[An Inquiry Into The Nature Of Peace And The Terms Of Its Perpetuation by Thorstein Veblen]@TWC D-Link book
An Inquiry Into The Nature Of Peace And The Terms Of Its Perpetuation

CHAPTER IV
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They can not supply the goods except for a price, indeed not except for a remunerative price, a price which will add something to the capital values which they are venturing in their various enterprises.

So long as the exigencies of price and of pecuniary gain rule the case, there is manifestly no escaping this enforced idleness of the country's productive forces.
It may not be out of place also to remark, by way of parenthesis, that this highly productive state of the industrial arts, which is embodied in the industrial plant and processes that so are systematically and advisedly retarded or arrested under the rule of business, is at the same time the particular pride of civilised men and the most tangible achievement of the civilised world.
A conservative estimate of this one item of capitalistic sabotage could scarcely appraise it at less than a twenty-five percent reduction from the normally possible productive capacity of the community, at an average over any considerable period; and a somewhat thorough review of the pertinent facts would probably persuade any impartial observer that, one year with another, such businesslike enforced idleness of plant and personnel lowers the actual output of the country's industry by something nearer fifty percent of its ordinary capacity when fully employed.

To many, such an assertion may seem extravagant, but with further reflection on the well-known facts in the case it will seem less so in proportion as the unfamiliarity of it wears off.
However, the point of attention in the case is not the precise, nor the approximate, percentages of this arrest and retardation, this partial neutralisation of modern improvements in the industrial arts; it is only the notorious fact that such arrest occurs, systematically and advisedly, under the rule of business exigencies, and that there is no corrective to be found for it that will comport with those fundamental articles of the democratic faith on which the businessmen necessarily proceed.

Any effectual corrective would break the framework of democratic law and order, since it would have to traverse the inalienable right of men who are born free and equal, each freely to deal or not to deal in any pecuniary conjuncture that arises.
But it is at the same time plain enough that this, in the larger sense untoward, discrepancy between productive capacity and current productive output can readily be corrected, in some appreciable degree at least, by any sufficient authority that shall undertake to control the country's industrial forces without regard to pecuniary profit and loss.

Any authority competent to take over the control and regulate the conduct of the community's industry with a view to maximum output as counted by weight and tale, rather than by net aggregate price-income over price-cost, can readily effect an appreciable increase in the effectual productive capacity; but it can be done only by violating that democratic order of things within which business enterprise runs.


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