The mark of a capitalistic society is that resources are owned and allocated by such nongovernmental organizations as firms, households, and markets. Resource owners increase productivity through cooperative specialization and this leads to the demand for economic organizations which facilitate cooperation. When a lumber mill employs a cabinetmaker, cooperation between specialists is achieved within a firm, and when a cabinetmaker purchases wood from a lumberman, the cooperation takes place across markets (or between firms). Two important problems face a theory of economic organization-to explain the conditions that determine whether the gains from specialization and cooperative production can better be obtained within an organization like the firm, or across markets, and to explain the structure of the organization.
Armen AlchianRelated topics
across cabinetmaker cooperation cooperative demand face firm increase lumber lumberman mark mill organization place production productivity resource society specialization structure theory wood conditionsRelated quotes
Just as economic pressure from the base ... is able to modify the production of surplus value, so pressure grounded in spatial practice is alone capable of modifying the apportionment of that surplus value - i. e. the distribution of the portion of social surplus production allotted to society's collective 'interests', to so-called social services. Such grass-roots pressure, if it is to be effective in this regard, cannot be confined to attacking the state qua guardian of the 'general interest'. For this state, born of the hegemony of a class, has as one of its functions - and a more and more significant function - the organization of space, the regularization of its flows, the control of its networks. It devotes to these purposes a considerable part of global surplus value, of the surplus production assigned to the running of society.
Henri Lefebvre
Corporations are necessary to the effective use of the forces of production and commerce under modern conditions. We cannot effectively prohibit all combinations without doing far-reaching economic harm; and it is mere folly to do as we have done in the past-to try to combine incompatible systems-that is, to try both to prohibit and regulate combinations. Combinations in industry are the result of an imperative economic law which cannot be repealed by political legislation. The effort at prohibiting all combination has substantially failed. The only course left is active corporate regulation – that is, the control of corporations for the common good-the suppression of the evils that they work, and the retention, as far as maybe, of that business efficiency in their use which has placed us in the forefront of industrial peoples.
Theodore Roosevelt
[We may view the] economic organization as a system of prize relations. Seen in the large, free enterprise is an organization of production and distribution in which individuals or family units get their real income, their "living," by selling productive power for money to "business units" or "enterprises", and buying with the money income thus obtained the direct goods and services which they consume. This view, it will be remembered, ignores for the sake of simplicity the fact that an appreciable fraction of the productive power in use at any time is not really employed in satisfying current wants but to make provision for increased want-satisfaction in the future; it treats society as it would be, or would tend to become, with progress absent, or in a "static” state.
Frank Knight
The economic betterment of a nation which is at a low level of intelligence and culture, or in which the population is small in relation to the extent and productivity of its territory, is best accomplished through free trade with highly cultivated, rich, and industrious nations. In the case of such a country every restriction of trade, intended to plant manufacturing industry within its borders, is premature and injurious, not only to the welfare of mankind in general, but to the progress of the nation itself. Only when the intellectual, political, and economic education of the nation has so far advanced as a result of free trade that its further progress would be checked and hindered by the import of foreign manufactures and the lack of a sufficient market for its own goods, can protective measures be justified.
Friedrich List
Don't forget that God sees you and watches you when you are in pain; He perceives even the beating of your heart. Consequently, He will not leave you without consolation and His fatherly protection. Naturally, the saints rejoiced in their afflictions; as for us, let us at least manage to accept affliction or pain patiently.
My child, pray within your heart, and the name of Jesus will become for you a comforting balm so that you can bear this trial of yours in a way which benefits you. You will greatly benefit from this trial if you submit yourself to it patiently. So again I say to you, with the almighty armor of prayer continually approach the omnipotent Lord more often, and you will come to know how He wondrously lifts the burden of pain and marvellously gives rest to sufferers.
Ephraim of Arizona
