6

Social Optimization

Imagine walking into a coffee shop, ordering a cappuccino, and then, to your surprise, being informed that it has already been paid for. This sounds like a pleasant experience, one which might even make the coffee more pleasurable to drink. Where did this unexpected gift come from? It transpires that it was left by the previous customer. The only snag, if indeed it is a snag, is that you now have to do the same for the next customer to walk in.

This is known as a ‘pay-it-forward’ pricing scheme. It is something that has been practised by a number of small businesses in California, such as Berkeley’s Karma Kitchen, and sometimes has been introduced spontaneously by customers themselves. On the face of it, it would seem to defy the logic of free market economics. After all, the basic premise of the price system, as it appeared to William Stanley Jevons and the neoclassical economists, is that I will exchange my money for a pleasure that I experience privately. Money for the shopkeeper is counter-balanced against satisfaction for me. Markets, surely, are places where we are allowed, even expected, to behave selfishly. With its hippy idealism, pay-it-forward would appear to defy the core tenets of economic calculation.

But there is more to it than this. Researchers based at UC Berkeley’s Decision Science Research Group have looked closely at pay-it-forward pricing and discovered something with profound implications for how markets and business work. It transpires that people will generally pay more for a good, under the pay-it-forward model, than under a conventional pricing system.1 This is true even when the participants are complete strangers. As the study’s lead author, Minah Jung, puts it, ‘People don’t want to look cheap. They want to be fair, but they also want to fit in with the social norms.’ Contrary to what economists have long assumed, altruism can often exert a far stronger influence over our decision-making than calculation. If individuals can become seduced into relationships of reciprocity, rather than of selfish calculation, the capacity to influence them is that much greater. As Jung’s research shows, so is the opportunity to charge them more money.

Similar research findings have been made in the workplace. The notion of ‘performance-related pay’ is a familiar one, suggesting, reasonably enough, that additional effort by an employee is rewarded by a commensurate increase in pay. But studies conducted by researchers at Harvard Business School have discovered that there is a more effective way of extracting greater effort from staff: represent pay increases as a ‘gift’.2 When money is offered in exchange for extra effort, the employee may be minded to view the extra money as their entitlement and carry on as before. But when the employer makes some apparently gratuitous act of altruism, the employee enters a more binding reciprocal relationship and works harder.

These findings are typical of the field of ‘behavioural economics’, which emerged in the late 1970s thanks to a reunion of psychology with economics, following their split at the end of the nineteenth century. Like regular economists, behavioural economists assume that individuals are usually motivated to maximize their own benefit – but not always. In certain circumstances, they are social and moral animals, even when this actually appears to undermine their economic interests. They follow the herd and act according to certain rules of thumb. They have some principles that they will not sacrifice for money at all. A number of much-hyped policy lessons follow from this, which have been referred to as ‘nudges’.

For example, if some people are repeatedly creating a disturbance in their neighbourhood, how should they be dealt with? Jeremy Bentham would have supposed that the answer involved some sort of punishment: only if the behaviour were associated with pain would it become less appealing. An alternative answer, though with the same logic, is that they could be paid to behave better. But there is a third option, which Bentham might well have scoffed at. What if they sign a piece of paper, promising to change the way that they behave in future? Somewhat surprisingly, it transpires that this can often be the most effective strategy. Making an explicit moral commitment – even under duress – seems to bind people in certain ways that utilitarian penalties and incentives often do not.

It seems that this undermines the cynical, calculative, individualist theory of human psychology, which lies at the heart of Benthamism and orthodox economics. It transpires that we are as much motivated by moral principles as we are by our own selfish interests. Maybe the cold rationality of the market does not have quite the grip on our psychology as we have long feared. Could it be that we are decent, social creatures after all? A great deal of evidence from neuroscience, showing how sympathy and reciprocity are ‘hard-wired’ into the brain, confirms this. Perhaps this could be the basis for a new political hope, of a society in which sharing and gift-giving offer a serious challenge to the power of monetary accumulation and privatization.

But there is also a more disturbing possibility: that the critique of individualism and monetary calculation is now being incorporated into the armoury of utilitarian policy and management. The history of capitalism is littered with critiques of the dehumanizing, amoral world of money, markets, consumption and labour, offered by romantics, Marxists, anthropologists, sociologists and cultural critics among many. These critics have long argued that social bonds are more fundamental than market prices. The achievement of behavioural economics is to take this insight, but to then instrumentalize it in the interests of power. The very idea of the ‘social’ is being captured.3

John B. Watson had promised in 1917 that, in an age of behaviourist science, ‘the educator, the physician, the jurist and the businessman could utilize our data in a practical way, as soon as we are able, experimentally, to obtain them.’ Behavioural economics has been true to this mission statement. One of its key insights is that, if one wants to control other human beings, it is often far more effective to appeal to their sense of morality and social identity than to their self-interest. By framing notions such as ‘fairness’ and ‘gift’ in purely psychological and neurological terms, behavioural science converts them into instruments of social control.

Viewed from a more cynical perspective – as behavioural economists themselves do – activities such as pay-it-forward and random acts of managerial generosity have a pernicious element, which works through never being made explicit. In abandoning the psychology of pure self-interest, these projects shift to a far more invasive and constrictive alternative, namely the psychology of credit and debt. A psychological sense of social obligation is first manufactured and then harnessed for particular purposes which remain concealed. If utilitarianism is, at its heart, a political logic in which every institution is to be judged in terms of its measured outcome, then the extension of this to encompass our basic moral sensibilities must represent that logic’s final triumph.

The money-making ‘social’

Generosity has become big business. In 2009, Chris Anderson, former editor of Wired magazine, published Free: The Future of a Radical Price. In this rallying cry, Anderson argued that there was now a strong business case for giving products and services away for free, so as to produce a better relationship with a customer. Of course money is not dispensed with altogether in this idyll of gift-giving. Giving things away for free becomes a means of holding an audience captive or building a reputation, which can then be exploited with future sales or advertising, this time commanding a price. Michael O’Leary, boss of Ryanair, Ireland’s controversial budget airline, has even suggested that airline tickets might one day be priced at zero, with all costs recovered through additional charges for luggage, using the bathroom, skipping queues, and so on.

When it comes to the free market, all corporations dwell in a paradoxical position. They seek all of the freedoms that the market offers for their vested interests, but as few as possible for anybody else.4 The trick is to maintain maximum autonomy for shareholders and executives while gaining maximum commitment from employees and customers. What Anderson was highlighting was simply the powerful potential of non-monetary relationships in building closer bonds where they are useful in the service of profitmaking. To put it another way, the last thing a business wants from its customers (or their more valued staff) is for them to remember that they are in a market, with freedom of choice. Freebies are a useful way of disguising what’s really taking place.

And just as corporate giving can be used as a way of boosting revenue, so can the magic words that are used in return. Marketing specialists now analyse the optimal way of saying the words ‘thank you’ to a customer, so as to deepen the ‘social’ relationship with them further. As one expert explains for the benefit of online retailers:

Thank you pages are much more than pieces of virtual real estate on which to display gratitude and order numbers. These pages are an integral part of an optimized conversion system that, when used properly, can continue to boost your revenue.5

The language of gratitude has infiltrated a number of high-profile advertising campaigns. Around Christmas 2013, a number of corporations – notably, those that had suffered serious reputational deficits in recent times – launched advertising campaigns offering general thanks to everyone around them. Naturally this included their customers, but it also extended to a general mood of gratitude for the gift of friendship.

Lloyds TSB, one of the British banks to be most embarrassed by the 2008 financial crisis, launched a campaign consisting entirely of cutesy images of childhood friends enjoying happy moments together, concluding with the words ‘thank you’ written in party balloons. There was no mention of money. More bizarrely, Tesco, a vast supermarket chain whose brand entered free fall in 2011, released a series of YouTube videos with men in Christmas jumpers singing ‘thank you’ to everyone from the person who cooks Christmas dinner, to those driving safely, to other companies such as Instagram and so on. Tesco, it was implied, sprays gratitude in all directions, regardless of its own private interests.

The strange spectacle of a corporation attempting to project feelings associated with friendship takes an even weirder turn when businesses seize the affordances of Twitter to grant them a quirky, conversational identity. Brands tweet at each other, in a coy, almost flirtatious fashion. Confronted by the phenomenon of the Denny’s diner chain acting cool on Twitter, the writer Kate Losse observed how ‘to become popular and “cool”, brands have had to learn the very techniques we learned as resistant teens to deal with power: our sarcastic humor and our endlessly remixable memes’.6 Corporations now want to be your friend.

There is, of course, a limit to how much of a social bond an individual can have with a PLC. Companies today are obsessed with being ‘social’, but what they typically mean by this is that they are able to permeate peer-to-peer social networks as effectively as possible. Brands hope to play a role in cementing friendships, as a guarantee that they will not be abandoned for more narrowly calculated reasons. So, for example, Coca-Cola has tried a number of somewhat twee marketing campaigns, such as putting individual names (‘Sue’, ‘Tom’, etc.) on their bottles as a way of inducing gift-giving, and even offered a ‘twin pack’, with the assumption that the drinks will be enjoyed by two people together. Managers hope that their employees will also act as ‘brand ambassadors’ in their everyday social lives and seek advice on how to influence them to do this. Meanwhile, neuromarketers have begun studying how successfully images and advertisements trigger common neural responses in groups, rather than in isolated individuals. This, it seems, is a far better indication of how larger populations will respond.7

The rise of the ‘sharing economy’, exemplified by Airbnb and Uber, and studies such as the pay-it-forward experiment, offer a simple lesson to big business. People will take more pleasure in buying things if the experience can be blended with something that feels like friendship and gift exchange. The role of money must be airbrushed out of the picture wherever possible. As marketers see it, payment is one of the unfortunate ‘pain points’ in any relationship with a customer, which requires anaesthetizing with some form of more ‘social’ experience. Shopping must be represented as something else entirely.

Yet the greatest catalyst for the new business interest in being ‘social’ is, unsurprisingly, the rise of social media. This offers a number of new opportunities and challenges from a marketing perspective. The story of marketing over the course of the twentieth century was one of a gradual disintegration of the mass media, mass market, broadcast model of advertising. From the 1960s onwards, brands were increasingly targeting niche groups and ‘tribes’ who had to be understood in a more subtle fashion, through careful observation and focus groups. Social media allows for an even finer grain of consumer insight, allowing researchers to spot how tastes, opinions and consumer habits travel through social networks. It allows advertising to be tailored to specific individuals, on the basis of who else they know, and what those other people liked and purchased. These practices, which are collectively referred to as ‘social analytics’, mean that tastes and behaviours can be traced in unprecedented detail.

The most valuable trick, from a marketing perspective, is how to induce individuals to share positive brand messages and adverts with each other, almost as if there were no public advertising campaign at all. The business practice known as ‘friendvertising’ involves creating images and video clips which social media users are likely to share with others, for no conscious commercial purpose of their own.8 ‘Sponsored conversations’, in which individuals participate in online discussions and blogs with the commercial support of a business, are a slightly less-well-hidden attempt to achieve the same thing. The science of viral marketing, or the creation of ‘buzz’, has led marketers to seek lessons from social psychology, social anthropology and social network analysis.

At the same time that behavioural economics has been highlighting the various ways in which we are social, altruistic creatures, social media offers businesses an opportunity to analyse and target that social behaviour. The end goal is no different from what it was at the dawn of marketing and management in the late nineteenth century: making money. What’s changed is that each one of us is now viewed as an available instrument through which to alter the attitudes and behaviours of our friends and contacts. Behaviours and ideas can be released like ‘contagions’, in the hope of ‘infecting’ much larger networks. While social media sites such as Facebook offer whole new possibilities for marketing, the analysis of email networks can do the same for human resource management in workplaces. The project initiated by Elton Mayo in the 1920s, of understanding the business value of informal relationships, can now be subjected to a far more rigorous and quantitative scientific analysis.9

One of the outcomes of this fine-grained level of social analysis is the discovery that different social relationships have very different levels of economic value. Once marketing campaigns are being mediated by individuals, in their informal social lives, it quickly becomes plain that certain individuals – well-connected influencers – are more useful instruments of communication than others. In the workplace, the socially connected employee will come to appear more valuable than the more isolated one. The business logic which emerges from this is to be highly generous towards a small minority of already well-connected people, and pay far less attention to everybody else. Celebrities have long had gifts lavished upon them by companies, hoping to have their brands boosted by association. The same process is beginning to apply to social networks: the people who are least in need of this corporate generosity are the most likely recipients of it, and vice versa.

The ideology of this new ‘social’ economy depends on painting the ‘old’ economy as horribly individualistic and materialistic. The assumption is that, prior to the World Wide Web and the Californian gurus that celebrate it, we lived atomized, private lives, with every relationship mediated by cash. Before it became ‘social’, business was a nasty, individualist affair, driven only by greed.

This picture is, of course, completely false. Corporations have been trying to produce, manage and influence social relationships (as an alternative to purely monetary transactions) since the birth of management in the mid-nineteenth century. Businesses have long worried about their public reputation and the commitment of their employees. And it goes without saying that informal social networks themselves are as old as humanity. What has changed is not the role of the ‘social’ in capitalism, but the capacity to subject it to a quantitative, economic analysis, thanks primarily to the digitization of social relationships. The ability to visualize and quantify social relations, then subject them to an economic audit, is growing all the time.

While the expert practitioners of ‘social analytics’ are best placed to do this, there is also a growing tendency and opportunity for individuals themselves to view their social lives in this mathematical, utilitarian sense. As this happens, the moral dimension of friendship and reciprocity starts to recede, and the more explicitly utilitarian dimension moves to the foreground. Something like pay-it-forward ceases to influence us because we want to fit in with social norms, and more because of the psychological kick we get out of it ourselves. People start to think of altruism in terms of incentives. Viewing social relations and giving in this tacitly economic way introduces an unpleasant question: what’s in it for me? One of the most persuasive answers emerging is that friendship and altruism are healthy, for both mind and body.

The medical ‘social’

In February 2010, I found myself sitting in a large hall, with a huge golden throne on my left, and the future leader of the UK Labour Party, Ed Miliband, to my right. We were watching images on a screen that reminded me of the fractal videos that used to be sold by the ‘herbal remedy’ salesmen in London’s Camden Market in the early 1990s. Also present was a number of government policy advisors, all straining to appear as shambolically relaxed as possible, a status game which goes on in the corridors of power, played to indicate that one is at home there (the game was won under the subsequent government by David Cameron’s closest confidant, Steve Hilton, who was notorious for wandering into meetings barefooted).

There were about ten of us in the room, one of the more baroque offices in the government’s Cabinet Office, and we were all staring at this screen, transfixed by the movement of individual lines and dots that were being displayed. Standing next to the screen, clearly enjoying the impact that his video was having on this influential audience, was the American medical sociologist Nicholas Christakis. Christakis was on a speaking tour, promoting his book Connected, and had been invited in to present some of his findings to British policy-makers during the dying days of Gordon Brown’s government. As a sociologist with an interest in policy, I’d been invited along.

Christakis is an unusual sociologist. Not only is he far more mathematically adept than most, but he has also published a number of articles in high-ranking medical journals. The fractal-like images we were watching on the screen that day represented social networks in a Baltimore neighbourhood, within which particular ‘behaviours’ and medical symptoms were moving around. Christakis’s message to the assembled policy-makers was a powerful one. Problems such as obesity, poverty and depression, which so often coincide, locking people into chronic conditions of inactivity, are contagious. They move around like viruses in social networks, creating risks to individuals purely by virtue of the people they happen to hang out with.

There was something mesmeric and seductive about the images. Could entrenched social problems really be represented by graphics of this sort? Christakis’s technical prowess was certainly alluring. In the grand tradition of American GIs bringing chewing gum and nylon stockings to the British during World War Two, his high-tech social network analysis seemed novel and irresistible. The behaviourist promise, that policy might be grounded in hard science, will always get a hearing among senior decision-makers.

What I found slightly surreal that day, aside from the massive gold throne, was the freakish view of this particular inner-city American community that we were privy to. Like the social analytics companies, which try to spot consumer behaviour as it emerges and travels, here we were in London observing how the dietary habits and health problems of a few thousand relatively deprived Baltimore residents were moving around, like a disease. It felt as if we were viewing an ant colony from above. Indeed, the fact that these flickering images represented human beings, with relationships, histories and agendas, was almost incidental.

Of course the policy opportunities here are tremendously exciting, especially in an age of government austerity. If medical practitioners can change the behaviour of just a few influential people in a network for the better, potentially they can then spread a more positive ‘contagion’. The question is whether policymakers could ever possibly hope to attain this kind of sociological data en masse, without some form of mass surveillance of social life. While we grow increasingly accustomed to the idea of a private company, such as Google, collecting detailed data on the everyday behaviour of millions, the notion that the government might do the same remains more chilling.

While marketers desperately seek to penetrate our social networks in order to alter our tastes and desires, policy-makers have come to view social networks as means of improving our health and well-being. One important aspect of this is the discovery that a deficit of social relations – or loneliness – is not only a cause of unhappiness, but a serious physiological health risk as well. The ‘social neuroscience’ pioneered by Chicago neuroscientist John Cacioppo suggests that the human brain has evolved in such a way as to depend on social relationships. Cacioppo’s research suggests that loneliness is an even greater health risk than smoking.10 Practices such as ‘social prescribing’, in which doctors recommend that individuals join a choir or voluntary organization, are aimed at combating isolation and its tendency to lead to depression and chronic illness.

The positive psychology movement, which has grown rapidly since the early 1990s, has done a great deal to highlight the psychosomatic benefits of reciprocal social relations. While positive psychologists like to speak in terms of ‘flourishing’ and ‘optimism’, lurking behind much of the rhetoric is the ongoing rise in diagnosis rates of depression. While the gurus of this movement may be all smiles, many of their readers and listeners are wrestling with a sense of pointlessness, loneliness and deflation, for which they are desperately seeking a remedy.

Once again, the logic of monetary market exchange is vigorously attacked in positive psychology. The words which recur over and over in positive psychology texts and speech are gratitude, giving and empathy. In a world that seems cold, calculating and careless, positive psychology invites its follower to adopt a more ethical stance, based around empathy and generosity. The fact that this stress upon social reciprocity is entirely in keeping with the current spirit of capitalism (clearly manifest in marketing) goes unremarked-upon. But what really leaps out from this new ethical orientation is the way in which it is ultimately justified: giving makes the giver feel happier. Equally, the mental habit of feeling grateful delivers positive mental benefits. The advice is to stop thinking so much of oneself – but the justification is ultimately a self-centred one.

As was clear from the Christakis seminar in the Cabinet Office throne-room, social networks are now recognized as tools of health policy. They are ways in which the pleasures and pains of our minds and bodies can be influenced. The utilitarian project has historically been dependent on some rather crude carrots and sticks – punishments to deliver pain, money and physical pleasures to deliver happiness. Now, thanks to the growing reach of medical research and policy, it is the people we socialize with who are becoming the latest instruments of psychophysical improvement. We now know that socially isolated people experience more physical pain following a hip operation than those who are more socially connected.11 Adopting a positive outlook is known to aid recovery from medical illness and reduce the risk of it arising.

Driven particularly by neuroscience, the expert understanding of social life and morality is rapidly submerging into the study of the body. One social neuroscientist, Matt Lieberman, has shown how pains that we have traditionally treated as emotional (such as separating from a lover) involve the same neurochemical processes as those we typically view as physical (such as breaking an arm). Another prominent neuroscientist, Paul Zak (known in the media as Dr Love), has focused on a single neurochemical, oxytocin, which he argues is associated with many of our strongest social instincts, such as love and fairness. Scientists at the University of Zurich have discovered that they can trigger a sense of ‘right and wrong’ by stimulating a particular area of the brain.12 Social science and physiology are converging into a new discipline, in which human bodies are studied for the ways they respond to one another physically.

It would seem a little perverse to suggest that policy-makers ignore this evidence of the impact of social networks and altruism on health. And if positive psychology can generate just a little more mutual concern, through self-help and cognitive tips, then why not? Yet there is still a danger lurking in this worldview, which is the same problem that afflicts all forms of social network analysis. In reducing the social world to a set of mechanisms and resources available to individuals, the question repeatedly arises as to whether social networks might be redesigned in ways to suit the already privileged. Networks have a tendency towards what are called ‘power laws’, whereby those with influence are able to harness that power to win even greater influence.

A combination of positive psychology with social media analytics has demonstrated that psychological moods and emotions travel through networks, much as Christakis found in relation to health behaviour. For example, through analysing the content of social media messages, researchers at Beihang University in China found that certain moods like anger tended to travel faster than others through networks.13 A negative frame of mind, including depression itself, is known to be socially ‘contagious’. Happy, healthy individuals can then tailor their social relationships in ways that protect them against the ‘risk’ of unhappiness. Guy Winch, an American psychologist who has studied this phenomenon, advises happy people to be on their guard. ‘If you find yourself living with or around people with negative outlooks,’ he writes, ‘consider balancing out your friend roster’.14 The impact of this friend-roster-rebalancing on those unfortunates with the ‘negative outlooks’ is all too easy to imagine.

There is something a little sad that the fabric of social life is now a problem which is addressed within the rubric of health policy. Loneliness now appears as an objective problem, but only because it shows up in the physical brain and body, with calculable costs for governments and health insurers. Generosity and gratitude are urged upon people, but mainly to alleviate their own mental health problems and private misery. And friendship ties within poor inner-city neighbourhoods have become a topic of government concern, but only to the extent that they mediate epidemics of bad nutrition and costly inactivity. This is all an attempt to grasp the social world without departing from mathematical, individualist psychology. While this may offer genuine medical aid to needy individuals, trying to understand society in purely psychological terms is also a recipe for narcissism. And the man who initiated it was nothing if not a narcissist.

Playing God

In 1893, a four-year-old boy sat on top of a rickety mountain of chairs that he and his friends had stacked on top of each other in the basement of his parent’s house, on the outskirts of Bucharest near the Danube. The boy, Jacob Moreno, was seizing the opportunity of his parents’ absence to play his favourite game. He was ‘God’, and the other children from his neighbourhood were his ‘angels’. Perched on top of his chair stack, Moreno instructed his angels to start flapping their wings. They obeyed. ‘Why don’t you fly?’ one of the angels then asked him. He agreed, launched himself into the air and within seconds found himself lying on the basement floor with a broken arm.

Moreno’s desire to play God never really deserted him. The idea of humans as individual gods in their own social worlds, creators of themselves and creators of their relationships, animated his work as a psychoanalyst and social psychologist during his adulthood. His 1920 work, The Words of the Father, outlined a frightening humanistic philosophy, where individuals confront situations of infinite possibility, in which the only limiting factor upon their own powers of self-creation is that they exist in social groups. But social groups are also malleable and improvable. Every god needs its angels.

A fantasy of ultimate paternity was an abiding feature of Moreno’s professional conduct, leading him to create some absurd myths surrounding his own originality. This included some outright lies, such as the claim he repeatedly advanced that he was born on board a ship in 1892, of unknown nationality, with an unknown father, when in fact he was born in Bucharest in 1889, the son of a struggling Jewish merchant with Turkish nationality. In later life, he exerted himself in claiming authorship over various concepts and techniques that were circulating in psychology and psychiatry at the time, with particular hostility aimed at the psychologist Kurt Lewin, who he believed was stealing his ideas. For one so interested in studying social relations, Moreno was unusually paranoid and egocentric.

His family moved to Vienna when he was a child, and it was there that he later enrolled to study medicine at university. This enabled him to attend the lectures of Sigmund Freud shortly before the First World War. Moreno was only marginally impressed by the celebrity psychoanalyst. As he left the lecture hall one day in 1914, he accosted him. ‘Well, Dr. Freud, I start where you leave off,’ he told him. ‘You meet people in the artificial setting of your office. I meet them on the street and in their homes, in their natural surroundings.’15 The onset of war provided him with his first opportunity to do just this.

His mixed nationality meant that he was unable to serve in the army, so he took a position as a doctor in refugee camps in Austria-Hungary between 1915 and 1918. Observing those who resided in these camps, Moreno began to consider ways in which their happiness could be influenced through altering their immediate social surroundings. Clearly their objective circumstances were a cause of considerable misery, but Moreno believed that careful observation to patterns of relationships might reveal ways in which psychological satisfaction could be improved, with relatively minor changes. In 1916, he laid down these thoughts in a letter to the Austro-Hungarian minister of the interior as follows:

The positive and negative feelings that emerge from every house, between houses, from every factory, and from national and political groups in the community can be explored by means of sociometric analysis. A new order by means of sociometric methods is herewith recommended.16

What was this ‘sociometric’ analysis he referred to? And how would it help? Though still undeveloped as a mathematical science, let alone a computational one, ‘sociometry’, as Moreno imagined it, laid the groundwork for what later became social network analysis and, consequently, social media. But before this could be developed as a scientific possibility, another part of Moreno’s self-fantasy would have to be mobilized.

He claimed that he was always destined to live in the United States. Advancing the myth of his fatherless, nationless origins, he declared, ‘I was born a citizen of the world, a sailor moving from sea to sea, from country to country, destined to land one day in New York harbor.’ In 1922, he reported a dream in which he was standing on Fifth Avenue, Manhattan, in possession of a new device for recording and playing sound. Not content with giving birth to a whole new branch of psychology, the dream indicated to Moreno that he was also destined to invent the record player. With his collaborator, Franz Lornitzo, he set to work on such a device over the course of 1924, filing a patent on it in Vienna, resulting in an invitation to Ohio to develop the technology with the General Phonograph Manufacturing Company.

Moreno would be ultimately frustrated by the lack of recognition he would receive for this creation, characteristically refusing to acknowledge that there were multiple similar projects going on simultaneously. Nor were his hosts in Ohio as fawning towards this unlikely inventor as he had assumed they would be. But the invitation to Ohio did nevertheless allow him to realize his vision of himself as a self-parented, nationless American. Besides, New York City – the place that had occupied his dreams and fantasies for the previous decade – pointed towards a new model of society that seemed to chime with Moreno’s assumption about sovereign selves existing in social groups of their own making.

As Moreno’s curt remark to Freud indicated, his problem with psychoanalysis was that it studied individuals as separate from society, without the constraints offered by existing relationships. But what was the alternative? The danger was that the extreme individualism of Freudianism could flip directly into the equally extreme collectivism of Marxism, or else the form of statistical sociology pioneered by Émile Durkheim. In Moreno’s eyes, this left Europeans with a bipolar choice, between the enforced collectivity of the socialist state and the unruly egoism of the unconscious self. New York, however, suggested that some sort of third way was possible. Here was a city where individuals lived on top of one another, cooperating in various subtle ways, but without having their individual freedom trammelled in the process. America, Moreno reasoned, was a nation built upon self-forming groups.

The mathematics of friendship

It was in New York that he got his first opportunities to develop the research techniques he had already conceived of as ‘sociometry’. He was judicious enough to abandon the talk of individuals as their own personal gods, but other than that, Moreno was intent on building on the insights he’d acquired in the wartime refugee camps and the psychological theories in The Words of the Father. He described the project of sociometry as follows:

It is important to know whether the construction of a community is possible in which each of its members is to the utmost degree a free agent in the making of the collectives of which he is a part and in which the different groups of which it consists are so organized and fitted to each other that an enduring and harmonious commonwealth is the result.17

Relationships are there to serve the individual. Spontaneity and creativity derive wholly from each of us individually, but our capacity to release them depends on being in the right social circumstances. The task of sociometry was to place the study of an individual’s social relationships on a scientific footing, which would ultimately incorporate mathematics.

Moreno had toyed with various ways of doing this while still in Vienna. He had a hunch that visual diagrams might be the best way of representing complex webs of interaction. Having presented some of these ideas at a psychiatry conference in 1931, he was invited to try out this proposed mode of study on the inmates of Sing Sing prison, New York. Moreno devised a questionnaire to assess the prisoners according to thirty simple attributes, such as age, nationality, ethnicity and so on. In the age of the survey, there was nothing unusual about that; what he did next was ground-breaking.

Rather than analyse this data in terms of averages, aggregates and probabilities (as the market researchers and pollsters were beginning to do at this time), he compared each and every prisoner to each and every other prisoner, with a view to assessing how well matched they were to one another, individually. Here was the birth of a new form of sociology aimed at capturing the value of one-to-one relationships, in terms of how far they benefited the individuals who were party to them. He wasn’t interested in what was normal or typical in general. What he wanted to know was how individuals were influenced by those people they happened to know.

Prior to the invention of computers, the mathematics of this research method was fearsome. To study every relationship in a group of four people involves looking at a maximum of six links. Increase the group size to ten people, and you’re looking at forty-five possible connections. Increase it again to thirty people, and the potential number of relationships increases to 465. And so on. It was slow and laborious work. But men could not retain the status of gods in their own social worlds unless their individual autonomy was respected by the social research method.

The following year, Moreno got another chance to implement sociometry, at the New York Training School for Girls in Hudson. This time, he focused more explicitly on individual attitudes towards each other, asking them with whom they would like to share a room and whom they already knew. This study witnessed Moreno produce visual sociometric maps of the results for the first time, marking out webs of common links between girls in the school in hand-drawn red lines, later to be published in his 1934 work Who Shall Survive? The social world had just become visible in an entirely new way. This, arguably, was the means of visualization which would dominate twenty-first-century understandings of the ‘social’.

The vision of social life that fuelled sociometry was undoubtedly a far more individualistic one than that which had inspired sociology up until then. Collective entities emerged only thanks to the spontaneous power of individual egos. They could just as easily be dispensed with again. As far as Moreno was concerned, American culture was founded on specifically this freedom to enter and exit groups. But creating a social science which recognized this individual freedom was far from straight-forward. Two problems in particular presented themselves.

Firstly, the rich, binding, comforting and sometimes suffocating nature of social life gets eliminated from view. The sorts of data that can be included in a sociometric study are necessarily very simplified. Just as social media sites offer users strict limits to how they can define themselves romantically (‘single’, ‘in a relationship’ or ‘it’s complicated’) or in relation to each other (‘friend’ or ‘unfriend’, ‘follow’ or ‘unfollow’), Moreno’s sociometry would only succeed if nuance were stripped out. The price to be paid for exiting the restricted limits of the Freudian office was that the depths of the human psyche started to disappear from view. To carve a path between a science of society and a science of the isolated individual, sociometry necessarily had to simplify both substantially. Of course such simplification can also be attractive, as Nicholas Christakis’s visualization demo in London that day testified. To act scientifically upon the social world, elites need to have nuance and culture removed.

Secondly, what to do with the reams of data that resulted from viewing society as a web of interpersonal relations? How to cope with it all or make sense of it? Moreno had no answer to this. The fact that social network analysis would not really take off until the 1960s wasn’t for want of an adequate underlying theory, but for want of sufficient power to crunch the numbers. As we have seen, the mathematical challenge that Moreno laid down for the social sciences was onerous. Social network analysis developed slowly in the United States during the 1950s and 1960s, impeded by the problem of processing complex bodies of data. Algorithms were developed which could discover patterns in social data, but universities lacked the computing power to automate them.

It wasn’t until the 1970s that a succession of software packages was developed for purposes of social network analysis.18 Of course these still required academic researchers to go and collect data to feed into the computers. This was still a laborious way of analysing the social world, which – compared with statistics – had little hold over the public imagination. All it took was for a broad mass of individuals to become regular users of networked computers, and Moreno’s methodology could become a dominant way of understanding the meaning of the term ‘social’. At the beginning of the twenty-first century, this was the very situation which had arisen, the opportunities of which were seized by the ‘Web 2.0’ companies which emerged from 2003 onwards. The sociometric studies which Moreno had conducted through interviews with a few dozen people, producing hand-drawn diagrams, could now be carried out in Facebook HQ at the flick of a switch, with a billion participants.

But methods of social analysis are never as politically innocent as they appear. While social network analysis purports to be a simple, stripped-down mathematical study of the ties that bind us, it’s worth reflecting on the philosophy that inspired its founder. As far as Moreno was concerned, other people are there to prop up and please individual egos. A friendship is valuable to the extent that it makes me feel better. Once the study of social life is converted into a branch of mathematical psychology, then this produces some worrying effects on how people start to relate to each other. The narcissism of the small boy playing God surrounded by his angels has become another model for how pleasure is now manufactured and measured.

Addicted to contact

The main charge that has been levelled against the DSM, since the introduction of the DSM-III in 1980, is that it converts everyday forms of sadness and personality quirks into illnesses. This has been particularly pronounced in the identification of ever more forms of addiction. Until the early 1970s, addiction would only have been understood as referring to syndromes which affect the metabolism, such as alcoholism, and even then its social and cultural dimensions would have been recognized. In the era of the DSM-III and since, new addictions have been identified and diagnosed in relation to all manner of hedonistic practices and experiences, from gambling to shopping to sex. Inevitably, the new diagnostic categories lend support to biological explanations that the behaviours are hard-wired into certain brains or genes.

The DSM-V, which was launched in early 2013, added a further item to the menu of dysfunctional compulsions: internet addiction. Many doctors and psychiatrists are confident that this latest syndrome qualifies as a true addiction, no less than addiction to drugs. Sufferers show all the hallmarks of addictive behaviour. Internet use can overwhelm their ability to maintain relationships or hold down a career. When internet addicts are cut off from the web as a form of ‘cold turkey’, they can develop physiological withdrawal symptoms. They lie to those they are close to in an effort to get their fix. Neuroscience shows that the pleasures associated with internet use can be chemically identical to those associated with cocaine use or other addictive pastimes.

If we can look beyond the neurochemistry for a moment, it is worth asking one simple question: what is the internet addict addicted to exactly? One of the psychiatrists who has explored this phenomenon most closely is Richard Graham, based at London’s Tavistock Clinic. And the conclusion he has reached brings us squarely to the pathologies of the new concept of the ‘social’.

In 2005, Graham was studying the ways in which video games impacted on the behaviour and attitudes of young people. It was thanks to this expertise that a teenage boy was referred to him with symptoms of depression, who was also a compulsive player of computer games, in particular a game called Halo. The boy played for four or five hours a day, obsessively trying to reach the next level of the game, cutting him off from his friends and family in the process. His parents were concerned about the amount of time he spent in his room. And yet the gaming in itself didn’t strike Graham as a particular cause for concern.

But in 2006, the boy’s situation became rapidly more serious. He switched to playing World of Warcraft, which coincided with a marked increase in his amount of gaming time, to as much as fifteen hours every day. His parents became increasingly concerned but felt powerless to do anything. The situation continued like this for another three years. Reaching breaking point on Mothering Sunday, 2009, they turned off his modem. The boy immediately became violent, to the point where they had to call the police. His relationship to the video game had become beyond his, or anyone else’s, control.

The key difference between the two games is that World of Warcraft involves playing against other gamers in real time. It involves respect and recognition from real people. Unlike Halo, which the boy had played obsessively but not addictively, World of Warcraft is a social experience. Even while the boy remained alone in his room staring at moving graphics on a monitor, the knowledge that other players were present offered a form of psychological ‘hit’ that wasn’t available from regular video games. Clearly, the boy was not simply addicted to technology but to a particular type of egocentric relationship which networked computers are particularly adept at providing.

Graham has since become a noted authority on the topic of social media addiction, especially among young people. What he noticed, in the case of the World of Warcraft addict, was simply an extreme case of an affliction that has become widespread in the age of Facebook and smartphones. Social media addiction may be classed as a particular subset of internet addiction, as far as the DSM is concerned, but it is the social logic of it which is so psychologically powerful. Not unlike the gamer, people who cannot put down their smartphones are not engaging with images or gadgetry for the sake of it: they are desperately seeking some form of human interaction, but of a kind that does nothing to limit their personal, private autonomy. In America today, it is estimated that 38 per cent of adults may suffer from some form of social media addiction.19 Some psychiatrists have suggested that Facebook and Twitter are even more addictive than cigarettes and alcohol.20

The ubiquity of digital media has become a lightning rod for media hysteria. The internet or Facebook can be blamed for the fact that young people are increasingly narcissistic, unable to make commitments to one another, cannot concentrate on anything which isn’t ‘interactive’. This typically includes some latest discovery about what ‘screen time’ is doing to our brains. There is indeed some evidence to suggest that individuals who use social media compulsively are more egocentric, prone to ‘exhibitionism’ and ‘grandiose behaviour’.21 But rather than treat the technology as some virus that has corrupted people psychologically and neurologically, it is worth standing back and reflecting on the broader cultural logic at work here.

What we witness, in the case of a World of Warcraft addict, a social media addict or, for that matter, a sex addict, is only the more pathological element of a society that cannot conceive of relationships except in terms of the psychological pleasures that they produce. The person whose fingers twitch to check their Facebook page, when they’re supposed to be listening to their friend over a meal, is the heir to Jacob Moreno’s ethical philosophy, in which other people are only there to please, satisfy and affirm an individual ego from one moment to the next. This inevitably leads to vicious circles: once a social bond is stripped down to this impoverished psychological level, it becomes harder and harder to find the satisfaction that one desperately wants. Viewing other people as instruments for one’s own pleasure represents a denial of core ethical and emotional truths of friendship, love and generosity.

One grave shortcoming of this egocentric idea of the ‘social’ is that none (or at least, vanishingly few) of us can ever constantly be the centre of attention, receiving praise. Nobody can be God the whole time; mostly they must be the angels who surround the deity. And so it also proves with Facebook. As an endless stream of grandiose spectacles, Facebook has been shown, on balance, to make individuals feel worse about themselves and their own lives.22 The mathematics of networks means that most people will have fewer friends than average, while a small number of people will have far more than average.23 The tonic to this sense of inferiority is to make grandiose spectacles of one’s own, to seek the gaze of the other, thereby reinforcing a collective vicious circle. As the positive psychologists are keen to stress, this inability to listen or empathize is a significant contributor to depression.

A key category in social network analysis is ‘centrality’. It refers to the extent to which a given ‘node’ (such as a person, but it could potentially be an organization) is integral to its own social world. In Moreno’s terms, one might even say that it offers a measure of social ‘godliness’. Again, where a network is larger than a few dozen people, this is something that is almost impossible to calculate without computing power. But throw in twenty-first-century processing power and the ubiquitous digitization of social networks, and the logic of centrality comes to divide and rule. It governs the Twitter user, who keeps anxious check on her ratio of followers to those followed. It underpins the depression and loneliness of the person who feels marginalized from a social world that he can observe but not participate in. The fetish of celebrity permeates our own social lives, now that we are able to gaze at the carefully curated images and utterances of people we are actually acquainted with.

If happiness resides in discovering relationships which are less ego-oriented, less purely hedonistic, than those which an individualistic society offers, then Facebook and similar forms of social media are rarely a recipe for happiness. It is true that there are specific uses of social media which lend themselves towards stronger, more fulfilling social relations. One study of Facebook use distinguishes between a type of ‘broadcast-and-consume’ model of usage (in which individuals are either on display, or watching others on display) which leads to greater feelings of isolation, and a more email-based usage, which can lead to cohesion through dialogue.24 A group of positive psychologists has drawn on their own evidence of what types of social relations lead to greater happiness, to create a new social media platform, ‘Happier’, designed around expressions of gratitude and generosity, which are recognized to be critical ingredients of mental well-being.

What is left unquestioned by the science of happiness and any social media innovations that may spin off from it is the social logic in which relationships are there to be created, invested in and – potentially – abandoned, in pursuit of psychological optimization. The darker implication of strategically pursuing happiness via relationships is that the relationship is only as good as the psychic value or kick that it delivers. ‘Friend rosters’ may need to be ‘balanced’, if it turns out that one’s friends aren’t spreading enough pleasure or happiness. This logic undoubtedly has a hedonistic variant that may spiral into social addiction and narcissism, and a more Zen-like holistic version, which enjoys longer time horizons and fewer ups and downs. But the social serves an almost identical purpose in each case.

Neoliberal socialism

Our society is excessively individualistic. Markets reduce everything to a question of individual calculation and selfishness. We have become obsessed with money and acquisition at the expense of our social relationships and our own human fulfilment. Capitalism spreads a plague of materialism, which undermines our connectedness, leaving many of us isolated and lonely. Unless we can rediscover the art of sharing, our society will fragment altogether, making trust impossible. Unless we can recover the values associated with friendship and altruism, we will descend into a state of nihilistic ennui.

These types of claim have animated various critiques of capitalism and markets for centuries. They have often provided the basis of arguments for political and economic reform, whether moderate attempts to restrain the reach of markets, or more wholesale demands to overhaul the capitalist system. Today, the same types of lament can be heard, but from some very different sources. Now, the gurus of marketing, self-help, behavioural economics, social media and management are first in line to attack the individualistic and materialist assumptions of the marketplace. But all they’re offering instead is a marginally different theory of individual psychology and behaviour.

The depressed and the lonely, who have entered the purview of policy-making now that their problems have become visible to doctors and neuroscientists, exhibit much that has gone wrong under the neoliberal model of capitalism. Individuals want to escape relentless self-reliance and self-reflection. On this, the positive psychologists have a very clear understanding of the malaise of extreme individualism, which locks individuals into introverted, anxious questioning of their own worth relative to others. Their recommended therapy is for people to get out of themselves and immerse themselves in relationships with others. But in reducing the idea of society to the logic of psychology, the happiness gurus follow the same logic as Jacob Moreno, behavioural economics and Facebook. This means that the ‘social’ is an instrument for one’s own medical, emotional or monetary gain. The vicious circle of self-reflection and self-improvement continues.

How would one break out of this trap? In some ways, the example of ‘social prescribing’ is an enticing one. While it starts from a utilitarian premise, that individuals can improve their well-being through joining associations and working collaboratively, it also points towards the institutions to make this happen, and not simply more cognitive tips and nudges. If people have become locked in themselves, gazing enviously at others, this poses questions that need institutional, political, collective answers. It cannot be alleviated simply with psychological appeals to the social, which can exacerbate the very problems they aim to alleviate, once combined with digital media and the egocentric model of connectivity which those media facilitate. There is a crucial question of how businesses, markets, policies, laws, political participation might be designed differently to sustain meaningful social relationships, but it is virtually never confronted by the doyens of ‘social’ capitalism.

What we encounter in the current business, media and policy euphoria for being social is what might be called ‘neoliberal socialism’. Sharing is preferable to selling, so long as it doesn’t interfere with the financial interests of dominant corporations. Appealing to people’s moral and altruistic sense becomes the best way of nudging them into line with agendas that they had no say over. Brands and behaviours can be unleashed as social contagions, without money ever changing hands. Empathy and relationships are celebrated, but only as particular habits that happy individuals have learnt to practise. Everything that was once external to economic logic, such as friendship, is quietly brought within it; what was once the enemy of utilitarian logic, namely moral principle, is instrumentalized for utilitarian ends.

The logic of neoliberalism, stating that ‘winners’ deserve whatever prizes they can grab, risks usurping the faint glimpse of social reform contained within this agenda. The ‘social neuroscience’ of Matt Lieberman, Paul Zak and others may prove most decisive here, because it offers a firm physiological basis on which to analyse social behaviour as a component of health, happiness and wealth. Focused resolutely on the individual brain and body, this science clearly offers as much – and probably more – to the powerful and rich as it does to the lonely and marginalized. Once social relationships can be viewed as medical and biological properties of the human body, they can become dragged into the limitless pursuit of self-optimization that counts for happiness in the age of neoliberalism.

It is not very long since the internet offered hope for different forms of organization altogether. As the cultural and political theorist Jeremy Gilbert has argued, we should remember that it was only a few years ago that Rupert Murdoch’s media empire was completely defeated in its efforts to turn Myspace into a profitable entity.25 The tension between the logic of the open network and the logic of private investment could not be resolved, and Murdoch lost half a billion dollars. Facebook has had to go to great lengths to ensure that the same mistakes are not made, in particular, anchoring online identities in ‘real’ offline identities, and tailoring its design around the interests of marketers and market researchers. Perhaps it is too early to say that it has succeeded. Resistance to Facebook’s techniques of psychological control gave rise to Ello, a social media platform with no immediately apparent commercial logic, and which includes the right to anonymity. Even if Ello turned out to be a false dawn, it at least highlighted the extent of public dissatisfaction with social networks that are analysed and manipulated for the benefit of marketers.

The reduction of social life to psychology, as performed by Jacob Moreno and behavioural economists, or to physiology as achieved by social neuroscience, is not necessarily irreversible either. Karl Marx believed that by bringing workers together in the factory and forcing them to work together, capitalism was creating the very class formation that would eventually overwhelm it. This was despite the ‘bourgeois ideology’ which stressed the primacy of individuals transacting in a marketplace. Similarly, individuals today may be brought together for their own mental and physical health, or for their own private hedonistic kicks; but social congregations can develop their own logic, which is not reducible to that of individual well-being or pleasure. This is the hope that currently lies dormant in this new, neoliberal socialism.