“Habituation to bargaining and to the competitive principles of business necessarily brings it about that pecuniary standards of efficiency invade (contaminate) the sense of workmanship; so that work, workmen, equipment and products come to be rated on a scale of money values, which has only a circuitous and often only a putative relation to their workmanlike efficiency or their serviceability. Those occupations and those aptitudes that yield good returns in terms of price are reputed valuable and commendable, — the accepted test of success, and even of serviceability, being the gains acquired. Workmanship comes to be confused with salesmanship, until tact, effrontery and prevarication have come to serve as a standard of efficiency, and unearned gain is accepted as the measure of productiveness.”

— Thorstein Veblen

Source: The Instinct of Workmanship and the State of the Industrial Arts, 1914, p. 349

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "Habituation to bargaining and to the competitive principles of business necessarily brings it about that pecuniary stan…" by Thorstein Veblen?

Thorstein Veblen photo

Thorstein Veblen 41

American academic 1857–1929

Related quotes

“There is no doubt that the efficiency of the Works at Bournville is assisted by the Suggestion Scheme, and it has been found that the good accomplished, is not only in the pecuniary value to the Firm or to the suggestor, but also in the development of the mental and creative power, which makes both men and girls more efficient and valuable workers, and fosters an intelligent independence.”

Edward Cadbury (1873–1948) British businessman

Source: Experiments in industrial organization (1912), p. 16; Cited in: Chris Smith, John Child, Michael Rowlinson. Reshaping Work: The Cadbury Experience. Cambridge University Press, 1990. p. 64

“Like it or not, giant, vertically integrated corporate enterprises were the most efficient means of organizing the production and distribution of mass produced goods and services. Bringing together supply chains, production processes, and distribution channels in vertically integrated companies under centralized management dramatically reduced transaction costs, increased efficiencies and productivity, lowered the marginal cost of production and distribution, and, for the most part, lowered the price of goods and services to consumers, allowing the economy to flourish. While those at the top of the corporate pyramid disproportionately benefited from the increasing returns on investment, it’s only fair to acknowledge that the lives of millions of consumers also improved appreciably in industrialized nations.”

Jeremy Rifkin (1945) American economist

The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism (2014)

“Competition is the final price determinant and competitive prices may result in profits which force you to accept a rate of return less than you hoped for, or for that matter to accept temporary losses. And, in times of inflation, the rate-of-return concept comes up against the problem of assets undervalued in terms of replacement. Nevertheless, no other financial principle with which I am acquainted serves better than rate of return as an objective aid to business judgment. This principle had governed the thinking of the Finance Committee of General Motors since 1917.”

Alfred P. Sloan (1875–1966) American businessman

Source: My Years with General Motors, 1963, p. 140

“In common with other men, the business man is moved by ideals of serviceability and an aspiration to make the way of life easier for his fellows… Motives of this kind detract from business efficiency, and an undue yielding to them on the part of business men is to be deprecated as an infirmity. Still, throughout men's dealings with one another and with the interests of the community there runs a sense of equity, fair dealing, and workmanlike integrity.”

Thorstein Veblen book The Theory of Business Enterprise

Source: The Theory of Business Enterprise, 1904, p. 41-42. as cited in: Geoffrey Hodgson (2004). The Evolution of Institutional Economics. p. 202

“The fundamental objective of the science of administration is the accomplishment of the work in hand with the least expenditure of man-power and materials. Efficiency is thus axiom number one in the value scale of administration. This brings administration into apparent conflict with certain elements of the value scale of politics, whether we use that term in its scientific or in its popular sense. But both public administration and politics are branches of political science, so that we are in the end compelled to mitigate the pure concept of efficiency in the light of the value scale of politics and the social order. There are, for example, highly inefficient arrangements like citizen boards and small local governments which may be necessary in a democracy as educational devices. It has been argued also that the spoils system, which destroys efficiency in administration, is needed to maintain the political party, that the political party is needed to maintain the structure of government, and that without the structure of government, administration itself will disappear. While this chain of causation has been disproved under certain conditions, it none the less illustrates the point that the principles of politics may seriously affect efficiency. Similarly in private business it is often true that the necessity for immediate profits growing from the system of private ownership may seriously interfere with the achievement of efficiency in practice.”

Luther H. Gulick (1892–1993) American academic

Source: "Science, values and public administration," 1937, p. 192-193

“Increasing research and development budget to 5 percent of the agricultural production (GVA=P1.17trillion) would bring about better varieties and more efficient farming methods which would increase yields and give the farmer higher incomes even while farmgate prices go down to benefit the consumer.”

Francis Escudero (1969) Filipino politician

2009, Speech: The Socio-Economic Peace Program of Senator Francis Escudero

“By putting the means of production into the hands of the masses but withholding from those same masses any ownership over the product of their work, Web 2.0 provides an incredibly efficient mechanism to harvest the economic value of the free labor provided by the very, very many and concentrate it into the hands of the very, very few.”

Nicholas Carr (1959) American writer

" Web 2.0lier than thou http://www.roughtype.com/archives/2006/10/web_20ier_than.php," Rough Type, October 23, 2006.

“Part of America's industrial problems is the aim of its corporate managers. Most American executives think they are in the business to make money, rather than products or service…The Japanese corporate credo, on the other hand, is that a company should become the world's most efficient provider of whatever product and service it offers. Once it becomes the world leader and continues to offer good products, profits follow.”

W. Edwards Deming (1900–1993) American professor, author, and consultant

Source: Out Of The Crisis (1982), p. 99

“Of the proportion, which the product of any region bears to the people, an estimate is commonly made according to the pecuniary price of the necessities of life; which is never certain, because it supposes what is far from truth, that the value of money is always the same, and so measures an unknown quantity by an uncertain standard. It is competent enough when the markets of the same country, at different times, and those times not too distant, are to be compared; but of very little use for the purpose of making one nation acquainted with the state of another.”

Samuel Johnson book A Journey to the Western Islands of Scotland

pp. 366-367. https://books.google.com/books?id=-6JfAAAAcAAJ&pg=PA366
A Journey to the Western Islands of Scotland (1775)

“When credit is expanding, the rising price level and high profits bring about a high rate of interest. When the expansion has reached, the limit permitted by the stock of gold, the rate of interest is put still higher in order to bring about a fall in the price level. When the fall in prices takes effect, a low rate of interest becomes appropriate, and when credit contraction has proceeded so far that a redundant supply of gold has accumulated, the rate of interest is depressed still lower in order to bring about a renewed rise in the price level. Thus a high rate of interest corresponds first with rising, then with falling, prices, and so synchronizes with high prices. A low rate of interest corresponds first with falling, and then with rising, prices, and so synchronizes with low prices.”

Ralph George Hawtrey (1879–1975) British economist

Ralph George Hawtrey, quoted in Irving Fisher, The Theory of Interest (1930), Chapter 19. The Relation of Interest to Money and Prices

Related topics