which these manoeuvres bring to the business concerns； inasmuch
as the friction； obstruction and retardation of the moving
equilibrium of production involved in this business…like sabotage
necessarily entails a disproportionate curtailment of output。
However； it is well to call to mind that the community will
still be able to get along； perhaps even to get along very
tolerably； in spite of a very appreciable volume of sabotage of
this kind； even though it does reduce the net productive capacity
to a fraction of what it would be in the absence of all this
interference and retardation； for the current state of the
industrial arts is highly productive。 So much so that in spite of
all this deliberate waste and confusion that is set afoot in this
way for private gain； there still is left over an absolutely
large residue of net production over cost。 The community still
has something to go on。 The available margin of free income
that is to say； the margin of production over cost is still
wide； so that it allows a large latitude for playing fast and
loose with the community's livelihood。
Now； these businesslike manoeuvres of deviation and delay are
by no means to be denounced as being iniquitous or unfair；
although they may have an unfortunate effect on the conditions of
life for the common man。 That is his misfortune； which law and
custom count on his bearing with becoming fortitude。 These are
the ordinary and approved means of carrying on business according
to the liberal principles of free bargain and self…help as
established in the eighteenth century； and they are in the main
still looked on as a meritorious exercise of thrift and sagacity
duly so looked on； it is to be presumed。 At least such is the
prevailing view among the substantial citizens； who are in a
position to speak from first…hand knowledge。 It is only that the
exercise of these homely virtues on the large scale on which
business is now conducted； and when dealing with the
wide…reaching articulations of the industrial system under the
new order of technology； under these uncalled…for
circumstances the unguarded exercise of these virtues entails
business disturbances which are necessarily large； and which
bring on mischievous consequences in industry which are
disproportionately larger still。
It is also true； the businesslike managers of industrial
enterprise have also other things to do； besides holding the
marketable supply of goods and services down to such an amount as
is expected to bring the most profitable prices； or diverting
credulous customers from one seller to another by competitive
advertising。 But it should also be noted that there is next to no
business enterprise； if any； whose chief end is not profitable
sales； or profitable bargains which mean the same thing as
profitable sales。 They are therefore engaged unremittingly in one
or another of the approved lines of competitive management with a
view to profitable traffic for themselves； and to creating an
advantage for themselves in the market。 It is a poor…spirited
concern that does not constantly aim to create for itself such a
position of advantage as will give it something of a vested
interest in the traffic。 Such a concern is scarcely fit to
survive； nor is it likely to。
It is not that business enterprise is wholly taken up with
such like manoeuvres of restraint； obstruction and competitive
selling。 This is only part of the business men's everyday work；
although it is not a minor part。 In any competitive business
community this line of duties will take up a large share of the
business men's attention and will engage their best and most
businesslike abilities。 More particularly in the management of
the greater industrial enterprises of the present day； the larger
as well as the more lucrative part of the duties of those who
direct affairs appears commonly to be of this nature。 That such
should be the case lies in the nature of things under the
circumstances which now prevail。 It would not be far out of the
way to say that any occupations in which this rule does not apply
are occupations which have not； or have not yet； come into line
as members in good standing in that new order of business
enterprise which is based on the machine industry governed by the
liberal principles of the eighteenth century。
〃Our people； moreover； do not wait to be coached and led。
They know their own business； are quick and resourceful at every
readjustment； definite in purpose； and self…reliant in action。。。
The American business man is of quick initiative。 The ordinary
and normal processes of private initiative will not； however；
provide immediate employment for all of the men of our returning
armies；〃 Such is the esteem in which American business men are
held by American popular opinion and such is also the view which
American business men are inclined to take of their own place and
value in the community。 There need be no quarrel with it。 But it
will be in place to call attention to the statement that 〃The
ordinary and normal processes of private initiative will not；
however； provide immediate employment for all the men。〃 It should
be added； as is plain to all men； that these ordinary and normal
processes of private initiative never do provide employment for
all the men available。 In fact； unemployment is an ordinary and
normal phenomenon。 So that even in the present emergency； when
the peoples of Christendom are suffering privation together for
want of goods needed for immediate use； the ordinary and normal
processes of private initiative are not to be depended on to
employ all the available man power for productive industry。 The
reason is well known to all men； so well known as to be uniformly
taken for granted as a circumstance which is beyond human remedy。
It is the simple and obvious fact that the ordinary and normal
processes of private initiative are the same thing as 〃business
as usual；〃 which controls industry with a view to private gain in
terms of price； and the largest private； gain in terms of price
can not be had by employing all the available man power and
speeding up the industries to their highest productivity； even
when all the peoples of Christendom are suffering privation
together for want of the ordinary necessaries of life。 Private
initiative means business enterprise； not industry。
But all the same； the profits of business come out of the
product of industry； and industry is controlled； accelerated and
slowed down with a view to business profits； and one outcome of
this arrangement so far； in America； has been the complacent
estimate of this business enterprise formulated in the passage
quoted above。 The result of a businesslike management of industry
for private gain in America has on the whole been a fairly high
level of prosperity。 For this there are two main reasons： （a） the
exceptionally great natural resources of the country； and （b） the
continued growth and spread of population； （a） Business
enterprise； that is to say private ownership； has taken over
these resources； by a process of legalised seizure； and has used
them up as rapidly as may be； with a view to private gain； all of
which has gone to make private business profitable to that
extent； although it has impoverished the underlying community by
using up its natural resources； （b） The continued growth and
spread of population； by natural increase and by immigration； has
furnished the business men of this country a continually
expanding market for goods； both for goods to be used in
production and transportation and for finished articles of
consumption。 Hence the American business men have been in the
fortunate position of not having to curtail the output of
industry harshly and persistently at all points。 It is； in
effect； for this continued growth of their market； caused by the
growth of population； that the business men claim credit when
they 〃point with pride〃 to the resourcefulness and quick
initiative with which they have 〃developed the country；〃 To their
credit be it said； they have on the whole not hindered the
country's prosperity beyond what the traffic would bear； and the
peculiar situation of this country hitherto has been such that
the traffic of business would bear a nearly uninterrupted
expansion of industry at perhaps something like one…half of its
possible rate of expansion。 To their own gain； and to the relief
of the underlying community； they have been enabled profitably to
let the country's industry run on a moderately high level of
efficiency；with more or less； but always a very appreciable
amount； of unemployment； idle plant； and waste of resources。
All that industry which comes in under the dominant machine
technology that is to say all that fairly belongs in the new
order of industry is now governed by business men for business
ends； in what is to be done and what is to be left undone。 And
wherever business enterprise has taken over the direction of
things the management is directed in part to the production of a
marketable supply； and in part to arranging for a profitable sale
of the supply； and the strategy available for this latter； and
indispensable； work lies almost wholly within the lines of
competitive management already spoken of。 In case these
manoeuvres of businesslike deviation and defeat are successful
and fall into an orderly system whose operation may be continued
at will； or in so far as this management creates an assured
strategic advantage for any given business concern； the result is
a vested interest。 This may then eventually be capitalised in due
form； as a body of intangible assets。 As such it goes to augment
the business community's accumulated wealth。 And the country is
statistically richer per capita。
A vested interest is a marketable right to get something for
nothing。 This does not mean that the vested interests cost
nothing。 They may even come high。 Particularly may their cost
seem high if the cost to the community is taken into account； as
well as