I finish the day with an encyclopedia entry on Baudrillard (pertinent
excerpt) and an excerpt from a primary source, Lyotard, thanks to
marxists.org .

http://plato.stanford.edu/entries/baudrillard/

 On the whole, in his mid-1970s work, Baudrillard was extricating
himself from the familiar Marxian universe of production and class
struggle into a quite different neo-aristocratic and metaphysical
world-view. Baudrillard seems to assume at this point that
pre-capitalist societies were governed by forms of symbolic exchange
similar to Bataille's notion of a general economy. Influenced by
Mauss' theory of the gift and countergift, Baudrillard claimed that
pre-capitalist societies were governed by laws of symbolic exchange
rather than production and utility. Developing these ideas,
Baudrillard sketched a fundamental dividing line in history between
symbolic societies — i.e., societies fundamentally organized around
premodern exchange — and productivist societies (i.e., societies
organized around production and commodity exchange). He thus rejects
the Marxian philosophy of history which posits the primacy of
production in all societies and rejects the Marxian concept of
socialism, arguing that it does not break radically enough with
capitalist productivism, offering itself merely as a more efficient
and equitable organization of production rather than as a completely
different sort of society with a different values and forms of culture
and life.

Henceforth, Baudrillard would contrast — in one way or another — his
ideal of symbolic exchange to the values of production, utility, and
instrumental rationality that govern capitalist (and socialist)
societies. “Symbolic exchange” thus emerges as Baudrillard's
“revolutionary” alternative to the values and practices of capitalist
society, and stands for a variety of heterogeneous activities in his
1970s writings. For instance, he writes in the Critique: “The exchange
of looks, the present which comes and goes, are like the air people
breathe in and out. This is the metabolism of exchange, prodigality,
festival — and also of destruction (which returns to non-value what
production has erected, valorized). In this domain, value isn't even
recognized” (1981: 207). He also describes his conception of symbolic
exchange in The Mirror of Production where he writes: “The symbolic
social relation is the uninterrupted cycle of giving and receiving,
which, in primitive exchange, includes the consumption of the
‘surplus' and deliberate anti-production” (1975: 143). The term
therefore refers to symbolic or cultural activities which do not
contribute to capitalist production and accumulation and which
potentially constitute a “radical negation” of productivist society.

At this stage of his thought, Baudrillard stood in a French tradition
of extolling “primitive” or premodern culture over the abstract
rationalism and utilitarianism of modern society. Baudrillard's
defense of symbolic exchange over production and instrumental
rationality thus stands in the tradition of Rousseau's defense of the
“natural savage” over modern man, Durkheim's posing mechanical
solidarities of premodern societies against the abstract individualism
and anomie of modern ones, Bataille's valorization of expenditure of
premodern societies, or Mauss' or Levi-Strauss' fascination with the
richness of “primitive societies” or “the savage mind.” After
deconstructing the modern master thinkers and his own theoretical
fathers (Marx, Freud, Saussure, and his French contemporaries) for
missing the richness of symbolic exchange, Baudrillard continues to
champion the symbolic and radical forms of thought and writing in a
quest that takes him into ever more esoteric and exotic discourse.

Thus, against the organizing forms of modern thought and society,
Baudrillard champions symbolic exchange as an alternative. Against
modern demands to produce value and meaning, Baudrillard calls for
their extermination and annihilation, providing as examples, Mauss's
gift-exchange, Saussure's anagrams, and Freud's concept of the death
drive. In all of these instances, there is a rupture with the forms of
exchange (of goods, meanings, and libidinal energies) and thus an
escape from the forms of production, capitalism, rationality, and
meaning. Baudrillard's paradoxical concept of symbolic exchange can be
explained as expression of a desire to liberate himself from modern
positions and to seek a revolutionary position outside of modern
society. Against modern values, Baudrillard advocates their
annihilation and extermination.

In his mid-1970s work, however, Baudrillard posits another divide in
history as radical as the rupture between premodern symbolic societies
and modern ones. In the mode of classical social theory, he
systematically develops distinctions between premodern societies
organized around symbolic exchange, modern societies organized around
production, and postmodern societies organized around “simulation” by
which he means the cultural modes of representation that “simulate”
reality as in television, computer cyberspace, and virtual reality.

....

In a sense, there is a parodic inversion of historical materialism in
Baudrillard. In place of Marx's emphasis on political economy and the
primacy of the economic, for Baudrillard it is the model, the
superstructure, that generates the real in a situation he refers to as
the “end of political economy” (1993a). For Baudrillard, sign values
predominate over use values and exchange values; the materiality of
needs and commodity use-values to serve them disappear in
Baudrillard's semiological imaginary, in which signs take precedence
over the real and reconstruct human life. Turning the Marxist
categories against themselves, masses absorb classes, the subject of
praxis is fractured, and objects come to rule human beings. Revolution
is absorbed by the object of critique and technological implosion
replaces the socialist revolution in producing a rupture in history.
For Baudrillard, in contrast to Marx, the catastrophe of modernity and
eruption of postmodernity is produced by the unfolding of
technological revolution. Consequently, Baudrillard replaces Marx's
hard economic and social determinism with its emphasis on the economic
dimension, class struggle, and human praxis, with a form of
semiological idealism and technological determinism where signs and
objects come to dominate the subject.



http://www.marxists.org/reference/subject/philosophy/works/fr/lyotard.htm

4. The Nature of the Social Bond: The Modern Alternative

If we wish to discuss knowledge in the most highly developed
contemporary society, we must answer the preliminary question of what
methodological representation to apply to that society. Simplifying to
the extreme, it is fair to say that in principle there have been, at
least over the last half-century, two basic representational models
for society: either society forms a functional whole, or it is divided
in two. An illustration of the first model is suggested by Talcott
Parsons (at least the postwar Parsons) and his school, and of the
second, by the Marxist current (all of its component schools, whatever
differences they may have, accept both the principle of class struggle
and dialectics as a duality operating within society).”

This methodological split, which defines two major kinds of discourse
on society, has been handed down from the nineteenth century. The idea
that society forms an organic whole, in the absence of which it ceases
to be a society (and sociology ceases to have an object of study),
dominated the minds of the founders of the French school. Added detail
was supplied by functionalism; it took yet another turn in the 1950s
with Parsons’s conception of society as a self-regulating system. The
theoretical and even material model is no longer the living organism;
it is provided by cybernetics, which, during and after the Second
World War, expanded the model’s applications.

In Parsons’s work, the principle behind the system is still, if I may
say so, optimistic: it corresponds to the stabilisation of the growth
economies and societies of abundance under the aegis of a moderate
welfare state. In the work of contemporary German theorists,
systemtheorie is technocratic, even cynical, not to mention
despairing: the harmony between the needs and hopes of individuals or
groups and the functions guaranteed by the system is now only a
secondary component of its functioning. The true goal of the system,
the reason it programs itself like a computer, is the optimisation of
the global relationship between input and output, in other words,
performativity. Even when its rules are in the process of changing and
innovations are occurring, even when its dysfunctions (such as
strikes, crises, unemployment, or political revolutions) inspire hope
and lead to belief in an alternative, even then what is actually
taking place is only an internal readjustment, and its result can be
no more than an increase in the system’s “viability.” The only
alternative to this kind of performance improvement is entropy, or
decline.

Here again, while avoiding the simplifications inherent in a sociology
of social theory, it is difficult to deny at least a parallel between
this “hard” technocratic version of society and the ascetic effort
that was demanded (the fact that it was done in name of “advanced
liberalism” is beside the point) of the most highly developed
industrial societies in order to make them competitive – and thus
optimise their “irrationality” – within the framework of the
resumption of economic world war in the 1960s.

Even taking into account the massive displacement intervening between
the thought of a man like Comte and the thought of Luhmann, we can
discern a common conception of the social: society is a unified
totality, a “unicity.” Parsons formulates this clearly: “The most
essential condition of successful dynamic analysis is a continual and
.systematic reference of every problem to the state of the system as a
whole ... A process or set of conditions either ‘contributes’ to the
maintenance (or development) of the system or it is ‘dysfunctional’ in
that it detracts from the integration, effectiveness, etc., of the
‘system.” The “technocrats” also subscribe to this idea. Whence its
credibility: it has the means to become a reality, and that is all the
proof it needs. This is what Horkheimer called the “paranoia” of
reason.

But this realism of systemic self-regulation, and this perfectly
sealed circle of facts and interpretations, can be judged paranoid
only if one has, or claims to have, at one’s disposal a viewpoint that
is in principle immune from their allure. This is the function of the
principle of class struggle in theories of society based on the work
of Marx.

“Traditional” theory is always in danger of being incorporated into
the programming of the social whole as a simple tool for the
optimisation of its performance; this is because its desire for a
unitary and totalising truth lends itself to the unitary and
totalising practice of the system’s managers. “Critical” theory, based
on a principle of dualism and wary of syntheses and reconciliations,
should be in a position to avoid this fate. What guides Marxism, then,
is a different model of society, and a different conception of the
function of the knowledge that can be produced by society and acquired
from it. This model was born of the struggles accompanying the process
of capitalism’s encroachment upon traditional civil societies. There
is insufficient space here to chart the vicissitudes of these
struggles, which fill more than a century of social, political, and
ideological history. We will have to content ourselves with a glance
at the balance sheet, which is possible for us to tally today now that
their fate is known: in countries with liberal or advanced liberal
management, the struggles and their instruments have been transformed
into regulators of the system; in communist countries, the totalising
model and its totalitarian effect have made a comeback in the name of
Marxism itself, and the struggles in question have simply been
deprived of the right to exist. Everywhere, the Critique of political
economy (the subtitle of Marx’s Capital) and its correlate, the
critique of alienated society, are used in one way or another as aids
in programming the system.

Of course, certain minorities, such as the Frankfurt School or the
group Socialisme ou barbarie, preserved and refined the critical model
in opposition to this process. But the social foundation of the
principle of division, or class struggle, was blurred to the point of
losing all of its radicality; we cannot conceal the fact that the
critical model in the end lost its theoretical standing and was
reduced to the status of a “utopia” or “hope,” a token protest raised
in the name of man or reason or creativity, or again of some social
category such as the Third World or the students – on which is
conferred in extremes the henceforth improbable function of critical
subject.

The sole purpose of this schematic (or skeletal) reminder has been to
specify the problematic in which I intend to frame the question of
knowledge in advanced industrial societies. For it is impossible to
know what the state of knowledge is – in other words, the problems its
development and distribution are facing today – without knowing
something of the society within which it is situated. And today more
than ever, knowing about that society involves first of all choosing
what approach the inquiry will take, and that necessarily means
choosing how society can answer. One can decide that the principal
role of knowledge is as an indispensable element in the functioning of
society, and act in accordance with that decision, only if one has
already decided that society is a giant machine.

Conversely, one can count on its critical function, and orient its
development and distribution in that direction, only after it has been
decided that society does not form an integrated whole, but remains
haunted by a principle of oppositions The alternative seems clear: it
is a choice between the homogeneity and the intrinsic duality of the
social, between functional and critical knowledge. But the decision
seems difficult, or arbitrary.

It is tempting to avoid the decision altogether by distinguishing two
kinds of knowledge. one, the positivist kind, would be directly
applicable to technologies bearing on men and materials, and would
lend itself to operating as an indispensable productive force within
the system. The other the critical, reflexive, or hermeneutic kind by
reflecting directly or indirectly on values or alms, would resist any
such “recuperation.”

....

Second, the trivial cybernetic version of information theory misses
something of decisive importance, to which I have already called
attention: the agonistic aspect of society. The atoms are placed at
the crossroads of pragmatic relationships, but they are also displaced
by the messages that traverse them, in perpetual motion. Each language
partner, when a “move” pertaining to him is made, undergoes a
“displacement,” an alteration of some kind that not only affects him
in his capacity as addressee and referent, but also as sender. These
moves necessarily provoke “countermoves” and everyone knows that a
countermove that is merely reactional is not a “good” move. Reactional
countermoves arc no more than programmed effects in the opponent’s
strategy; they play into his hands and thus have no effect on the
balance of power. That is why it is important to increase displacement
in the games, and even to disorient it, in such a way as to make an
unexpected “move” (a new statement).

What is needed if we are to understand social relations in this
manner, on whatever scale we choose, is not only a theory of
communication, but a theory of games which accepts agonistics as a
founding principle. In this context, it is easy to see that the
essential element of newness is not simply “innovation.” Support for
this approach can be found in the work of a number of contemporary
sociologists, in addition to linguists and philosophers of language.
This “atomisation” of the social into flexible networks of language
games may seem far removed from the modern reality, which is depicted,
on the contrary, as afflicted with bureaucratic paralysis. The
objection will be made, at least, that the weight of certain
institutions imposes limits on the games, and thus restricts the
inventiveness of the players in making their moves. But I think this
can be taken into account without causing any particular difficulty.

In the ordinary use of discourse – for example, in a discussion
between two friends – the interlocutors use any available ammunition,
changing games from one utterance to the next: questions, requests,
assertions, and narratives are launched pell-mell into battle. The war
is not without rules, but the rules allow and encourage the greatest
possible flexibility of utterance.

>From this point of view, an institution differs from a conversation in
that it always requires supplementary constraints for statements to be
declared admissible within its bounds. The constraints function to
filter discursive potentials, interrupting possible connections in the
communication networks: there are things that should not be said. They
also privilege certain classes of statements (sometimes only one)
whose predominance characterises the discourse of the particular
institution: there arc things that should be said, and there are ways
of saving them. Thus: orders in the army, prayer in church, denotation
in the schools, narration in families, questions in philosophy,
performativity in businesses. Bureaucratisation is the outer limit of
this tendency.

However, this hypothesis about the institution is still too
“unwieldy”: its point of departure is an overly “reifying” view of
what is institutionalised. We know today that the limits the
institution imposes on potential language “moves” are never
established once and for all (even if they have been formally
defined), Rather, the limits are themselves the stakes and provisional
results of language strategies, within the institution and without.
Examples: Does the university have a place for language experiments
(poetics)? Can you tell stories in a cabinet meeting? Advocate a cause
in the barracks? The answers are clear: yes, if the university opens
creative workshops; yes, if the cabinet works with prospective
scenarios; yes, if the limits of the old institution are displaced.
Reciprocally, it can be said that the boundaries only stabilise when
they cease to be stakes in the game.

This, I think, is the appropriate approach to contemporary
institutions of knowledge.

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