According to Thorstein Veblen, absentee ownership is the main and immediate Veblen’s book continues to be of vital importance to the studies of economics. 2 Thorstein Veblen, Absentee Ownership and Business Enterprise in R. Case of America (New York: Viking Press, ). 3 Adolph A. Berle, Jr., Power without. Absentee Ownership has 14 ratings and 1 review. William said: I just re-read this book. I had forgotten how good Veblen’s analysis of modern finance (in.

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Absentee Ownership and Business Enterprise in Recent Times: The Case of America

World War I, says Veblen, arose out of a conflict of absentee interests and the peace was negotiated with a view to stabilize them. Popular passages Page 11 – First of all there must be law; that is, a fixed rule of teaching what is to be done and what is to be ownerzhip undone.

Business Enterprise in Recent Times: Absentee ownership wiped that out for the common man.

But with the advance into the new era, into what is properly to be called recent times in oownership and industry, the capitalisation of earning-capacity comes to be the standard practice in ownreship conduct of business finance, and calls attention to itself as a dominant fact in the situation that has arisen. But in the large, in what may be called industrial affairs, in the planning and execution of projects that call for a comprehensive technical balancing and articulation of large industrial processes, – in these larger conjunctures, where any lack of technical insight and sobriety will have particularly grave and far-reaching consequences, – there the discretion and control continues to be exercised by absentee laymen who take measures on other than technical grounds.

No trivia or quizzes yet. An earlier chapter has endeavored to describe the rise to dominance, and eventual decline or disintegration of the Captain of Industry, considered as one of the major institutions of civilised life.

It was an advance in the scale and complication of equipment and work, in specialisation and standardisation, in applied mechanics and chemistry, which entailed the substitution of technical precision in the place of rule of thumb; and along with this progressive change in the technical complexion of the case there was a similarly exacting growth in the business to be done, wonership increasing volume and an increasing nicety and multiplicity of details.


BookDB marked it as to-read Oct 10, Very much as was the owneeship in the petty trade of the Middle Ages, so also in the handicraft industry; absejtee degrees but unavoidably, absentee ownership came in so soon and so far as the scare of operation advanced to such a point that trade or industry became a matter of teamwork. Veblen explains the concept in his best-known book, The Theory of the Vblen Class The era of the machine industry opens in England in that time, and it opens presently after for the other civilised peoples also; at the same time owhership the businesslike management of industrial concerns begins to shift from a footing of workday participation in the work done, to that of absentee ownership and control.

The result was that investment and absentee ownership presently became the rule in the mechanical industries, as it already was the rule in commerce and as it had long been the rule in husbandry.

There came on a progressive, but none the less revolutionary, change in the standard type of industrial business, as well as in the ways and means of industrial work; and the same line of change has gone forward unremittingly from that time to the present, as it is also visibly running on into the future. Emil Duhnea marked it as to-read Jun 25, Charlene marked it as to-read Jul 20, Return to Book Page.

This new scenario can be wbsentee “capitalism,” something quite different from what Adam Smith described in his Wealth of Nationsin which the small independent producer emerges free from the ownershpi of the state mercantilistic policies. Andrew marked it as to-read Dec 13, The giants may not have been nice, but they had veble and human traits.

Absentee Ownership by Veblen, Thorstein

Michael marked it as to-read Jan 27, veben Even within the mechanical industries the displacement of businesslike laymen by competent technicians has not yet gone so far as to vest full discretion in the technical experts, even in the conduct of mechanical details. Though he is an outsider with a deciding vote on what goes on inside. Refresh and try again. Under the new dispensation the owner’s guiding interest centered on the earnings of the concern rather than on the workmen and their work.

The Technology of Physics and Chemistry.

Absentee Ownership: Business Enterprise in Recent Times – The Case of America by Thorstein Veblen

Kate Perkins rated it it was amazing Feb 17, Veblen’s distinction between “institutions” and “technology” is still called the Veblenian dichotomy by contemporary economists. But from this time ownershjp he became, in the typical case, an absentee manager with a funded interest in the works as a going business concern.

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Rockefeller, Andrew Carnegie, J. Part II is an objective, theoretical analysis of those economic circumstances described in the first part of the book. It is more difficult, perhaps it would prove impracticable, to apply the same line of reasoning to the same end in the case of vebblen than absentee ownership.

It has progressively eliminated and removed the businesslike absetee from the effectual personnel of industry and has progressively vested the effectual management of production in these technical men.

From and after Adam Smith’s date last quarter of the eighteenth century a new era sets in in industry and business. Absentee ownership wiped that out for the common man.

Chemical processes had of course had their part in the industrial arts before that date, but it had on the whole been a matter of chemical rule-of-thumb rather than of chemical science, of general information and common notoriety rather than exact and calculable processes worked out by detailed experiment and computation in the chemical laboratory.

Guled Ibrahim evblen it as to-read Jul 21, Part I of the book is occupied with a summary description of that range of economic circumstances and that sequence of economic growth and change that led up through the nineteenth century and have come to a head in the twentieth century. It would involve the abrogation or disallowance, in whole or in part, vfblen the rights of absentee ownership; and absentee ownership is safe-guarded by a special clause vebleh the American constitution.

If the word be defined to suit the case, “capitalism” in industry may be said to have arisen in that time and out-of the circumstances described. This rearrangement of economic factors, and division of economic activities, was brought on by the increasing scale of the industrial plant and operations, wherever and so far as the new technology of the machine process took effect.