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
It is always conceivable, though it may scarcely seem probable, that
these incidents of increased pressure of competition in business traffic
might eventually take up all the slack, and leave no net margin of
product over what is available under the less favorable conditions of
industry that prevail today; more particularly when this increased
competition for business gains is backed by an increased pressure of
competitive spending for purposes of a reputable appearance. All this
applies in retail trade and in such lines of industry and public service
as partakes of the nature of retail trade, in the respect that
salesmanship and the costs of salesmanship enter into their case in an
appreciable measure; this is an extensive field, it is true, and
incontinently growing more extensive with the later changes in the
customary methods of marketing products; but it is by no means anything
like the whole domain of industrial business, and by no means a field in
which business is carried on without interference of a higher control
from outside its own immediate limits.
All this generously large and highly expensive and profitable field of
trade and of trade-like industry, in which the businessmen in charge
deal somewhat directly with a large body of customers, is always subject
to limitations imposed by the condition of the market; and the condition
of the market is in part not under the control of these businessmen, but
is also in part controlled by large concerns in the background; which in
their turn are after all also not precisely free agents; in fact not
much more so than their cousins in the retail trade, being confined in
all their motions by the constraint of the price-system that dominates
the whole and gathers them all in its impersonal and inexorable net.
There is a colloquial saying among businessmen, that they are not doing
business for their health; which being interpreted means that they are
doing business for a price. It is out of a discrepancy in price, between
purchase and sale, or between transactions which come to the same result
as purchase and sale, that the gains of business are drawn; and it is in
terms of price that these gains are rated, amassed and funded. It is
necessary, for a business concern to achieve a favorable balance in
terms of price; and the larger the balance in terms of price the more
successful the enterprise. Such a balance can not be achieved except by
due regard to the conditions of the market, to the effect that dealings
must not go on beyond what will yield a favorable balance in terms of
price between income and outgo. As has already been remarked above, the
prescriptive and indispensable recourse in all this conduct of business
is sabotage, limitation of supply to bring a remunerative price result.
Public-domain text, read in full here on John Shaqi.
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