ABSTRACT
The place of Thorstein Veblen in the history of economic thought is similar to that of Karl Marx, Werner Sombart, and Max Weber. Veblen seemed never to tire of asserting the scientifically objective character of his inquiry; and admiring students of his work, taking his Olympian aloofness at face value, would perhaps deny that he had a philosophy of history or a theory of social reform. His analysis of the phenomenon of capitalism was not entirely confined to a psychological exposition of what he considered to be the motivating principles and habits of the enterprise system. Veblen seldom used the term capitalism or capitalist system. His criterion of productivity is of course mechanical efficiency or tangible performance. His theory of social habits rests upon a rather arbitrary determination and classification of instincts. In Veblen's conception classical and neoclassical theory is concerned only with questions relating to pecuniary transactions.
