The literate discourse of theories or of an advertisement can only acknowledge the irrationality and suggest explanations. There are schools of market analysis based on game theory, psychodrama, cyclical modeling, the phases of the moon, etc., etc., each producing newsletters, giving advice, trying to render understandable economic and financial phenomena difficult to predict. Language-like explanations and advice are part of advertising, part of market language, forming its own literacy and keeping many captive to it. But even the most literate participant cannot stop the process since the literacy involved in what some perceive as an aberration is different from the literacy embodied in the product traded or in its advertisement. Irrational elements are present in the market, as in life, at all times, but not to the extent to which the language of the market reflects hysteria (as on Black Monday in 1987 on the New York Stock Exchange) or simply ceases its pragmatic function.
We all deplore the continuous shrinking of the intimate sphere of our lives, but admit, in the act of constituting ourselves in the space and time of market transactions, the integrating power that the market exercises, ignoring how close the relation between the two aspects is. Literacy was once a protective medium and entailed rules of discretion and decency. Illiteracy makes us fear; it allows us to become more efficient, but at the same time we become subject to intrusion by all the means that capture our identity. People making purchases on-line will not hesitate to write down their personal data and credit card numbers, trusting in a sense of privacy that is part of the code of literate behavior. Of all people, the computer-literate should realize the power of the Net for searching, retrieving, and sorting such information for all types of uses imaginable.
In the civilization of illiteracy, advertisement is no longer an integrative device that addresses a non-differentiated market but a device that addresses powerful distinctions that can capture smaller groups, even the individual. "Tell me what you want to buy or sell and I'll tell you who you are," is a concise way of declaring how market semiosis X-rays its participants. The enormous marketing efforts associated with a new brand of cereal, software, a political campaign, a role in a movie, or a sports event result in advertisement's becoming a language in itself, with its own vocabulary and grammar. These are subject to rapid change because the pragmatics of the activities they represent change so fast. "Tell me what you buy and I'll tell you who you are"-mug shots of all of us are taken continuously, by extremely inventive digital devices, while the market fine-tunes us. Buying products ended long ago. Products now buy us.
Advertising in the civilization of illiteracy is no longer communication or illustration. It is an information processing activity, bizarre at times, extremely innovative in the ability to cross reference information and fine-tune the message to the individual. Automatic analysis of data is complemented by refinement methods that adjust the weight of words in order to fit the addressee. In the reality of the market and its attendant advertising, languages pertaining to art, education, ideology, sexuality, are integrated at a high level of sophistication in the infinite series of mediations that constitute the pragmatic framework of human existence. Nothing is more valuable than the knowledge of who we are. One can risk stating that brokers of information about each of us will probably fare best in this market of many competing partial literacies.
When markets rely more and more on mediations, and market cycles become faster and faster, when the global nature of transactions requires mechanisms of differentiation and integration far beyond the scope of language, literacy ceases to play a dominating role. The literate message assumed that the human being is the optimal source of information and the ideal receiver. The illiterate message can send itself automatically, as image or as speech, as video or as Internet spamming, whatever best hits its human target, to people's addresses. Whether we like it or not, face-to-face negotiations have already become fax-to-fax and are bound to be converted into program-to-program dealings. The implications are so far-reaching that emotional reactions, such as enthusiasm or disgust, are not really the best answer to this prospect.
Market pragmatics in our civilization is defined by the need to continuously expand surplus to meet a dominant desire and expectation driven exchange of goods and services. These desires and expectations correspond to the global scale of human interaction for which a dominant literacy is poorly suited. Hundreds of literacies, representing hundreds of forms of human self-constitution around the world, are integrated in the supersign known as the market.
The market-in its narrow sense as transaction, and as a sign process joining structure and dynamics-focuses all that pertains to the relation between the individual and the social environment: language, customs, mores, knowledge, technology, images, sounds, odors, etc. Through the market, economies are ascertained or subjected to painful restructuring. Recent years brought with them turmoil and economic opportunity as an expression of new pragmatic characteristics. Competition, specialization, cooperation, were all intensified. An exciting but just as often disconcerting growth path of economic activity generated markets of high performance. Just-in-time, point-of-sale, and electronic interchanges came into being because the human pragmatic made them necessary.
This is why it is difficult to accept views, regardless of their public acclaim, that explain the dynamics of economic life through technological change. The increased speeds of economic cycles are not parallel but related to the new practical experiences of human self-constitution. Cognitive resources became the main commodity for economic experiences. And the market fully confirms this through mechanisms for accelerated transactions and through sign processes of a complexity that technology has really never reached. New algorithms inspired by dynamic systems, intelligent agent models, and better ways to handle the issues of opportunity and prediction are the expression of cognitive resources brought to fruition in a context requiring freedom from hierarchy, centralism, sequentiality, and determinism. As exciting as the model of the economy as ecosystem is (I refer to Rothschild's bionomics), it remains an essentially deterministic view.
No semiosis triggers forces of economic change. But sign processes, in the form of elaborate transactions, reflect the change in the pragmatic condition of the human being. All those new companies, from fast food chains to microchip makers and robot providers that convert human knowledge into the new goods and services, are the expression of the necessity of this pragmatic change. Diversity and abundance might be related to competition and cooperation, but what drives economic life, market included, is the objective need to achieve levels of efficiency corresponding to the global scale human activity has reached. Central planning, like any other centralized structure, including that of businesses, does not come to an end because of technological progress, but in view of the fact that it prevents efficient practical experiences.
Markets of the civilization of illiteracy, like the economy for which they stand, are more and more mediated. They go through faster cycles, their swings wilder, their interdependency deeper than ever. The literate experience of the market assumed that the individual was the optimal source of information and the ideal receiver. Decision- making was an exclusively human experience. The illiterate message of complex data processing and evaluation can send itself automatically and reach whatever has to be reached in a given context: producers of raw materials, energy providers, manufacturers, a point-of-sale unit. As shoppers start scanning their purchases by themselves, information regarding their buying patterns makes it quickly into programs in charge of delivery, production, and marketing. Face-to-face negotiations, many times replaced by fax-to-fax or e-mail-to-e-mail transactions, are converted into more program-to-program dealings. Instead of mass markets, we experience point-cast markets. Their pragmatics is defined by the need to continuously meet desire and expectation instead of need. Their dynamics, expressed in nuclei of self-organization, is in the last instance not at all different from that of the human beings self-constituted in their reality.