Business & Economics Collection: Thorstein Veblen Edition (30+ Works in One Volume). Thorstein Veblen
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consumption as one of the main elements in the standard of decency among all classes is of course not traceable wholly to the example of the wealthy leisure class, but the practice and the insistence on it are no doubt strengthened by the example of the leisure class. The requirements of decency in this matter are very considerable and very imperative; so that even among classes whose pecuniary position is sufficiently strong to admit a consumption of goods considerably in excess of the subsistence minimum, the disposable surplus left over after the more imperative physical needs are satisfied is not infrequently diverted to the purpose of a conspicuous decency, rather than to added physical comfort and fullness of life. Moreover, such surplus energy as is available is also likely to be expended in the acquisition of goods for conspicuous consumption or conspicuous boarding. The result is that the requirements of pecuniary reputability tend (1) to leave but a scanty subsistence minimum available for other than conspicuous consumption, and (2) to absorb any surplus energy which may be available after the bare physical necessities of life have been provided for. The outcome of the whole is a strengthening of the general conservative attitude of the community. The institution of a leisure class hinders cultural development immediately (1) by the inertia proper to the class itself, (2) through its prescriptive example of conspicuous waste and of conservatism, and (3) indirectly through that system of unequal distribution of wealth and sustenance on which the institution itself rests. To this is to be added that the leisure class has also a material interest in leaving things as they are. Under the circumstances prevailing at any given time this class is in a privileged position, and any departure from the existing order may be expected to work to the detriment of the class rather than the reverse. The attitude of the class, simply as influenced by its class interest, should therefore be to let well-enough alone. This interested motive comes in to supplement the strong instinctive bias of the class, and so to render it even more consistently conservative than it otherwise would be.
All this, of course, has nothing to say in the way of eulogy or deprecation of the office of the leisure class as an exponent and vehicle of conservatism or reversion in social structure. The inhibition which it exercises may be salutary or the reverse. Wether it is the one or the other in any given case is a question of casuistry rather than of general theory. There may be truth in the view (as a question of policy) so often expressed by the spokesmen of the conservative element, that without some such substantial and consistent resistance to innovation as is offered by the conservative well-to-do classes, social innovation and experiment would hurry the community into untenable and intolerable situations; the only possible result of which would be discontent and disastrous reaction. All this, however, is beside the present argument.
But apart from all deprecation, and aside from all question as to the indispensability of some such check on headlong innovation, the leisure class, in the nature of things, consistently acts to retard that adjustment to the environment which is called social advance or development. The characteristic attitude of the class may be summed up in the maxim: "Whatever is, is right" whereas the law of natural selection, as applied to human institutions, gives the axiom: "Whatever is, is wrong." Not that the institutions of today are wholly wrong for the purposes of the life of today, but they are, always and in the nature of things, wrong to some extent. They are the result of a more or less inadequate adjustment of the methods of living to a situation which prevailed at some point in the past development; and they are therefore wrong by something more than the interval which separates the present situation from that of the past. "Right" and "wrong" are of course here used without conveying any rejection as to what ought or ought not to be. 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;