An Inquiry into the Nature of Peace and the Terms of Its PerpetuationVeblen, Thorstein
Philosophy
An Inquiry into the Nature of Peace and the Terms of Its Perpetuation
Veblen, Thorstein
Peace; World War, 1914-1918 -- Peace
So that, in effect, all business sagacity reduces itself in
the last analysis to a judicious use of sabotage. Under modern
conditions of large business, particularly, the relation of the
discretionary businessman to industry is that of authoritative
permission and of authoritative limitation or stoppage, and on his
shrewd use of this authority depends the gainfulness of his enterprise.
If this authority were exercised with an eye single to the largest and
most serviceable output of goods and services, or to the most economical
use of the country's material resources and man-power, regardless of
pecuniary consequences, the course of management so carried out would be
not sabotage but industrial strategy. But business is carried on for
pecuniary gain, not with an unreserved view to the largest and most
serviceable output or to the economical use of resources. The volume and
serviceability of the output must wait unreservedly on the very
particular pecuniary question of what quantity and what degree of
serviceability will yield the largest net return in terms of price.
Uneconomical use of equipment, labor and resources is necessarily an
everyday matter under these circumstances, as in the duplication of
plant and processes between rival concerns, and in the wasteful use of
all resources that do not involve expenditure on the part of the given
concern.
It has been the traditional dogma among economists and publicists in
these modern communities that free competition between the businessmen
in charge will indefeasibly act to bring the productiveness of industry
to the highest practicable pitch and would lead to the most unreserved
and vigilant endeavour to serve the community's material needs at all
points. The reasons for the failure of this genial expectation,
particularly under latterday business management, might be shown in some
detail, if that were needed to enforce the argument as it runs in the
present connection. But a summary indication of the commoner varieties
and effects of sabotage as it is systematically applied in the
businesslike conduct of industry will serve the purpose as well and with
less waste of words and patience.
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