ABSTRACT
In 1904, Veblen wrote "A theory of the modern economic situation must be primarily a theory of business traffic, with its motives, aims, methods, and effects." In The Theory of Business Enterprise, published that year, Veblen sought to present such a theory. Mechanization developed first in light industry like textiles, but it followed quickly in heavy industries such as the manufacture of steam engines, locomotives, rails, and other industrial work in iron and steel. If the companies of the second group began integrating backward, or the companies of the first group began integrating forward, there would be a general war within the industry. Court decisions have shown that the law favors the owners; the law as Veblen has emphasized is devoted to the protection of property. The corruption is not confined to industry; business corrupts other portions of the culture as well. In a business culture, business principles must rule, and there is no escape from their corrupting influence.
