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Veblen identified two theories of wealth generation. His narrow theory was based on the industry-business dichotomy and the instincts of workmanship and pecuniary interests, while the general theory was based on a theory of positive versus negative instincts or influences. In his general theory, the positive instincts include workmanship, parental ability, and idle curiosity, which promote community and social wealth or welfare. The negative instincts or influences of pecuniary interests, emulation, and predation, on the other hand, destroy aspects of the cultural fabric and promote individualism. When the negative influences dominate over the positive instincts, the economy is at risk for depression and social dislocation. When the positive instincts dominate the negative ones, socioeconomic progress is in order, and the community is developing in a communicative and integrative fashion. And when there is some degree of relative balance between the two instincts or interests, a moderate degree of social development is in process.<ref>Phillip A. O'Hara, "Thorstein Veblen's Theory of Collective Social Wealth, Instincts and Property Relations." ''History of Economic Ideas'' 1999 7(3): 153-179. Issn: 1122-8792</ref>

Veblen identified two theories of wealth generation. His narrow theory was based on the industry-business dichotomy and the instincts of workmanship and pecuniary interests, while the general theory was based on a theory of positive versus negative instincts or influences. In his general theory, the positive instincts include workmanship, parental ability, and idle curiosity, which promote community and social wealth or welfare. The negative instincts or influences of pecuniary interests, emulation, and predation, on the other hand, destroy aspects of the cultural fabric and promote individualism. When the negative influences dominate over the positive instincts, the economy is at risk for depression and social dislocation. When the positive instincts dominate the negative ones, socioeconomic progress is in order, and the community is developing in a communicative and integrative fashion. And when there is some degree of relative balance between the two instincts or interests, a moderate degree of social development is in process.<ref>Phillip A. O'Hara, "Thorstein Veblen's Theory of Collective Social Wealth, Instincts and Property Relations." ''History of Economic Ideas'' 1999 7(3): 153-179. Issn: 1122-8792</ref>

In Veblen's worldview, both private property and the nation-state were institutions that not only obstructed technological advance but in modern times also threatened mankind with reversion to a second Dark Ages. Veblen was a socialist in believing that a modern industrial economy requires unified, public control. But his skepticism of political authority made him more of an anarchist who rejected notionof of party discipline.

In Veblen's worldview, both private property and the nation-state were institutions that not only obstructed technological advance but in modern times also threatened mankind with reversion to a second Dark Ages. Veblen was a socialist in believing that a modern industrial economy requires unified, public control. But his skepticism of political authority made him more of an anarchist who rejected notionof of party discipline.

==Criticism==

==Criticism==

John Flynn, a critic of the New Deal, commented on Veblen, whom he describes as a "ribald and lawless iconoclast," and the inspiration Veblen had on many [[New Deal]] Brain Trusters:

John Flynn, a critic of the New Deal, commented on Veblen, whom he describes as a "ribald and lawless iconoclast," and the inspiration Veblen had on many [[New Deal]] Brain Trusters:

{{Cquote|Veblen, like so many of his kind, was an unpleasant fellow. He was born in Minnesota in 1857 and went to a small western college where he got himself disliked for his incredible bad manners. From there he took his sneering mind to Johns Hopkins where he hoped to get a scholarship and where, in addition to failing in that, he involved himself in debt from a good deal of promiscuous borrowing. After a period at Yale he went back home where he lay around for several years exploiting a fake illness. Then he married a young lady of wealth and treated himself to many years of idleness. Like [[Marx]] and some other such philosophers he proceeded on the theory that the world owed him a living. At the end of this series of easy sabbaticals he decided to return to college at the age of 34. His wife, of course, eventually left him.  

{{Cquote|Veblen, like so many of his kind, was an unpleasant fellow. He was born in Minnesota in 1857 and went to a small western college where he got himself disliked for his incredible bad manners. From there he took his sneering mind to Johns Hopkins where he hoped to get a scholarship and where, in addition to failing in that, he involved himself in debt from a good deal of promiscuous borrowing. After a period at Yale he went back home where he lay around for several years exploiting a fake illness. Then he married a young lady of wealth and treated himself to many years of idleness. Like [[Marx]] and some other such philosophers he proceeded on the theory that the world owed him a living. At the end of this series of easy sabbaticals he decided to return to college at the age of 34. His wife, of course, eventually left him.  

* Wood, John Cunningham, ed. ''Thorstein Veblen: Critical Assessments'' (1991)  [http://books.google.com/books?id=FVSwuB2iPDMC&dq=intitle:veblen&num=30&as_brr=3 excerpts and text search]

* Wood, John Cunningham, ed. ''Thorstein Veblen: Critical Assessments'' (1991)  [http://books.google.com/books?id=FVSwuB2iPDMC&dq=intitle:veblen&num=30&as_brr=3 excerpts and text search]

* Yonay, Yuval P.  ''The Struggle over the Soul of Economics: Institutionalist and Neoclassical Economists in America Between the Wars.'' Princeton U. Press, 1998. 290 pp.   

* Yonay, Yuval P.  ''The Struggle over the Soul of Economics: Institutionalist and Neoclassical Economists in America Between the Wars.'' Princeton U. Press, 1998. 290 pp.   

===By Veblen===

===By Veblen===

* ''Imperial Germany and the Industrial Revolution'' (1918) [http://www.questia.com/PM.qst?a=o&d=3186115 online edition]  

* ''Imperial Germany and the Industrial Revolution'' (1918) [http://www.questia.com/PM.qst?a=o&d=3186115 online edition]  

* ''The Instinct of Workmanship: And the State of the Industrial Arts'' (1922) [http://www.questia.com/PM.qst?a=o&d=101954614 complete text online]  

* ''The Instinct of Workmanship: And the State of the Industrial Arts'' (1922) [http://www.questia.com/PM.qst?a=o&d=101954614 complete text online]  

* ''What Veblen Taught: Selected Writings of Thorstein Veblen'' edited by Wesley C. Mitchell; (1936) [http://www.questia.com/PM.qst?a=o&d=74029292 online edition]  

* ''What Veblen Taught: Selected Writings of Thorstein Veblen'' edited by Wesley C. Mitchell; (1936) [http://www.questia.com/PM.qst?a=o&d=74029292 online edition]

====Notes====

 

<references/>

==References==

 

==External links==

* [https://librivox.org/author/5008 Works by Thorstein Veblen - text and free audio] - [[LibriVox]]

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