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Here's an example: Cash decentralizes credit. "Cash and carry" grocery outlets were a 20th century innovation. [0] Before that, the norm was to have a line of credit with the business, and in many cases, to accept their terms for delivery. Cash transactions anonymize, since settlement is done at the counter. You don't have to assess the buyer, you just need to verify the bills and change are real. However, that isn't the entire story. While there were businesses using cash before this, they faced difficulties with accounting, supply logistics, and other elements that made it hard to conceive of something like a "supermarket", carrying a vast variety and quantity of goods on a daily basis. So then we have to look at all the pieces that fell into place to make it possible. The automobile decentralized access to mobility, making carry-away a real possibility for more people, and thus making it possible to apply cash-and-carry in more places. Supporting elements like cash registers and refrigeration were becoming mature enough to support new forms of retail and allow more parts of the transaction to be delegated to local outlets and low-wage employees. The inter-war years really saw a whole set of technological innovations that were used in combinations to propel social changes and different categories of business(e.g. fast food), many of them decentralized in some respects but centralized in others - supermarket chains, as opposed to local markets. These are the kinds of changes that are hardest to assess in full; when you decentralize one thing, centralization is "squeezed" into other parts of the economy, it seems. The obvious example for this phenomenon is Amazon, leveraging an apparently decentralizing mechanism(online retail - premised on an internet with sufficient bandwidth and security to list goods and take payments) into becoming the world's largest retailer. So it's centralized on one axis, but decentralized on others - a buyer no longer has to go to a particular physical location to purchase something, when all of it can be delivered to the doorstep. [0] https://en.wikipedia.org/wiki/Cash_and_carry_(wholesale) |