The Place of Science in Modern Civilisation, and Other EssaysVeblen, Thorstein
Philosophy
The Place of Science in Modern Civilisation, and Other Essays
Veblen, Thorstein
Economics; Science
Such pecuniary employments, of which the purely fiscal or financiering
forms of business are typical, are nearly all and nearly throughout,
conditioned by the institution of property or ownership--an institution
which, as John Stuart Mill remarks, belongs entirely within the
theoretical realm of Distribution. Ownership, no doubt, has its effect
upon productive industry, and, indeed, its effect upon industry is very
large, both in scope and range, even if we should not be prepared to go
the length of saying that it fundamentally conditions all industry; but
ownership is not itself primarily or immediately a contrivance for
production. Ownership directly touches the results of industry, and only
indirectly the methods and processes of industry. If the institution of
property be compared with such another feature of our culture, for
instance, as the domestication of plants or the smelting of iron, the
meaning of what has just been said may seem clearer.
So much then of the business man's activity as is conditioned by the
institution of property, is not to be classed, in economic theory, as
productive or industrial activity at all. Its objective point is an
alteration of the distribution of wealth. His business is, essentially,
to sell and buy--sell in order to buy cheaper, buy in order to sell
dearer.[7] It may or may not, indirectly, and in a sense incidentally,
result in enhanced production. The business man may be equally
successful in his enterprise, and he may be equally well remunerated,
whether his activity does or does not enrich the community. Immediately
and directly, so long as it is confined to the pecuniary or business
sphere, his activity is incapable of enriching or impoverishing the
community as a whole except, after the fashion conceived by the
mercantilists, through his dealings with men of other communities. The
circulation and distribution of goods incidental to the business man's
traffic is commonly, though not always or in the nature of the case,
serviceable to the community; but the distribution of goods is a
mechanical, not a pecuniary transaction, and it is not the objective
point of business nor its invariable outcome. From the point of view of
business, the distribution or circulation of goods is a means of gain,
not an end sought.
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