On the Darwinian character of Veblen's evolutionary theory of economic institutions
Date
1994
Authors
Wong, Denby
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Thorstein Veblen's theory and process of institutions and institutional change is principally a matter of habituation and, according to Veblen's post-Darwinian standards of science, is primarily concerned with habit formation, consensualization, legitimization, and conservation (reflex social selection) because these events constitute the complete set of transient terms between the initial cause of instinctive human material and the final definitive effect of human culture and society within the context of his cumulative causation. Furthermore, the dynamics of habituation, characterized as self-continuing and self-propagating consecutive change, are derived from the interaction of the heterogeneous structure of consensualized habits of individual members of the community organized on 'ethnic' lines and the homogeneous social structure of the prevalent, legitimized habits of the community as a whole.
The characterization of Veblen's theory on the basis of its parallels with Darwin's theory of natural selection is unnecessarily narrow and misleading. Firstly, Veblen's use of natural selection processes is restricted to examples of the 'primordial' origins of certain instincts. Secondly, t he interaction in the 'schemes' of habits lacks the central operative mechanism of elimination in Darwin 's process. Thirdly, this interaction takes place under the conditions of economic surplus where the influence of material exigencies are muted, but surplus arises only when efficiencies are gained under the action of these material exigencies. This reflexive effect is absent from Darwin's process. Overall, Veblen's references to the biological evolutionary sciences are broad and his usage of theoretical concepts insufficiently concentrated and sustained to serve as a basis of characterization. However, it is argued that Veblen's cumulative causation can be characterized as 'Darwinian' in a methodological sense.