Veblen Instinct of Workmanship pg. 155-160

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In this section, Veblen starts by casting doubt on the presumed origins of private property. The standard story according to Veblen is that farmers and ranchers began to develop better techniques and a surplus of product they had to need to store such surpluses.  Veblen doubts that the institutional innovation of private property would have developed in this manner. 


Instead, he starts his story with the idea that a portion of the now growing agricultural surplus is being captured by a priestly or magical class. He uses the term “inchoate priestly class” which could mean in preparation for a criminal act. In this case, I believe he means that some of the surplus will be removed by less than legitimate means at least in Veblen's view. He also points tot he fact that the very fact that technological growth and efficiency is occurring gives rise to a warrior class who can act in a predatory manner and take what others have produced.  This gives to the institution of a predatory culture and even absentee ownership.


Here we have Veblen's story.  Technological growth and changes lead to innovations in institutions. In this case from a peaceable and savage community to a predatory and barbarian culture.  Veblen's barbarian culture is marked by: 1) authoritative priesthood, 2) coercive government and 3) well marked class distinctions.  He says “where the holders of economic advantage hold it on a tenure of prowess or by way of delegated power and a prerogative from a superior of warlike antecedents and dynastic rights” (Veblen, pg. 158 1914).  He later does remark that this is a likely story but not the only story of innovation or institutional change can occur.


Veblen does not leave much to the imagination. He basically conveys that in his story, the origins of private property rights are in either priestly fraud or kingly force.  In either case, Veblen says that this barbarian phase of culture is one where “the increase in industrial efficiency due toa sufficient advance in the industrial arts gives rise to the ownership of property and to pecuniary appreciations of men and things, occupations and products, habits, customs, usages, observances, services and goods.” (Veblen, pg. 160 1914).


We end this section with a particularly important statement where Veblen says that “with the economically important consequence that self-interest displaces the common good in mens ideas and aspirations” (Veblen pg. 160 1914). 



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