The decontextualized nature of literacy has been a recurrent issue in discussions of the consequences of literacy over the last twenty years. The central thesis of these discussions is that the nature of written discourse itself leads directly or indirectly to changes in cognitive processing, linguistic progressing, cultural development, and/or the evolution of society. A more recent view holds that the consequences of literacy derive from the nature of literacy practices during literacy acquisition. The difference between the two views lies in what is assumed to be inherent in written discourse. The paper reviews both sides of the issue and argues that literacy brings about social and cultural changes which in themselves are of a decontextualized nature. It is suggested that literacy be viewed as a social tool involved in "gatekeeping," the establishment of social relationships, and enculturation. It is further suggested that in American society, schooling has a major role in how literacy is used as a social tool, including the teaching or learning of an alienated linguistic framework. (AOS)