[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 VII
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As has already been remarked above, the prescriptive and indispensable recourse in all this conduct of business is sabotage, limitation of supply to bring a remunerative price result.
The new dispensation offers two new factors bearing on this businesslike need of a sagacious sabotage, or rather it brings a change of coefficients in two factors already familiar in business management: a greater need, for gainful business, of resorting to such limitation of traffic; and a greater facility of ways and means for enforcing the needed restriction.

So, it is confidently to be expected that in the prospective piping time of peace the advance in the industrial arts will continue at an accelerated rate; which may confidently be expected to affect the practicable increased production of merchantable goods; from which it follows that it will act to depress the prices of these goods; from which it follows that if a profitable business is to be done in the conduct of productive industry a greater degree of continence than before will have to be exercised in order not to let prices fall to an unprofitable figure; that is to say, the permissible output must be held short of the productive capacity of such industry by a wider margin than before.

On the other hand, it is well known out of the experience of the past few decades that a larger coalition of invested capital, controlling a larger proportion of the output, can more effectually limit the supply to a salutary maximum, such as will afford reasonable profits.

And with the new dispensation affording a freer scope for business enterprise on conditions of greater security, larger coalitions than before are due to come into bearing.

So that the means will be at hand competently to meet this more urgent need of a stricter limitation of the output, in spite of any increased productive capacity conferred on the industrial community by any conceivable advance in the industrial arts.


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