Abstract

The Frankfurt School attacked Veblen ’ s claims regarding machine-induced rationality in industrial societ y. Their criticisms stemmed in part from the fact that Veblen failed to present his ideas systematically in a formal treatise on either economics or sociolog y, and because he did not use concepts or jargon familiar to the critical theorists. This article thus aims at: (1) demonstrating through textual exegesis the meaning of social rationality in the corpus of Veblen ’ s writing, especiall y The Theory of Business Enterprise (1904); (2) elucidating the problems that arose in the Frankfurt School ’ s critique of Veblen because he used nomenclature and conceptualizations unfamiliar to Herbert Marcuse, Theodor Adorno and Max Horkheimer; (3) reiterating Veblen ’ s thesis on the impact of ‘transfer effects’ on workers interacting with the machine process; and (4) outlining the failure of the Frankfurt School adequately to examine his claims in the American political environment in which they were made