Summary
Thorstein Veblen argues that absentee ownership, the control of business enterprises by individuals not actively involved in their operation, has become the primary and immediate controlling interest in civilized life, guiding national and international affairs. This ownership model, according to Veblen, represents a "dark figure" in the economic system, hindering self-sufficiency, and has replaced the direct, personal engagement of early business giants like Rockefeller and Ford with faceless bureaucracies.
The book traces the economic circumstances and growth leading up to the twentieth century, culminating in the present economic situation. Veblen posits that conflicts such as World War I arose from clashes between these absentee interests, and peace negotiations aimed to solidify their control. The work offers a theoretical analysis of these twentieth-century economic conditions, particularly as seen in America.
Key concepts
- Absentee ownership — Control of business enterprises by individuals not actively involved in their operation, which Veblen identifies as a central force in modern economies.
- Faceless bureaucracies — The replacement of individual, recognizable business leaders with impersonal, organizational structures due to absentee ownership.
- Frustration of self-sufficiency — How absentee ownership negatively impacts an individual's or society's ability to achieve economic independence.
- Conflict of absentee interests — Veblen's explanation for international conflicts, suggesting they stem from disputes between the owners of large enterprises.
From the book
Description: Absentee Ownership is an inquiry into the economic situation as it has taken shape in the twentieth century, particularly as exemplified in the case of America. According to Thorstein Veblen, absentee ownership is the main and immediate controlling interest in the life of civilized men. It is the paramount issue between the civilized nations, and guides the conduct of their affairs at home and abroad. World War I, says Veblen, arose out of a conflict of absentee interests and the peace was negotiated with a view to stabilize them. Part I of the book is occupied with a summary description of that range of economic circumstances and that sequence of economic growth and change that led up through the nineteenth century and have come to a head in the twentieth century. Part II is…
Snippet: Part I of the book is occupied with a summary description of that range of economic circumstances and that sequence of economic growth and change that led up through the nineteenth century and have come to a head in the twentieth century.