"To act within the marketplace, but not to be governed by the values of the market-place, is a considerable personal discipline."

"A customer acts within the framework of commerce. An audient acts within the framework of a listening community. When a musician believes that musicking is a commercial activity, the music dies inside them.

"To act within the marketplace, but not to be governed by the values of the market-place, is a considerable personal discipline. To see the audient as consumer denies them their humanity. They become a purchasing unit. Our human interaction ends with the completion of the transaction. When musician & audience combine to bring music flying into our world, to be parents to the music, life begins again.

“'Audient' is a description, not a label."

~ Robert Fripp from his Diary - April 15th. 1999

The (man-made) world really is getting greyer.”

"It’s not just in our imagination—the “world really is getting greyer.” A researcher recently studied photos of household items going back two centuries. An analysis of the pixels showed a scary collapse in colour. 

"Even the Victorians—often considered as conformists—lived a more color-filled life. We have almost completely abandoned red and yellow and other bright hues in favor a boring black-and-white spectrum.

"But what’s most striking is how this descent into grayness has accelerated during the last few years. The most popular color is now charcoal—and at the current rate it will soon account for half of the marketplace.

"This runs counter the mantra of marketing experts [sic], who claim that products need to make a statement and capture the public’s attention.. They say that, but then turn around and launch another grey product into the look-alike marketplace.

"In an attempt to counter this, Pantone announced recently that the colour of the year in 2026 should be white. Some people complained. Others merely yawned. The shift from grey to white is one more measure of the tedium imposed by today’s tastemakers.

"Not long ago, popular colours were striking and changed with regularity. There was a time when avocado was the preferred shade for kitchen appliances. Orange and red had their day. When Monsanto designed a house of the future for Disneyland back in 1957, the kitchen looked like this.

 

"But the real problem isn’t our home decor—it’s the avoidance of risk-taking and the embrace of conformity in our behaviour. And even in our inner lives...."

~ Ted Gioia from his post 'The Return of the Weirdo'

Intellectual v Artist

"An intellectual is a man who says a simple thing in a difficult way; an artist is a man who says a difficult thing in a simple way."

~ Charles Bukowski

Thanksgiving isn't a New Zealand holiday, but giving thanks should be a universal trait.

Robert Green Ingersoll was the nineteenth-century's Christopher Hitchens—a famous and crusading atheist—like Hitchens except Ingersoll was kinder, and not a Trotskyite. And he was full of gratitude. This, here, was just a portion (the final part, starting page 58) ) of his famous 1897 Thanksgiving Sermon [hat tip Jerry Coyne] ...

A Thanksgiving Sermon

by Robert Green Ingersoll

Whom shall we thank? 

Standing here at the close of the 19th century — amid the trophies of thought — the triumphs of genius — here under the flag of the Great Republic — knowing something of the history of man — here on this day that has been set apart for thanksgiving, I most reverently thank the good me,. the good women of the past, I thank the kind fathers, the loving mothers of the savage days.  I thank the father who spoke the first gentle word, the mother who first smiled upon her babe. I thank the first true friend.

I thank the savages who hunted and fished that they and their babes might live. I thank those who cultivated the ground and changed the forests into farms — those who built rude homes and watched the faces of their happy children in the glow of fireside flames — those who domesticated horses, cattle and sheep — those who invented wheels and looms and taught us to spin and weave — those who by cultivation changed wild grasses into wheat and corn, changed bitter things to fruit, and worthless weeds to flowers, that sowed within our souls the seeds of art. 

I thank the poets of the dawn — the tellers of legends — the makers of myths — the singers of joy and grief, of hope and love. I thank the artists who chiseled forms in stone and wrought with light and shade the face of man. I thank the philosophers, the thinkers, who taught us how to use our minds in the great search for truth. 

I thank the astronomers who explored the heavens, told us the secrets of the stars, the glories of the constellations — the geologists who found the story of the world in fossil forms, in memoranda kept in ancient rocks, in lines written by waves, by frost and fire — the anatomists who sought in muscle, nerve and bone for all the mysteries of life — the chemists who unraveled Nature’s work that they might learn her art — the physicians who have laid the hand of science on the brow of pain, the hand whose magic touch restores — the surgeons who have defeated Nature’s self and forced her to preserve the lives of those she laboured to destroy. I thank the discoverers of chloroform and ether, the two angels who give to their beloved sleep, and wrap the throbbing brain in the soft robes of dreams. 

I thank the great inventors — those who gave us movable type and the press, by means of which great thoughts and all discovered facts are made immortal — the inventors of engines, of the great ships, of the railways, the cables and telegraphs. I thank the great mechanics, the workers in iron and steel, in wood and stone. I thank the inventors and makers of the numberless things of use and luxury.

I thank the industrious men, the loving mothers, the useful women. They are the benefactors of our race. The inventor of pins did a thousand times more good than all the popes and cardinals, the bishops and priests — than all the clergymen and parsons, exhorters and theologians that ever lived. The inventor of matches did more for the comfort and convenience of mankind than all the founders of religions and the makers of all creeds — than all malicious monks and selfish saints.

I thank the honest men and women who have expressed their sincere thoughts, who have been true to themselves and have preserved the veracity of their souls.

I thank the thinkers of Greece and Rome. Zeno and Epicurus, Cicero and Lucretius. I thank Bruno, the bravest, and Spinoza, the subtlest of men.

I thank Voltaire, whose thought lighted a flame in the brain of man, unlocked the doors of superstition’s cells and gave liberty to many millions of his fellow-men. Voltaire — a name that sheds light. Voltaire — a star that superstition’s darkness cannot quench.

I thank the great poets — the dramatists. I thank Homer and Aeschylus, and I thank Shakespeare above them all. I thank Burns for the heart-throbs he changed into songs. for his lyrics of flame. I thank Shelley for his Skylark, Keats for his Grecian Urn and Byron for his Prisoner of Chillon. I thank the great novelists. I thank the great sculptors. I thank the unknown man who moulded and chiseled the Venus de Milo. I thank the great painters. I thank Rembrandt and Corot. I thank all who have adorned, enriched and ennobled life — all who have created the great, the noble, the heroic and artistic ideals.

I thank the statesmen who have preserved the rights of man. I thank Paine whose genius sowed the seeds of independence in the hearts of ’76. I thank Jefferson whose mighty words for liberty have made the circuit of the globe. I thank the founders, the defenders, the saviors of the Republic. I thank Ericsson, the greatest mechanic of his century, for the monitor. I thank Lincoln for the Proclamation. I thank Grant for his victories and the vast host that fought for the right, — for the freedom of man. I thank them all — the living and the dead.

I thank the great scientists — those who have reached the foundation, the bed-rock — who have built upon facts — the great scientists, in whose presence theologians look silly and feel malicious.

The scientists never persecuted, never imprisoned their fellow-men. They forged no chains, built no dungeons, erected no scaffolds — tore no flesh with red hot pincers — dislocated no joints on racks, crushed no hones in iron boots — extinguished no eyes — tore out no tongues and lighted no fagots. They did not pretend to be inspired — did not claim to be prophets or saints or to have been born again. They were only intelligent and honest men. They did not appeal to force or fear. They did not regard men as slaves to be ruled by torture, by lash and chain, nor as children to be cheated with illusions, rocked in the cradle of an idiot creed and soothed by a lullaby of lies.

They did not wound — they healed. They did not kill — they lengthened life. They did not enslave — they broke the chains and made men free. They sowed the seeds of knowledge, and many millions have reaped, are reaping, and will reap the harvest: of joy.

I thank Humboldt and Helmholtz and Haeckel and Buchner. I thank Lamarck and Darwin — Darwin who revolutionized the thought of the intellectual world. I thank Huxley and Spencer. I thank the scientists one and all.

I thank the heroes, the destroyers of prejudice and fear — the dethroners of savage gods — the extinguishers of hate’s eternal fire — the heroes, the breakers of chains — the founders of free states — the makers of just laws — the heroes who fought and fell on countless fields — the heroes whose dungeons became shrines — the heroes whose blood made scaffolds sacred — the heroes, the apostles of reason, the disciples of truth, the soldiers of freedom — the heroes who held high the holy torch and filled the world with light.

With all my heart I thank them all.

* * * * 

'Storm' by Lucien Levy-Dhurmer

 

Storm, Lucien Levy-Dhurmer, 1896

She makes a good point

 

Credit: LeslieJAndersonWriter

"Do I think it’s a good idea to scrap art history? No, I think it’s a terrible, tragic idea."

 

"In a statement to The Post, Campion said art history was the only subject she looked forward to during sixth form (year 12), and that the subject was 'a crucial step' towards her creative life in film. It was at art school that Campion started making films.

“ 'It was so helpful to discover I had visual acuity and I was actually good at something. Do I think it’s a good idea to scrap art history? No, I think it’s a terrible, tragic idea. Students like myself deserve a chance to discover themselves [and] find something they feel passionate about and can pursue to enrich their lives.'

"Art history could lead to satisfying careers in architecture, interior design, graphic design, theatre, painting, art restoration, community art, photography or cinematography, Campion said.

“ 'We are moving at rocket speed into a world of AI. How will future New Zealanders communicate with their AI bots if they have no general knowledge of art? ... It’s important to have a framework of knowledge in subjects to be able to drive AI.

“ 'It is my hope the Government reverses this decision.' "

~ Jane Campion in the article 'Art history will no longer be a school subject in New Zealand'

The Friendship Test (or, A Test of Friendship)

"When Olga Khazan introduced 'The Big Lebowski'—her favourite movie—to her friend, she was nervous. 'I was worried that she would dislike it so much that she would kind of dislike me too, through osmosis,' she writes. Jitters such as hers, it turns out, are common.

“'If something really matters to you ... there’s a vulnerability in sharing it with someone else.' When we declare a favourite book, movie, or album and introduce it to others ... what we’re doing is saying, 'This is an aspect of my identity that I’m willingly putting out there in order for other people to know me. And if you reject this thing, you reject me.'

"Our friends often do like what we like. The trouble is, we usually want our friends to be even more similar to us than they actually are ... Whether a disagreement over a beloved book or movie sparks friction in the friendship depends on how well you know the friend, what else you have in common, and how important that particular book, movie, or show is to you ..."

~ Olga Khazan from her post 'The Big Lebowski Friendship Test'

Art should ask questions

Film-maker (and Monthy Python alumni) Terry Gilliam makes an important point about art in drawing an important distinction between Kubrick and Spielberg — "and it’s rooted in filmmaking philosophy as much as style." Gilliam described Spielberg as “excellent as a fairy‑tale storyteller." Kubrick's movies however provoke endless questions rather than tidy answers.

Spielberg and the success of most films in Hollywood these days, I think, is down to the fact they're comforting — even if the answers are stupid, they're answers. So you can go home and you don't have to worry about it. The Kubricks of this world, and the great filmmakers, make you go home and think about it.  

There's a wonderful quote in in the book that Frederic Raphael wrote about the making of 'Eyes Wide Shut' (called 'Eyes Wide Open') and he's talking to Kubrick about 'Schindler's List,' and the Holocaust. And he says, the thing is that 'Schindler's List' is about success; the Holocaust was about failure. And that's Kubrick, and that's just spot on. It was about the complete failure of civilisation, to allow six million people to die. 

And so I know which side I'd rather be on.

"Spielberg offers cinematic comfort, Kubrick offers cinematic conversation."

"Is art produced by non-humans actually art?"

Question for the Day, from Mark Silva:

"Is art produced by non-humans actually art?  

"I think not. 

"I know it's often said that AI is just another tool, but it's more than that, it makes decisions..."

It wasn't a “Gilded Age” of "Robber Barons." It was The Inventive Period

The so-called “Gilded Age” of "Robber Barons" should be better named, says Andrew Bernstein in this guest post. It should be known as the Inventive Period of Capitalism.

The Inventive Period

by Andrew Bernstein

A recent issue of American Heritage magazine, devoted to analysing important cultural issues in U.S. history, contains an article that provides ample clues to the true nature of late nineteenth-century America. The piece, “People of Progress,” features the greatest innovators of the twentieth century, and takes as its point of departure Christian Schussele’s famed 1862 painting, “Men of Progress,” a depiction of 19 great American inventors and creative thinkers of the first half of the nineteenth century.

Schussele’s painting portrays such men as Cyrus McCormick (1809-1884), the inventor and manufacturer of the reaping machine and other agricultural equipment; Charles Goodyear (1800-1860), who created the vulcanization process that made rubber useful; Samuel Colt (1814-1862), the gun inventor and manufacturer; Peter Cooper (1791-1883), the builder of the first American steam locomotive; Samuel Morse (1791-1872), the innovative thinker responsible for both the electric telegraph and the Morse Code; William Morton (1819-1868), the dentist who co-discovered ether’s use as an anesthetic; and Elias Howe (1819-1867), inventor of the sewing machine. These, as well as 12 other equally accomplished thinkers and inventors, form the subject of Schussele’s masterpiece.

The administrators of the Cooper Union for the Advancement of Science and Art (founded by industrialist and inventor Peter Cooper in 18591) recently commissioned one of its leading graduates, the artist Edward Sorel, to paint a sequel to Schussele’s work—a portrait of 20 innovative Americans who changed the world in the twentieth century. Sorel, with assistance from the editors of American Heritage and American Heritage of Invention & Technology, chose the subjects. And not surprisingly, some of the geniuses depicted started their brilliant careers in the second half of the nineteenth century.

Anti-capitalist historians regularly refer to this late-nineteenth-century era as “the Gilded Age” and deride its great industrialists as “Robber Barons.” They claim that its extensive industrial development was achieved by means essentially tawdry and unprincipled. They are profoundly mistaken and have failed to identify the essence of the era. It must be known as the Inventive Period.

In Schussele’s painting, Benjamin Franklin looks down on those assembled as both inspiration and presiding genius. Sorel grants this honor to Thomas Edison. Edison (1847-1931) is the exemplar of his age. He is widely known as the inventor of the electrical lighting system, the phonograph, the electric generator, and the motion-picture projector. He also later coordinated movies with phonographic sound to create the world’s first multi-media presentation. But Edison is by no means alone in exemplifying the scientific/technological genius of the period. Sorel’s portrait projects numerous other great minds.

Among them are George Washington Carver (1864-1943), the brilliant black American botanist and agronomist, who developed a new type of cotton, Carver’s Hybrid. Born a slave, he is most famous for developing sweet potatoes and peanuts as leading crops, but he also invented hundreds of plant-based products, taught methods of soil improvement and, by means of his discoveries, induced southern farmers to grow crops other than cotton. Also included is Charles Steinmetz (1865-1923), the German immigrant who went to work for General Electric as its first director of research and development and in the 1890s pioneered the understanding of electrical transmission.

Neglected Geniuses

Since Schussele’s portrait concentrates on the early nineteenth century and Sorel’s on the twentieth, there are many great late-nineteenth-century thinkers who are included in neither painting. Here we can cite merely a few. One is George Eastman (1854-1932), who in 1884 patented the first film in roll form to prove practical. In 1888 he revolutionized photography by perfecting his Kodak camera, and in 1892 established the Eastman-Kodak Company, one of the first to mass-produce standardized photographic equipment. Another is Cyrus W. Field (1819-1892), an entrepreneur whose interest in transoceanic telegraphy led to the completion in 1866 of the transatlantic cable. Field later was instrumental in laying the cable that linked the United States to Australia and Asia by way of Hawaii.

The advances in architecture wrought by William Le Baron Jenney (1832-1907) and Louis Sullivan (1856-1924) must not be overlooked. Jenney, an engineer in the Union Army during the Civil War, settled in Chicago and opened an architectural office. He pioneered the use of iron-frame construction for large buildings, which he first employed in the Home Insurance Company Building in 1885. His revolutionary method of curtain-wall construction is still used today and earned him the title of “father of the skyscraper.” Sullivan apprenticed with Jenney early in his career. Later, it was his designs for steel-frame buildings that resulted in the establishment of the skyscraper as a distinctively American type of building.

George Westinghouse (1846-1914) introduced numerous inventions in various fields, but concentrated on the railroad industry. Before the age of 20, he created the “railroad frog,” an invention that permitted trains to switch tracks. His most famous advance was the air brake, invented around 1866, which became a standard feature on all trains. Westinghouse developed hundreds of innovations, acquired more than 400 patents and, together with the Croatian immigrant Nikola Tesla (1856-1943), pioneered the use of alternating current (AC) power in the United States. Tesla invented the AC induction generator in the 1880s, the first practical motor powered by alternating current. He sold the patent to Westinghouse, who put it to commercial use in the Niagara Falls power project. Westinghouse and Tesla demonstrated that alternating current was able to generate electrical power over great distances more economically than the direct current favoured by Edison.

John Roebling (1806-1869), a German immigrant, pioneered the construction of suspension bridges in the United States in the second half of the nineteenth century. He demonstrated the practicality of using steel cables in bridge construction—and today, early in the 21st century, several of his bridges still stand, including the famed Brooklyn Bridge in New York, constructed in the 1870s. Another great creator, largely forgotten today, is the U.S. Army surgeon and bacteriologist Walter Reed (1851-1902). In the 1890s, Reed’s investigations contributed greatly to the understanding of typhoid fever, leading to the control and prevention of epidemics of the disease. In 1900 Reed demonstrated that the yellow-fever virus was transmitted by the bite of the mosquito Aedes aegypti. By exterminating the mosquitoes, the disease was virtually wiped out.

A great thinker from the Inventive Period who is widely remembered is the Scottish immigrant, Alexander Graham Bell (1847-1922). In 1874, his work on the multiple telegraph gave him the idea for the telephone. Experiments with his research assistant, Thomas Watson, proved successful on March 10, 1876. Later that year, Bell demonstrated the telephone at the Centennial Exposition in Philadelphia, an event leading to the organization of the Bell Telephone Company in 1877. Bell’s other inventions include the audiometer, a device for measuring hearing acuity and, later in life, the aileron and other aeronautical advances.

Space does not permit even the mention of all the inventors, entrepreneurs, and groundbreaking industrialists who flourished during the period. The achievements of Frank Julian Sprague (1857-1934), for example, are no longer remembered. Sprague, a brilliant electrical engineer who graduated from Annapolis and worked for Edison, electrified Richmond’s trolley system in 1888. He demonstrated that electricity was cheap, and that it could be used on both surface and elevated cars. In 1890 about 15 percent of America’s urban transit mileage was electrified; by 1902, 97 percent.

On the eve of the twentieth century America’s technological advances were only beginning. On the morning of June 4, 1896, Henry Ford (1863-1947) battered down the brick wall of his rented garage with an ax and drove out his first car. Others, of course, had already built and run cars, but Ford began the Ford Motor Company in 1903 and made the automobile a commercial reality. Soon millions of Americans were driving cars. That same year, Wilbur (1867-1912) and Orville (1871-1948) Wright, two bicycle mechanics from Dayton, Ohio, who were self-educated regarding the principles of aeronautical engineering, accomplished the first controlled, powered flight of a heavier-than-air vehicle at Kitty Hawk, North Carolina. Throughout the 1890s, the Wrights had been studying aeronautics and experimenting with flying devices. Both the automotive and aviation ages dawned in early twentieth-century America as a direct outgrowth of the achievements of the late nineteenth. (Ford and the Wright brothers are included in Sorel’s painting.)

The Underlying Factor

What underlying factor was responsible for this unprecedented outpouring of innovations, inventions, advances, and new products? The answer should be obvious, but unfortunately, to many historians it is not. It was the political and economic freedom of the capitalist system that enabled these inventor-entrepreneurs to flourish.

The late nineteenth century (until the proliferation of trust-busting and government controls in the early twentieth century) was the freest period of American history. The leading economists, professors, legal theorists, and judges upheld the principles of individual rights, limited government, economic freedom, and profit-making. Economists such as Amasa Walker, Arthur Latham Perry, and Francis Bowen wrote the leading economics textbooks of the day. Their works—Science of Wealth, Elements of Political Economy, and American Political Economy, respectively—championed the ability of the free market to create wealth and upward economic mobility.2 William Graham Sumner (1840-1910), the leading American social scientist of the late nineteenth century, wrote of “The Forgotten Man,” the honest labourer who supported himself by productive work. The principle of the Forgotten Man is that he needs the liberty of the American system if he is to flourish. He is the one always victimised by the socialists’ schemes to redistribute the income earned by private individuals.3

The law writers and legal philosophers of the day shared the same commitment to limited government. The most prominent, Thomas Cooley and Christopher Tiedeman, wrote their major works in the second half of the nineteenth century. The upshot of both Cooley’s A Treatise on the Constitutional Limitations Which Rest Upon the Legislative Powers of the American Union (1868) and Tiedeman’s A Treatise on the Limitations of the Police Powers of the States(1886) was the defense of property rights.4

In practice, most American judges of the period agreed with the individualistic principles of the country’s leading legal philosophers. After the Civil War, American courts generally presumed to be unconstitutional any laws restricting property rights and the rights of both businessmen and workers to set the terms of labor that they deemed best. As one example, the New York State Court of Appeals in 1885 struck down legislation seeking to limit the hours of industrial employment, ruling that such a law violated the rights of both worker and employer to engage in a voluntary transaction.

Additionally, the American courts of the late nineteenth century repeatedly placed severe limitations on the government’s power to tax and to subsidize business ventures. The courts generally gave strong support to the capitalist principle that productive enterprise was to be privately funded, owned, and operated. One representative ruling by a Missouri court in 1898 found against governmental paternalism, whether state or federal, and proclaimed that individuals know best how to conduct their own business and personal affairs.5

In this era, the U.S. Supreme Court gradually came to be the great defender of an individual’s right to property, freedom of contract, and economic liberty. For example, Stephen J. Field (brother of Cyrus Field), for many years a distinguished Justice of the high court, issued pro-freedom dissenting opinions in such famous disputes as the Slaughter-House cases (1873) and Munn v. Illinois (1877), holding that the government could prevent neither employers nor workers from entering fields of their own choosing or violate the right of individuals to the full use and disposal of their property. The majority opinion at this time was that the Fourteenth Amendment protected the rights of the recently freed slaves only and that there was nothing in it to prevent the states from interfering in business activities. But by the mid-1880s, after the San Mateo case (1882) and the Santa Clara case (1886), Justice Field prevailed. Chief Justice Morrison Remick Waite, in an oral statement, spoke for a unanimous bench in 1886, proclaiming that all the justices “understood and accepted the fact that corporations were persons within the equal protection clause of the Fourteenth Amendment.” The right of individuals to work and to use their own labor and property as they saw fit now came under the legal protection of the Supreme Court.6

Religion and Capitalism

Religious leaders of the period characteristically upheld the virtues of work, frugality, sobriety, and wealth earned through honest effort. The weekly religious periodical The Independent, edited for a while by the noted Congregationalist minister Henry Ward Beecher (1813-1887), defended the free market as the means by which both capitalists and workers would achieve material gain. For almost four decades Beecher preached from his influential Brooklyn pulpit the ability of hard-working individuals to rise economically in the capitalist system.7

The intellectual, cultural and political climate of the country upheld freedom, limited government, and property rights in this era. The economic results are not surprising. The most innovative and creative minds were free to develop new products and methods, to start their own companies, to bring their innovations to the marketplace, to convince consumers that the new products were superior to the old and, in time, to earn fortunes. There were few government bureaucrats and regulators to prohibit their activities, restrict their output, dictate working conditions, or limit their market share. “The first condition of this proliferation was that the innovations did not require the assent of governmental . . . authorities.”8

Most of the innovators of the Inventive Period were entrepreneurs who sought and made wealth by virtue of their creative work. Edison retired with a net worth of $12 million, an enormous sum in those days. His inventions were profit-driven. “Edison’s Menlo Park laboratory was conceived to bring scientific knowledge to bear on industrial innovation . . . . Its inventions were goals chosen with a careful eye to their marketability.”9

Such instances were numerous during the Inventive Period. Eastman, Westinghouse (Westinghouse Electric Company), and Ford are all examples of innovator-entrepreneurs who developed their new products into profitable business ventures. Willis Carrier (1876-1950) invented the air conditioner in 1902, held more than 80 patents by the 1940s, and founded the manufacturing firm that bears his name. (He also made Sorel’s painting.) Bell’s most famous invention led, of course, to the founding of the Bell Telephone Company. Roebling made a fortune from his wire-manufacturing company, as did McCormick from his firm’s producing the reaping machine and other farm equipment. Colt was an entrepreneur who opened his own plant, Colt Patent Arms, in 1855. He pioneered advanced manufacturing methods such as the production line and the use of interchangeable parts, making his company the largest private armory in the world. Isaac Merritt Singer (1811-1875) wanted a commercially practical sewing machine and brought together several related patents to create his immensely popular product. By 1860, he was the largest manufacturer of sewing machines in the world. A business innovator, Singer began such practices as installment buying, advertising campaigns, and service with sales.

Because of the climate of political and economic freedom during the Inventive Period, America’s entrepreneurs were able to revolutionise the fields of heavy industry on which general prosperity depended. Between 1860 and 1900, American output of bituminous coal increased by 2,260 percent, crude petroleum by 9,060 percent, steel by 10,190 percent, and other industries increased by similar amounts.10 Industrialists such as Andrew Carnegie (1835-1919) and John D. Rockefeller (1839-1937) built Carnegie Steel and Standard Oil into enormously productive concerns that flooded the country with steel and oil products. In the 1880s and 1890s, the great railroad man James J. Hill (1838-1916) constructed the Great Northern Railroad with only private funds to the immense betterment of people in the northern plains and northwest states. It goes without saying that Carnegie, Rockefeller, and Hill earned great wealth.

The lesson of the Inventive Period can be applied today. Political and economic freedom will lead to widespread innovation. This principle can already be seen in the computer industry, in which the relative absence of government regulation has enabled such innovators as Steve Jobs, Stephen Wozniak, Bill Gates, Paul Allen, Michael Dell, Larry Page, Sergey Brin and others to create an information revolution, and to earn fortunes in the process.

To defend freedom against the distortions of the anti-capitalist historians it is important to reject the inaccurate and opprobrious title of “the Gilded Age” for the late nineteenth century. We must recognise and celebrate the true nature of the era.

It was the Inventive Period.

Notes

See www.cooper.edu/engineering/chemechem/general/cooper.html.
Louis M. Hacker, The World of Andrew Carnegie, 1865-1901 (New York: J.B. Lippincott, 1968), pp. 68-73.
Ibid., pp. 81-85.
Ibid., pp. 86-92.
Ibid., pp. 95-96.
Ibid., pp. 98-107.
Ibid., pp. 74-80.
Nathan Rosenberg and L.E. Birdzell, How the West Grew Rich (New York: Basic Books, 1986), p. 265.
Ibid., p. 250.
Hacker, p. xxxi

* * * * 

Andrew Bernstein holds a Ph.D. in Philosophy from the City University of New York. He lectures all over the world. His books include The Capitalist Manifesto, American Racism: Its Decline, Its Baleful Resurgence, and Our Looming Race War, Heroes, Legends, Champions: Why Heroism Matters, and his newly-released (and highly recommended) collection of essays Aristotle Versus Religion.

This post previously appeared at the Foundation for Economic Education.

Lessons in Collaboration #124

"We are involved in a business venture. We screened the film for you to bring you up to date as to the status of that venture. Do not misconstrue this as our soliciting the input of raging primitives."

~ director Mel Brooks, explaining the fine points of artistic collaboration ...

Hey, hey, it’s Easter!

Christus Hypercubus, Salvador Dali.

IT'S GOOD FRIDAY. AND YOU know what that means here at NOT PC: time to call out (again) the 2000-year ethic of sacrifice as nothing but inhuman. In a more rational place, we'd view the worship of human sacrifice not with celebration, but with horror. ("If you knew a father who gave up his only son to be killed in expiation for the crimes and misdemeanours of other people, would you call that chap a loving father? Or would you call him a psychopath?") 

"What's the theme of Easter, and of Easter art? In a word, it's sacrifice: specifically human sacrifice. And more specifically, the sacrifice of the good to the appalling.
    "That's the Easter theme we're asked to respond to every year."
    Easter through art 

"Let’s summarise. In Pagan times, Easter was the time in the Northern calendar when the coming of spring was celebrated -- the celebration of new life, of coming fecundity. Hence the eggs and rabbits and celebrations of fertility. Indeed, the very word  'Easter' comes from Eos, the Greek goddess of the dawn, and means, symbolically, the festival celebrating the rebirth of light after the darkness of winter. 
    "But with the coming of Christianity, the celebration was hijacked to become a veneration of torture and sacrifice ..."
    Easter Week, Part 4: Surely There Are Better Stories to Tell? 

"AND MAN MADE GODS in his own image, and that of the animals he saw around him, and he saw these stories were sometimes helpful psychologically in a a pre-philosophical age. But one of these gods was a jealous god. For this god was so angry at the world he sent one-third of himself to die to expiate the sins of those with whom he was angry, for sins that (in his omniscience) he would have always known they would commit.
    "It’s not just history the christian story challenges, is it. It’s logic."
    Easter Week, Part 3: The Holy Art of Sacrifice 

"Christianity didn’t start with Jesus, any more than the Easter story did. Paul, who never even met Jesus but who played the largest part in explaining his life, and his death, had a big hand in both.
    "Jesus’s death was a secular event his followers struggled to explain."
    Easter Week, Part 2: Enter Hercules…

"IT’S EASTER WEEK – a time, since human cultural life began up in the northern hemisphere, when men and women and their families came together to celebrate.
    "To celebrate what?
    "Why, to celebrate spring, of course. ..."
    Hey, hey, it’s Easter Week! 

Oh, and a gentle reminder that the state still owns your shop at Easter. And it still owns you all year. That's the secular sacrifice demanded by the Season.

Cartoon by Nick Kim

And a note that the greatest artists can nonetheless find the sublime within the story. Here's Wagner's 'Good Friday Spell,' aka Karfreitagszauber.  Turn it up!

We are living in the Age of Slop

"A century ago, the creative world was buzzing with exciting artistic movements. Everything was fresh, new, and vital:

• You could be a Surrealist or a Futurist or a Post-Impressionist or a Cubist. 
• You could align yourself with Art Deco or Dada or Bauhaus or Fauvism. 
• You could proclaim your allegiance to Imagism or Verismo or the Harlem Renaissance—and dozens of other creative movements.

"And what about today? …..

"Instead of aesthetic manifestos, we get web platforms. They have machines to make big decisions—and the machines have invented the dominant art style of our day.

"It’s called Slop. And it’s everywhere.

"There’s Slop music and Slop visual art and Slop video. There’s Slop enough for all of us—because the machines Slop nonstop. ... It’s easy: Just find an AI bot, and give it a prompt—the goofier the better.

"So I created this image of Vladimir Putin and Taylor Swift on a motorbike, with teddy bears celebrating the couple’s impending nuptials.

"Yes, I am deliberately creating something ridiculous. But that’s the essence of Slop. ...

"AI image generation is boring unless the results are stupid. That’s the consensus view. And it’s why AI artists are in a race to make the most abominable Slop they can extract from the bots.

"People collect and curate these images. Entire social media accounts are devoted to stupid Slop. ... The supply is endless—because AI never sleeps.

"We have come a long way from the days of Impressionism and Naturalism and all the rest. Those were serious movements. They happened because of dedicated artists committed to their craft.

"Slop is the opposite.

"It’s the perfect aesthetic theory for twelve-year olds with no artistic sensitivity—but possessing a crude sense of humour and lots of pop culture detritus in their heads. ...

"[N]one of this happens by chance.

"AI does not possess a self. It lacks personhood. It has no experience of subjectivity. So any art it creates will inevitably feel empty and hollow.

"Any human quality it possesses will be based on imitation, pretense, and deception. None of it is real.

"AI doesn’t even have a direct sense of objectivity—its knowledge of objects is all secondhand, assimilated through data. This results in a lack of depth or felt significance in any artistic work it creates.

"That why Slop is inevitable in an Age of AI.

"But this will not stop it from dominating the aesthetics of our time. ...

"In a previous day, people who got rich quick but lacked good taste were called vulgar. I don’t hear that word much anymore. But maybe it should have a comeback."

~ Ted Gioia from his post 'The New Aesthetics of Slop'

Anti-slavery sculpture is being cancelled

Memorial to the Royal Navy's West Africa Squadron, by Vincent Gray, 2024

 

A remarkable and historically important sculpture is being denied a home.

From 1807, when Britain abolished the slave trade, until 1867— two years after the US finally abolished slavery after a bloody civil war — the Royal Navy patrolled the West African coast intercepting slavers and freeing those enslaved.

For the first time in human history, a government took a stand against human slavery. Over its sixty years of operation, the Squadron is estimated to have freed 150,000 slaves!

And yet, in an era when statues themselves are being 'cancelled' — removed or destroyed because those memorialised acquired their prominence through participating or defending slavery — this monument to a remarkable act in defence of human liberty is being denied a home at its most obvious location: in Portsmouth, where the Squadron was based.

The owners of the local shopping centre, Gun Wharf Quays, located by the prominent landmark, the Spinnaker Tower, initially gave permission to site the sculpture there. But subsequently they rescinded it because the memorial ‘lacked authenticity and sensitivity’ and would remind people of ‘a dark part of the nation’s history.’
    Of course, the sculpture actually reminds us of a remarkable act of national generosity, a profound atonement for the role of some British in the slave trade of the 17th and 18th centuries. The establishment of a memorial to the West Africa Squadron does not hide the history of the slave trade nor seek to sanitise Britain’s role in first trading, and then preventing the trade of Africans. Nor would it preclude or prejudice the erection of a memorial to the slaves themselves. Slavery and freedom are part of the same historical narrative and both must be remembered. This sculpture remembers the slaves and the Royal Navy together, and will prompt thoughts and questions about both enslavement and emancipation.
    Portsmouth City Council and the Historic Naval Dockyard in Portsmouth, from where the Squadron sailed, have also declined the offer of the memorial. So has the National Maritime Museum at Greenwich, the Historic Dockyard Chatham (where some of the ships were built) and Gosport City Council (where the ships were victualled). As [Colin] Kemp writes [in seeking a permanent home for the statue], ‘The current mood seems only to be interested in apologies and reparations’ and will not recognise the moral action, after abolition, ‘in sending ships to patrol the coast of West Africa for 60 years’.

It's almost like the cancellers want to cancel history.

Socialists once argued that socialism was superior to capitalism because it would deliver a higher standard of living and more consumer goods. When it became abundantly clear that this was bollocks, the socialists shifted their arguments and began to claim that socialism—while perhaps economically inferior—was superior morally and philosophically. And thus was born the post-modern denial of that outrageous success in human progress, and environmentalists' objection to it. 

Stephen Hicks writes about this in his 2004 book Explaining Postmodernism. Ludwig Von Mises was on to this a half-century before when he penned his short book The Anti-Capitalist Mentality, explaining why the intellectuals of his day so loathed the free market.... 

The Noneconomic Objections to Capitalism

by Ludwig Von Mises

1. The Argument of Happiness

Critics level two charges against capitalism: First, they say, that the possession of a motor car, a television set, and a refrigerator does not make a man happy. Secondly, they complain that there are still people who own none of these gadgets. Both propositions are correct, but neither casts blame upon the capitalistic system of social cooperation.

People do not toil and trouble in order to attain perfect happiness, but in order to remove as much as possible some felt uneasiness and thus to become happier than they were before. A man who buys a television set thereby gives evidence to the effect that he thinks that the possession of this contrivance will increase his well-being and make him more content than he was without it. If it were otherwise, he would not have bought it. The task of the doctor is not to make the patient happy, but to remove his pain and to put him in better shape for the pursuit of the main concern of every living being, the fight against all factors pernicious to his life and ease.

It may be true that there are among Buddhist mendicants, living on alms in dirt and penury, some who feel perfectly happy and do not envy any nabob. However, it is a fact that for the immense majority of people such a life would appear unbearable. To them the impulse toward ceaselessly aiming at the improvement of the external conditions of existence is inwrought. ... One of the most remarkable achievements of capitalism is the drop in infant mortality. Who wants to deny that this phenomenon has at least removed one of the causes of many people’s unhappiness?

No less absurd is the second reproach thrown upon capitalism — namely, that technological and therapeutical innovations do not benefit all people. Changes in human conditions are brought about by the pioneering of the cleverest and most energetic men. They take the lead and the rest of mankind follows them little by little. The innovation is first a luxury of only a few people, until by degrees it comes into the reach of the many. 

It is not a sensible objection to the use of shoes or of forks that they spread only slowly and that even today millions do without them. The dainty ladies and gentlemen who first began to use soap were the harbingers of the big-scale production of soap for the common man. If those who have today the means to buy a television set were to abstain from the purchase because some people cannot afford it, they would not further, but hinder, the popularisation of this contrivance. 

The inherent tendency of capitalism is towards shortening the interval between the appearance of a new improvement and the moment its use becomes general.

2. The Argument of Materialism

Again there are grumblers who blame capitalism for what they call its mean materialism. They cannot help admitting that capitalism has the tendency to improve the material conditions of mankind. But, they say, it has diverted men from the higher and nobler pursuits. It feeds the bodies, but it starves the souls and the minds. It has brought about a decay of the arts. Gone are the days of the great poets, painters, sculptors and architects. Our age produces merely trash. ...

'Fallingwater,' Frank Lloyd Wright, 1936

Among those who make pretense to the appellation of educated men there is much hypocrisy. They put on an air of connoisseurship and feign enthusiasm for the art of the past and artists passed away long ago. They show no similar sympathy for the contemporary artist who still fights for recognition. Dissembled adoration for the Old Masters is with them a means to disparage and ridicule the new ones who deviate from traditional canons and create their own.

John Ruskin will be remembered — together with Carlyle, the Webbs, Bernard Shaw and some others — as one of the gravediggers of British freedom, civilisation, and prosperity. A wretched character in his private no less than in his public life, he glorified war and bloodshed and fanatically slandered the teachings of political economy which he did not understand. 

He was a bigoted detractor of the market economy and a romantic eulogist of the guilds. He paid homage to the arts of earlier centuries. But when he faced the work of a great living artist, Whistler, he dispraised it in such foul and objurgatory language that he was sued for libel and found guilty by the jury. It was the writings of Ruskin that popularised the prejudice that capitalism, apart from being a bad economic system, has substituted ugliness for beauty, pettiness for grandeur, trash for art.

'Nocturne in Black and Gold: TheFalling
Rocket,' James McNeil Whistler, 1875

As people widely disagree in the appreciation of artistic achievements, it is not possible to explode the talk about the artistic inferiority of the age of capitalism in the same apodictic way in which one may refute errors in logical reasoning or in the establishment of facts of experience. Yet no sane man would be insolent enough as to belittle the grandeur of the artistic exploits of the age of capitalism.

The preeminent art of this age of “mean materialism and money-making” was music. Wagner and Verdi, Berlioz and Bizet, Brahms and Bruckner, Hugo Wolf and Mahler, Puccini and Richard Strauss, what an illustrious cavalcade! What an era in which such masters as Schumann and Donizetti were overshadowed by still superior genius!

Then there were the great novels of Balzac, Flaubert, Maupassant, Jens Jacobsen, Proust, and the poems of Victor Hugo, Walt Whitman, Rilke, Yeats. How poor our lives would be if we had to miss the work of these giants and of many other no less sublime authors.

Let us not forget the French painters and sculptors who taught us new ways of looking at the world and enjoying light and color.

Nobody ever contested that this age has encouraged all branches of scientific activities. But, say the grumblers, this was mainly the work of specialists while “synthesis” was lacking. One can hardly misconstrue in a more absurd way the teachings of modern mathematics, physics, and biology. And what about the books of philosophers like Croce, Bergson, Husserl, and Whitehead?

Each epoch has its own character in its artistic exploits. Imitation of masterworks of the past is not art; it is routine. What gives value to a work is those features in which it differs from other works. This is what is called the style of a period.

In one respect the eulogists of the past seem to be justified. The last generations did not bequeath to the future such monuments as the pyramids, the Greek temples, the Gothic cathedrals and the churches and palaces of the Renaissance and the Baroque. In the last hundred years many churches and even cathedrals were built and many more government palaces, schools and libraries. But they do not show any original conception; they reflect old styles or hybridise diverse old styles. Only in apartment houses, office buildings, and private homes have we seen something develop that may be qualified as an architectural style of our age. Although it would be mere pedantry not to appreciate the peculiar grandeur of such sights as the New York skyline, it can be admitted that modern architecture has not attained the distinction of that of past centuries.

The reasons are various. As far as religious buildings are concerned, the accentuated conservatism of the churches shuns any innovation. With the passing of dynasties and aristocracies, the impulse to construct new palaces disappeared. The wealth of entrepreneurs and capitalists is, whatever the anticapitalistic demagogues may fable, so much inferior to that of kings and princes that they cannot indulge in such luxurious construction. No one is today rich enough to plan such palaces as that of Versailles or the Escorial. The orders for the construction of government buildings do no longer emanate from despots who were free, in defiance of public opinion, to choose a master whom they themselves held in esteem and to sponsor a project that scandalised the dull majority. Committees and councils are not likely to adopt the ideas of bold pioneers. They prefer to range themselves on the safe side.

Side table by Eileen Gray, chair by Marcel Breuer

There has never been an era in which the many were prepared to do justice to contemporary art. Reverence to the great authors and artists has always been limited to small groups. What characterises capitalism is not the bad taste of the crowds, but the fact that these crowds, made prosperous by capitalism, became “consumers” of literature — of course, of trashy literature. The book market is flooded by a downpour of trivial fiction for the semi-barbarians. But this does not prevent great authors from creating imperishable works.

The critics shed tears on the alleged decay of the industrial arts. They contrast, e.g., old furniture as preserved in the castles of European aristocratic families and in the collections of the museums with the cheap things turned out by big-scale production. They fail to see that these collectors’ items were made exclusively for the well-to-do. The carved chests and the intarsia tables could not be found in the miserable huts of the poorer strata. 

Those caviling about the inexpensive furniture of the American wage earner should ... [realise that w]hen modern industry began to provide the masses with the paraphernalia of a better life, their main concern was to produce as cheaply as possible without any regard to aesthetic values. Later, when the progress of capitalism had raised the masses’ standard of living, they turned step by step to the fabrication of things which do not lack refinement and beauty. Only romantic prepossession can induce an observer to ignore the fact that more and more citizens of the capitalistic countries live in an environment which cannot be simply dismissed as ugly.

3. The Argument of Injustice

The most passionate detractors of capitalism are those who reject it on account of its alleged injustice.

It is a gratuitous pastime to depict what ought to be and is not because it is contrary to inflexible laws of the real universe. Such reveries may be considered as innocuous as long as they remain daydreams. But when their authors begin to ignore the difference between fantasy and reality, they become the most serious obstacle to human endeavours to improve the external conditions of life and well-being.

The worst of all these delusions is the idea that “nature” has bestowed upon every man certain rights. According to this doctrine nature is openhanded toward every child born. There is plenty of everything for everybody, they say. Consequently, everyone has a fair inalienable claim against all his fellowmen and against society that he should get the full portion which nature has already allotted to him. The eternal laws of natural and divine justice require that nobody should appropriate to himself what by rights belongs to other people. The poor are needy therefore only because unjust people have deprived them of their birthright. It is the task of the church and the secular authorities to prevent such spoliation and to make all people prosperous.

Every word of this doctrine is false. Nature is not bountiful but stingy. It has restricted the supply of all things indispensable for the preservation of human life. It has populated the world with animals and plants to whom the impulse to destroy human life and welfare is inwrought. It displays powers and elements whose operation is damaging to human life and to human endeavours to preserve it. Man’s survival and well-being are an achievement of the skill with which he has utilised the main instrument with which nature has equipped him — reason.

Men, cooperating under the system of the division of labour, have created all the wealth which the daydreamers consider as a free gift of nature. With regard to the “distribution” of this wealth, it is nonsensical to refer to an allegedly divine or natural principle of justice. What matters is not the allocation of portions out of a fund presented to man by nature. The problem is rather to further those social institutions which enable people to continue and to enlarge the production of all those things which they need.

The World Council of Churches, an ecumenical organisation of Protestant Churches, declared in 1948: “Justice demands that the inhabitants of Asia and Africa, for instance, should have the benefits of more machine production.” This makes sense only if one implies that the Lord presented mankind with a definite quantity of machines and expected that these contrivances will be distributed equally among the various nations. Yet the capitalistic countries were bad enough to take possession of much more of this stock than “justice” would have assigned to them and thus to deprive the inhabitants of Asia and Africa of their fair portion. What a shame!

The truth is that the accumulation of capital and its investment in machines, the source of the comparatively greater wealth of the Western peoples, are due exclusively to laissez-faire capitalism which the same document of the churches passionately misrepresents and rejects on moral grounds. 

It is not the fault of the capitalists that the poorer countries did not adopt those ideologies and policies which would have made the evolution of autochthonous capitalism possible. 

Neither is it the fault of the capitalists that the policies of these nations thwarted the attempts of foreign investors to give them “the benefits of more machine production.” No one contests that what makes hundreds of millions in these nations destitute is that they cling to primitive methods of production and miss the benefits which the employment of better tools and up-to-date technological designs could bestow upon them. But there is only one means to relieve their distress — namely, the full adoption of laissez-faire capitalism. What they need is private enterprise and the accumulation of new capital, capitalists, and entrepreneurs. It is nonsensical to blame capitalism and the capitalistic nations of the West for the plight the backward peoples have brought upon themselves. The remedy indicated is not “justice” but the substitution of sound, i.e., laissez-faire, policies for unsound policies.

It was not vain disquisitions about a vague concept of justice that raised the standard of living of the common man in the capitalistic countries to its present height, but the activities of men dubbed as “rugged individualists” and “exploiters.” The poverty of the backward nations is due to the fact that their policies of expropriation, discriminatory taxation, and foreign exchange control prevent the investment of foreign capital while their domestic policies preclude the accumulation of indigenous capital.

All those rejecting capitalism on moral grounds as an unfair system are deluded by their failure to comprehend what capital is, how it comes into existence, and how it is maintained — and what the benefits are which are derived from its employment in production processes.

The only source of the generation of additional capital goods is saving. If all the goods produced are consumed, no new capital comes into being. But if consumption lags behind production and the surplus of goods newly produced over goods consumed is utilised in further production processes, these processes are henceforth carried out by the aid of more capital goods. 

All the capital goods are intermediary goods, stages on the road that leads from the first employment of the original factors of production, i.e., natural resources and human labour, to the final turning out of goods ready for consumption. They all are perishable. They are, sooner or later, worn out in the processes of production. If all the products are consumed without replacement of the capital goods which have been used up in their production, capital is consumed. If this happens, further production will be aided only by a smaller amount of capital goods and will therefore render a smaller output per unit of the natural resources and labor employed. To prevent this sort of dissaving and disinvestment, one must dedicate a part of the productive effort to capital maintenance, to the replacement of the capital goods absorbed in the production of usable goods.

Capital is not a free gift of God or of nature. It is the outcome of a provident restriction of consumption on the part of man. It is created and increased by saving and maintained by the abstention from dissaving.

Neither have capital or capital goods in themselves the power to raise the productivity of natural resources and of human labor. Only if the fruits of saving are wisely employed or invested, do they increase the output per unit of the input of natural resources and of labor. If this is not the case, they are dissipated or wasted.

The accumulation of new capital, the maintenance of previously accumulated capital and the utilisation of capital for raising the productivity of human effort are the fruits of purposive human action. They are the outcome of the conduct of thrifty people who save and abstain from dissaving, viz., the capitalists who earn interest; and of people who succeed in utilizing the capital available for the best possible satisfaction of the needs of the consumers, viz., the entrepreneurs who earn profit.

Neither capital (or capital goods) nor the conduct of the capitalists and entrepreneurs in dealing with capital could improve the standard of living for the rest of the people, if these noncapitalists and nonentrepreneurs did not react in a certain way. If the wage earners were to behave in the way which the spurious “iron law of wages” describes and would know of no use for their earnings other than to feed and to procreate more offspring, the increase in capital accumulated would keep pace with the increase in population figures. All the benefits derived from the accumulation of additional capital would be absorbed by multiplying the number of people. However, men do not respond to an improvement in the external conditions of their lives in the way in which rodents and germs do. They know also of other satisfactions than feeding and proliferation. Consequently, in the countries of capitalistic civilisation, the increase of capital accumulated outruns the increase in population figures. To the extent that this happens, the marginal productivity of labour is increased as against the marginal productivity of the material factors of production. There emerges a tendency toward higher wage rates. The proportion of the total output of production that goes to the wage earners is enhanced as against that which goes as interest to the capitalists and as rent to the land owners. 

To speak of the productivity of labour makes sense only if one refers to the marginal productivity of labour, i.e., to the deduction in net output to be caused by the elimination of one worker. Then it refers to a definite economic quantity, to a determinate amount of goods or its equivalent in money. The concept of a general productivity of labour as resorted to in popular talk about an allegedly natural right of the workers to claim the total increase in productivity is empty and indefinable. It is based on the illusion that it is possible to determine the shares that each of the various complementary factors of production has physically contributed to the turning out of the product. If one cuts a sheet of paper with scissors, it is impossible to ascertain quotas of the outcome to the scissors (or to each of the two blades) and to the man who handled them. To manufacture a car one needs various machines and tools, various raw materials, the labour of various manual workers and, first of all, the plan of a designer. But nobody can decide what quota of the finished car is to be physically ascribed to each of the various factors the cooperation of which was required for the production of the car.

For the sake of argument, we may for a moment set aside all the considerations which show the fallacies of the popular treatment of the problem and ask: Which of the two factors, labour or capital, caused the increase in productivity? But precisely if we put the question in this way, the answer must be: capital. What renders the total output in the present-day United States higher (per head of manpower employed) than output in earlier ages or in economically backward countries is the fact that the contemporary American worker is aided by more and better tools. If capital equipment (per head of the worker) were not more abundant than it was three hundred years ago, say, then output (per head of the worker) would not be higher. What is required to raise, in the absence of an increase in the number of workers employed, the total amount of America’s industrial output is the investment of additional capital that can only be accumulated by new saving. It is those saving and investing to whom credit is to be given for the multiplication of the productivity of the total labour force.

What raises wage rates and allots to the wage earners an ever increasing portion out of the output which has been enhanced by additional capital accumulation is the fact that the rate of capital accumulation exceeds the rate of increase in population. The official doctrine passes over this fact in silence or even denies it emphatically. But the policies of bureaucrats and labour unions clearly show that their leaders are fully aware of the correctness of the theory which they publicly smear as silly bourgeois apologetics. They are eager to restrict the number of job seekers in the whole country by occupational licensing and anti-immigration laws, and in each segment of the labour market by preventing the influx of newcomers.

That the increase in wage rates does not depend on the individual worker’s “productivity,” but on the marginal productivity of labour, is clearly demonstrated by the fact that wage rates are moving upward also for performances in which the “productivity” of the individual has not changed at all. There are many such jobs. A barber shaves a customer today precisely in the same manner his predecessors used to shave people two hundred years ago. A butler waits at the table of the British prime minister in the same way in which once butlers served Pitt and Palmerston. In agriculture some kinds of work are still performed with the same tools in the same way in which they were performed centuries ago. Yet the wage rates earned by all such workers are today much higher than they were in the past. They are higher because they are determined by the marginal productivity of labour. The employer of a butler withholds this man from employment in a factory and must therefore pay the equivalent of the increase in output which the additional employment of one man in a factory would bring about. It is not any merit on the part of the butler that causes this rise in his wages, but the fact that the increase in capital invested surpasses the increase in the number of hands.

All pseudo-economic doctrines which depreciate the role of saving and capital accumulation are absurd. What constitutes the greater wealth of a capitalistic society as against the smaller wealth of a noncapitalistic society is the fact that the available supply of capital goods is greater in the former than in the latter. 

What has improved the wage earners’ standard of living is the fact that the capital equipment per head of the men eager to earn wages has increased. It is a consequence of this fact that an ever increasing portion of the total amount of usable goods produced goes to the wage earners. None of the passionate tirades of Marx, Keynes and a host of less well known authors could show a weak point in the statement that there is only one means to raise wage rates permanently and for the benefit of all those eager to earn wages — namely, to accelerate the increase in capital available as against population. If this be “unjust,” then the blame rests with nature and not with man.

* * * * 

Ludwig von Mises (1881-1973) was the acknowledged leader of the Austrian School of economic thought, a prodigious originator in economic theory, and a prolific author. Mises' writings and lectures encompassed economic theory, history, epistemology, government, and political philosophy. (Some cogent quotes here from the great man.)

This post previously appeared at the Mises Blog.