CodalSearch this book — or all of Codal…⌘K
nydus/The Theory of Business EnterprisePublic

Thorstein Veblen examines the modern industrial system as a structure defined by the machine process and investment for profit. He analyzes how business enterprise and the pursuit of financial gain serve as the primary forces directing contemporary economic organization.

Page 266 of 422
Table of Contents

CHAPTER Vn

to say, but it is probably safe to say that in order to keep up the season of prosperity for a considerable

number of years the stimulus would have to be gradually increased. That is to say in other words, the absorption of goods and services by extrarindustrial expenditures, expenditures which aa seen from the standpoint of industry are pure waste, would have to go on in an increasing volume. If the wasteful expenditure slackens, the logical outcome should be a considerable perturbation of business and industry, followed by depression ; if the waste on war, colonization, provincial investment, and the like, comes to an abrupt stop, the logical consequence, in the absence of other counteracting factors, should be a crisis of some severity.'

TheBe eitra-iadUBCriol expenditures that hkva brought prosperity are here spoken ol as wasteful, not ibereby implying that they may not be beneficial to the community even in respect to their effect upon the aggregate income or the aggregate accumulation of wealth in the

266