1.2. Max Weber_The Economic Action

8/10/2019 1.2. Max Weber_The Economic Action

1/12

Socio-

fact

in

here

or

and

of

of

in

It

"cor-

in

simi-

the

und

im

C H APT ER

II

SOCIOLOGICAL CATEGORIES

OF

ECONOMIC ACTION

I

T

PrefatoryNote

What follows

is not intended in

any sense

o be

"eonomic

theory."

Rather,

t consists nly in an attempt to define certain conceptswhich

are

frequently used and to analyze

certain of the

simplest

sociological

reladonshipsn the

economic

phere.As in the first chapter, he

procedure

here has

been determined entirely

by considerationsof convenience.

t

has

provedpossible

ntirely o avoid he controversial onceptof

"value."'

The usagehere, n the relevant

sectionson

the

division of

labor

[see

sec.

r

5ff.],

has

deviated rom the terminologyof Karl

Bticher

only

so

far as

seemednecessary or the

purposesof

the

present

undertaking. For the

present

all

questions

f

dynamic

process

ill be

left

out of account.

r. TheConcept

of Economic ction

Action will bb said to be

"economically

oriented" so far as, according

to its

subjectivemeaning, t is

concernedwith the

satisfaction f a

desire

for

"utilities"

(Nunleistungen).

"Economic

action"

(Wirtschaften)

is

a

peaceful use of the actor's control

over resources,

which

is

rationally

oriented,

by deliberate

planning,

to

economicends.

An

"economy''

(Wirt-

schaft) is autocephalous

conomicaction. An "economic

establishment"

(Wirtschaftbetrieb)

is an

organized system of continuous

economic

action.

r. It was pointed out above ch. I, sec. r:a) that economic c-

tion assuchneed

not be

social

action.

t6il


2/12

64 socror.ocrcAr,

cATEcoRTES

F

EcoNoMrc AcrroN

I

Ch. II

z.

The

definition of economic

action must be as

general as possible

and

must bring

out the fact that all

"economic"

processes

nd

objectsare

characterized

s

such entirely by the

meaning

they have

for human ac-

tion in such roles as ends, means, obstacles, nd by-products. t is not,

hor'vever,

ermissible

o

express his by saving,as s sometimes

one,

that

economic

action is

a

"psychic"

phenomenon. The

production

of

goods,

prices,or even the

"subjective

viluation"

of

goods,

f th"y are empirical

processes,re far from

being merely

psychic phenomena.

But

underlying

this misleading

phrase

s

a correct nsight. It is a fact that these

phenom-

ena have a

peculiar

type of subjectivemeaning.

This

alone defines

he

unitl' ef the corresponding

rocesses,

nd this alone makes

hem accessi

ble to

subjective

nterpretation.

The definition of

"economic

action" must, furthermore, be formu-

lated in

such a way as

to

include

the operationof a modern business n-

terprise un for

profit.

Hence the definition cannot be based

directly

on

"consumption

needs"

and the

"satisfaction"

of these needs, but must,

rather,

start out on the one hand from the fact that there is a

desire

de-

mand)

for utilities

(which

is true even in the case of orientation

to

purely

monetarv

gains),

and on the other

hand from the fact that pro-

ttision s

being made

o furnish the supplies

o meet this demand

(which

is true

even in the most

primitive

economy merelv

"satisfying

needs,"

and

regardless

f

how

primitive

and frozen

in tradition the methods

of

this

provisionare).

3.

As

distinguished rom

"economic

action"

as such, the term

"eco-

nomically

oriented action" will be applied to

two

types:

(a)

everv action

which, tirough

primarily oriented

to other e.rds,'tikes account,

in the

pursuit

of them,

of economic

considerations;hat is, of the consciously

recognized

necessity

or economic

prudence.

Or

(b)

that which, though

primarily

oriented to economic ends, makes use of

physical

force

as a

means. t thus includes

all orimarilv non-economicaction

and all non-

peaceful action which is infuenced bv economic considerations . Eco-

nomic action"

thus

is

a

conscious, rintary orientation to economic

con-

siderations. t must be conscious,

or what matters

is not the objective

necessityof

making economic

provision,

but

the

belief that is is neces-

sary. Robert

Liefmann

has rightlv laid emphasison the

subjective un-

derstandableorientation

of

action which makes

t economic action. He

is not, however,

correct n

attributing

the contrary view

to all other au-

thors.2

4.

Every type of

action,

including the use of

violence, may be eco-

nomically

oriented.

This

is true, for instance,of war-like action, such

as

marauding expeditionsand trade wars.

Franz

Oppenheimer,

n

particu-

lar, has rightly

distinguished

economic" means rom

"political"

means.s

It

is

essential o

distinguish

the latter from economic

action. The use

of

force s unquestionably ery strongly opposed o the spirit of economicac-

cluisition n the

usual sense.

Hence the term

"economic

action" will

not

be applied to the direct appropriation

of

goods

by force and the direct

coercion

of the other

partv

by threats of

force. It

goes

without saying,

at

r l

the

same

ime,

th

is

one

of the

mo

sion

for the

mea

the caseof arma

just

as

much

eco

Every

rationa

respect

o

provis

polit ical

action

o

it is not

necessa

economic

order

u

trol

of

resources

that

is,

if its

for

force.

But

the fa

tion

by force,

do

force.

How

ent i re l

defined,

s only

comes

evident

fr

only

in terms

of

of

force.

f any

practical

purpos

however,

orlent

could

be

procure

5.

Not

even

will

be called

"r

anv

sense;

n

pa

that

of

"technol

employed

as opp

the

last analys

which

is consc

reflection f the

in

scientific

kno

nique"

is

thus

v

seen

n the

tota

may

be

signif ic

"meaning" of

th

its

technical

un

order

to

accom

techniques

of e

asceticism,

f th

ercising

olit ica

love,

of making

of

arriving

at

le

tion in degreeo

ways

means

ha

rrxeans

o

an en

nique

may

be

t


3/12

r l

The

Concept

of

Econornic

Action

the same

ime, that

exchange is not the only

economic means, though it

is

one of

the most important.

Furthermore,

the formally

peaceful provi-

sion for the

means

and the success f a

proiected

exerciseof force, as

in

the caseof

armament

production

and eionomic orqanization or

war,

is

just

as

much economic

action as any other.

Every rational

courseof

political

action

is

economicallyoriented with

respect

o

provision for the necessarymeans,and it is

always possible

or

political action to

serve he interes t of economicends. Similarly, though

it is not necessarily

rue

of every economicsystem,

certainly

the modern

economic

order under modern

conditions could

not continue if

its con-

trol of

resources

were not upheld by

the

legal compulsion of the sta te;

that is, if its

formally

"legal"

rights were not upheld

by the threat of

force. But the

fact that an

economicsystem

s thus dependent on

protec-

tion by force,

does not mean that it is itself an example of

the

use

of

force.

How entirely

untenable t is to maintain that the economy,however

defined,

is

only' a

means,

by contrast, or instance,

with the state,

be-

comes

evident

from the fact that it is

possible o define

the state

itself

only in termsof the meanswhich it todav monopolizes, amely, the use

of force.

If anything,

the most essentialaspect of economic action

for

practical

purposes

s

the

prudent

choice

behueen

ends.

This

choice is,

however,

oriented

to the scarcity of the means which

are available or

could

be

procured or thesevariousends.

I.

Not every type of action

which

is rational

in

its

choice of means

will be called "rational

economic

action,"

or even

"economic

action"

in

any sense; n

particular,

the

term

"economy"

will be

distinguished

rom

that of "technology."a

The

"technique"

of an action

refers

to

the

means

employed

as opposed

o the meaning or end to which the action is, in

the last

analysis,

oriented. "Rational"

technique

is a

choice

of

means

which is

consciouslyand

systematicallyoriented to the experience

and

reflection

of the actor,

which consists, t the

highest

level of

rationality,

in scientific knowledge.

What

is concre tely to be treated as a

"techni-

nique" is thus variable,

The ultimate meaning of a concrete act may,

seen n

the total context

of ac tion, be of a

"technical"

order; that is, it

may

be significant

only as a means in

this

broader context. Then the

"meaning"

of

the

concrete.act

viewed

from the larger

context) lies in

its technical

function;

and,

conversely, he means

which are applied

in

order

to accomplish

his

are

its "techniques."

In this sense

here are

techniques

of

every conceivable

ype of action, techniques

of

prayer,

of

asceticism,

f

thought

and

research,

f memorizing, of education,

of ex-

ercising

political

or hierocratic

domination, of administration,of making

love,

of making

war, of musical

performances, f

sculpture and

painting,

of arriving

at legal

decisions.

All

these are capable of the widest vari a-

tion in

degree

of

rationality.

The presenceof a

"technical

question"

al -

ways means

hat

there s somedoubt over the choice of the most

rational

tneans to an end. Among others, the standard of rationality for a tech-

nique

may

be the famous

principle

of

"least

effort," the achievement

of

65


4/12


5/12

I

r l

The

Concept of

EconomicAction

is

primarily

oriented to the

problem

of

choosing the

end

to which a

thing

shall be

applied; technology,

o the

problem, given

the end, of

choosing he

appropriatenxeans.

or

purposes

of the theoretical

(not,

of

course, he

practical)

definition of technical rationality it is

wholly in-

different whether the product of a technicalprocess s in any senseuse-

ful. In the

present erminology

we can conceiveof

a

rational technique

for achieving

ends

which no one

desires. t would, for

instance,be

possi-

ble,

as a kind

of technical

amusement, o apply all the most modern

methods

to the

production

of atmosphericali.-

And

no one could

take

the slightestexciption

to the

purely

technical

rationality

of

the action.

Economicall y, on

the other hand,

the

procedure

would under

normal

circumstances

e clearly irrational

be.ause there would

be no demand

for the

product.

(On

all this,

comparev. Gottl-Ottlilienfeld,

op. cit.)

The fact

that what is called

the technologicaldevelopment

of mod-

em

times

has been

so

largely

oriented

economically o

profit-making

is

one of

the fundamen tal facts

of the

history

of technologv.But however

fundamental it has

been, this economic orientation hii by no means

stood alone

in shaping

the development of technology. In addition,

a

part has beenplayed by the gamesand cogitationsof impractical deolo-

gists,

a

part by other-worldly nterests

and all sorts

of fantasies,

part

by

preoccupationwith

artistic

problems,

and by various other non-economic

motives.

None the less, he main ernphasisat all times, and

especially

the

present,

has lain

in the economic determination

of technological

development.Had not rational

calculation

ormed

the basisof economic

activitv. had

there not been certain verv oarticu lar conditions in its

economicbackground, rational

technology cbuld never

have

come

into

existence.

The fact

that the aspects f economicorientation which distinquish

it from

technology "r" ,,ot

explicit lv brought

nto

the init ial definit ion,

is

a

consequence

f the sociological tarting

point.

From a sociological

point

of view,

the weighing of alternativeends n relation to each other

and to costs s a consequence f "continuity." This is true at least so far

as costs mean

something other than altogether

giving

favor of more

urgent ones.

An

economic theory, on

would do well to emphasize

his

criterion

rom the start.

end

in

hand,

6. It is

essential'to nclude the criterion of

power

of control and dis-

posal

(Verftgungsgewab)5

in the

sociological concept of

economic ac-

tion,

if

for no other reason han that

at

least

a

modern

market

economy

(Erwerbrnirtschaft)

essentially consists in a complete network of

ex-

change

contracts, hat is, in

deliberate

planned

acquisitionsof powers

of

control and

disposal.This, in such an economy, s the

principal

source

of the relation

of economicaction to the law. But any other type of or-

ganization of economic activities

would

involve

some

kind of

de

facto

distribution of

powers

of

control

and disposal,

however

different

its

un-

derlying

principles

might be from those

of the

modern

private

enterprise

economy with its legal

protection

of such

powers

held

by autonomous

and autocephalous conomic

units. Either the central authority, as n the

caseof socialism,or the subsidiary

parts,

as in

anarchism,must

be

able

67

uP one

the other


6/12

6 8

socror,ocrcAr,

cATEGoRTESF EcoNoMrc ACTToN

I

Cl4. II

to count

on

having

some

kind

of control over the necessaryservices of

labor and

of the means

of

production.

It is

possible

o obscure his

fact

by verbal

devices, ut it cainot be interpreted

out of existence.For

pur-

poses f definition it is a matter of indifference n what way this control

is

guaranteed;whether by

convention or by law, or whether

it

does not

even enjoy the

protection of any external sanctionsat all, but its security

rests only

on actual expectations

n terms of cus tom or self-interest.

These

possibilitiesmust be taken into

account,

however essential egal

compulsionmay

be for the modern economicorder. The

indispensability

of

powers

of control

for the conceDt of social

action in its economic

aspicts

thus does not imply

that

legal

order

is

part

of that concept

by

definition, however

important it may be held to be on empirical

grounds.

7.

The

concept

of

powers

of control and disposalwill

here be taken

to

include

the

possibility

of control over

the ac tor's own labor

power,

whether

this is in some way enforced or merely exists

n fact. That

this

is

not to be

taken for

granted

is shown by

its absence n the case

of

slaves.

B. It is necessary

or

the

purposes

of a sociological heorv of

eco-

nomic

action

to

introduce

the concept

of

"goods"

at an

early stage,as

is

done

in

sec.

2.

For this theory is concernedwith

a type of action which

is

given

its

specific

nteaning by

the

resuhs

of

the actors' deliberations,

which themselves an be isolatedonlv in theorv fbut

cannot be observed

empiricallyl. Economic

heory, the tteoretic^l

iniightr of

which

provide

the basis or the

sociologyof economic

action, might

(perhaps)

be able

to

proceed

differently; the latter may find it necessarv

o create

ts own

theoretical onstructs.

z. TlceConcept f

U

tility

By

"utilities"

(Nutzleistungen)

will alwaysbe

meant the specific

and

concrete, eal or imagined, advantages

Ckancen)

of opportunities

or

present

or future useas hey are estimated

nd

madean objectof specific

provision

bv one or

more

economically

ctinq

ndividuals.

The action

of

ihese

.,dividuals s

oriented

o the estimated-importance

f

such utilities

as means or the endsof their economic

action.

Utilities

may

be the services

f non-human

or inanimate objects

or

of

human

beings.

Non-human

objects

which

are the sources

f

potential

utilities of

whatever

sort will be

called

"goods."Utilities derived rom a

human

source,so far as this

sourceconsists

n

active

conduct, will be

called

"services" Leistungen).

Social

elationships vhich

are

valued

as

a potentialsource f presentor future disposal ver utilities are, however,

also

objectsof economic

provision.

The

opportunities

of

economic

ad-

vantage,

which

are

made available

by

custom,

by

the

constellationof

z l

interest, or by

nomic

unit, wil l

On the fo

und V

erhaltn

( Innsbruck

8

r.

The

ca

of the enviro

nomic

purpos

cern. Such th

on

the

part

o

merousother

importance

a

stance,of co

cepts

o

try

to

This

choiceo

convenience

z. As Boh

imprecise f a

without disti

were

then eq

util i ty,

it is no

but the

speci

uses; or

insta

thing of the

such

potent i

exchangc

n

erty." Instea

potential pow

s e r v i c e s , p r

nomic advan

not ikely o b

3.

The fa

permission,

ience.

But it

and services

ical ly igni f ic

On the

co

3.

Mode

Economic

o

rationality.

Eve

of action, the

For the

most

p

ger ia l "

act ion,


7/12

zl

The

Concept of

l,Itility

6

9

interest,

or

by a conventional

or

legal

order

for the

purposes

of an

eco-

nomic

unit, will

be called

"economic

advantages."

On the

following

comments, compare

E.

von

Bohm-Bawerk,

Rechte

un

d V erh iltnis

se

v m Standp

unkt dir

v olksw rtschaf liehen

G iterlehr e

( Innsbruck BBr) .

-

r.

The categories

of

goods

and

services

do

not

exhaust those aspects

of the

environment

which

may be important

to an individual for eco-

nomic

purposes and which

may hence be an object

of economic

con-

cern. Such things

as "good

will,"

or the tolerance of economic

measures

on

the

part

of individuals

in

a

position

to interfere

with them, and nu-

merous other

forms of

behavior, may have the

same kind of economic

importance

and

may be the object

bf

economic

provision

and, for in-

stance,

of contracts.

It

would, however, result in

a

confusion

of con-

cepts

to try

to bring

such things

under either of these two categories.

This choice

of conc"eptss thus"entirely

determined by consideration

of

convenience.

z. As

B


8/12

7

o

SOCTOLOGTCAL ATEGORTES

OF

ECONOMTC ACTTON

lch.

II

sec.

r

5.)

The

development of rational economic action from

the instinc-

tively

reactive

search for

food or traditional acceptance of i nherited

techniques

and

customary

social

relationships

has

been

to

a large extent

determined by non-economic events

and actions,

including

those outside

everyday routine,6

and also by the

pressure

of necessity

in

casesof in-

creasingabsolute

or relative imitations

on

subsistence.

r.

Naturally there

cannot

in

principle

be

any scientific standard or

any such concept

as that

of an

"original

economic state." It would be

possible

o agree

arbitrarily to

take the

economic

state

on

a

given

tech-

nological level,

as,

for instance, hat charactei zed by

the

lorvest devel-

opment

of tools and equipment known

to us, and to treat it and analvze

if

as the most

primitive.

But there is no

scientific

ustification

for con-

cluding

from

observations

f

living

primitive peoples

on

a

low

techno-

logical level

that the

economic organization of all

peoples

of the

past

with similar

technological

standing

has been

the same

as,

for

instance,

that of the Vedda or of certain tribes of the Amazon region. For, from

a

purelv economic

oint of

view,

this level of technologv

as been

ust

as compatible

with large-scaleorganization of labor as with extreme

dispersal n

small

groups

(see

below,

sec.

16). It is impossible o

infer

from the economic

aspects f the natural environment alone, u'hich

of

thesewould be

more ,,ea.lv approached. arious non-economicactors,

for instance,

military,

could

make

a substantial ifference.

z.

War and

migration are not in themselveseconomic

processes,

though

particularly

in

early

times

thev

have been largely oriented to

economic

considerations. t

all times, however, ndeed up to the

pres-

ent, they have

often been

responsible

or radica l changes n the eco-

nomic system.

n cases

where, through such factors as climatic

changes,

inroads

of sand,

or deforestation, here

has

been an absolutedecrease

n

the

means of

subsistence, uman

groups

have adapted themselves

n

widell' differing ways, depending on the structure of interestsand on

the manner in

which non-economic

actors

have

played

a role. The tvp-

ical reactions,

however,

have been a fa ll

in

the standard of

living and

an absolute

decrease

n

population. Similarly,

in cases f

relative impov-

erishment

n

meansof subsistence,

s determined

b,v a

given

standard

of

living

and of the

distribution of

chancesof acquisition, here

have also

been

wide variations,

But on the

whole,

this

type

of situation has, more

frequently

than the

other, been met by

the

increasing ationalization of

economic

activities.Even in

this

case,

owever, t is not

possible

o make

general

statements.

So far as the "statistical" nformation

can be

relied

upon,

there was

a tremendous ncrease

of population

in

China after

the

beginning

of the eighteenth century,

but it had exactlv the opposite

effect

from the similar

phenomenon

of about

the

same

ime in

Europe.

It is. however,possible o s ay at leas t somethingabout the r...or,. io ,

this

(see

below,

sec. rr.).

The chronic scarcity

of the means of subsist-

ence

n

the Arabian

deserthas only

at certain times resulted n

a

change

in

the

economic

and

political

structure, and these

chanqes

have

been

3l

M

most

Promine

played

a

part.

3 .

A

h i g h

terized the lab

great

increase

talisticdirectio

alization of

pu

ertheless,

his t

in

the

Western

modern

ype of

.

4.

I

ypxci l

The followi

(r)

The

sy

ities,

on the

con

count.

These

a

(z)

The

sy

uses

n the orde

the

pr inciple

[

These

wo c

developed

n tim

of

the allocatio

(g)

The

sy

tion of suchutil

controlled

by th

action

will take

urgencyof

his

d

necessaryxpen

requisite

abor s

requisite

goods

alternative

rod

sense, hich

inc

(+)

The sy

with

the

presen

of

control and d

not be shared

w

themselves re

are

n

such

con

a way as

o end

The releva

Present

osses


9/12

I I

extent

outside

of in-

for

be

ech-

devel-

con-

past

from

just

of

to

pres-

eco-

n

n

on

and

of

also

more

of

for

3

]

Mod.es of Economic Orientation of Action

7

|

most

prominent when

non-economic

(religious)

developments

have

played a

part.

3.

A high

degree of

traditionalism in habits

of

life,

such

as charac-

terized

the laboring classes n early modem times, has not

prevented

a

great

increase n

the

rationalization

of economic enterprise under

capi-

talistic

direction.

But it

was also compatible with, for

instance, the ration-

alization of public finances in Egypt on a state-socialisticmodel. Nev-

ertheless, his traditionalistic attitude

had

to be at

least

partly

overcome

in

the

Western

World before the further development

to the specifically

modem type

of

rational capitalistic economy could take

place.

4.

Typical

Measures f

RationalEconornic

ction

The following are typical

measures f ra tional economic

action:

(

r

)

The

systematic

allocation

as between

present

and future

of

util-

ities, on the con trol of

which

the actor

or whatever eason eelsable to

count.

(These

are the essential eatures of saving.)

(z) The systematic llocation f available tilities o variouspotential

uses

n

the order of their estimated elative urgency,

ranked

according to

the

principle of

marginal utility.

These two cases,he most definitely

"static,"

have been

most highly

developedn times

of peace. oday,

or the

most

part,

they take

he

form

of the allocation of monev incomes.

(l)

Th" systematic

pio".rr"-".rt'

through

production

or transporta-

tion

of such utilities for

which all the necessary

means

of

production

are

controlled

by the actor himself. Where action is

rational, this type of

action

will take

place

so far

as,

according o the

actor'sestimate, he

urgency

of

his

demand for the

expected

esult of the action

exceeds he

necessary xpendirure,

which may

consist n

(a)

the irksomeness

f the

requisite abor services, nd (b) the other potential uses o which the

requisite

goods

ould be

put;

including,

that

is, the

utility of the

potential

alternative

products

and their

uses.This is

"production"

n

the broader

sense,which includes

tansportation.

(+)

The iystematicacquisition,

by agreement

Vergesellschaftung)

with the

presentpossessors

r with competing

bidders,

of

assured

owers

of control and

disposal ver utilities. The

powersof

control may

or may

not be shared

with others.

The occasionmay

lie in the

fact that

utilities

themselves

re n the

control of

others,

hat their

means

of

procurement

are

in

such

control, or that

third

personsdesire o

acquire them in

such

a way

as to endanger

he actor's

own supply.

The relevant

rational

association

(Vergesellschaftung)

with the

presentpossessorf a power of contro lor disposalmay consist n (a) the


10/12

7

Z

SOCIOLOGICAL

CATEGORIES

OF

ECONOMIC

ACTION

[ ch .

I I

4l

Ty

land.

It

may

which

is

clo

competition

t

.o-Lined

wit

guaranteed

o

6fte.r,

house

ulation

of fo

common

field

so

on,

have

land

owe

hei

5.

Anyth

of

one

perso

COmpenSatIOn

and

ervices

instance,

go

cannot

be

en

vantages,

cla

Thus-object

For pres

meant

every

of

any

sort

o

it ies

of

any

the

utility

o

same

kind

o

ance

of,

the

of

any

kind

ple today

n

ihe

"worker

will,

for

pre

tween

oan

a

5.

The

c

though

enfo

exchanges

as,

or

insta

It

is

not

un

to

a

high

d

Rational

ex

from

it,

or

the

other's

consumPti

ented

to

pr

for

profit.

In

ated

from

c

stance,

ou

marginal

ut

casionbe s

may

estab

establishment

f

an

organization

with

an

order

o

which

the

procurement

and

use

of utilities

s t]o

b"

oriented,

or

(b)

in

exchange'

n

the

first

case

the purpose

of

the

organization

may

be

to

ration

the procurement'

use'

or

.onffido", i., ord& to limit comPetitionof.procuring

actors'

Then

it

is a

"regulative

organization."

Or,

secondlyl

':

.p"tp3t" Tu{

be

to

set

up

a

unified

auth;iry

for

the

sysrematic

d-lnltt.ntion

of

the

utilit ies

#frl.fl

i'rJ

f.itherto

bJen

s.,bjectio

a dispersed

ontrol.

n

this

case

here

is an

"administrative

rganization."

,,Exchange"

is a co"*p.o-ise

of

interests

n

the

part

of"

he

Parties

n

the

course

of

which

noJd,

o,

other

advantages

re

Passed

s

reciprocal

--p".trution.

The

"i"hu.g"

may

be

traditional

or

conventional'S

nd

h"nl",

especially

n

the

lri",

.u'",

not

economically

ational'.

Or'

sec-

o"afy,

it

i-,'"y

be

economically

ational.both

n

intention

and

in

result.

i;"i;."r"

Jf

a

rationally-

ri",,t"d

exchange

s the

"resolution

o[

a pre-

.""Jfy

open

or

lut"r,t.o.ifict

of

interests

limeans

of

a compromise'

he

opporitioilof interestswhich is resolvedn the compromise

nvolves

he

alior potentially

n two

different

conficts.

On

the

one

hand,

there

s the

"o'fiit

over

t(e

Price

to be

agreed

upor"r

with

the

partner

n

exchange;

,fr"

iypi."f

methoh

s bargainiig'

On

th9

other

hand,

there

may

also

be

"ornp"lririo.,

with

actual

o?pot"iti"l

rivals,

either

n

the

Plesent

or in

the

f.rtrr'r",

who

arecompetitors

n

the

same

narket'

Here,

the

typical

method

is competitive

idding

and

offering.

r.

utilities,

and

the

goods

r

labor

which

are

heir

sources'

re

un-

der

the

.o.,trol

(Etgenvhfagung)

of

an

econ-omically^

cting

ndividual

if he is

in

a

position

o

be

able

n

fact

to

makeuse

ot

them

at

nls

con-

venience

at

least,

up

to

a point)

without

interference

rom

other

per-

t"".,

t"g"taess

ol

wireth"t

hi.

ability

rests

on

the

legal

order'

on

con-

vention,on custom r on a complex

f

interests'

t

is

by.no

means

rue

thnt

oniv

the

egal

*rrrun."

of

powers

f disposal

s.decisive'

.either

or

;il';A;;;'li-i*t

r,

rr,

ho*Lu"',

today

empirically

n

indispensable

basis

or

etonomic

ctivitiy

with

the

rnaterial

means

f

Productlon.

z.

The

fact

that

good,

"'"

not

asyet

consumable

ay

be

a

result

of

the fact

that

while

th"ey

re,

as

such,

inished,

hey

are

not

yet.in

a

suit-

able

place

o,

.on*r.r'ption;

hence

he

transportation

f goods'

which

ir";;rtr;liy;

b"

dirti.tguirhed

rom

trade,.a

h.ttge

in

the

control

over

thegoods ,mayherebe" t rea tedasPa l to f theprocessofProduc t ion'

"'";.

Wi;;-i1,"*-i.

u

lu.t'

of

cJntrol

(Eigin'terfuglTQ

i'.*

desired

utilities,

t

is n prir,.ipl"

indifferent

whethe-r

he

individual

s

typically

pr"".rr"a

fro-

dorcibly

nterfering

with

the

control

of

others

y

a

legal

order,

conventio.r,

,rsiom,

is o#n

self-interest,

r

his

consciously-held

moral

standards.

4. Competition n procurementmay exist under the mostvadous

.o.rdirio.tr.

t

is

particrilarly

mportant

when

supplies

re

obtained

by

seizute,

s

n

hunting,

ishing,

umbering,

Pasturage'

nd

clearing

new


11/12

4l

Typical Measures f Rational

EconomicAction

/ 5

land. It may also, and

most frequently

does, exist

within

an organization

which is closed to outsiders.

An

order

which seeks

to

restrain such

competition

then

always

consists

in the

rationing of supplies,

usually

combined with the

appropriation of

the

procurement

possibilities

thus

guaranteed

for the benefit

of a limited

number of

individuals

or, more

often,

households. All

medieval

Mmk- and

fishing associations,

he reg-

ulation of forest clearing, pasturageand wood gathering rights in the

common

fields

and wastas,

he

grazing

rights on Alpine

meadows,

and

so

on, have this character.

Various types

of

hereditary

property-rights

n

land

owe

their development

o this type

of

regulation.

5.

Anything whiih

may in any-way

be

transferred

rom

the control

of

one

person

o that

of another and

for which

another

s willing

to give

compeniation,

may be an object

of exchange.

t

is not

restricted

o

goods

andiervices,

but includes

all

kinds

of potential

economic

advantages;

or

instance,

"good will," which exists

only

by custom

or

self-interest

and

cannot

be Jnforced;

n

particular,

however,'it

includes

all manner

of

ad-

vantages,

claims to which

are enforceable

under

some

kind

of order.

Thus"objects

of exchange

are not

necessarily resently

existing

utilities.

Fo.

pr.s"nt prr.por"i,

by

"exchange"

irr

tire broadest

senG

will

be

meant eirery .as" of a formally

voluntary

agreement

involving

the

offer

of any sort

of

present,

continuing,

or

fuiure

utility

in- exchan.ge

or

util-

ities of

"rry

roit offered

in

returi. Thus

it incl"des

-the

turning

over

of

the utility'of goods

or money

in exchange

for the

future

return

of

the

same

kind of

loods.

It also

ncludes

anylort

of..permission

or,

or,

oler-

ance

of, the ule

of an

object

n return

for

"rent"

or

"hire,"

or the

hiring

of any

kind of services

or wages

or

salary.

The

fact

that

the

last

exam-

pl"

tJd"y

involves,

from

a

soclological

point

of

view,

the

subjection

of

ih"

"*oik"r," as defined

in sec.

t b"lo*,

under

a form

of domination

will,

for preliminary

purposes,

be

neglected,

as will

the

distinction

be-

tween

oan and

purchase.

6. The

.ond^itior,,

of exchange

may

be traditional,

partly

traditional

though

enforced

by

conventio.t,"or

ratiotal.

Examples

of.

conventional

exchinges

are

exchanges

f

gifts

betwee-n

riends,

heroes,

hiefs,

princes;

as, or instance, he eichange of armor between Diomedesand Glaucos.

It

is not uncommon

for

th"ese

o be

rationally

oriented

and

controlled

to

a

high degree,

as

can

be seen

in the

Tell-el-Amama

documents.

Rationai

exchi.rge

is only possible

when

both parties-

exPect

to

profit

from

it, or when"

one

is

under

compulsion

because

of

his own

need

or

the

other's economic

power.

Exchange

may

serve

either p-urposes

of

consumption

or of

acquisition

(see

below,

sec.

Il).

It

may thus

be ori-

ented

t6

provision

foi

the

personal

use

of the

actor

or

to opportunities

for

profit.

In the

first case,

ts

conditions

are to a

large

extent

differenti-

ated

from

case o

case,

and

it is

in this

sense

rrational.

Thus,

for

in-

stance,

household

surpluses

will

be valued

according

to

the

individual

marginal

utilities

of

the

particular

}o"sehold

economy

""-d

P"y

on

oc-

casiJn be sold

very

cheaply,

and

the

fortuitous

desires

of

the moment

may establish the-marginal utility of goods which are sought in ex-


12/12

7 4

socrolocrcAl cATEcoRTES

F

EcoNoMrc AcTroN

lck.

II

change at a

very

high level.

Thus

the

exchange

ratios,

as determined by

marginal

utility, will fluctuate

widely.

Rational

competition develops

only in the caseof "marketable goods" (see sec. 8) and, to the highest

degree,when

goods

are

used

and sold n a

profit system

see

sec.

r) .

7.

The modes of intervention

of a

regulatory

system mentioned above

under

point

(4)

are not the only

possible

ones,but merely those which

are

relevant

here because

hey

are the most immediate consequences

of

a tightening of the supply basis.

The

regulation

of marketing

processes

will be

discussed elow.

5.

Types of EconornicOrganizations

According to

its

relation

to the economic svstem, an economically

oriented organization may be:

(a)

an

"economically

active organization"

(wirtschaftender Verband) if the primarily non-economic organized ac-

tion

oriented to its order

includes

economic

action;

(b)

an

"economic

organization"

(Wirtschaftsverband)

if its

organized acdon, as

governed

by the order, is

primarily

autocephalous economic action of a

given

kind;

(c)

an

"economically

regulative

organization"

(wirtschaftsregulierender

Verband)

if

the autocephalous economic activity of the

members is

directly oriented to the order

governing

the

group;

that is,

if

economic

action is heteronomous in that respect;

(d)

an

"organization

enforcing

a formal order"

(Ordnungsverband)n

if its order merely

guarantees,

by

means

of formal rules, the autocephalous and autonomous economic

activities of its members

and

the

corresponding economic

advantages hus

acquired.

L

The state, except for the socialistic

or

communist

type, and all

other

organizations ike churches

and voluntary associationsare econom-

ically

active

groups if they manage their own financial

affairs. This

is

also true

of educational nstitutions

and all other organizationswhich

are not

primarily economic.

z. In

the

category

of

"economic

organizations" in

the

present

sense

are included not

only business

corporations,

co-operative

associations,

cartels,

partnerships,and so on, but all

permanent

economic establish-

ments

(Betriebe)

which involve

the activities of a

plurality

of persons,

all

the

way

from

a workshop run

by two artisans to a conceivable commu-

nistic

organization of

the whole world.

3.

"Economically

regulative

organizations"

are the following:

medi

eval

village associations,

guilds,

trade

unions, employers'

associations,

cartels,

and all other

groups,

the directing authorities of which carry

on an

"economic

policy"

which seeks o regulate

both the ends and the

procedures of economic

activity. It thus includes the villages and towns

of the Middle Ages,

just

as much as

a

modern

state which follows such

a

policv.

- 1

) l

o

a

f

w

m

a

p

m

l

a

m

t

c

a

d

i

a

b

m

o

m

N

s

i

s

o

b

o

c

a

b

e

l

g

exc

tha

zon

acc

Date post:	02-Jun-2018
Category:	Documents
Upload:	anca-saghin
View:	216 times
Download:	0 times

1.2. Max Weber_The Economic Action

Documents