The Acquisitive Society · Chapter
The Functional Society explained
This chapter argues that industry and property should be organized according to the principle of function, where the purpose of economic activity is to provide the material foundation for a good social life.
What happens
This chapter argues that industry and property should be organized according to the principle of function, where the purpose of economic activity is to provide the material foundation for a good social life. It criticizes property rights that yield income without service, advocates for complete publicity in industry, and calls for abolishing functionless property while encouraging forms of ownership tied to work.
Themes in this chapter
Function vs. Rights
The chapter centers on the principle that property and industry must serve a social function, contrasting with the idea of absolute property rights.
Critique of the Acquisitive Society
The text condemns property that yields income without service, such as mineral royalties and urban ground-rents, as wasteful and antisocial.
Property and Privilege
The chapter distinguishes between property used for work and property that is merely parasitic, advocating for the abolition of the latter.
Industry as a Profession
The author proposes that industry should be organized as a profession, with responsibility placed on producers and consumers rather than absentee owners.
Characters to notice
- Providence
Referenced indirectly in the context of property rights and social obligations.
- Bentham
Mentioned in the context of liberal thought and the critique of sinecures.
- Mr. Justice Sankey
Referenced in relation to the coal industry and property rights.
- Adam Smith
Alluded to in the discussion of economic organization and the division of labor.
- Bacon
Mentioned in the context of empirical observation and the critique of abstract property rights.
Key passages
“The essential thing is that men should fix their minds upon the idea of purpose, and give that idea preeminence over all subsidiary issues.”
The key is to focus on the purpose of industry and prioritize it over other concerns.
This encapsulates the core argument for a functional approach to economic organization.
“It is foolish to maintain property rights for which no service is performed, for payment without service is waste.”
It is unwise to uphold property rights that yield income without any corresponding contribution, as this is pure waste.
This directly critiques functionless property, a central theme of the chapter.
“Above all it is to insist that all industries shall be conducted in complete publicity as to costs and profits, because publicity ought to be the antiseptic both of economic and political abuses.”
The most important reform is to require full transparency in industry regarding costs and profits, as openness prevents corruption.
This highlights the demand for publicity as a key policy proposal.
“The man who lives by owning without working is necessarily supported by the industry of someone else, and is, therefore, too expensive a luxury to be encouraged.”
A person who lives off ownership without labor is a burden on others and should not be supported.
This summarizes the moral critique of the rentier class.