Question

Explain how the instinct of workmanship and the predatory instinct take form in a capitalist economy. What does the term 'business sabotage industry' mean?

Answer 1

The art of profit making is the main characterstic of a Capital Economy. Under this the process of production and distribution of goods and services in an economy is carried over by the privately owned organizations. There is no control of government in the operations of production, investment and price regulations/controls, which solely depend on profits.

In such an economic environment, both instinct of workmanship and the predatory instinct exists because of the favourable conditions.

According to Veblen, the instinct of workmanship refers to engaging in working activities that are essential for survival. Like in the case of a capital economy condition, a producer will develop an instinct to invest and produce goods and commodities so as to earn profits and survive in the market. The instinct drives an individual to fully utilize the available resources by using modern tools and techniques of work and thus, benefitting the most out of it.

Subsequently, the existence of predatory instinct is also there in the capitalistic form of economy. As the affluent and powerful class who generally rules the market under capital economy condition, suppresses the poor and weak section of the society. The labourers are appointed on minimum wages while made to work for more number of hours. By removing the small scale industries and investors from the market by unethical means. The instinct works just to attack and crush the weaker section by taking advantage of them and making one's own profit.

The term 'business sabotage industry' refers to crushing and weakning of small businesses by bigger players in the market. The sabotaging is done inorder to acquire and rule the complete market solely without any undue competition. It is mainly done by the usage of unethical and immoral practices by big producers/investors and organizations to sabotage and destroy the business of small producres and industries.