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Money and categories of reality

hypericin January 23, 2022 at 03:45 7575 views 42 comments
One commonplace way to divide reality is into The Real and The Imaginary

The Real: Exists in the physical world.
The Imaginary: Exists in minds.

Opposed to both of these components of reality is
The Unreal: Doesn't exist at all, even in a mind.

Given these categories, where does money fall? Money, we all know, is a fiction. It is not the paper it is printed on or the computer bytes on which an account balance is stored. You will never see it in a microscope, nor measure it with an instrument, no matter how sensitive, as it is mind stuff.

And yet, money is the difference between eating a steak in a warm house, and starving in the cold. Money, literally, moves mountains. It makes and breaks nations. It is a force in the world. So is this really imaginary?

I think a new category is needed
The Real Imaginary: Exist in the mental world, but is projected into the physical world.

The world is filled with such things: nations, religions, ideologies, institutions, are a few examples. Money is just more stark because of its potency and because it has its own physical avatars, currency.

If there is the Real Imaginary, by symmetry there must be the Imaginary Real. And there is.
The Imaginary Real: Exists in the physical world, but is projected into the imaginary world.

This is just the world we know and experience. The world is real, but as we know it, it is purely imaginary: All the colors, sounds, and smells, exist nowhere outside of our heads. They are real things, projected into our imaginations.

Opposed to the Imaginary Real is
The Unknown Real: The bulk of the physical universe, never experienced at all

In summation, reality is for us usefully split into four categories: The Imaginary Real, The Unknown Real, The Real Imaginary, and The Purely Imaginary. When discussing things in a philosophical way, asking "what is" this or that, a good start would be, "to which category does it belong?"

Comments (42)

Manuel January 23, 2022 at 22:56 #646918
Reply to hypericin

This sounds awfully close to Lacan's conception on the subject. You'd only be missing what he calls "the symbolic", the other two are as stated.

We could call money a useful fiction. Something which is considered valuable solely by our considering pieces of paper to be of worth.

I think that your distinction between real imaginary and imaginary real is not needed. You can use one term to encompass both ideas.
Melanie January 24, 2022 at 01:20 #646957
Rather than seeing the world as 'things projected into our imaginations" our experiences can be seen as our imaginations projected into or onto things. Things are then given form and function as we intend and perceive them.
Wayfarer January 24, 2022 at 02:52 #646997
Quoting hypericin
I think a new category is needed
The Real Imaginary: Exist in the mental world, but is projected into the physical world.

The world is filled with such things: nations, religions, ideologies, institutions, are a few examples. Money is just more stark because of its potency and because it has its own physical avatars, currency.


Numbers, qualities, logical principles, scientific laws, and so on, are only discernable to the intellect but are real for all who think. So hate to dissappoint you, but it's not a new category, rather you've discovered or re-discovered the basic idea behind universals.

Also the division you propose between 'the mind' and 'the world' is very hard to sustain. There are plainly some things only in my mind, and some things in 'the world'. But if you consider the experience of the world to comprise sensations and ideas (as idealist philosophy claims) then the division is by no means neat. And if I ask where the division between the mind and the world resides, the only answer can be, 'in the mind', because there is no such division in the world.
hypericin January 24, 2022 at 06:18 #647058
Quoting Manuel
This sounds awfully close to Lacan's conception on the subject. You'd only be missing what he calls "the symbolic", the other two are as stated.


I'm not familiar, his division is into the Real, Imaginary, and Symbolic?

Quoting Manuel
We could call money a useful fiction. Something which is considered valuable solely by our considering pieces of paper to be of worth.


But since money is a collective fiction, it is resistant to our individual thoughts about them. It has properties of both mental and physical objects.

Quoting Manuel
I think that your distinction between real imaginary and imaginary real is not needed. You can use one term to encompass both ideas.

They are opposites. Mental objects which cast a shadow into the physical world, vs physical objects which cast a shadow into the mental world.
hypericin January 24, 2022 at 06:25 #647059
Quoting Wayfarer
So hate to dissappoint you, but it's not a new category, rather you've discovered or re-discovered the basic idea behind universals.


Hate to disappoint you, but you can't give a meaningful reply after randomly half-reading a few sentences. Does money or any of the other examples I cited (and you quoted) sound anything like universals?

Quoting Wayfarer
But if you consider the experience of the world to comprise sensations and ideas (as idealist philosophy claims) then the division is by no means neat.

Again if you had bothered to read you would have seen this is exactly my point.
Wayfarer January 24, 2022 at 06:29 #647061
Quoting hypericin
Does money or any of the other examples I cited (and you quoted) sound anything like universals?


They sound similar.

I'm not disagreeing with the point you're making. I'm simply saying that the idea that there are abstract reals is not a novel idea.
hypericin January 24, 2022 at 06:33 #647063
Quoting Melanie
Rather than seeing the world as 'things projected into our imaginations" our experiences can be seen as our imaginations projected into or onto things.


Either way you see it, my point remains the same. Things live in the world, but cross over into the mental world in the form of sensations, and appraisals, as you point out. In the same way, a category of mental things, money among them, cross over into the physical world. .
hypericin January 24, 2022 at 06:50 #647066
Quoting Wayfarer
I'm simply saying that the idea that there are abstract reals is not a novel idea.


Not abstract reals. Imaginary reals. Would numbers, qualities, logical principles, scientific laws, and so on, disappear if we collectively stopped believing in them, or if humanity was annihilated? Probably not. Would money, religions, institutions, ideologies, nations? Absolutely they would.

Is that a novel idea? Probably not. Is this way dividing the world into 4 categories the definitive way to conceptually cleave the world? Probably not, I don't think there is any such way. But it is probably useful.
Hermeticus January 24, 2022 at 07:23 #647073
Quoting hypericin
The Unreal: Doesn't exist at all, even in a mind.


The Unreal is a bit elusive, isn't it? How do we know something like that exists - as soon as we think about it, it exists in mind, no?

What do you think about this framework?
User image

It's probably the most obvious division but personally I find it more intuitive. Can the categories you describe fit onto that model?
Agent Smith January 24, 2022 at 08:40 #647082
Magnifique!

I would've preferred:

1. Physical (stones)
2. Mental (unicorns)
3.. Physical & Mental (stones, but not unicorns)
4. Neither physical nor mental (Nagarjuna's tetralemma)

bongo fury January 24, 2022 at 09:06 #647083
Hey Plato, nice beard!
Melanie January 24, 2022 at 13:43 #647127
Instead of conceptualizing or questioning the substance of mental and physical worlds, it seems as if our existence occurs fundamentally in the encounter between the two. Everything else becomes objectification of that universal reality.
Paine January 24, 2022 at 15:42 #647149
Money relates to a real exchange of commodities. As a system, it extends bartering where one is not required to have the items standing next to each other for the swap. The imaginary element enters as a possibility for an exchange and thus frames the future in the present. Throw in the dynamics of debt and time is even more thoroughly reimagined.

But does that sort of game set up alter the 'reality' of the exchange of desired things? Is the distinction between "necessary: and "fetish" goods something that hinges upon the imaginary?
Streetlight January 24, 2022 at 16:09 #647161
It seems funny to me that what is at stake in the OP is that money fails the expectation of what reality somehow ought to be, rather than in fact, motivating its placement in an entire new category. In which case the problem is not reality, but our expectations. Why not admit that money really is part of what is real, but simply that what is real is far more interesting than we give it credit for (interest, credit... monetary terms)?
Manuel January 24, 2022 at 16:38 #647166
Quoting hypericin
I'm not familiar, his division is into the Real, Imaginary, and Symbolic?


Yep. It's extremely dense though and its value is very questionable, but there are lectures and books written about it.

Quoting hypericin
They are opposites. Mental objects which cast a shadow into the physical world, vs physical objects which cast a shadow into the mental world.


What physical object wouldn't cast a shadow of the mental world?
Banno January 24, 2022 at 22:00 #647253
The approach taken on this thread is a categorical error, one that is ubiquitous in these fora. It's an error that drops out of contrasting real and imaginary; physical and mental. These categories grossly misrepresent the world.

Money is socially constructed.

This can be seen from the fact that a ten dollar note is a valueless piece of paper unless those involved in the transaction have trust in it's value.

Hence the ontology of money requires one to step outside the ontological categories of real or imaginary or physical or mental, and to recognises that there is a wider social world that transcends these limited categories. Money sets up credit relationships between folks. It has a social ontology.



Banno January 24, 2022 at 22:03 #647256
Quoting Paine
Money relates to a real exchange of commodities.


No, it doesn't.

Quoting SEP
The commodity theory of money was defended by many classical economists and can still be found in most economics textbooks (Mankiw 2009, Parkin 2011). This latter fact is curious since it has provoked serious and sustained critique. An obvious flaw is that it has difficulties in explaining inflation, the decreasing value of money over time (Innes 1913, Keynes 1936). It has also been challenged on the grounds that it is historically inaccurate. For example, recent anthropological studies question the idea that early societies went from a barter economy to money; instead money seems to have arisen to keep track of pre-existing credit relationships (Graeber 2011, Martin 2013, Douglas 2016, Part III).


But that does not prevent economists misleading themselves and others by pretending it does.
Ciceronianus January 24, 2022 at 22:17 #647266
Quoting Banno
This can be seen from the fact that a ten dollar note is a valueless piece of paper unless those involved in the transaction have trust in it's value.


If a ten dollar note (money) isn't a ten dollar note (money), what is it? Something else, which we merely treat as if it were a ten dollar note (money)? The "ten dollar note in itself"?

Banno January 24, 2022 at 22:20 #647268
Quoting Ciceronianus
The "ten dollar note in itself"


That's just what we need: a phenomenology of money... :grimace:

Doubtless it will appear.
Paine January 24, 2022 at 22:44 #647273
Reply to Banno I wasn't claiming one system replaced the other by necessity. I thought my comment was more in line with:

Quoting SEP
instead money seems to have arisen to keep track of pre-existing credit relationships


The exchange of valued objects was still based on agreement about the deal regarding actual objects.

The set up did take on a life of its own. I was suggesting that the "game" like qualities of those developments did not change the fundamental basis of barter.

Banno January 24, 2022 at 23:11 #647275
Reply to Paine Ok, Ill take your word for it. Money does not stand in the place of commodities.
Paine January 24, 2022 at 23:38 #647280
Reply to Banno
Money does play a big part in the exchange of commodities now. Agreeing it is not a replacement for fungible goods, as what the OP refers to as "real", does not explain that development. Presumably it is the question of how imaginary our interactions may be rather than the status of money that is being raised.
Banno January 25, 2022 at 00:18 #647282
Quoting Paine
Money does play a big part in the exchange of commodities now.


Obviously. The question is, what is money? And the answer is not that it stands in for commodities in our exchanges.

Money functions in virtue of our collective intention for it to work. Nothing more.

Paine January 25, 2022 at 00:26 #647283
Reply to Banno
That is an obvious observation of how it functions; Noticing that does not mean there is nothing else to be said. Its role in the building of our technical society requires more than agreeing with your proposition.
HKpinsky January 25, 2022 at 02:22 #647302
Pecunia has become an emblematic symbol. It's not a real physical stuff anymore, nor something existing in the mind. It has become a modern-day god. Knowledge about Her and the morals She desires can be known by reading the economic bible. Banks are the new churches and Money is prayed to daily. The gospel truth is sung about on the airwaves. Her voice and tune are omnipresent. She is omnipotent. Onnibenevolent even. It's commands are taught in schools and universities. She demands inflation, possession, and relentless accumulation. Those who not comply are ignorant pagans, and the laymen should be kept lay in order for the Super Capital to grow, her highest command.
Paine January 25, 2022 at 02:27 #647306
Reply to HKpinsky
Are you going Puritan about this angle or something more Baudrillard?
hypericin January 25, 2022 at 06:53 #647366
Reply to StreetlightX Quoting StreetlightX
It seems funny to me that what is at stake in the OP is that money fails the expectation of what reality somehow ought to be


No ought. I was starting from the commonplace dichotomy of real/imaginary, where what is real exists "in the world", and what is imaginary is "in the head" (note, both are part of reality). And showed that that money, for instance, is neither: while its origin and nature is in the head, it is a force in the world.
hypericin January 25, 2022 at 07:03 #647372
Quoting Banno
Hence the ontology of money requires one to step outside the ontological categories of real or imaginary or physical or mental, and to recognises that there is a wider social world that transcends these limited categories.


Yes, but this is my point. The categories of "real" and "imaginary" are inadequate to describe social realities. I am attempting to amend them by expanding upon them.
hypericin January 25, 2022 at 07:17 #647379
Quoting Hermeticus
What do you think about this framework?


Everyone is simultaneously mental and physical subject. Your personal identity is simultaneously mental subject and object, when you reflect on it. Money is simultaneously mental and physical object.


They don't seem to neatly cut across reality.

hypericin January 25, 2022 at 07:22 #647380
Quoting Ciceronianus
If a ten dollar note (money) isn't a ten dollar note (money), what is it? Something else, which we merely treat as if it were a ten dollar note (money)?


The fact that a ten dollar note is money is not a property of the physical paper. In 5000 years whatever nation backs it will have long since collapsed, the piece of paper will only have the historical curiosity of once having been money. No matter how well preserved it is.
Streetlight January 25, 2022 at 07:48 #647396
Quoting hypericin
where what is real exists "in the world", and what is imaginary is "in the head" (note, both are part of reality).


Right, but why not revise what we understand of the real, rather than create new categories because they do not fit tradition? We made up what we understand by the real. We can make it up differently in response to what we know of the world.

Or maybe I can put it differently: if these distinctions are to be more than nominal, is there something at stake is excluding money from the real?
Banno January 25, 2022 at 08:39 #647410
Reply to hypericin See Searle's collective intentionality in The Construction of Social Reality.

Ciceronianus January 25, 2022 at 15:58 #647490
Quoting hypericin
The fact that a ten dollar note is money is not a property of the physical paper. In 5000 years whatever nation backs it will have long since collapsed, the piece of paper will only have the historical curiosity of once having been money. No matter how well preserved it is.


It will be a historical curiosity, and interesting, not because it is a piece of paper but because it was money. What significance would it have then, or would it have had in the past, as a piece of paper? Imagine the museum exhibit: "Piece of paper."
Deleted User January 25, 2022 at 16:04 #647495
Reply to hypericin Money is not a fiction. It is a natuarlly emerging, labor saving device used by actors in markets to exchange goods, labor, and value. Money will always emerge anywhere that markets exist. Money belongs in the category of existing in reality as a result of creation, predicated upon practical use among market participants.
javra January 25, 2022 at 18:17 #647545
Quoting hypericin
In summation, reality is for us usefully split into four categories: The Imaginary Real, The Unknown Real, The Real Imaginary, and The Purely Imaginary. When discussing things in a philosophical way, asking "what is" this or that, a good start would be, "to which category does it belong?"


The agreed upon value of a piece of paper we label as money is a cultural artifact. Taking a step back, are cultures real or imaginary? Most would say “real” though not in the sense of that which is physically real.

I’ll suggest the sometimes derided term of “intersubjectivity”, such that money is an intersubjective reality - else, is intersubjectively real - this just as much as cultures are. In contrast, the printed paper itself is a physical reality: an aspect of the physical reality at large upon which all subjectivities and intersubjectivities to a significant extent depend.

The “collective intentionality” which @Banno addresses would then be an aspect of intersubjectivity.

A caveat, however: When reality is taken to be the sum of all real givens, so classifying would require a stanch rethinking of reality categories. For one example, that which is imaginary and strictly applicable to one subject - such as one’s immediate experience of an REM dream - would then be an intra-subjective reality (as in, “that dream I told you about was real rather than a fictitious fabrication”). Even more cumbersome to classify become intersubjectively held fictions, like unicorns, which are not intersubjective realities in the same sense that moneys and cultures are - yet are still actual/real as culturally present fictions: unicorns then being a real, rather than an untrue, fictional notion within the cultures we partake of (in contrast to not being a real/actual fictional notion within cultures that never entertained the concept, such as that of some Inuit tribe), e.g. “unicorns (as fictional animals) are a real aspect of my culture”.
hypericin January 26, 2022 at 02:20 #647676
Quoting Melanie
it seems as if our existence occurs fundamentally in the encounter between the two. Everything else becomes objectification of that universal reality.


Even if this were so, the components of this synthesis seem worthy of discussion.
hypericin January 26, 2022 at 02:21 #647678
Quoting bongo fury
Plato

This seems to be your favorite rhetorical gun, too bad you can't seem to hit anything with it.
hypericin January 26, 2022 at 16:41 #647936
Quoting StreetlightX
Right, but why not revise what we understand of the real, rather than create new categories because they do not fit tradition?


Quoting StreetlightX
is there something at stake is excluding money from the real?


I am not excluding them from the real. I am refining the overbroad category of real: things that are ontologically real, vs. things that are ontologically imaginary but manifest as real. If categories are useful, it is because they pick apart relevant qualitative differences. If we lump these differences under the same term, these differences become obscured, and our thinking becomes muddled as a result, and you get money as simultaneously real and imaginary. In my opinion, there are few things that have muddled philosophy more than the real vs. imaginary divide.
hypericin January 26, 2022 at 16:43 #647938
Quoting Ciceronianus
It will be a historical curiosity, and interesting, not because it is a piece of paper but because it was money. What significance would it have then, or would it have had in the past, as a piece of paper? Imagine the museum exhibit: "Piece of paper."


The point is, it was money, but no longer is, despite being physically identical at both times. The money is not the paper.
hypericin January 29, 2022 at 12:19 #648944
Quoting javra
Even more cumbersome to classify become intersubjectively held fictions, like unicorns, which are not intersubjective realities in the same sense that moneys and cultures are - yet are still actual/real as culturally present fictions: unicorns then being a real, rather than an untrue, fictional notion within the cultures we partake of


I would still classify unicorns as imaginary. It is just that they are intersubjectively imaginary. But they are not forces in the world, in the same sense that money nations and religions are. The latter is what interests me: things which are imaginary in their nature, but take on a kind of reality as quasi objective entities.
Ignoredreddituser February 01, 2022 at 17:56 #650206
I would follow Dennett’s view that money is a real pattern that has causal and explanatory power.

Also, just because something something is socially constructed doesn’t require it to be metaphysically unreal of certain views like Sally Haslanger and Elizabeth Barnes views.
Cornwell1 February 01, 2022 at 20:29 #650244
Money once was the substitute for goods and services in barter practice. Instead of giving you a chicken in exchange for 10 dozen of eggs (you could have kept the chicken to wait for the eggs, though when eggs are needed urgently that might take too long). I give you a warranted piece of metal. This evolved into modern-day money, which probably is turned into 1's and 0's completely in the future, economy and gold backing up it's value.

The capitalist aim is to accumulate as much as possible of the stuff. Which introduces the strange situation that some have billions of coins and others just enough to get a piece of chicken for it.

When there was no money yet you actually had to deliver good or service, and this aspect has disappeared. You deliver a good or service and get money for it. Goods and services offered are owned by people or groups of people. They offer money to you and other people if you produce goods for them or offer services in their name. They ask people to pay for the goods you produce for them and the services you offer in their name. You can produce goods and offer services yourself and get money for it which you can use to swap for goods produced or services offered by others. So there is an indirect swap. I swap my chicken for a tenner and swap the tenner for ten dozen of eggs. Money is the intermediary. You don't have to take your chicken everywhere but take the money instead. You have to swap it for money first though. Instead of looking for eggs with your chicken in a basket, you sell your your chicken to whom wants a chicken and then go look for eggs. The egg seller then looks around for the pig she desires. Money stands for all goods and services and as such makes life easy. "I take them eggs! Here's a tenner. I have chickens only. But with this tenner you can get what you want!"

Then money transforms. It stands for all one desires. A closet full, a safe at the bank, and nowadays zeroes and ones at the bank. We want money. We produce goods and offer services to get it. The employers own the production lines, the employees keep production running. Money becomes an icon, an emblem, a symbol for goods to own and services to get.