I missed a thing or two in my last post about Distributism, in order to conclude on a hard hit. I’ll sum the whole issue up in a few words, even though in my experience that’s the least effective way to make yourself clear; I have no idea why, since most of the time I wish long explanations were so condensed. To each his own, I suppose. Here’s the few words: The efficiency advantages of the giant corporations, and thus, their “natural” place in the market, is a false generalization. The reason for this is that the actual production methods that benefit from scale are relatively few, compared to those which only benefit from scale through regulatory and tax advantages. As a consequence, many, many huge organizations are really wasteful superstructure attached to a relatively small core of productive activity.
We are familiar to the comparisons between Distributist production and Capitalist production; the dozens of workshops versus the singular factory, the kitchen of every home versus the commercial kitchen, the five hundred farms of three acres each versus the single farm of fifteen hundred. But what if these aren’t the things we should be comparing? When we compare workshops and factories, we are not, almost by definition, comparing complete enterprises. We are comparing the productive cores of two enterprises, which is a very different thing when you consider the resources which are consumed in the other activities of the firm that owns that factory. Narrowing one’s focus to look exclusively at one of GM’s factories is to look exclusively at the most efficient part of the operation, and to disregard major forms of inefficiency, even those inherent even to the factory itself. Continue reading