The Theory of Business Enterprise by Thorstein Veblen - HTML preview

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Chapter 9

The Cultural Incidence of the Machine Process

 

So far as regards the non−mechanical factors of culture, such as religion, politics, and even business enterprise, the present is in a very large degree comparable with the scheme of things that prevailed on the Continent of Europe in the seventeenth century. And so far as the working of these cultural factors is undisturbed by forces that were not present in the older days, they should logically again work out in such a situation as came to prevail in Central Europe in the course of the eighteenth century. The modern situation, of course, is drawn on a larger scale; but that is due to the intrusion of a new technology, a different "state of the industrial arts," and not to a substantially altered range of religious, political, or business conceptions. The pitch of squalor that characterized vulgar life in the busier Continental countries at the close of the great era of politics could probably not be reached again, but that again, is due, not to these spiritual factors of cultural growth, but to the altered state of the industrial arts. The factor in the modern situation that is alien to the ancient regime is the machine technology, with its many and wide ramifications.

Business conceptions and business methods were present in vigorous growth in Central Europe in the sixteenth and seventeenth centuries, as they had been in South Europe from a slightly earlier date; although the large sweep of business enterprise is not had until a later date, being conditioned by the machine technology. Business methods and the apparatus of business traffic develop very promptly whenever and wherever the situation calls for them; such is the teaching of economic history.(1*) There is nothing recondite about them, little that has to be acquired by a protracted, cumulative experience running over many generations, such as is involved in technological development. This business development in earlier modern times, together with the accumulations of funded wealth that came of this business enterprise, ran their course to a finish in Continental Europe, leaving no basis for a new start. The new start from which the current situation takes its rise, in Europe and elsewhere, was given to the Continental peoples by the English, ready−made, in the so−called Industrial Revolution. The natural−rights metaphysics, to which the eventual breakdown of the old Continental system owed its specific character, came also from the English.(2*) In point of blood and cultural descent the population of Great Britain did not differ materially from their neighbors across the Channel or across the North Sea.(3*) But from the beginning of the modern cultural era Great Britain stood outside of the general European situation, by force of its physical isolation. So that during the modern era, down to the close of the eighteenth century, the British community was in the position of an interested third party rather than a participant in the political concert of Europe. The era of "statemaking," so called, is an era in which England interferes, but is, on the whole, not greatly interfered with, so far as her own home affairs are concerned. England, and presently Great Britain, being reduced to law and order under one crown and living in a condition of isolation and (relatively) of internal peace, the cultural growth of that country took a relatively peaceable direction. The dominant note of everyday life was industry and trade, not dynastic politics and war. This national experience gave as its outcome constitutional government and the modern industrial technology, together with the animus and the point of view of the modern materialistic science. The point of departure for the more recent, current situation, therefore, is a twofold one: (1) the British peaceable variant of the Western culture has contributed constitutional methods and natural rights, together with the machine technology brought in under the head of the "industrial revolution"; and (2) there are the patriotic ideals and animosities left as a residue of the warlike political  traffic in Continental Europe.

Since the new departure, made on the basis of natural rights and modern industrial and scientific methods, the complex of nations and of international relations is a single, not a twofold one. The stage over which affairs, political, industrial and cultural, run their course is no longer Continental or British, but cosmopolitan, comprising all civilized communities and all civilized interests. So that there is not now, as there was in the sixteenth and seventeenth centuries, an isolation hospital for technology, science, and civil rights, set apart from the general current of cultural development. Whatever the forces at work in the modern situation may eventually bring to pass, therefore, the outcome must touch all communities in the same way and in approximately the same degree. If the outcome is dynastic politics and armament again played to a finish in popular squalor, aristocratic virtues, and universal bankruptcy, there will be no peaceable community of matter−of−fact mechanics and shopkeepers left in reserve from which to make a new cultural and industrial start. The modern technology has, in a manner, cut away the ground out of which it first grew and from which it gathered force to reshape the course of history. It has made it impossible for any community to stand peaceably outside of the great complex of nations.

But within the comprehensive situation of to−day there is this new factor, the machine process. In an earlier chapter (II) the technological character of this machine process has been set forth at some length.

The machine process pervades the modern life and dominates it in a mechanical sense. Its dominance is seen in the enforcement of precise mechanical measurements and adjustment and the reduction of all manner of things, purposes and acts, necessities, conveniences, and amenities of life, to standard units. The bearing of this sweeping mechanical standardization upon business traffic is a large part of the subject−matter of the foregoing chapters. The point of immediate interest here is the further bearing of the machine process upon the growth of culture, − the disciplinary effect which this movement for standardization and mechanical equivalence has upon the human material.

This discipline falls more immediately on the workmen engaged in the mechanical industries, and only less immediately on the rest of the community which lives in contact with this sweeping machine process. Wherever the machine process extends, it sets the pace for the workmen, great and small. The pace is set, not wholly by the particular processes in the details of which the given workman is immediately engaged, but in some degree by the more comprehensive process at large into which the given detail process fits. It is no longer simply that the individual workman makes use of one or more mechanical contrivances for effecting certain results. Such used to be his office in the earlier phases of the use of machines, and the work which he now has in hand still has much of that character. But such a characterization of the workman's part in industry misses the peculiarly modern feature of the case. He now does this work as a factor involved in a mechanical process whose movement controls his motions. It remains true, of course, as it always has been true, that he is the intelligent agent concerned in the process, while the machine, furnace, roadway, or retort are inanimate structures devised by man and subject to the workman's supervision. But the process comprises him and his intelligent motions, and it is by virtue of his necessarily taking an intelligent part in what is going forward that the mechanical process has its chief effect upon him. The process standardizes his supervision and guidance of the machine. Mechanically speaking, the machine is not his to do with it as his fancy may suggest. His place is to take thought of the machine and its work in terms given him by the process that is going forward. His thinking in the premises is reduced to standard units of gauge and grade. If he fails of the precise measure, by more or less, the exigencies of the process check the aberration and drive home the absolute need of conformity.

There results a standardization of the workman's intellectual life in terms of mechanical process, which is more unmitigated and precise the more comprehensive and consummate the industrial process in which he plays a part. This must not be taken to mean that such work need lower the degree of intelligence of the workman. No doubt the contrary is nearer the truth. He is a more efficient workman the more intelligent he is, and the discipline of the machine process ordinarily increases his efficiency even for work in a different  line from that by which the discipline is given. But the intelligence required and inculcated in the machine industry is of a peculiar character. The machine process is a severe and insistent disciplinarian in point of intelligence. It requires close and unremitting thought, but it is thought which runs in standard terms of quantitative precision. Broadly, other intelligence on the part of the workman is useless; or it is even worse than useless, for a habit of thinking in other than quantitative terms blurs the workman's quantitative apprehension of the facts with which he has to do.(4*)

In so far as he is a rightly gifted and fully disciplined workman, the final term of his habitual thinking is mechanical efficiency, understanding "mechanical" in the sense in which it is used above. But mechanical efficiency is a matter of precisely adjusted cause and effect. What the discipline of the machine industry inculcates, therefore, in the habits of life and of thought of the workman, is regularity of sequence and mechanical precision; and the intellectual outcome is an habitual resort to terms of measurable cause and effect, together with a relative neglect and disparagement of such exercise of the intellectual faculties as does not run on these lines.

Of course, in no case and with no class does the discipline of the machine process mould the habits of life and of thought fully into its own image. There is present in the human nature of all classes too large a residue of the propensities and aptitudes carried over from the past and working to a different result. The machine's regime has been of too short duration, strict as its discipline may be, and the body of inherited traits and traditions is too comprehensive and consistent to admit of anything more than a remote approach to such a consummation.

The machine process compels a more or less unremitting attention to phenomena of an impersonal character and to sequences and correlations not dependent for their force upon human predilection nor created by habit and custom. The machine throws out anthropomorphic habits of thought. It compels the adaptation of the workman to his work, rather than the adaptation of the work to the workman. The machine technology rests on a knowledge of impersonal, material cause and effect, not on the dexterity, diligence, or personal force of the workman, still less on the habits and propensities of the workman's superiors. Within the range of this machine−guided work, and within the range of modern life so far as it is guided by the machine process, the course of things is given mechanically, impersonally, and the resultant discipline is a discipline in the handling of impersonal facts for mechanical effect. It inculcates thinking in terms of opaque, impersonal cause and effect, to the neglect of those norms of validity that rest on usage and on the conventional standards handed down by usage. Usage counts for little in shaping the processes of work of this kind or in shaping the modes of thought induced by work of this kind.

The machine process gives no insight into questions of good and evil, merit and demerit, except in point of material causation, nor into the foundations or the constraining force of law and order, except such mechanically enforced law and order as may be stated in terms of pressure, temperature, velocity, tensile strength, etc.(5*) The machine technology takes no cognizance of conventionally established rules of precedence; it knows neither manners nor breeding and can make no use of any of the attributes of worth. Its scheme of knowledge and of inference is based on the laws of material causation, not on those of immemorial custom, authenticity, or authoritative enactment. Its metaphysical basis is the law of cause and effect, which in the thinking of its adepts has displaced even the law of sufficient reason.(6*) The range of conventional truths, or of institutional legacies, which it traverses is very comprehensive, being, indeed, all−inclusive. It is but little more in accord with the newer, eighteenth century conventional truths of natural rights, natural liberty, natural law, or natural religion, than with the older norms of the true, the beautiful, and the good which these displaced. Anthropomorphism, under whatever disguise, is of no use and of no force here.

The discipline exercised by the mechanical occupations, in so far as it is in question here, is a discipline of the habits of thought. It is, therefore, as processes of thought, methods of apperception, and sequences of reasoning, that these occupations are of interest for the present purpose; it is as such that they have whatever cultural value belongs to them. They have such a value, therefore, somewhat in proportion as they tax the mental faculties of those employed; and the largest effects are to be looked for among those industrial classes who are required to comprehend and guide the processes, rather than among those who serve merely as mechanical auxiliaries of the machine process. Not that the latter are exempt from the machine's discipline, but it falls upon them blindly and enforces an uncritical acceptance of opaque results, rather than a theoretical insight into the causal sequences which make up the machine process. The higher degree of training in such matter−of−fact habits of thought is accordingly to be looked for among the higher ranks of skied mechanics, and perhaps still more decisively among those who stand in an engineering or supervisory relation to the processes. It counts more forcibly and farthest among those who are required to exercise what may be called a mechanical discretion in the guidance of the industrial processes, who, as one might say, are required to administer the laws of causal sequence that run through material phenomena, who therefore must learn to think in the terms in which the machine processes work.(7*) The metaphysical ground, the assumptions, on which such thinking proceeds must be such as will hold good for the sequence of material phenomena; that is to say, it is the metaphysical assumptions of modern material science, − the law of cause and effect, cumulative causation, conservation of energy, persistence of quantity, or whatever phrase be chosen to cover the concept. The men occupied with the modern material sciences are, accordingly, for the purpose in hand, in somewhat the same case as the higher ranks of those employed in mechanical industry.(8*)

Leaving aside the archaic vocations of war, politics, fashion, and religion, the employments in which men are engaged may be distinguished as pecuniary or business employments on the one hand, and industrial or mechanical employments on the other hand.(9*) In earlier times, and indeed until an uncertain point in the nineteenth century, such a distinction between employments would not to any great extent have coincided with a difference between occupations. But gradually, as time has passed and production for a market has come to be the rule in industry, there has Supervened a differentiation of occupations, or a division of labor, whereby one class of men have taken over the work of purchase and sale and of husbanding a store of accumulated values. Concomitantly, of course, the rest, who may, for lack of means or of pecuniary aptitude, have been less well fitted for pecuniary pursuits, have been relieved of the cares of business and have with increasing specialization given their attention to the mechanical processes involved in this production for a market. In this way the distinction between pecuniary and industrial activities or employments has come to coincide more and more nearly with a difference between occupations. Not that the specialization has even yet gone so far as to exempt any class from all pecuniary care;(10*) for even those whose daily occupation is mechanical work still habitually bargain with their employers for their wages and with others for their supplies. So that none of the active classes in modern life is fully exempt from pecuniary work.

But the need of attention to pecuniary matters is less and less exacting, even in the matter of wages and supplies. The scale of wages, for instance, is, for the body of workmen, and also for what may be called 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.(11*)

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.(12*) 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. It leaves but a small proportion of the community untouched; but while its constraint is ramified throughout the body of the population, and constrains virtually all classes at some points in their daily life, it falls with the most direct, intimate, and unmitigated impact upon the skilled mechanical classes, for these have no respite from its mastery, whether they are at work or at play. The ubiquitous presence of the machine, with its spiritual concomitant − workday ideals and scepticism of what is only conventionally valid is the unequivocal mark of the Western culture of to−day as contrasted with the culture of other times and places. It pervades all classes and strata in a varying degree, but on an average in a greater degree than at any time in the past, and most potently in the advanced industrial communities and in the classes immediately in contact with the mechanical occupations.(13*) As the comprehensive mechanical organization of the material side of life has gone on, a heightening of this cultural effect throughout the community has also supervened, and with a farther and faster movement in the same direction a farther accentuation of this "modern"  complexion of culture is fairly to be looked for, unless some remedy be found. And as the concomitant  differentiation and specialization of occupations goes on, a still more unmitigated discipline falls upon ever widening classes of the population, resulting in an ever weakening sense of conviction, allegiance, or piety toward the received institutions.

It is a matter of common notoriety that the modern industrial populations are improvident in a high degree and are apparently incapable of taking care of the pecuniary details of their own life. This applies, not only to factory hands, but also to the general class of highly skilled mechanics, inventors, technological experts. The rule does not hold in any hard and fast way, but it holds with such generality as may fairly be looked for. The present factory population may be compared in this respect with the class of handicraftsmen whom they have displaced, as also with the farming population of the present time, especially the class of small proprietary farmers. The failure of the modern industrial classes on this head is not due to scantier opportunities for saving, whether they are compared with the earlier handicraftsmen or with the modern farmer or peasant; nor is it due to a lack of general intelligence, for a comparison in point of intelligence falls out in favor of the modern industrial workmen. This improvidence is commonly discussed in terms of deprecation, and there is much preaching of thrift and steady habits. But the preaching has no appreciable effect. The trouble seems to be of the nature of habit rather than of reasoned conviction. Other causes may partially explain this improvidence, but the inquiry is at least pertinent how far the absence of property and thrift among them may be traceable to the relative absence of pecuniary training and to the presence of a discipline which is at variance with habits of thrift.

Mere exemption from pecuniary training is not competent alone to explain the patent thriftlessness of modern workmen; the more so since this exemption is but partial and relative. Also, the thriftless classes commonly have an envious appreciation of pecuniary advantages. It is rather the composite effect of exemption from pecuniary training and certain positive requirements of modern life. Among these positive requirements is what has been called the canon of conspicuous waste. Under modern conditions a free expenditure in consumable goods is a condition requisite to good repute.(14*) This conduces to immediate consumption rather than to saving. What is perhaps still more decisive against thrift on the part of workmen is the fact that the modern large organization of industry requires a high degree of mobility on the part of employees. It requires, in fact, that the labor force and the labor units be mobile, interchangeable, distributable, after the same impersonal fashion as the mechanical contrivances engaged are movable and distributable. The working population is required to be standardized, movable, and interchangeable in much the same impersonal manner as the raw or halfwrought materials of industry. From which it follows that the modern workman cannot advantageously own a home. By force of this latter feature of the case he is discouraged from investing his savings in real property, or, indeed, in any of the impediments of living. And the savings−bank account, it may be added, offers no adequate substitute, as an incentive to thrift, in the place of such property as a dwelling−place, which is tangibly and usefully under the owner's hand and persistently requires maintenance and improvement.

The conditions of life imposed upon the working population by the machine industry discourage thrift. But after allowance has been made for this almost physical restraint upon the aquisition of property by the working classes, something is apparently left over, to be ascribed to the moral effect of the machine technology. The industrial classes appear to be losing the instinct of individual ownership. The acquisition of property is ceasing to appeal to them as a natural, self−evident source of comfort and strength. The natural right of property no longer means so much to them as it once did.

A like weakening of the natural−rights animus is visible at an