The Acquisitive Society · Chapter
The Condition of Efficiency explained
This chapter argues that the existing capitalist industrial order is inefficient because it fails to enlist the cooperation and professional pride of workers.
What happens
This chapter argues that the existing capitalist industrial order is inefficient because it fails to enlist the cooperation and professional pride of workers. It contends that the passivity of workers has been destroyed by education and experience, and that they now view the system as wasteful, unintelligent, and hypocritical. The chapter asserts that efficiency cannot be secured by fear or respect, and that the real key to increased output is the active and constructive cooperation of the workforce. It proposes that abolishing functionless property and transferring control to bodies representing producers and consumers would allow professional organizations to substitute for the discipline of property-owners, thereby harnessing professional spirit for efficiency.
Themes in this chapter
Function vs. Rights
The chapter argues that property rights should be conditioned on function, and that functionless property should be abolished to achieve efficiency.
Inequality and Waste
Criticizes the waste and inefficiency caused by the pursuit of profit and the shortsighted financial interests of capitalists.
Industrial Democracy and Freedom
Advocates for transferring control to bodies representing workers and consumers, and for enlisting professional pride as a substitute for capitalist discipline.
Moral Purpose of Economics
Emphasizes that economic efficiency depends on human motives and professional spirit, not merely on economic incentives.
Characters to notice
- Mr. Justice Sankey
Cited as reiterating with emphasis that low output is caused by workers' lack of confidence in the system.
Key passages
“The workman of today has as little belief in the intellectual superiority of many of those who direct industry as he has in the morality of the system.”
Modern workers doubt both the competence and the ethics of their managers.
Highlights the loss of respect for capitalist authority.
“Institutions must be adapted to human nature, not human nature to institutions.”
We should change our systems to fit people, not force people to fit flawed systems.
Key principle for reforming industry.
“The first condition of enlisting on the side of constructive work the professional feeling which is now apathetic, or even hostile to it, is to secure that when it is given its results accrue to the public, not to the owner of property in capital, in land, or in other resources.”
To turn workers' professional pride toward productive ends, the benefits of their work must go to the public, not to private property owners.
Central argument for abolishing functionless property.