15 May 2008
PENNY CAPITALISM
Years ago (1960s) an economic anthropologist named Sol Tax coined the term “Penny Capitalism” in reference to the economy of Mexican peasants. To a large degree, the concept still is useful. There is no question that the people here in Ecuador are operating by capitalistic principles. But you have to dial it down a few notches.
How about all the folks who climb onto buses to deliver a well crafted marketing pitch (we have telemarketers; they have highwaymarketers) to the passengers on buses. Today, a fellow jumped onto the bus with a half dozen ice cream cones. Walked to the back, pitching his cones, then got off with no sale. The other day it was a fellow who was pitching individual pieces of candy (like from a bag). The usual thing is to hand them out at the beginning of the pitch, then collect them at the end of the pitch. Those who succumb to the temptation at hand make the purchase. The strong-willed return the candies. Picture this happening on your local public bus (ATA, MTA or whatever).
Many businesses do not have a lot of cash on hand. Down here you quickly learn that a $20 bill is a real liability in most business transactions (Ecuadorians use our currency). A $10 doesn´t keep you out of trouble. I´ve been to more than one store at the beginning of the day, and not been able to make a purchase because there wasn´t change for a $5. Sometimes someone ha to run to another store to search for change. The solution is to constantly seek change in order to operate without a delay. It´s something you just have to get used to.
I remember forgetting one time that I was back in the States, and purchasing a pack of gum in a drug store. Without thinking and realizing where I was, I apologized to the salesperson for only having a $10. I was afraid that the person would be either annoyed or not be able to make change!
So Capitalism is alive and well here. Most of the principles outlined by Adam Smith n 1776 are operating here, albeit on a much smaller scale.
Take care.
