And I hold that with increasing mechanization of industrial progress (teamwork in research departments and so on) this element and with it the most important pillar of the capitalist class’s economic position is bound to crumble in time. I do not see how it could be denied that industrial history testifies convincingly to the importance of this element of capitalist returns. But I include this with wages of management in order to single out and emphasize what I believe to be the fundamental source of industrial gain, the profits that the capitalist order attaches to successful introduction of new goods or new methods of production or new forms of organizations. Such sales effort as may still be required in an economy that has settled down to stable routine, will undoubtedly have to reap its return as will every other kind of activity incident to the management of a business. I do not think that there is any real difference between us, only we use the term profits in different senses.

An eminent economist of international reputation has expressed dissent from my proposition that, as part of the social process described in this book, there is a long-run tendency for profits to vanish: Sales effort, he said, will always command its price. On the contrary I want to use this opportunity for expressing my gratitude to its reviewers for their unvarying courtesy and kindness and to its translators into seven foreign languages for their generous efforts.įirst of all let me notice two criticisms of a professional nature. But I wish to do so because I hope that such answers as I have to offer may prove of some use to readers and not because I have any fault to find with the reception of the book.

In this preface I am going to notice some criticisms or rather types of criticisms that have been directed against it-not necessarily in print. The sole aim of the new chapter is to develop, in the light of these new facts, certain points made in the old text, particularly in Chapter XIX, Section IV and Chapter XXVII, Section V and to show how the present situation fits into the philosophy of history adumbrated in this book. And I do attach some importance to the fact that neither the events of the last four years nor the criticisms proffered in reviews have affected my diagnoses and prognoses which, on the contrary, seem to me to be fully borne out by such new facts as have appeared. The reason why I have even refrained from verbal alterations which were clearly indicated in a number of places is that, in matters of the kind treated in this book, it is impossible to alter phrasing without also altering meaning or at least incurring the suspicion of having done so. This edition reproduces the book of 1942 without any change whatever except that a new chapter has been added.

Capitalism socialism and democracy book