Economics

"Berle and Means’ book remains the point of departure and the central reference for reflection about corporate governance. It has given rise to differing, even contradictory interpretations, which explains how it could be used in support of opposing theories, notably on the question of the relationship between shareholders and managers. Thus, it has been used to argue in favor of the shareholder conception that is now dominant, even though it contains, as we shall see, a conception of the corporation that is radically different to the contractualist view that underpins the current doctrine of shareholder primacy."

"The reality is that business and investment spending are the true leading indicators of the economy and the stock market. If you want to know where the stock market is headed, forget about consumer spending and retail sales figures. Look to business spending, price inflation, interest rates, and productivity gains."

"A solid working knowledge of productivity software and other IT tools has become a basic foundation for success in virtually any career. Beyond that, however, I don't think you can overemphasise the importance of having a good background in maths and science."

"As a result of this continuous improvement of productivity through the division of labor and technical advancement, one hour's labor today is worth about 25 times more than it was in the mid-19th century [....] Growth and productivity alone are capable of raising real wages in the long run."

"Modernized poverty appears when the intensity of market dependence reaches a certain threshold. Subjectively, it is the experience of frustrating affluence which occurs in persons mutilated by their overwhelming reliance on the riches of industrial productivity. Simply, it deprives those affected by it of their freedom and power to act autonomously, to live creatively; it confines them to survival through being plugged into market relations."

"Suppose that, at a given moment, a certain number of people are engaged in the manufacture of pins. They make as many pins as the world needs, working (say) eight hours a day. Someone makes an invention by which the same number of men can make twice as many pins: pins are already so cheap that hardly any more will be bought at a lower price. In a sensible world, everybody concerned in the manufacturing of pins would take to working four hours instead of eight, and everything else would go on as before. But in the actual world this would be thought demoralizing. The men still work eight hours, there are too many pins, some employers go bankrupt, and half the men previously concerned in making pins are thrown out of work. There is, in the end, just as much leisure as on the other plan, but half the men are totally idle while half are still overworked. In this way, it is insured that the unavoidable leisure shall cause misery all round instead of being a universal source of happiness."

"But when we come to the fundamental point—and this is the one you are getting at—it is very simply this: Unless the United States is prepared to build a wall around itself, we have to compete with other nations in the world. Now in order to compete with other nations in the world, we, who pay by far the highest wages in the world, have to be more productive than other people in the world, and that means that we can't afford work stoppages that are too long."

"Coal being then the chief source of power, much industrial reconstruction depended on there being a plentiful and cheap supply. But the newly nationalized industry was not doing well. Productivity failed to increase in step with increases in mechanization."

"The skills and productivity of American Workers, not to mention the taxes they pay, are the greatest economic resource our country has. To condemn large numbers of them to unemployment, to deprive the Treasury of their tax contributions and to force them to live on unemployment at public expense is the most expensive luxury any society ever chose to buy."

"This decade holds many changes for the United States, but the greatest needs regarding America's productivity in the 1990s, are better education and employee training."

"It always demands a far greater degree of courage for an individual to oppose an organized movement than to let himself be carried along with the stream — individual courage, that is, a variety of courage that is dying out in these times of progressive organization and mechanization."

"The last chapter modeled technological progress as an increase in the number of types of products, N. In this chapter, we allow for improvements in the quality or productivity of each type. This approach has come to be known as the Schumpeterian approach to endogenous growth. We can think of increases in N as basic innovations that amount to dramatically new kinds of goods or methods of production. In contrast, increases in the quality of the existing products involve a continuing series of improvements and refinements of goods and techniques."

"Every machine is constructed for the purpose of performing certain mechanical operations, each of which supposes the existence of two other things besides the machine in question, namely, a moving power, and an object subject to the operation, which may be termed the work to be done. Machines, in fact, are interposed between the power and the work, for the purpose of adapting the one to the other."

"Paul wondered at what thorough believers in mechanization most Americans were, even when their lives had been badly damaged by mechanization."

"Mediocrity serves it best because mechanization best serves the mediocre."

"The unremitting division of labour resulted in admirable levels of productivity. The company’s success appeared to bear out the principles of efficiency laid down at the turn of the twentieth century by the Italian economist Vilfredo Pareto, who theorized that a society would grow wealthy to the extent that its members forfeited general knowledge in favour of fostering individual ability in narrowly constricted fields. In an ideal Paretan economy, jobs would be ever more finely subdivided to allow for the accumulation of complex skills, which would then be traded among workers. … But however great the economic advantages of segmenting the elements of an afternoon’s work into a range of forty-year-long careers, there was reason to wonder about the unintended side effects of doing so. In particular, one felt tempted to ask … how meaningful the lives might feel as a result."

"Transference of skill, when considered with reference to the industrial revolution and the introduction of machinery, might easily be interpreted to mean the transference of skill from the workman to the machine. What actually happened was that the machine brought to the aid of the workmen some of the vast forces of nature; and in addition it superseded the skill of the hand worker. That this was a distinct loss to the hand worker who was unable to adjust himself to the new conditions is incontestable in the face of economic history; and the sad record of the change is a solenm warning to present day managers to take every step possible to make the adjustment to new methods of management as easy and gradual as possible. The machine developed a new kind of skill on the part of the operator; but now it is a minute skill easily acquired and subject to sudden loss with the change in the design of the machine."

"Mechanisation leads to the decay of taste, the decay of taste leads to demand for machine-made articles and hence to more mechanisation, and so a vicious circle is established."

"We conceive the prominent element in present-day industrial management to be: the mental attitude that consciously applies the transference of skill to all the activities of industry. Here emphasis is placed upon the word all, for the restricted application of this principle to machines and tools has been highly developed for a long period. But its conscious application in a broad way to the production departments, and particularly to the workmen, we believe has been made during the last quarter of a century."

"The mechanization of human labor was, in effect, the first step toward the humanization of the machine humanization in the sense of giving the automaton some of the mechanical equivalents of life-likeness."

"The incentive to mechanization lay in the greater profits that could be extracted through the multiplied and efficiency of the machine."

"The characteristic feature of our modern mechanical improvements, is the introduction of self-acting tool machinery. What every mechanical workman has now to do, and what every boy can do, is not to work himself, but to superintend the beautiful labor of the machine. The whole class of workmen that depend exclusively on their skill is now done away with."

"Coal being then the chief source of power, much industrial reconstruction depended on there being a plentiful and cheap supply. But the newly nationalized industry was not doing well. Productivity failed to increase in step with increases in mechanization. Men were leaving the mines in large numbers for more attractive opportunities in the factories. Among those who remained, absenteeism averaged 20 percent. Labor disputes were frequent despite improved conditions of employment. Some time earlier the National Coal Board had asked the Institute to make a comparative study of a high producing, high morale mine and a low producing, low morale, but otherwise equivalent mine."

"In the industrial mode of development, the main source of productivity lies in the introduction of new energy sources, and in the ability to decentralize the use of energy throughout the production of circulation processes. In the new informational mode of development the source of productivity lies in the technology of knowledge generation, information processing and symbolic … what is specific to the informational mode of development is the action of knowledge upon knowledge itself as the main source of productivity... in a virtuous circle of interaction"

"There is considerable danger that psychoanalysis, as well as other forms of psychotherapy and adjustment psychology, will become new representations of the fragmentation of man, that they will exemplify the loss of the individual's vitality and significance, rather than the reverse, that the new techniques will assist in standardizing and giving cultural sanction to man's alienation from himself rather than solving it, that they will become expressions of the new mechanization of man."

"Advertising tends to make mechanized barbarians of us all."

"The Mechanisation of Industry."

"Typography as the first mechanization of a handicraft is itself the perfect instance not of a new knowledge, but of applied knowledge."

"If the individual were no longer compelled to prove himself on the market, as a free economic subject, the disappearance of this kind of freedom would be one of the greatest achievements of civilization. The technological processes of mechanization and standardization might release individual energy into a yet uncharted realm of freedom beyond necessity. The very structure of human existence would be altered; the individual would be liberated from the work world's imposing upon him alien needs and alien possibilities. The individual would be free to exert autonomy over a life that would be his own."

"Philosophy must re-emphasize man versus the collective body (with its envisaged collectivized mind), freedom versus the mechanization of inner and social life, common sense versus faith in science."

"One of the curious things about mathematics that clearly emerges... is that mathematics which is concerned with reasoning nevertheless creates processes which can be applied almost mechanically, that is, without reasoning. The thinking is, so to speak, mechanized and this mechanization enables us to solve complicated problems in no time. We think up processes so that we don't have to think."

"'How can you [accept] exploitation?' 'How can you like the complete mechanization of work?' 'How can you like bad art?' I have to answer that I accept it as being there, in the world."

"Mechanization and regimentation are not new phenomena in history: what is new is the fact that these functions have been projected and embodied in organized form which dominate every aspect of our existence."

"Besides black art, there is only automation and mechanization."

"Multi-unit business enterprise replaced small traditional enterprise when administrative coordination permitted greater productivity, lower costs, and higher profits than coordination by market mechanisms."

"Early British economists held that the application of the principle of division of labor was the basis of manufacture.... Charles Babbage, believed ... in [an] "Economy of Machinery and Manufacture." It appears, however, that another principle is the basic one in the rise of industry. It is the transference of skill. The transference of skill from the inventor or designer to the power-driven mechanism brought about the industrial revolution from handicraft to manufacture. It will be necessary to refer to this principle frequently throughout this report, in showing the meaning and position of management in industry."

"Man is by nature a pragmatic materialist, a mechanic, a lover of gadgets and gadgetry; and these are the qualities that characterize the "establishment" which regulates modern society: pragmatism, materialism, mechanization, and gadgetry. Woman, on the other hand, is a practical idealist, a humanitarian with a strong sense of noblesse oblige, an altruist rather than a capitalist."

"Modern industry is stated by some writers to have begun in 1738 when brought out a . Others place the period as between 1750 and 1800, when the and came into being. It was marked by the development of labor-saving machinery. It was brought about by the change from handicraft to manufacture."

"The twentieth century is going much further towards the transference of skill from the worker to the machine."

"I believe that the horrifying deterioration in the ethical conduct of people today stems from the mechanization and dehumanization of our lives. A disastrous by-product of the development of the scientific and technical mentality. We are guilty. Man grows cold faster than the planet he inhabits."

"The overwhelming pressure of mechanization evident in the newspaper and the magazine, has led to the creation of vast monopolies of communication. Their entrenched positions involve a continuous, systematic, ruthless destruction of elements of permanence essential to cultural activity."

"The Methods of Industrial Management. — A committee of the American Society of Mechanical Engineers made an extensive canvass in the fall of 1912 to determine what were the new elements in modern management as well as what the committee designated as the regulative principles of industrial management. The committee confirmed Adam Smith's statement made in 1776 in his "Wealth of Nations," in which he held that the application of the principle of division of labor was the basis of manufacture. The committee also agreed with Charles Babbage, who in his work entitled "Economy of Machinery and Manufacture" written in 1832, added another principle, namely the transference of skill."

"Machine production, not only further division of labour in the production process, but it also transfers the skill of the worker to the operating machine. Mechanization intensifies this transference of skill from man to machine, making factory work simple."

"The strongest bulwark of authority is uniformity; the least divergence from it is the greatest crime. The wholesale mechanisation of modern life has increased uniformity a thousandfold. It is everywhere present, in habits, tastes, dress, thoughts and ideas. Its most concentrated dullness is "public opinion." Few have the courage to stand out against it. He who refuses to submit is at once labelled "queer," "different," and decried as a disturbing element in the comfortable stagnancy of modern life."

"The adverse impact on development productivity of requiring programmers to navigate along access paths to reach target data [...] was enormous. In addition, it was not possible to make slight changes in the layout in storage without simultaneously having to revise all programs that relied on the previous structure. [...] As a result, far too much manpower was being invested in continual (and avoidable) maintenance of application programs."

"Relational processing entails treating whole relationships as operands. Its primary purpose is loop-avoidance, an absolute requirement for end users to be productive at all, and a clear productivity booster for application programmers."

"Everyone knows the difference between a fisherman, a sailor, a swimmer, a cyclist, and people who fish, sail, swim and cycle for sport. The last are technicians; as Jünger says, they “tend to carry to perfection the mechanical side of their activity.” This mechanization of actions is accompanied by the mechanization of sporting goods—stop watches, starting machines, and so on. In this exact measurement of time, in the precision training of muscular actions, and in the principle of the “record,” we find repeated in sport one of the essential elements of industrial life."

"It... has long been realized by those engaged in the work of installing scientific management, that transference of skill is one of the most important features... The importance of transference of skill was realized many years ago. Studies in division of work and in elapsed time of doing work were made by Adam Smith, Charles Babbage, M. Coulomb and others, but accurate measurement in management became possible when Mr. Taylor devised his method of observing and recording elementary unit net times for performance with measured allowance for fatigue."

"Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs."

"In Europe and in America, people are now more interested in the cost of quality and in systems of quality-audit. But in Japan, we are keeping very strong interest to improve quality by use of methods which you started....when we improve quality we also improve productivity, just as you told us in 1950 would happen."