Analysis of Veblen’s The Theory of Business Enterprise

Introduction In the field of economics, people talked about the nature of business organizations and their role in economics, but the most mainstream method lacks attempts to form a realistic economic model. The standard corporate view, is a completely using capital and labor force of the exchange can be the same type is the same kind of companies that manufacture the same type of parts of the company, from time to time, this discussion is the master coordinator of the omniscient "Entrepreneurship Home ".

Veblen proposed two different stagnant views to his work. In "corporate theory" he has hope for the future, but his view on the ownership of the absentee is totally pessimistic. To see these differences of Veblen's idea, it is necessary to examine two books separately. First, consider the standard of stagnation in commercial enterprise theory, then pay attention to ownership of absentee. Economists of the classical school is stagnation believes is itself a purpose, economist of Marxism stagnation of capitalism believe that is the stage that leads to the proletariat to resist the complete fall of the system. As we will see later, Keynesian economists believe that the government's operation of the money market and nationalization of the domestic industry will hinder the stagnation of the economy.

In the theory of commercial enterprises (1904), Veblen differentiates the motivation for industrial production, but there are people who misuse commercial infrastructure to benefit from commercial infrastructure. Progress in production and technology is limited by commercial practice and monopoly. Companies protect the existing capital investment by controlling political power commercially, use excessive credit, leading to depression, increased military expenditure and increased warfare. These two books focus on consumerism criticism and the second profitering and have not claimed change.