristotle found to be ethically problematic and abominable. He calls this retail trade and the issue, he felt, was that money served as a starting and end point of a transaction, rather than a medium of exchange. He also felt this violated the principle that market transactions should serve the needs of the household, rather than succumbing to endless exchanges to increase profit. Aristotle did not consider this to be true wealth because the end goal is a greater quantity of money; it is simply a representation of exchange value in moneyed form -- because it is purely qualitative, it lacks a limit, which was present in the first two kinds of market transactions. He believed there was no natural restrain on this form of transaction because the market exchange, in and of itself, was not entirely equal. In the first two methods of exchange, trade was limited to commodities that were produced by, presumably, individuals - therefore the starting point required an exertion of labor, and the transaction itself was virtually equal in its entirety. Because the starting point of this transaction, "M," lacks that necessary productive capacity and because the individual is acquiring more of the same item he started with there is fundamentally no restriction on how much profit can be acquired -- and the need to acquire more is intensified. Frankly, the major difference lies in that the first two transactions were to consume, this particular one is to accumulate. 

        4.      M --> Mp 

This market behavior is usually grouped with the third one shown, but Aristotle groups it differently because "C" is absent. He calls this usury, and the most unnatural of all market exchanges. He considered the reason for loans to be exploitative in that the giver of the loan was demanding higher returns than what was handed out -- abusing the situation of the receiver of the loan. 

Granted, there are issues with Aristotle's understanding of basic market functions. The fourth market mechanism, in particular, is lacking in analysis -- it fails to understand that that the interest payed back is a portion of the new productive potential that was created by that loan (i.e what it was put to use for, invested in, etc). Requesting a loan does not necessarily mean an individual is in distress, but since Aristotle was primary concerned with ethics, it is easy to see why he made that assumption.

Aristotle's fascination with ethics is also the driving reason he criticizes the moneyed interests driving the marketplace. His bare-boned economic analysis as an ethicist, albeit lacking in much empirical reasoning, does bring an important aspect of the market to light -- the market is amoral. This is crucial. It is precisely due to this amorality, and because the market lacks any moral mechanisms and requirements, that the market sometimes succumbs to moneyed excesses of the socially damaging kind. 

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Much of the information mentioned can be found in this article titled "Aristotle and Economics"

More information on Plato's and Aristotle's economic views can be found here.