Cognitive Anthropology: A Primer, Part II
Cognitive anthropology is the study of the mind in its cultural and cross-cultural context. Once again, we can turn to Edwin Hutchins (1995) and his groundbreaking book in the literature for a greater definition: “Human cognition in its natural habitat, that is – to naturally occurring, culturally constituted human activity.” It is a somewhat overlooked subfield of cognitive science more broadly, and yet it proposes a great many questions that can benefit our understanding of thought, the brain, and culture intermingle to create our experience of reality. Over the years, there have been a number of influential publications that seek to define, situate, and advance this reading of cognition.
Gone Cashless?
Leaving your wallet in the car was once a big frustration, but now all you need is one plastic card to make it through the day. As businesses across the country get rid of their bulky registers and trade it in for a sleek and minimal monitor, having a wallet full of cash won’t get you as far as it used to.
The Need for Teaching Financial Literacy
The educational system has failed millions of people for years by not implementing a personal finance class that will adequately improve the financial literacy of our future. Teaching kids from a young age, even as early as elementary school, what money is, its value, how to save, invest, and spend will provide future generations with a better future. As we age, our financial decisions become increasingly frequent and complex, so it is important to stress the necessity of developing one’s financial literacy skills before they enter the real world.
Native Americans: Facing Adversity, Past and Present
Native American tribes have faced hardship, neglect, and attacks on their way of life since Christopher Columbus arrived in the lands of the Guanahani people (in the modern-day Bahamas) in 1492 on behalf of the Spanish Empire. However, the last few years have proved to be brutal in their own way.
The Lottery Curse
In March 1995, a used car trader named Lee Ryan won the lottery for £6,527,880. At the time, he lived in public housing built by local authorities in Braunston, England with his girlfriend and their three children. After getting married that summer, he spent £1 million on a country mansion and a variety of cars including a Bentley, Ferrari, Porsche, and BMW. He also bought two Ducati superbikes, a £125,000 plane, and a £235,000 Bell JetRanger helicopter. His entire life had been turned around. He had “prayed to God to make him a millionaire” while he had been serving a prison sentence for stealing cars, and it seemed that his desires had come to fruition. However, his life of joyful lavishness later faded as he and his wife split in 2003, and he lost about £2 million in failed business ventures and property investments. After countless losses, he eventually chose to reside in a rented flat in South London with homeless lodgers. In regards to the lottery, he claimed “the money was cursed” (Charlton 2014).
Private Equity’s J-Curve and Its Mitigation
Within private equity, a fund’s returns often resemble a J-Curve where there exists a small loss before a continued gain. This image would resemble a “J” when charted. This is especially common for private equity firms that purchase struggling companies and attempt to turn them around. These firms will take on unprofitable businesses, and tag along management fees that keep investor returns low or negative until their investments begin to mature, and the purchased businesses become profitable. This creates a period wherein traditional private equity investment is unprofitable and returns are low, or the dip at the beginning of the “J”. These cash flows depend on the “timing of cash flows, timing of performance, and market performance” (Diller, 20). By pulling these levers one way or another, the J-curve can be manipulated. With research indicating that funds with at least 15% private investment outperform their peers, the benefits of seeking these investments are clear. But how can we reduce the time in which these investments underperform?
Viewing the World Through Complex Adaptive Systems
Small differences can lead to large consequences or change outcomes. A popular example of this is that a butterfly could flap its wings in New York and the next day in Tokyo there will be rain instead of sunshine. This phenomenon is commonly known as the ‘Butterfly Effect’ and it highlights the relationship between minute conditions and ending outcomes within a system. Although interesting, the Butterfly Effect is only a piece in the puzzle of understanding our greater world. A larger piece to the puzzle, but by no means the complete picture, are Complex Adaptive Systems (CAS). If the Butterfly Effect represents the relationship in a system, then a CAS is the system itself.
Diamonds Aren't Forever
Diamonds have undoubtedly become the most prominent gemstone in popular culture, with 86% of engagement rings in the United States being diamond. The popularity of diamond-studded jewelry in American hip-hop culture has also exploded, leading to an even further glorification of diamonds as a status symbol. However, demand for diamonds was not always so high and De Beers, which until recently held arguably the strongest monopoly in history, was able to utilize brilliant marketing techniques in order to embed diamonds into everyday life around the globe and set market prices to make incredible profits. Recently, a slew of antitrust laws against the company has diversified the market and growth in the efficiency of lab-made diamonds promises to benefit consumers.