THE COLLECTED WORKS OF THORSTEIN VEBLEN: Business Theories, Economic Articles & Essays. Thorstein Veblen
the engineering force, becoming more and more a matter of routine, thereby lessening at least the constancy with which occasions for detail bargaining in this respect recur. So also as regards the purchase of consumable goods. In the cities and industrial towns, particularly, the supplying of the means of subsistence has, in great part, become a matter of routine. Retail prices are in an increasing degree fixed by the seller, and in great measure fixed in an impersonal way. This occurs in a particularly evident and instructive way in the practice of the department stores, where the seller fixes the price, and comes in contact with the buyer only through the intervention of a salesman who has no discretion as to the terms of sale. The change that has taken place and that is still going on in this respect is sufficiently striking on comparison with the past in any industrial community, or with the present in any of those communities which we are in the habit of calling "industrially backward."
Conversely, as regards the men in the pecuniary occupations, the business men. Their exemption from taking thought of mechanical facts and processes is likewise only relative. Even those business men whose business is in a peculiar degree remote from the handling of tools or goods, and from the oversight of mechanical processes, as, for example, bankers, lawyers, brokers, and the like, have still, at the best, to take some cognizance of the mechanical apparatus of everyday life; they are at least compelled to take some thought of what may be called the mechanics of consumption. Whereas those business men whose business is more immediately concerned with industry commonly have some knowledge and take some thought of the processes of industry; to some appreciable extent they habitually think in mechanical terms. Their cogitations may habitually run to pecuniary conclusions, and the test to which the force and validity of their reasoning is brought may habitually be the pecuniary outcome; the beginning and end of their more serious thinking is of a pecuniary kind, but it always takes in some general features of the mechanical process along the way. Their exemption from mechanical thinking, from thinking in terms of cause and effect, is, therefore, materially qualified.
But after all qualifications have been made, the fact still is apparent that the everyday life of those classes which are engaged in business differs materially in the respect cited from the life of the classes engaged in industry proper. There is an appreciable and widening difference between the habits of life of the two classes; and this carries with it a widening difference in the discipline to which the two classes are subjected. It induces a difference in the habits of thought and the habitual grounds and methods of reasoning resorted to by each class. There results a difference in the point of view, in the facts dwelt upon, in the methods of argument, in the grounds of validity appealed to; and this difference gains in magnitude and consistency as the differentiation of occupations goes on. So that the two classes come to have an increasing difficulty in understanding one another and appreciating one another' s convictions, ideals, capacities, and shortcomings.
The ultimate ground of validity for the thinking of the business classes is the natural-rights ground of property, - a conventional, anthropomorphic fact having an institutional validity, rather than a matter-of-fact validity such as can be formulated in terms of material cause and effect; while the classes engaged in the machine industry are habitually occupied with matters of causal sequence, which do not lend themselves to statement in anthropomorphic terms of natural rights and which afford no guidance in questions of institutional right and wrong, or of conventional reason and consequence. Arguments which proceed on material cause and effect cannot be met with arguments from conventional precedent or dialectically sufficient reason, and conversely.
The thinking required by the pecuniary occupations proceeds on grounds of conventionality, whereas that involved in the industrial occupations runs, in the main, on grounds of mechanical sequence or causation, to the neglect of conventionality. The institution (habit of thought) of ownership or property is a conventional fact; and the logic of pecuniary thinking- that is to say, of thinking on matters of ownership - is a working out of the implications of this postulate, this concept of ownership or property. The characteristic habits of thought given by such work are habits of recourse to conventional grounds of finality or validity, to anthropomorphism, to explanations of phenomena in terms of human relation, discretion, authenticity, and choice. The final ground of certainty in inquiries on this natural-rights plane is always a ground of authenticity, of precedent, or accepted decision. The argument is an argument de jure, not de facto, and the training given lends facility and certainty in the pursuit of de jure distinctions and generalizations, rather than in the pursuit or the assimilation of a de facto knowledge of impersonal phenomena. The end of such reasoning is the interpretation of new facts in terms of accredited precedents, rather than a revision of the knowledge drawn from past experience in the matter-of-fact light of new phenomena. The endeavor is to make facts conform to law, not to make the law or general rule conform to facts. The bent so given favors the acceptance of the general, abstract, custom-made rule as something real with a reality superior to the reality of impersonal, non-conventional facts. Such training gives reach and subtlety in metaphysical argument and in what is known as the "practical" management of affairs; it gives executive or administrative efficiency, so-called, as distinguished from mechanical work. "Practical" efficiency means the ability to turn facts to account for the purposes of the accepted conventions, to give a large effect to the situation in terms of the pecuniary conventions in force.141
The spiritual attitude given by this training in reasoning de jure, from pecuniary premises to pecuniary conclusions, is necessarily conservative. This species of reasoning assumes the validity of the conventionally established postulates, and is consequently unable to take a sceptical attitude toward these postulates or toward the institutions in which these postulates are embodied. It may lead to scepticism touching other, older, institutions that are at variance with its own (natural-rights) postulates, but its scepticism cannot touch the natural-rights ground on which it rests its own case. In the same manner, of course, the thinking which runs in material causal sequence cannot take a sceptical attitude toward its fundamental postulate, the law of cause and effect; but since reasoning on this materialistic basis does not visibly go to uphold the received institutions, the attitude given by the discipline of the machine technology cannot, for the present, be called a conservative attitude.
The business classes are conservative, on the whole, but such a conservative bent is, of course, not peculiar to them. These occupations are not the only ones whose reasoning prevailingly moves on a conventional plane. Indeed, the intellectual activity of other classes, such as soldiers, politicians, the clergy, and men of fashion, moves on a plane of still older conventions; so that if the training given by business employments is to be characterized as conservative, that given by these other, more archaic employments should be called reactionary.142 Extreme conventionalization means extreme conservatism. Conservatism means the maintenance of conventions already in force. On this head, therefore, the discipline of modern business life may be said simply to retain something of the complexion which marks the life of the higher barbarian culture, at the same time that it has not retained the disciplinary force of the barbarian culture in so high a state of preservation as some of the other occupations just named.
The discipline of the modern industrial employments is relatively free from the bias of conventionality, but the difference between the mechanical and the business occupations in this respect is a difference of degree. It is not simply that conventional standards of certainty fall into abeyance for lack of exercise, among the industrial classes. The positive discipline exercised by their work in good part runs counter to the habit of thinking in conventional, anthropomorphic terms, whether the conventionality is that of natural rights or any other. And in respect of this positive training away from conventional norms, there is a large divergence between the several lines of industrial employment. In proportion as a given line of employment has more of the character of a machine process and less of the character of handicraft, the matter-of-fact training which it gives is more pronounced. In a sense more intimate than the inventors of the phrase seem to have appreciated, the machine has become the master of the man who works with it and an arbiter in the cultural fortunes of the community into whose life it has entered.
The intellectual and spiritual training of the machine in modern life, therefore, is very far-reaching.