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Thrift: Form the habit as soon as you become a money-earner, or money-maker, of saving a part of your salary, or profits. Put away one dollar out of every ten you earn. The time will come in your lives when, if you have a little money, you can control circumstances; otherwise circumstances will control you….
Note the use of such active words as climb, force, compel, control. As stringently as ever before, the Protestant Ethic still counseled struggle against one’s environment—the kind of practical, here and now struggle that paid off in material rewards. And spiritually too. The hard-boiled part of the Protestant Ethic was incomplete, of course, without the companion assurance that such success was moral as well as practical. To continue with Mr. Clews:
Under this free system of government, whereby individuals are free to get a living or to pursue wealth as each chooses, the usual result is competition. Obviously, then, competition really means industrial freedom. Thus, anyone may choose his own trade or profession, or, if he does not like it, he may change. He is free to work hard or not; he may make his own bargains and set his price upon his labor or his products. He is free to acquire property to any extent, or to part with it. By dint of greater effort or superior skill, or by intelligence, if he can make better wages, he is free to live better, just as his neighbor is free to follow his example and to learn to excel him in turn. If anyone has a genius for making and managing money, he is free to exercise his genius, just as another is free to handle his tools…. If an individual enjoys his money, gained by energy and successful effort, his neighbors are urged to work the harder, that they and their children may have the same enjoyment.
It was an exuberantly optimistic ethic. If everyone could believe that seeking his self-interest automatically improves the lot of all, then the application of hard work should eventually produce a heaven on earth. Some, like the garrulous Mr. Clews, felt it already had.
America is the true field for the human race. It is the hope and the asylum for the oppressed and downtrodden of every clime. It is the inspiring example of America—peerless among the nations of the earth, the brightest star in the political firmament—that is leavening the hard lump of aristocracy and promoting a democratic spirit throughout the world. It is indeed the gem of the ocean to which the world may well offer homage. Here merit is the sole test. Birth is nothing. The fittest survive. Merit is the supreme and only qualification essential to success. Intelligence rules worlds and systems of worlds. It is the dread monarch of illimitable space, and in human society, especially in America, it shines as a diadem on the foreheads of those who stand in the foremost ranks of human enterprise. Here only a natural order of nobility is recognized, and its motto, without coat of arms or boast of heraldry, is “Intelligence and integrity.” *
Without this ethic capitalism would have been impossible. Whether the Protestant Ethic preceded capitalism, as Max Weber argued, or whether it grew up as a consequence, in either event it provided a degree of unity between the way people wanted to behave and the way they thought they ought to behave, and without this ideology, society would have been hostile to the entrepreneur. Without the comfort of the Protestant Ethic, he couldn’t have gotten away with his acquisitions—not merely because other people wouldn’t have allowed him, but because his own conscience would not have. But now he was fortified by the assurance that he was pursuing his obligation to God, and before long, what for centuries had been looked on as the meanest greed, a rising middle class would interpret as the earthly manifestation of God’s will.
But the very industrial revolution which this highly serviceable ethic begot in time began to confound it. The inconsistencies were a long while in making themselves apparent. The nineteenth-century inheritors of the ethic were creating an increasingly collective society but steadfastly they denied the implications of it. In current retrospect the turn of the century seems a golden age of individualism, yet by the 1880s the corporation had already shown the eventual bureaucratic direction it was going to take. As institutions grew in size and became more stratified, they made all too apparent inconsistencies which formerly could be ignored. One of the key assumptions of the Protestant Ethic had been that success was due neither to luck nor to the environment but only to one’s natural qualities—if men grew rich it was because they deserved to. But the big organization became a standing taunt to this dream of individual success. Quite obviously to anyone who worked in a big organization, those who survived best were not necessarily the fittest but, in more cases than not, those who by birth and personal connections had the breaks.
As organizations continued to expand, the protestant ethic became more and more divergent from the reality The Organization was itself creating. The managers steadfastly denied the change, but they, as much as those they led, were affected by it. Today, some still deny the inconsistency or blame it on creeping socialism; for the younger generation of managers however, the inconsistencies have become importuning.
Thrift, for example. How can the organization man be thrifty? Other people are thrifty for him. He still buys most of his own life insurance, but for the bulk of his rainy-day saving, he gives his proxy to the financial and personnel departments of his organization. In his professional capacity also thrift is becoming a little un-American. The same man who will quote from Benjamin Franklin on thrift for the house organ would be horrified if consumers took these maxims to heart and started putting more money into savings and less into installment purchases. No longer can he afford the luxury of damning the profligacy of the public; not in public, at any rate. He not only has to persuade people to buy more but persuade them out of any guilt feelings they might have for following his advice. Few talents are more commercially sought today than the knack of describing departures from the Protestant Ethic as reaffirmations of it.*
In an advertisement that should go down in social history, the J. Walter Thompson agency has hit the problem of absolution head-on. It quotes Benjamin Franklin on the benefits of spending. “Is not the hope of being one day able to purchase and enjoy luxuries a great spur to labor and industry? … May not luxury therefore produce more than it consumes, if, without such a spur, people would be, as they are naturally enough inclined to be, lazy and indolent?” This thought, the ad says, in a meaningful aside, “appears to be a mature afterthought, qualifying his earlier and more familiar writings on the importance of thrift.”
“Hard work?” What price capitalism, the question is now so frequently asked, unless we turn our productivity into more leisure, more of the good life? To the organization man this makes abundant sense, and he is as sensitive to the bogy of overwork and ulcers as his forebears were to the bogy of slothfulness. But he is split. He believes in leisure, but so does he believe in the Puritan insistence on hard, self-denying work—and there are, alas, only twenty-four hours a day. How, then, to be “broad gauge”? The “broad-gauge” model we hear so much about these days is the man who keeps his work separate from leisure and the rest of his life. Any organization man who managed to accomplish this feat wouldn’t get very far. He still works hard, in short, but now he has to feel somewhat guilty about it.
Self-reliance? The corporation estates have been expanding so dynamically of late that until about now the management man could suppress the thought that he was a bureaucrat—bureaucrats, as every businessman knew, were those people down in Washington who preferred safety to adventure. Just when the recognition began to dawn, no one can say, but since the war the younger generation of management haven’t been talking of self-reliance and adventure with quite the straight face of their elders.
That upward path toward the rainbow of achievement leads smack through the conference room. No matter what name the process is called—permissive management, multiple management, the art of administration—the committee way simply can’t be equated with the “rugged” individualism that is supposed to be the business of business. Not for lack of ambition do the younger men dream so moderately; what they lack is the illusion that
they will carry on in the great entrepreneurial spirit. Although they cannot bring themselves to use the word bureaucrat, the approved term—the “administrator”—is not signally different in its implications. The man of the future, as junior executives see him, is not the individualist but the man who works through others for others.
Let me pause for a moment to emphasize a necessary distinction. Within business there are still many who cling resolutely to the Protestant Ethic, and some with as much rapacity as drove any nineteenth-century buccaneer. But only rarely are they of The Organization. Save for a small, and spectacular, group of financial operators, most who adhere to the old creed are small businessmen, and to group them as part of the “business community,” while convenient, implies a degree of ideological kinship with big business that does not exist.
Out of inertia, the small business is praised as the acorn from which a great oak may grow, the shadow of one man that may lengthen into a large enterprise. Examine businesses with fifty or less employees, however, and it becomes apparent the sentimentality obscures some profound differences. You will find some entrepreneurs in the classic sense—men who develop new products, new appetites, or new systems of distribution—and some of these enterprises may mature into self-perpetuating institutions. But very few.
The great majority of small business firms cannot be placed on any continuum with the corporation. For one thing, they are rarely engaged in primary industry; for the most part they are the laundries, the insurance agencies, the restaurants, the drugstores, the bottling plants, the lumber yards, the automobile dealers. They are vital, to be sure, but essentially they service an economy; they do not create new money within their area and they are dependent ultimately on the business and agriculture that does.
In this dependency they react more as antagonists than allies with the corporation. The corporation, it has become clear, is expansionist—a force for change that is forever a threat to the economics of the small businessman. By instinct he inclines to the monopolistic and the restrictive. When the druggists got the “Fair Trade” laws passed it was not only the manufacturers (and customers) they were rebelling against but the whole mass economy movement of the twentieth century.
The tail wagged the dog in this case and it still often does. That it can, in the face of the growing power of the corporation, illustrates again the dominance mythology can have over reality. Economically, many a small businessman is a counterrevolutionist and the revolution he is fighting is that of the corporation as much as the New or Fair Deal. But the corporation man still clings to the idea that the two are firm allies, and on some particulars, such as fair trade, he often makes policy on this basis when in fact it is against the corporation’s interests to do so.
But the revolution is not to be stopped by sentiment. Many anachronisms do remain; in personal income, for example, the corporation man who runs a branch plant on which a whole town depends is lucky to make half the income of the local car dealer or the man with the Coca-Cola franchise. The economy has a way of attending to these discrepancies, however, and the local businessman can smell the future as well as anyone else. The bland young man The Organization sent to town to manage the plant is almost damnably inoffensive; he didn’t rent the old place on the hill but a smaller house, he drives an Olds instead of a Caddy, and when he comes to the Thursday luncheons he listens more than he talks. But he’s the future just the same.
I have been talking of the impact of organization on the protestant Ethic; just as important, however, was the intellectual assault. In the great revolt against traditionalism that began around the turn of the century, William James, John Dewey, Charles Beard, Thorstein Veblen, the muckrakers and a host of reformers brought the anachronisms of the Protestant Ethic under relentless fire, and in so doing helped lay the groundwork for the Social Ethic. It would be a long time before organization men would grasp the relevance of these new ideas, and to this day many of the most thoroughgoing pragmatists in business would recoil at being grouped with the intellectuals. (And vice versa.) But the two movements were intimately related. To what degree the intellectuals were a cause of change, or a manifestation, no one can say for certain, but more presciently than those in organization they grasped the antithesis between the old concept of the rational, unbeholden individual and the world one had to live in. They were not rebels against society; what they fought was the denial of society’s power, and they provided an intellectual framework that would complement, rather than inhibit, the further growth of big organization.
It is not in the province of this book to go into a diagnosis of the ideas of Dewey and James and the other pragmatists. But there is one point of history I think very much needs making at this time. Many people still look on the decline of the Protestant Ethic as our fall from grace, a detour from Americanism for which we can blame pragmatism, ethical relativism, Freudianism and other such developments. These movements have contributed much to the Social Ethic, and many of their presuppositions are as shaky as those they replaced. To criticize them on this score is in order; to criticize them as having subverted the American temper, however, is highly misleading.
Critics of pragmatism, and followers too, should remember the context of the times in which the pragmatists made their case. The pragmatists’ emphasis on social utility may be redundant for today’s needs, but when they made their case it was not a time when psychology or adjustment or social living were popular topics but at a time when the weight of conservative opinion denied that there was anything much that needed adjusting. Quite clearly, revolt was in order. The growth of the organization society did demand a recognition that man was not entirely a product of his free will; the country did need an educational plant more responsive to the need of the people. It did need a new breeze, and if there had been no James or no Dewey, some form of pragmatism would probably have been invented anyway. Nonphilosophical Americans sensed that changes were in order too; what the philosophers of pragmatism did was to give them guidance and tell them in intellectually responsible terms that they were right in feeling that way.
Pragmatism’s emphasis on the social and the practical, furthermore, was thoroughly in the American tradition. From the beginning, Americans had always been impatient with doctrines and systems; like the Puritans, many came here because of a doctrine, but what they came to was a new environment that required some powerful adapting to, and whenever the doctrine got in the way of practicality, the doctrine lost out. Few people have had such a genius for bending ideals to the demands of the times, and the construction of fundamental theory, theological or scientific, has never excited Americans overmuch. Long before James, Does it work? was a respectable question to ask. If impatience at abstract thought was a defect, it was the defect of a virtue, and the virtue, call it what you will, has always been very close to pragmatism as Dewey and James defined it. By defining it they gave it coherence and power at a time when it needed assertion, but the inclination to the practical antedated the philosophy; it was not the product of it.
Reform was everywhere in the air. By the time of the first World War the Protestant Ethic had taken a shellacking from which it would not recover; rugged individualism and hard work had done wonders for the people to whom God in his infinite wisdom, as one put it, had given control of society. But it hadn’t done so well for everyone else and now they, as well as the intellectuals, were all too aware of the fact.
The ground, in short, was ready, and though the conservative opinion that drew the fire of the rebels seemed entrenched, the basic temper of the country was so inclined in the other direction that emphasis on the social became the dominant current of U.S. thought. In a great outburst of curiosity, people became fascinated with the discovering of all the environmental pressures on the individual that previous philosophies had denied. As with Freud’s discoveries, the findings of such inquiries were deeply disillusioning at first, but with characteristic exuberance Americans found a rainbow. Man might not be perfectible after a
ll, but there was another dream and now at last it seemed practical: the perfectibility of society.
* Henry Clews, Fifty Years in Wall Street (New York: Irving Publishing Company, 1908).
* Helping in this task is what a good part of “motivation research” is all about. Motivation researcher Dr. Ernest Dichter, in a bulletin to business, says, “We are now confronted with the problem of permitting the average American to feel moral even when he is flirting, even when he is spending, even when he is not saving, even when he is taking two vacations a year and buying a second or third car. One of the basic problems of this prosperity, then, is to give people the sanction and justification to enjoy it and to demonstrate that the hedonistic approach to his life is a moral, not an immoral one.”
CHAPTER 3 Scientism
Just how these currents of reforms congealed into an orthodoxy is a problem in intellectual history I must duck. Trying to weigh whose ideas were most responsible is in any event somewhat fruitless, for it is what people want to believe that is important, and those whose ideas they so frequently misinterpret should not be whipped for the bowdlerization. Freud, for example, who once remarked that he was not a Freudian, never maintained that man was forever a hostage to childhood traumata; with resolution and intelligence, he believed, the individual could, by understanding these factors, perhaps surmount them. Nor did James or Dewey ever say that the convenience of society was the key test of morality, and they most certainly did not believe that man was totally the product of those around him.