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
The "income-stream" in question is a pecuniary income-stream, and is in
the last resort traceable to transactions of sale. Within the confines
of business--and therefore within the scope of capital, investments,
assets, and the like business concepts--transactions of purchase and
sale are the final terms of any analysis. But beyond these confines,
comprehending and conditioning the business system, lie the material
facts of the community's work and livelihood. In the final transaction
of sale the merchantable goods are valued by the consumer, not as
assets, but as livelihood;[9] and in the last analysis and long run it
is to some such transaction that all business imputations of value and
capitalistic appraisement of assets must have regard and by which they
must finally be checked. Dissociated from the facts of work and
livelihood, therefore, assets cease to be assets; but this does not
preclude their relation to these facts of work and livelihood being at
times somewhat remote and loose.
Without recourse, immediately or remotely, to certain material facts of
industrial process and equipment, assets would not yield earnings; that
is to say, wholly disjoined from these material facts, they would in
effect not be assets. This is true for both tangible and intangible
assets, although the relation of the assets to the material facts of
industry is not the same in the two cases. The case of tangible assets
needs no argument. Intangible assets, such as patent right or
monopolistic control, are likewise of no effect except in effectual
contact with industrial facts. The patent right becomes effective for
the purpose only in the material working of the innovation covered by
it; and monopolistic control is a source of gain only in so far as it
effectually modifies or divides the supply of goods.
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