THE COLLECTED WORKS OF THORSTEIN VEBLEN: Business Theories, Economic Articles & Essays. Thorstein Veblen
They are applied simply from the (morally colorless) evolutionary standpoint, and are intended to designate compatibility or incompatibility with the effective evolutionary process. The institution of a leisure class, by force or class interest and instinct, and by precept and prescriptive example, makes for the perpetuation of the existing maladjustment of institutions, and even favors a reversion to a somewhat more archaic scheme of life; a scheme which would be still farther out of adjustment with the exigencies of life under the existing situation even than the accredited, obsolescent scheme that has come down from the immediate past.
But after all has been said on the head of conservation of the good old ways, it remains true that institutions change and develop. There is a cumulative growth of customs and habits of thought; a selective adaptation of conventions and methods of life. Something is to be said of the office of the leisure class in guiding this growth as well as in retarding it; but little can be said here of its relation to institutional growth except as it touches the institutions that are primarily and immediately of an economic character. These institutions—the economic structure—may be roughly distinguished into two classes or categories, according as they serve one or the other of two divergent purposes of economic life.
To adapt the classical terminology, they are institutions of acquisition or of production; or to revert to terms already employed in a different connection in earlier chapters, they are pecuniary or industrial institutions; or in still other terms, they are institutions serving either the invidious or the non-invidious economic interest. The former category have to do with "business," the latter with industry, taking the latter word in the mechanical sense. The latter class are not often recognized as institutions, in great part because they do not immediately concern the ruling class, and are, therefore, seldom the subject of legislation or of deliberate convention. When they do receive attention they are commonly approached from the pecuniary or business side; that being the side or phase of economic life that chiefly occupies men's deliberations in our time, especially the deliberations of the upper classes. These classes have little else than a business interest in things economic, and on them at the same time it is chiefly incumbent to deliberate upon the community's affairs.
The relation of the leisure (that is, propertied non-industrial) class to the economic process is a pecuniary relation—a relation of acquisition, not of production; of exploitation, not of serviceability. Indirectly their economic office may, of course, be of the utmost importance to the economic life process; and it is by no means here intended to depreciate the economic function of the propertied class or of the captains of industry. The purpose is simply to point out what is the nature of the relation of these classes to the industrial process and to economic institutions. Their office is of a parasitic character, and their interest is to divert what substance they may to their own use, and to retain whatever is under their hand. The conventions of the business world have grown up under the selective surveillance of this principle of predation or parasitism. They are conventions of ownership; derivatives, more or less remote, of the ancient predatory culture. But these pecuniary institutions do not entirely fit the situation of today, for they have grown up under a past situation differing somewhat from the present. Even for effectiveness in the pecuniary way, therefore, they are not as apt as might be. The changed industrial life requires changed methods of acquisition; and the pecuniary classes have some interest in so adapting the pecuniary institutions as to give them the best effect for acquisition of private gain that is compatible with the continuance of the industrial process out of which this gain arises. Hence there is a more or less consistent trend in the leisure-class guidance of institutional growth, answering to the pecuniary ends which shape leisure-class economic life.
The effect of the pecuniary interest and the pecuniary habit of mind upon the growth of institutions is seen in those enactments and conventions that make for security of property, enforcement of contracts, facility of pecuniary transactions, vested interests. Of such bearing are changes affecting bankruptcy and receiverships, limited liability, banking and currency, coalitions of laborers or employers, trusts and pools. The community's institutional furniture of this kind is of immediate consequence only to the propertied classes, and in proportion as they are propertied; that is to say, in proportion as they are to be ranked with the leisure class. But indirectly these conventions of business life are of the gravest consequence for the industrial process and for the life of the community. And in guiding the institutional growth in this respect, the pecuniary classes, therefore, serve a purpose of the most serious importance to the community, not only in the conservation of the accepted social scheme, but also in shaping the industrial process proper. The immediate end of this pecuniary institutional structure and of its amelioration is the greater facility of peaceable and orderly exploitation; but its remoter effects far outrun this immediate object. Not only does the more facile conduct of business permit industry and extra-industrial life to go on with less perturbation; but the resulting elimination of disturbances and complications calling for an exercise of astute discrimination in everyday affairs acts to make the pecuniary class itself superfluous. As fast as pecuniary transactions are reduced to routine, the captain of industry can be dispensed with. This consummation, it is needless to say, lies yet in the indefinite future. The ameliorations wrought in favor of the pecuniary interest in modern institutions tend, in another field, to substitute the "soulless" joint-stock corporation for the captain, and so they make also for the dispensability, of the great leisure-class function of ownership. Indirectly, therefore, the bent given to the growth of economic institutions by the leisure-class influence is of very considerable industrial consequence.
Chapter 9.
The Conservation of Archaic Traits
The institution of a leisure class has an effect not only upon social structure but also upon the individual character of the members of society. So soon as a given proclivity or a given point of view has won acceptance as an authoritative standard or norm of life it will react upon the character of the members of the society which has accepted it as a norm. It will to some extent shape their habits of thought and will exercise a selective surveillance over the development of men's aptitudes and inclinations. This effect is wrought partly by a coercive, educational adaptation of the habits of all individuals, partly by a selective elimination of the unfit individuals and lines of descent. Such human material as does not lend itself to the methods of life imposed by the accepted scheme suffers more or less elimination as well as repression. The principles of pecuniary emulation and of industrial exemption have in this way been erected into canons of life, and have become coercive factors of some importance in the situation to which men have to adapt themselves.
These two broad principles of conspicuous waste and industrial exemption affect the cultural development both by guiding men's habits of thought, and so controlling the growth of institutions, and by selectively conserving certain traits of human nature that conduce to facility of life under the leisure-class scheme, and so controlling the effective temper of the community. The proximate tendency of the institution of a leisure class in shaping human character runs in the direction of spiritual survival and reversion. Its effect upon the temper of a community is of the nature of an arrested spiritual development. In the later culture especially, the institution has, on the whole, a conservative trend. This proposition is familiar enough in substance, but it may to many have the appearance of novelty in its present application. Therefore a summary review of its logical grounds may not be uncalled for, even at the risk of some tedious repetition and formulation of commonplaces.
Social evolution is a process of selective adaptation of temperament and habits of thought under the stress of the circumstances of associated life. The adaptation of habits of thought is the growth of institutions. But along with the growth of institutions has gone a change of a more substantial character. Not only have the habits of men changed with the changing exigencies of the situation, but these changing exigencies have also brought about a correlative change in human nature. The human material of society itself varies with the changing conditions of life. This variation of human nature is held by the later ethnologists to be a process of selection between several relatively stable and persistent ethnic types or ethnic elements. Men tend to revert or to breed true, more or less closely, to one or another of certain