I want to play around with the idea that
the orgy of bonus-giving that is a way of life among Wall Street investment banks (and related institutions) is a perverse form of the
potlatch, the ceremony among Northwest Coast Indians in which leaders (Big Men) give away enormous quantities of food and goods to another tribal group. When I say “play around,” I mean that. I’m making this up as I go along. I’m not giving you a quick tour of a sophisticated piece of intellectual analysis that I or someone else has already done. Rather, I’m attempting to find out whether there is a sophisticated piece of analysis to be done and, of so, where one might begin.
Let me start with two confessions: I do not command the literature of potlatch ceremonies, nor to I have any direct experience with the inner workings of those large investment banks that have managed to bring our economy to its knees. With that out of the way, let’s proceed.
Potlatches have entered the public imagination as extravagant and often wasteful ceremonies in which enormous quantities of goods were often destroyed; though, according to Lewis Hyde, (The Gift, pp. 36 ff.) this represents a late and decadent form of the practice. At heart the practice was one of redistribution. A group leader and his followers would gather food and goods and give it all away in a big party for another group where all who attended were entitled to food and goods. The other group would then reciprocate at a later date, trying to outdo the first group in extravagant generosity. The long-term effect was to keep goods in circulation among the large group and to foster solidarity across that larger group.
At first glance, this seems to involve interaction between three of the four
basic forms of social interaction Alan Fiske has found in all societies: Communal Sharing, authority ranking, and equality matching. That is to say, this is an aspect of the basic biological stuff out of which human communities are built. The relationship between a leader and the members of the group is one of authority ranking; the leader uses his authority to organize the work required to throw a potlatch – work that may take as much as a year. Communal Sharing takes place during the ceremony, in which all guests get something though they did nothing to produce the wealth being distributed. And, lastly, equality matching demands the potlatches be reciprocated. In effect, leaders (and their communities) are keeping score of who’s given a potlatch for whom.
Now let’s consider the Wall Street potlatch. At the top of each investment firm there is a small committee of top executives that determines how much of the firm’s profits are to go into the bonus pool and how that bonus pool is to be distributed. The members of this committee, in their day-to-day operating executive capacity, exercise authority over all other members of the firm (authority ranking). They are the tribal Big Men throwing the potlatch. The distribution of the bonus money is, in effect, the potlatch itself. That bonus distribution is communal sharing; everyone gets (a carefully graded) piece of the profit pie. While, as a practical matter, employees at such firms consider the bonus to be a proper part of their compensation package, the term itself, “bonus,” indicates that it is discretionary on the part of management. It is a gift, but one in which all share in communal fashion. It is this sharing that motivates them to work hard, not simply to please the executives, but to contribute to their work-place community. It is the sharing that, in some deep sense, makes the workplace into a community.